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ARTICLE 76

Taxes - Coverage

8-76-101. Payment. (1) Taxes shall accrue and become payable by each employer for each calendar year in which he is subject to articles 70 to 82 of this title with respect to wages for employment. The taxes shall become due and be paid by each employer to the division for the fund in accordance with such regulations as the director of the division may prescribe and shall not be deducted, in whole or in part, from the wages of individuals in such employer's employ.

(2) In the payment of any taxes, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

(3) On and after January 1, 2002, when the quarterly amount of taxes due is less than five dollars, payment of such tax shall not be required.

8-76-102. Rate of tax - surcharge. (1) Each employer shall pay taxes equal to two and seven-tenths percent of taxable wages paid by the employer during each calendar year with respect to employment occurring after June 30, 1941, except as may be otherwise prescribed in section 8-76-103. As used in this section, "taxable wages paid" shall include taxable wages constructively paid as well as taxable wages actually paid.

(2) Each employing unit becoming an employer under the new definition of employer contained in articles 70 to 82 of this title who would not be an employer under the old definition for employer shall be liable for tax only on taxable wages paid subsequent to June 30, 1941, with respect to employment.

(3) (a) Notwithstanding any other provision of law to the contrary, if political subdivisions or their instrumentalities have elected singly, severally, or in toto to become taxpaying employers as permitted by section 8-76-108, such employing units shall pay taxes at the rate of three-tenths of one percent of total wages beginning with the calendar year 1978 and shall continue to pay such rate through December 31, 1979, unless sooner increased or decreased by the division based on benefit cost experience. A political subdivision or its instrumentality which has elected to become a taxpaying employer shall have its account charged with the full amount of all regular and extended benefits that are attributable to service in its employ.

(b) (I) The tax rate for political subdivisions or their instrumentalities shall be examined after July 1, 1978, in conjunction with such employers' benefit experience and may be adjusted for the calendar year 1979 and similarly adjusted for succeeding calendar years on a year-by-year basis as prescribed by section 8-76-103 (3) (b) (I).

(II) The division shall notify all political subdivisions or their instrumentalities, as defined in paragraph (a) of this subsection (3), of the tax rate no later than January 1 of the year for which the rate applies.

(c) Repealed.

(4) (a) Based on the amount of benefits paid and not chargeable to any active employer account prior to each July 1, beginning July 1, 1983, the division shall annually establish a tax, rounded to the nearest one-tenth of one percent. The total amount of benefits not effectively charged shall be divided by the total taxable payroll estimated to be paid by all employers in the ensuing calendar year. The resulting percentage, rounded to the nearest one-tenth of one percent, with fifty percent allocated to the unemployment compensation fund and fifty percent allocated to the employment support fund created under the provisions of section 8-77-109, shall be the surcharge tax rate beginning July 1, 1999. The surcharge tax rate shall then be added to the employer's standard or computed tax rate with eighty percent of the surcharge tax revenues considered as revenues for purposes of calculating the tax surcharge pursuant to this paragraph (a). This tax rate added to the employer tax rate shall also be identified separately on the employer tax rate notice as the tax surcharge for benefits not effectively charged. The combined rate shall be the employer's tax rate for the ensuing calendar year. The division shall use the four quarters most recently available for benefits not effectively charged prior to the computation date used for determinations under section 8-76-103. Since total taxable payroll is estimated and the tax rate rounded, any amount for the benefits not effectively charged and not fully recovered in one year shall be added to the following calendar year's identified amount. Any amount recovered over that amount shall be subtracted from the following calendar year's identified amount. The tax surcharge established by this subsection (4) shall not be assessed against any employer whose benefit-charge account balance is zero, and the estimated taxable payrolls of such employers shall not be included in the calculation of the surcharge tax rate; except that, if the employer is still being rated under the provisions of section 8-76-103 (3) (a), such employer is subject to the surcharge tax rate.

(b) Effective July 1, 1999, and until such time as employers' federal unemployment taxes are returned to the state by the federal government at levels sufficient to permit the effective administration of the provisions of articles 70 to 82 of this title, fifty percent of the surcharge tax established by paragraph (a) of this subsection (4) shall be segregated and deposited in the employment support fund created in section 8-77-109.

(c) Effective January 1, 1998, the tax surcharge established by this subsection (4) shall not be assessed against any employer whose benefit-charge account balance for the last three fiscal years immediately preceding the computation date is less than one hundred dollars.

(d) Effective calendar year 2000, the provisions of paragraph (a) of this subsection (4) regarding annual computation of the surcharge tax rate shall no longer apply and the annual surcharge tax rate shall be established at 0.22 percent, with fifty percent of the surcharge tax rate allocated to the general fund and fifty percent of the surcharge tax rate allocated to the employment support fund created under the provisions of section 8-77-109; except that, beginning July 1, 2004, the amount allocated to the general fund shall be allocated to the unemployment compensation fund. The surcharge tax rate shall then be added to the employer's standard or computed tax rate. This tax rate added to the employer tax rate shall also be identified separately on the employer tax rate notice as the tax surcharge for benefits not effectively charged. The combined rate shall be the employer's tax rate for the ensuing calendar year. The surcharge established by this subsection (4) shall not be assessed against any employer whose benefit-charge account balance is zero; except that, if the employer is still being rated under the provisions of section 8-76-103 (3) (a), such employer is subject to the surcharge tax rate.

(5) (a) (I) A solvency tax surcharge shall be assessed when the fund balance on any June 30 is equal to or less than nine-tenths of one percent of the total wages reported by ratable employers for the calendar year, or the most recent available four consecutive quarters prior to the last computation date. The solvency tax surcharge shall be assessed on all ratable employers beginning with the next calendar year, which shall then be added to the employer's standard or computed tax rate. This tax rate added to the employer's tax rate shall also be identified separately on the employer's tax rate notice as the solvency tax surcharge. The solvency tax surcharge shall be initially assessed and then increased in the yearly increments established by paragraph (b) of this subsection (5) until the June 30 fund balance is greater than the fund level established by this subsection (5) but in no case shall exceed the rate schedule in effect January 1, 1990.

(II) If, on June 30, 2005, the ratio of the fund balance to the total wages reported by ratable employers equals or exceeds that ratio on June 30, 2004, the incremental increase in the solvency tax surcharge established in paragraph (b) of this subsection (5) shall be applied, and an amount equal to the amount of the increase in the surcharge shall be subtracted from the computation of the rated employer's standard or computed rate for the 2006 calendar year.

(III) The solvency tax surcharge shall not be assessed against:

(A) The covered employers of state and local governments;

(B) Nonprofit organizations that are reimbursable employers; or

(C) Political subdivisions electing the special rate.

(b) Solvency tax surcharge-tax rate schedule.

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8-76-103. Future rates based on benefit experience. (1) (a) The division shall maintain a separate account for each employer and shall credit his account with all taxes paid on his own behalf. Nothing in articles 70 to 82 of this title shall be construed to grant any employer or individuals in his service prior claims or rights to the amounts paid by him into the fund either on his own behalf or on behalf of such individuals. Benefits paid to an eligible individual shall be charged, in the amount provided in this section, against the accounts of his employers in the base period in the inverse chronological order in which the employment of such individual occurred. Benefits paid to a seasonal worker during the normal seasonal periods shall be charged against the account of his most recent seasonal employers in the corresponding normal seasonal period of his base period in the inverse chronological order in which the seasonal employment of such individual occurred and prior to the charging of benefits based on nonseasonal employment.

(b) The maximum amount so charged against the experience rating account of any employer shall not exceed one-third of the wages paid to such individual by each such employer for insured work during such individual's base period, but not more per completed calendar quarter or portion thereof than one-third of the maximum wage credits as computed in section 8-73-104. Nothing in sections 8-76-101 to 8-76-104 shall be construed to limit benefits payable pursuant to sections 8-73-101 to 8-73-106. Notwithstanding the provisions of section 8-73-108 and administrative practices which result in fund charging, a reimbursing employer shall bear the cost of all benefits paid to its former employees, with the exception of benefit overpayments. The director of the division, by general rules, shall prescribe the manner in which benefits shall be charged against the accounts of several employers for whom an individual performed employment at the same time.

(c) This subsection (1) shall become effective July 1, 1963, and the provisions hereof respecting determination of weekly benefit amounts and duration of benefits shall apply only to benefit years commencing on or after July 1, 1963. Benefits for individuals whose current benefit year has not expired on July 1, 1963, shall be completed in accordance with the provisions in effect at the time said benefit year began.

(2) Repealed.

(3) (a) (I) The standard rate of taxes shall be one and seven tenths percent. Employer tax rates for employers newly subject to articles 70 to 82 of this title on or after July 1, 1997, shall be determined each year as of the computation date in accordance with the provisions of subparagraph (II) of paragraph (b) of this subsection (3). Such new employers shall pay tax at the standard rate or at the computed rate, whichever is higher, unless and until there have been twelve consecutive calendar months immediately preceding the computation date throughout which an employer's account has been chargeable with benefit payments.

(II) An employer who elects reimbursement under sections 8-76-108 to 8-76-110 is exempt from this section.

(III) (A) to (D) Repealed.

(E) On and after January 1, 2002, those employers newly subject to articles 70 to 82 of this title and assigned the three-digit North American industry classification codes 236, 237, or 238 for the construction industry, unless and until there have been thirty-six consecutive calendar months immediately preceding the computation date, shall pay taxes at the standard rate, at the actual experience rate, or at a rate equal to the average industry tax rate as determined by the division, whichever is greater.

(F) On and after January 1, 2002, for purposes of this subsection (3), assignment by the division of employment and training of industrial classifications to employers pursuant to sub-subparagraph (E) of this subparagraph (III) shall be in accordance with procedures and guidelines of the bureau of labor statistics of the United States department of labor and shall be to the appropriate three-digit subsector level found in the North American industry classification system manual issued by the office of management and budget.

(G) On and after January 1, 2002, for purposes of this subsection (3), "average industry tax rate" means the average tax rate of all employers assigned the same three-digit North American industry classification code pursuant to sub-subparagraph (E) of this subparagraph (III). Such rate shall be computed annually by the division using the latest available data as of the computation date.

(H) Sub-subparagraphs (A), (B), (C), and (D) of this subparagraph (III) are repealed, effective January 1, 2005.

(IV) An "employer newly subject", as used in this article, means an employer who has never, at any time, been an employer under any provision of articles 70 to 82 of this title or an employer who has lost his prior experience under subsection (6) of this section, or an employer who, under the provisions of section 8-76-110 (2) (e), terminates his election to make payments in lieu of taxes or whose election to make payments in lieu of taxes has been terminated by the division under the authority of section 8-76-110 (4) (e) or (4) (f).

(V) and (VI) Repealed.

(b) (I) Effective October 1, 1983, each employer's rate for the twelve months commencing January 1 of any calendar year shall be determined on the basis of his record prior to the computation date for such year. The computation date for any calendar year shall be July 1 of the year next preceding such calendar year.

(II) (A) The total of all an employer's taxes paid on his own behalf on or before thirty-one days immediately after the computation date and the total benefits which were chargeable to his account and were paid before the computation date, with respect to weeks, or any established payroll period of unemployment, beginning prior to the computation date, shall be used to compute his tax rate for the ensuing calendar year in accordance with the table set forth in either sub-subparagraph (B) or (C) of this subparagraph (II); except that, for rate year 1984, the negative excess employer rate schedule shall be effective for a maximum of .045 for employers with a negative excess of minus seventeen percent or more, and for rate years 1985 and thereafter, the maximum rate for negative excess employers shall be .054 as shown in the table set forth in sub-subparagraph (C) of this subparagraph (II). "Percent of excess", in both said tables, means the percentage resulting from dividing the excess of taxes paid over benefits charged by the average taxable payroll, computed to the nearest one percent. The word "to" in the column headings which make reference to fund balances (resources available for benefits) means "not including".

(B)

TAX RATE SCHEDULE - POSITIVE EXCESS EMPLOYERS

(C)

TAX RATE SCHEDULE - NEGATIVE EXCESS EMPLOYERS

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(III) Only those wages paid for covered employment that occurred prior to the computation date and reported to the division on or before thirty-one days immediately following the computation date will be used to determine the experience rate effective for the next calendar year.

(IV) Whenever an employer subject to the provisions of articles 70 to 82 of this title acquires, prior to the computation date and pursuant to section 8-76-104, all or a segregable portion of the organization, trade, and business or substantially all of the assets of an employer who was subject to the provisions of articles 70 to 82 of this title at the time of such acquisition, and such successor submitted in writing that he met the conditions set forth in section 8-76-104, a total or partial transfer of the experience rating record of the predecessor employer shall be made as provided in section 8-76-104. No merger of such accounts for experience rating purposes will be made for the rate effective the next calendar year unless such information is submitted to the division on or before sixty days following the computation date.

(V) When the fund level on July 1 of any year reaches one and six-tenths percent of the total wages the director of the division of employment and training shall recommend to legislative council a proposed tax rate decrease.

(c) If the federal unemployment tax rate is reduced below three percent, the maximum rate listed in the table shall not exceed ninety percent of the reduced federal unemployment tax rate.

(d) Notwithstanding any provisions to the contrary, any employer, at any time prior to March 15 of any year, may pay voluntary taxes in addition to the taxes provided under articles 70 to 82 of this title, which taxes shall be credited to the employer's account and be used in determining said employer's rate for the current calendar year and subsequent calendar years; except that, if an employer is delinquent in the payment of any taxes due, the voluntary tax payments shall be reduced by the total amount of delinquent taxes before such computation is made. No voluntary taxes paid pursuant to this paragraph (d) shall be refunded or applied to future tax liability.

(e) As used in sections 8-76-101 to 8-76-104, for the purpose of computing the tax rate of any employer, the term "annual payroll" means the total amount of wages for employment paid by an employer during the twelve-month period ending on June 30. The term "average taxable payroll" means the average of the taxable payrolls for the last three fiscal years ending on June 30. For any employer who has not reported payrolls to the division for thirty-six consecutive months ending on June 30, the division shall compute the average taxable payroll by dividing the total taxable payrolls of the employer during the three fiscal years ending on June 30 by the total months during which such wages were paid and multiplying the amount so determined by twelve.

(4) An employer shall have sixty calendar days from the mailing date or the transmission date as recorded by the division of a quarterly statement of benefits charged to the employer's account in which to file a written protest or application requesting a review and determination of benefit charges. Such application shall specify in detail the grounds upon which such employer relies and may be filed in person, by mail, or by electronic means in accordance with such rules as the director of the division may promulgate. The division shall investigate the matters specified and give such employer notice of its redetermination by mail or by electronic means. If the employer fails to act within the prescribed time, benefits charged to such account shall be deemed correct and final. Appeal from the redetermination decision may be made pursuant to section 8-76-113 (2).

(5) The division shall notify each employer, as nearly as possible prior to the date upon which any taxes for each calendar year become due, of his rate of tax as determined for such calendar year pursuant to sections 8-76-101 to 8-76-104. The notification shall include the amount determined as the employer's average annual payroll, the total of all his taxes paid on his own behalf and credited to his account for all past years, and the total benefits charged to his account for all such years.

(6) Whenever there has been a period of five consecutive calendar years during which there were no taxable wages paid for services considered employment under the provisions of articles 70 to 82 of this title, any balance shown in the employer's account will not be transferred nor be used for tax rating purposes if such employer again becomes liable under articles 70 to 82 of this title.

(7) (a) Subject to the conditions stated in paragraph (b) of this subsection (7), an employer shall be eligible for a credit of twenty percent against taxes otherwise due under section 8-76-102 (3) and subsection (3) of this section. For purposes of computing an employer's future rates, any tax credit claimed by the employer under this subsection (7) shall be disregarded, and the taxes that would otherwise have been due shall be deemed paid.

(b) An employer shall not receive tax credits under this subsection (7) unless all of the following conditions are met:

(I) As of the most recent computation date, the employer has filed all required reports and paid all taxes due under articles 70 to 82 of this title;

(II) The employer is not a negative excess employer assigned the maximum tax rate under sub-subparagraph (C) of subparagraph (II) of paragraph (b) of subsection (3) of this section;

(III) The employer has not elected to make reimbursement payments in lieu of taxes; and

(IV) As of the computation date immediately preceding the calendar year for which the credit is to be taken, the unexpended and unencumbered balance in the unemployment compensation fund, created in section 8-77-101 (1), equaled or exceeded one and one-tenth percent of the total amount of insured wages paid in Colorado during the calendar year immediately preceding the computation date.

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8-76-104. Transfer of experience - assignment of rates - definitions. (1) (a) An employing unit, as defined in section 8-70-113 (1) (f), that becomes an employer because it acquires all of the organization, trade, or business or substantially all of the assets of one or more employers subject to articles 70 to 82 of this title shall succeed to the entire experience rating record of the predecessor employer, and the entire separate account, including the actual taxes, benefits, and payroll experience of the predecessor employer, shall pass to the successor for the purpose of determining the rate of taxes for the successor.

(b) If the successor was not an employer prior to the date of acquisition, the successor's rate shall be the rate applicable to the predecessor employer in the period immediately preceding the date of acquisition if there was only one predecessor or if there were multiple predecessors with identical rates. If there were multiple predecessor employers with rates that were not identical, the successor's rate shall be the highest rate applicable to any of the predecessor employers in the period immediately preceding the date of acquisition.

(c) If, at the time of transfer, a person who is not an employer under this section acquires the trade or business of an employer and the division finds that the successor acquired the trade or business solely or primarily for the purpose of obtaining a lower rate of contributions, the unemployment experience of the predecessor employer shall not be transferred to the successor and the division shall assign the successor the applicable new employer rate determined pursuant to section 8-76-103 (3).

(2) (a) Notwithstanding any other provision of sections 8-76-101 to 8-76-104, if the successor employer was an employer subject to articles 70 to 82 of this title prior to the date of acquisition and, at the time of the transfer, there is no substantial common ownership, management, or control of the two employers, the successor's rate of tax for the remainder of the calendar year shall be the same as the successor's rate in the period immediately preceding the date of acquisition.

(b) If an employer transfers all or a portion of its trade or business to another employer and, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, the unemployment experience attributable to the predecessor employer shall be transferred to the successor employer. The rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of the trade or business. If, following a transfer experience, the division determines that the purpose of the transfer of the trade or business was solely or primarily to obtain a reduced liability for contributions, the division shall combine the experience rating accounts of the employers into a single account and shall assign a single rate to the account.

(c) If an employer transfers all or a portion of its trade or business to another employer and the division finds that the successor acquired the trade or business solely or primarily for the purpose of obtaining a lower rate of contributions, the experience and reserve account attributable to the predecessor employer shall not be transferred to the successor employer and shall revert to the predecessor employer.

(3) (a) Whenever an employer in any manner transfers a clearly segregable unit of the employer's business for which the predecessor employer has maintained, in such form as to be separable, continuous records of wages, taxes, and benefits paid on account of the segregable unit, the predecessor employer and successor employer may jointly request that the division transfer a proportionate share of tax, benefit, and payroll experience attributable to the unit based on the ratio of the taxable payrolls paid during the twelve calendar quarters immediately preceding the computation date of the segregable unit to the total employer account prior to the notice to the division of the transfer. A transfer of experience may not be made under this subsection (3) unless the segregable unit has fourteen consecutive quarters of payroll immediately preceding the computation date. If, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, the unemployment experience attributable to the predecessor employer shall be transferred to the successor employer. The rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of the trade or business.

(b) The division may transfer the experience and perform all other acts required by this subsection (3). The proportionate share of the predecessor employer's reserve account attributable to the transferred unit shall pass to the successor employer.

(c) The experience rate established for the predecessor employer for all units of the business shall continue in effect for the remainder of the calendar year in which the transfer is made, and, for succeeding calendar years, it shall be computed on the experience of those units retained.

(d) If the successor was an employer prior to the effective date of the transfer, the experience rate for the calendar year in which the transfer is made shall be the same as that previously established without reference to the acquired segregable unit, and, for succeeding calendar years, it shall be computed on the combined experience of all units of the successor's business.

(e) If the successor was not an employer prior to the effective date of transfer and two or more segregable units are simultaneously transferred to the successor by a single employer, the successor's tax rate shall be computed from the combined tax, benefit, and payroll experience of the units.

(f) If the successor was not an employer prior to the effective date of transfer and two or more segregable units are simultaneously transferred to the successor by different employers, the successor's tax rate shall be the highest rate applicable to any of the units unless the rates with respect to the transferred units are identical.

(g) The transfer of experience with respect to a segregable unit shall be of no force and effect unless an application for the transfer, signed by both the predecessor employer and the successor employer, is filed with the division in the form and manner prescribed by the director by rule. The application shall be filed within sixty days after the notice of employer liability from the division is mailed or transmitted by electronic means to the successor employer. The notice shall contain information pertaining to segregable unit transfers.

(h) Whenever a predecessor employer and a successor employer jointly request that the division transfer the proportionate share of tax, benefit, and payroll experience attributable to a clearly segregable unit to the successor employer, the predecessor employer shall furnish to the division any information requested by the division for such purpose.

(4) (a) In determining whether the trade or business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the division shall use objective factors that may include, without limitation, the cost of acquiring the trade or business, whether and for how long the successor continued the business enterprise of the acquired trade or business, and whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to the acquisition.

(b) The division may void a rate determination if it finds that a successor has no business existence separate and apart from the predecessor and should not have been established as a separate employer for unemployment compensation purposes. Under the circumstances described in this paragraph (b), the experience and reserve account attributable to the predecessor employer shall not be transferred to the successor employer and shall revert to the predecessor employer.

(5) When determining whether one or more employers have common ownership, management, or control, the division may consider factors such as stock ownership, officers, employees, payroll systems, and common business interests.

(6) The division shall establish procedures to identify the transfer or acquisition of a business or trade for purposes of this section.

(7) Notwithstanding any provision of section 8-70-113 to the contrary, any subject employer whose entire reserve account has been transferred to a successor employer, as provided in subsection (1) of this section, shall immediately cease to be a subject employer and shall thereafter become a subject employer only upon any future employment experience.

(8) A transfer of experience shall not occur when a work-site employer's account is made inactive as a result of entering into a contract with an employee leasing company, as defined in section 8-70-114 (2), or when a contract between a work-site employer and an employee leasing company is terminated unless there is substantial common ownership, management, and control of the work-site employer and the employee leasing company. The existence of an employee leasing arrangement, without other evidence of common control, shall not constitute substantial common ownership, management, and control.

(9) When any part of the predecessor employer's trade or business utilizes the services of ninety percent or more of the total number of employees in covered employment on the payroll for each of the four pay periods immediately preceding the transfer to a successor employer, the entire separate account, including the actual tax, benefit, and payroll experience of the predecessor employer, shall pass to the successor employer for the purpose of the rate of computation of the successor.

(10) (a) If a person knowingly violates or attempts to violate any provision of this section in order to obtain a lower contribution rate, the person shall pay all owed taxes with applicable penalties and interest and may be subject to the penalties set forth in paragraph (c) of this subsection (10).

(b) If a person knowingly advises another person in a way that results in a violation of paragraph (a) of this subsection (10), the person may be subject to the penalties set forth in paragraph (c) of this subsection (10).

(c) If the person who violates this section as described in paragraph (a) or (b) of this subsection (10) is an employer, the division may assign the employer the highest contribution rate assignable under this article for the rate year during which the violation or attempted violation occurred and the next three years. If, during the rate year in which a violation occurs, the subject employer was assigned the highest contribution rate, or the amount of the rate increase would be less than two and seven-tenths percent for the rate year, the division may impose a penalty contribution rate of two and seven-tenths percent of taxable wages for that rate year and the next three years. If the person is not an employer, the person may be subject to a civil fine of not more than five thousand dollars, which shall be deposited in the unemployment revenue fund created in section 8-77-106.

(d) In addition to any penalty imposed pursuant to paragraphs (a), (b), and (c) of this subsection (10), any violation of this section may be prosecuted as a class 1 misdemeanor pursuant to section 18-1.3-501, C.R.S.

(11) As used in this section, unless the context otherwise requires:

(a) "Knowingly" or "willfully" means being aware that one's conduct is practically certain to cause the result or having reckless disregard for the prohibition involved.

(b) "Person" means any individual, trust, estate, partnership, association, company, corporation, joint venture, limited liability company, or other legal or commercial entity.

(c) "Trade" or "business" includes an employer's work force.

(d) "Violates or attempts to violate" includes, but is not limited to, intent to evade, misrepresentation, or willful nondisclosure.

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8-76-105. Period of employer's coverage. (1) Any employing unit which is or becomes an employer subject to articles 70 to 82 of this title within any calendar year shall be deemed to be an employer during the whole of such calendar year.

(2) No employing unit shall be deemed to be an employer liable under articles 70 to 82 of this title for any period prior to five calendar years immediately preceding the calendar year in which the division determines the employing unit to be an employer as defined in section 8-70-103.

8-76-106. Termination of employer liability. (1) An employing unit shall cease to be an employer subject to articles 70 to 82 of this title only as of the first day of any calendar year, only if, not later than the last day of February of such year, it has filed with the division a written application for termination of coverage as an employer as of the first day of January, and the division finds that during the preceding calendar year:

(a) Such employing unit was not an employer as defined in the introductory portion to section 8-70-113 (1) and section 8-70-113 (1) (g);

(b) Such employing unit was not liable by having elected to become liable during such year; or

(c) Such employing unit did first become liable under and by virtue of section 8-76-104 and was not liable under the introductory portion to section 8-70-113 (1) and section 8-70-113 (1) (g) or section 8-76-107.

(2) Any employer who does not employ any individual whose services are considered in employment at any time in this state for a period of one calendar year shall cease to be an employer subject to articles 70 to 82 of this title as of the thirty-first day of December of such calendar year.

(3) Any employing unit which became liable during any calendar year preceding the calendar year in which its liability by virtue of the introductory portion to section 8-70-113 (1) and section 8-70-113 (1) (g) was determined may terminate coverage effective as of the end of the first year during which such employing unit was not an employer by virtue of the introductory portion to section 8-70-113 (1) and section 8-70-113 (1) (g) if such year was prior to the date the determination was made by the division, by filing a written application to terminate coverage as an employer within thirty days of the date of such determination.

(4) For the purposes of this section, written applications shall be filed in such form and manner as the director of the division may prescribe by rule, including in person, by mail, by telephone, or by electronic means.

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8-76-107. Election to become liable. (1) An employing unit, not otherwise subject to articles 70 to 82 of this title, which files with the division its written election to become an employer subject hereto for not less than two calendar years, with the written approval of such election by the division, shall become an employer subject hereto to the same extent as all other employers, as of the date stated in such approval, and shall cease to be subject hereto as of January first of any calendar year subsequent to such two calendar years, only if such employing unit has filed with the division a written application for termination as provided in subsection (2) of this section.

(2) Any employing unit for which services that do not constitute employment are performed may file with the division a written election that all such services performed by individuals in its employ in one or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of articles 70 to 82 of this title for not less than two calendar years. Upon the written approval of such election by the division, such services shall be deemed to constitute employment subject to articles 70 to 82 of this title from and after the date stated in such approval. Such services shall cease to be deemed employment subject hereto as of January 1 of any calendar year subsequent to such two calendar years, only if such employing unit has filed with the division a written application for termination as provided in this section.

(3) For the purposes of this section, written applications shall be filed in such form and manner as the director of the division may prescribe by rule, including in person, by mail, by telephone, or by electronic means.

8-76-108. Coverage by political subdivisions. (1) (a) After December 31, 1977, political subdivisions shall become covered employers if employees employed by such political subdivisions perform services in employment as defined by section 8-70-119. Such political subdivisions may elect to pay taxes in lieu of reimbursements. Any political subdivision which makes reimbursement shall not be liable to make such payments with respect to the benefits paid to any individual whose base period wages include wages for previously uncovered services as defined in section 8-70-141 (1) (d) to the extent that the unemployment compensation fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566.

(b) Repealed.

(c) The amounts required to be paid in lieu of taxes by any political subdivision under this section shall be billed and payment made as provided in section 8-76-110 (3) with respect to similar payments by nonprofit organizations.

(d) An election by a contributing political subdivision to become a reimbursing employer or an election by a reimbursing political subdivision to become a contributing employer may be made by filing with the division written notice, in such form and manner as the director of the division may prescribe by rule, not later than March 1 of the calendar year in which the election is to be effective. Such election becomes effective as of the first day of the calendar year with respect to services performed after that date. Notwithstanding the effective date of any election, the political subdivision remains liable for all benefits chargeable against its account that it has not paid.

(e) Political subdivisions or their instrumentalities which are liable for payments in lieu of taxes shall pay to the division for the unemployment compensation fund the amount of regular benefits plus the amount of one-half of extended benefits paid through December 31, 1978, and the full amount of all regular and extended benefits paid beginning January 1, 1979, that are attributable to service in their employ. Political subdivisions or their instrumentalities which have elected to pay taxes as permitted by this section shall have their accounts charged with the full amount of all regular and extended benefits that are attributable to service in their employ.

(f) Any extension of unemployment insurance coverage to political subdivisions mandated by Public Law 94-566 shall again become optional in the event such mandatory coverage is declared unconstitutional or null and void by the supreme court of the United States or is repealed by an act of congress.

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8-76-109. Payments in lieu of taxes by state hospitals and state institutions of higher education. State hospitals and state institutions of higher education as defined in section 8-70-103 (14) and (15) may elect to make reimbursements in lieu of taxes as provided for nonprofit organizations in section 8-76-110 (1) to (3) and (5).

8-76-110. Financing benefits paid to employees of nonprofit organizations. (1) Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization or group of organizations described in section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, which are exempt from income tax under section 501 (a) of such code.

(2) Liability for taxes and election of reimbursement. (a) Any nonprofit organization which, pursuant to section 8-70-113 (1) (c), is or becomes subject to articles 70 to 82 of this title on or after January 1, 1972, shall pay taxes under the provisions of section 8-76-101, unless it elects, in accordance with this subsection (2), to pay to the division for the unemployment compensation fund an amount equal to the amount of regular benefits and one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.

(b) Any nonprofit organization which is or becomes subject to articles 70 to 82 of this title on January 1, 1972, may elect to become liable for payments in lieu of taxes for a period of not less than one taxable year beginning with January 1, 1972, if it files with the division a written notice of its election within the thirty-day period immediately following such date.

(c) Any nonprofit organization which becomes subject to articles 70 to 82 of this title after January 1, 1972, may elect to become liable for payments in lieu of taxes for a period of not less than the taxable calendar year within which such subjection begins by filing a written notice of its election with the division not later than thirty days immediately following the date of the determination of such subjection. Any nonprofit organization which elects to make payments in lieu of taxes into the unemployment compensation fund as provided in this paragraph (c) shall not be liable to make such payments with respect to the benefits paid to any individual whose base period wages include wages for previously uncovered services as defined in section 8-70-141 (1) (d) to the extent that the unemployment compensation fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566.

(d) Any organization described in section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, which is exempt from income tax under section 501 (a) of such code and which was liable under the provisions of the "Colorado Employment Security Act", articles 70 to 82 of this title, prior to January 1, 1972, may elect to become liable for payments in lieu of taxes for a period of not less than eighteen calendar months beginning July 1, 1971, by filing a written notice of election with the division not later than thirty days immediately following July 1, 1971; otherwise, said employer may elect to become liable for payments in lieu of taxes for a period of not less than one calendar year beginning on or after January 1, 1972, if written notice of such election is filed with the division within thirty days after January 1, 1972.

(e) Any nonprofit organization which makes an election in accordance with paragraph (b), (c), or (d) of this subsection (2) will continue to be liable for payments in lieu of taxes until it files with the division a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination is first effective.

(f) Any nonprofit organization which has been paying taxes under articles 70 to 82 of this title for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the division not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of taxes. Such election shall not be terminable by the organization for that and the next year. Any organization making such an election remains liable for the payment of all charges to its account and all taxes due the division, and past due taxes are subject to all interest and penalties as provided in articles 70 to 82 of this title.

(g) The division may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not with respect to benefits paid any earlier than January 1, 1970.

(h) The division, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of the status of the organization as an employer and of the effective date of any election and of any termination of such election.

(i) Notwithstanding any other provisions of articles 70 to 82 of this title, any nonprofit organization which, prior to January 1, 1969, paid taxes required by articles 70 to 82 of this title and which elects, pursuant to paragraph (d) of this subsection (2), to make payments in lieu of taxes shall not be required to make any such payment on account of any regular or extended benefits paid and attributable to wages paid for service performed in its employ for weeks of unemployment which begin on or after the effective date of such election until the total amount of such benefits equals the amount by which the taxes paid by such organization with respect to a period before such election exceed benefits paid for the same period and charged to the experience rating account of such organization, as of the effective date of such election.

(3) Reimbursement payments. (a) Payments in lieu of taxes shall be made in accordance with the provisions of this subsection (3).

(b) At the end of each calendar quarter, the division shall bill each nonprofit organization (or group of such organizations) which has elected to make payments in lieu of taxes for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.

(c) Payment of any bill rendered under paragraph (b) of this subsection (3) shall be made not later than thirty days after such bill was mailed to the last-known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with paragraph (e) of this subsection (3).

(d) Payments made by any nonprofit organization under the provisions of this subsection (3) shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.

(e) The amount due specified in any bill from the division shall be conclusive on the organization unless, not later than fifteen days after the bill was mailed to its last-known address or otherwise delivered to it, the organization files an application for redetermination by the division setting forth the grounds for such application. The division shall promptly review and reconsider the items specified and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed. The amount due on the specified items in such redetermination shall become due and payable not later than thirty days following the date of mailing of the redetermination. All other charges specified on the original bill are due and payable within thirty days as provided by paragraph (c) of this subsection (3).

(f) Past-due payments of amounts in lieu of taxes shall be subject to the same interest and penalties that, pursuant to sections 8-79-101 and 8-79-104, apply to past-due taxes.

(4) Provision of bond or other security. (a) In the discretion of the division, any nonprofit organization which elects to become liable for payments in lieu of taxes shall be required, within fifteen days after the effective date of its election, to execute and file with the division a surety bond approved by the division, or it may elect instead to deposit with the division money or securities. The amount of such bond or deposit shall be determined in accordance with the provisions of this subsection (4).

(b) The amount of bond or deposit required by this subsection (4) shall be equal to three times the sum of the amount of regular benefits plus one-half the extended benefits paid, if any, that are attributable to service in the employ of the nonprofit organization during the previous calendar year or the sum of said payments during the three previous calendar years, whichever is the greater, but shall not exceed three and six-tenths percent nor be less than one-tenth of one percent of the total covered payroll of such organization for the preceding calendar year. If the employer has not been subject to articles 70 to 82 of this title for a sufficient period of time to acquire said three calendar years' experience, then the bond shall be an amount computed by multiplying the total covered payroll for the previous calendar year, or the equivalent thereof, by two and seven-tenths percent. Any organization which, under the provisions of paragraph (i) of subsection (2) of this section, is not required to make payments in lieu of taxes will not be required to file a surety bond or make a surety deposit with the division as provided in this paragraph (b) until such time as said organization is required to make payments in lieu of taxes.

(c) Any bond deposited under this subsection (4) shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the division, at such times as the division may prescribe, but not less frequently than at two-year intervals as long as the organization continues to be liable for payments in lieu of taxes. The division shall require such adjustments to be made in a previously filed bond as it deems appropriate. If the bond is to be increased, the adjusted bond shall be filed by the organization within fifteen days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond to pay the full amount of payments in lieu of taxes when due, together with any applicable interest and penalties provided for in subsection (3) (f) of this section, shall render the surety liable on said bond to the extent of the bond, as though the surety were such organization.

(d) Any deposit of money or securities in accordance with this subsection (4) shall be retained by the division in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as provided in this subsection (4). The division may deduct from the money deposited under this paragraph (d) by a nonprofit organization or sell the securities a nonprofit organization has so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of taxes and any applicable interest and penalties provided for in subsection (3) (f) of this section. The division shall require the organization, within fifteen days following any deduction from a money deposit or sale of deposited securities under the provisions of this paragraph (d), to deposit sufficient additional money or securities to make whole the organization's deposit at the prior level. Any cash remaining from the sale of such securities shall be a part of the organization's escrow account. The division may, at any time, review the adequacy of the deposit made by any organization. If, as a result of such review, the division determines that an adjustment is necessary, it shall require the organization to make additional deposit within fifteen days of written notice of its determination or shall return to it such portion of the deposit as it no longer considers necessary, whichever action is appropriate. Disposition of income from securities held in escrow shall be governed by the applicable provisions of the state law.

(e) If any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this subsection (4), the division may terminate such organization's election to make payments in lieu of taxes, and such termination shall continue for not less than the four-consecutive-calendar-quarter period beginning with the quarter in which such termination becomes effective, but the division may, for good cause, extend the applicable filing, deposit, or adjustment period by not more than fifteen days.

(f) If any nonprofit organization is delinquent in making payments in lieu of taxes as required under subsection (2) of this section, the division may terminate such organization's election to make payments in lieu of taxes as of the beginning of the next taxable year, and such termination shall be effective for that and the next taxable year.

(5) Allocation of benefit costs. (a) A political subdivision which is liable for payments in lieu of taxes shall pay to the division for the unemployment compensation fund the full amount of all regular and extended benefits paid that are attributable to service in the employ of such employer. A nonprofit organization liable for payments in lieu of taxes shall pay to the division for the unemployment compensation fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of taxes, the amount payable to the fund by each employer that is liable for such payments shall be determined in accordance with the provisions of paragraph (b) or (c) of this subsection (5).

(b) If benefits paid to an individual are based on wages paid by one or more employers who are liable for payments in lieu of taxes and on wages paid by one or more employers who are liable for taxes, the amount of benefits payable by each employer who is liable for payments in lieu of taxes shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base period wages paid to the individual by such employer bear to the total base period wages paid to the individual by all of his base period employers.

(c) If benefits paid to an individual are based on wages paid by two or more employers who are liable for payments in lieu of taxes, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base period wages paid to the individual by such employer bear to the total base period wages paid to the individual by all of his base period employers.

(6) Group accounts. Two or more employers who are liable for payments in lieu of taxes, in accordance with the provisions of subsection (2) of this section and sections 8-76-108 and 8-76-109, may file a joint application with the division for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each such application shall identify and authorize a group representative to act as the group's agent for the purposes of this subsection (6). Upon its approval of the application, the division shall establish a group account for such employers effective as of the beginning of the calendar quarter in which it receives the application and shall notify the group's representative of the effective date of the account. Such account shall remain in effect for not less than two years and thereafter until terminated at the discretion of the division or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of taxes with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group. The division shall prescribe such regulations as it deems necessary with respect to applications for establishment, maintenance, and termination of group accounts that are authorized by this subsection (6) for addition of new members to, and withdrawal of active members from, such accounts and for the determination of the amounts that are payable under this subsection (6) by members of the group and the time and manner of such payments.

(7) Repealed.

(8) For the purposes of this section, applications, filings, and notices of election shall be filed in such form and manner as the director of the division may prescribe by rule, including in person, by mail, by telephone, or by electronic means.

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8-76-111. Coverage of state employees. (1) (a) The state of Colorado hereby elects, effective January 1, 1976, with respect to all services performed in the employ of this state or any branch or department thereof or any instrumentality thereof which is not otherwise an employer subject to this title, to become a reimbursing employer subject to this title, and all services performed in the employ of this state or any branch or department or instrumentality thereof shall constitute employment. This election does not apply to political subdivisions of this state.

(b) Repealed.

(2) As used in this section, prior to January 1, 1978, "services performed in the employ of this state" means employment in the state personnel system of this state as defined in section 13 of article XII of the state constitution and article 50 of title 24, C.R.S., regular full-time employment in the legislative branch of this state, and employment in the judicial department of this state; but such employment shall not include employees of the legislative branch who serve only for the period that the general assembly is in session or judges and justices within the judicial department.

(3) Repealed.

(4) The amounts required to be paid in lieu of taxes by the state under this section shall be billed and payment made as provided in section 8-76-110 (3) with respect to similar payments by nonprofit organizations.

(5) Repealed.

(6) This state or any branch or department thereof or any instrumentality thereof shall pay to the division for the unemployment compensation fund the amount of regular benefits plus the amount of one-half of extended benefits paid through December 31, 1978, and the full amount of all regular and extended benefits paid beginning January 1, 1979, that are attributable to service in their employ.

8-76-112. Political subdivisions - security for collection of taxes or reimbursable payments. (1) In the event of default in payment of taxes due or reimbursements of benefit costs, the state treasurer, upon the request of the division, shall set aside state funds otherwise payable to the political subdivision as security to insure payment of the funds due from the political subdivision to the unemployment trust fund.

(2) Funds which may be used for this purpose include any funds in the possession of the state treasurer which are allocated to the political subdivision for any purpose, with the exception of funds earmarked for a specific purpose.

(3) The division may not request the state treasurer to set aside funds to cover obligations of the political subdivision until at least six months have elapsed since the due date for payment of the tax or reimbursable obligation.

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8-76-113. Protest - appeal - filed by an employer. (1) Any employer who wishes to appeal a determination of liability for taxes, a determination of coverage under the provisions of articles 70 to 82 of this title, or a seasonality determination pursuant to section 8-73-106 may file a written notice of appeal with the division in such form and manner as the director of the division may prescribe by rule, including in person, by mail, or by electronic means. Except as otherwise provided by this section, proceedings on appeal shall be governed by the provisions of article 74 of this title. No appeal shall be heard unless the notice of appeal has been received by the division within twenty calendar days after the date the notice of such determination is mailed or transmitted by the division to the employer in accordance with such rules as the director of the division may promulgate.

(2) Any employer who wishes to protest an assessment of taxes, a notice of rate of tax, a recomputation of tax rate, or any notice of correction of any matter set forth in this subsection (2) shall file a request for redetermination with the division, in accordance with rules promulgated by the director of the division. The division shall thereafter promptly notify the employer of its redetermination decision. Any employer who wishes to appeal from a redetermination decision may file a written notice of appeal with the division. Except as otherwise provided by this section, proceedings on appeal shall be governed by the provisions of article 74 of this title. No appeal shall be heard unless notice of appeal has been received by the division within twenty calendar days after the date the notice of such redetermination is mailed or transmitted by the division to the employer in accordance with such rules as the director of the division may promulgate.

(3) Any determination or redetermination from which appeal may be taken pursuant to subsection (1) or (2) of this section shall be final and binding upon the employer unless a notice of appeal is filed in accordance with the time limits set forth in subsections (1) and (2) of this section or unless the employer establishes to the satisfaction of the division that he had good cause for failure to file a timely notice of appeal. Guidelines for determining what constitutes good cause shall be established by the director of the division.

(3.5) Any administrative appeal pursuant to this section shall be conducted by a referee or hearing officer of the division.

(4) In connection with any appeal proceeding conducted pursuant to this section, the referee may, upon application by any party or upon his own motion:

(a) Convene a prehearing conference to discuss the issues on appeal, the evidence to be presented, and any other relevant matters which may simplify further proceedings;

(b) Permit the parties to engage in prehearing discovery, insofar as practicable, in accordance with the Colorado rules of civil procedure and, in connection therewith, to shorten or extend any applicable response time; and

(c) Permit or require the filing by the parties of briefs, arguments of law, or statements of position.

(5) In matters involving a pending claim for benefits, the referee shall give due regard to the rights of the claimant to a speedy and informal hearing and may impose such limitations upon discovery as he deems reasonable.

(6) Repealed.

8-76-114. Local government advisory council. (Repealed)

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8-76-115. Coverage of Indian tribes. (1) Indian tribes or tribal units, including all subdivisions or subsidiaries of, and business enterprises wholly owned by, such Indian tribes, subject to the provisions of articles 70 to 82 of this title shall pay taxes under the same terms and conditions under sections 8-76-101 to 8-76-103 as apply to other taxpaying employers unless an election is made, in the same manner provided in section 8-76-108 (1) (d), to make payments in lieu of taxes into the unemployment compensation fund in amounts equal to the amount of benefits attributable to service in the employ of the Indian tribe.

(2) Indian tribes shall determine if payments in lieu of taxes will be elected by the tribe as a whole, by individual tribal units, or by combinations of individual tribal units. Two or more individual tribal units may apply with the division for the establishment of a group account in the same manner and subject to the same terms as set forth in section 8-76-110 (6).

(3) Indian tribes or tribal units electing to make payments in lieu of taxes shall be billed for the full amount of benefits attributable to service in the employ of said Indian tribes or tribal units, and payment shall be made with respect to said billings in the manner provided in section 8-76-108 (1) (c).

(4) The division may require any Indian tribe or tribal unit that elects to become liable for payments in lieu of taxes to execute and file with the division a surety bond or to deposit money or securities in the manner provided in section 8-76-110 (4).

(5) (a) Failure of the Indian tribe or tribal unit to make required payments pursuant to subsection (3) of this section, to pay taxes pursuant to sections 8-76-101 to 8-76-103, to pay assessments of interest and penalties pursuant to sections 8-79-101 and 8-79-104, or to execute and file a surety bond or deposit money or other security pursuant to section 8-76-110 (4) within ninety days of receipt of a delinquency notice by the division shall cause the Indian tribe to lose the option to make payments in lieu of taxes effective with the beginning of the following calendar year unless a division-approved payment plan is established or payment in full is received within the said ninety-day period.

(b) The division shall notify the United States internal revenue service and the United States department of labor of failures by the Indian tribe or tribal unit to comply with this subsection (5).

(6) Any Indian tribe that loses the option to make payments in lieu of taxes due to late payment or nonpayment, as described in subsection (5) of this section, shall have such option reinstated effective with the beginning of the following calendar year if, by March 1 of said year, all contributions have been timely made and no taxes, payments in lieu of taxes for benefits paid, penalties, or interest remain outstanding.

(7) (a) Failure of the Indian tribe or any tribal unit thereof to make any payment required by subsection (5) of this section, after all collection activities deemed necessary by the division have been exhausted, shall cause services performed for such tribe to not be treated as "employment" for purposes of section 8-70-125.5.

(b) The division may determine that any Indian tribe that loses coverage under the provisions of this subsection (7) may have services performed for such tribe again included as "employment" for purposes of section 8-70-125.5 if all taxes, payments in lieu of taxes, penalties and interest, or surety bond or payment of other money or security have been paid.

(8) Notices of payment and reporting delinquency to Indian tribes or their tribal units shall include information stating that failure to make full payment within the prescribed time period:

(a) Shall cause the Indian tribe to be liable for taxes under the "Federal Unemployment Tax Act", 26 U.S.C. sec. 3301 et seq.;

(b) Shall cause the Indian tribe to lose the option to make payments in lieu of taxes; and

(c) May cause the Indian tribe to be excepted from the definition of "employer" as provided in section 8-70-113 (1) (k) and may cause services in the employ of the Indian tribe, as provided in section 8-70-125.5, to be excepted from "employment".

(9) Extended benefits paid that are attributable to service in the employ of an Indian tribe and not reimbursed by the federal government shall be financed in their entirety by such Indian tribe in the manner provided in section 8-76-108 (1) (e).

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