Under current law, a qualified student who is selected to participate in the accelerating students through concurrent enrollment (ASCENT) program by the department of education (department) may enroll in postsecondary courses and be included in the pupil enrollment of a school district, board of cooperative services, or charter school (local education provider) for funding during the year following the student's fourth year of high school. The number of students who are selected to participate in the ASCENT program is limited each year through the budget process.

The bill removes the limit on the number of program participants and allows each qualified student selected by the enrolling local education provider to participate in the program. The bill reduces the number of postsecondary credits a qualified student must have completed to be eligible to participate in the ASCENT program. The bill directs the department to distribute to each local education provider for each ASCENT program participant an amount equal to 3% of the per-pupil extended high school funding amount to pay for non-tuition expenses the qualified student incurs in participating in the postsecondary courses.

Under existing law, a qualified student who fails to complete a concurrent enrollment course must repay the local education provider for the amount of tuition, and a local education provider may require a qualified student to repay the tuition amount if the qualified student earns a failing grade for a concurrent enrollment course. The bill repeals these provisions.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

Under current law, all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works are exempt from the sales and use tax levied by the state and certain local governments. Home rule cities continue to levy the tax on sales of construction and building materials within their jurisdiction. The act extends the exemption to the sales and use tax levied by home rule cities on such materials for use in connection with the building, erection, alteration, or repair of a public school.

For the 2022-23 state fiscal year, the act appropriates $3,375 from the general fund to the department of revenue for use by the taxation business group. The department may use this appropriation for operating expenses related to taxation services.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act replaces an existing income tax deduction for expenses incurred by employers when providing alternative transportation options to employees with a refundable income tax credit of 50% of such expenses for such employers, including local government employers, subject to the limitations that the maximum amount spent in any income tax year for which an employer may claim a credit is $250,000 and that the maximum amount spent in any income tax year for any one employee for which an employer may claim a credit is $2,000 dollars.

For purposes of the act, alternative transportation options means free or partially subsidized, generally accepted transportation demand management strategies, including but not limited to ridesharing arrangements, provision of ridesharing vans or low-speed conveyances such as human-powered or electric bicycles, shared micromobility options such as bikesharing and electric scooter sharing programs, carsharing programs, and guaranteed ride home programs. The credit is allowed for income tax years beginning on or after January 1, 2023, but before January 1, 2025.

$93,758 is appropriated from the general fund to the department of revenue for implementation of the act.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

For some, but not all, exemptions from state and state-collected local sales and use taxes, a person who wishes to establish the right to obtain an exemption is either explicitly required by state law or required by the department of revenue (department) as it administers and enforces state law to complete a form created by the department, which, depending on which exemption is sought, may be described as an affidavit, application, certificate, certification, declaration, or statement. The act requires the department to examine its forms and requirements relating to their use and, to the extent feasible without impairing the proper administration of the exemptions, simplify the forms and related requirements for persons making tax-exempt purchases. Exceptions to existing statutory requirements relating to the forms are made for any simplifications made by the department.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The Colorado housing and finance authority (CHFA), under the Colorado affordable tax credit program, may allocate income tax credits in an annual aggregate amount of up to $10 million for the years beginning on January 1, 2020, and ending on December 31, 2024. The bill extends this period to December 31, 2031.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act requires the director of the division of professions and occupations (director) in the department of regulatory agencies to complete, on or before June 1, 2023, an audit of the regulated professions and occupations and the regulation of various professions and occupations by regulators of a specific profession or occupation (regulator) to determine what barriers exist for licensing, certification, and registration of individuals with criminal history records and, on or before July 1, 2023, to report the findings to the general assembly.

The act limits the authority of a regulator to deny a license, certification, or registration based on an applicant's criminal history record on by requiring the hearing and mediation process established in current law. A regulator is required to document the grounds for the denial of the license, certification, or registration in writing to the applicant.

The act clarifies that a regulator may grant a conditional license, certification, or registration to an applicant with a criminal history record consistent with the process established in current law.

The director is required to compile de-identified information regarding the reasons why a license, certification, or registration was denied and make this information available to the public on the division's website.

The act requires state and local agencies responsible for issuing occupational or professional credentials (occupational agency), before making a final determination that an applicant's criminal conviction disqualifies the applicant from receiving a license, certification, permit, or registration, to provide a written notice to the applicant specifying the reason for the disqualification and the right of the applicant to submit additional evidence for the occupational agency to consider before making a final determination. A final determination to disqualify an applicant based on a criminal conviction must be issued in writing and include notice of the applicant's right to appeal the determination and the earliest date on which the applicant may reapply.

The act appropriates $11,036 from the division of professions and occupations cash fund to the department of regulatory agencies for use by the division of professions and occupations.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Current law requires an injured employee or someone else with knowledge of the injury to notify the employer within 4 days after the occurrence of an on-the-job injury, authorizes a reduction in compensation to the injured employee for failure to timely notify the employer, and tolls the 4-day period if the employer has failed to post a notice specifying the injured employee's notification deadline. The act changes the 4-day notice period to a 10-day notice period and prohibits a loss of compensation if the employer had actual notice of the injury or good cause is shown for the employee's failure to timely report the injury.

If an employer fails to provide a copy of the notice of the injury to the employee or fails to post the required notice to employees, the act specifies that the time period allotted to the employee to notify the employer of an injury is tolled for the duration of the failure.

The act also changes the notice that an employer is required to post in the workplace to require that the notice state the name of the insurer and that the:

• Employer is required to have and pay for workers' compensation insurance;
• Injured employee has rights under the law if the employer fails to carry workers' compensation insurance;
• Employee should notify employer if injured;
• Injury must be reported to the employer; and
• Employee may file a workers' compensation claim.

With regard to occupational diseases, the act also:

• Limits the ability of the director of the division of workers compensation to reduce compensation to an employee to circumstances where the employer does not have actual knowledge of the contraction of a disease or there is not good cause shown to provide timely notice of the disease; and
• Repeals the provision that states that an employer is deemed to waive a failure to give notice of an occupational disease or death resulting from the disease unless the employer objects at a hearing on the claim prior to any award or decision.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act establishes the "Colorado False Claims Act" (false claims act). Pursuant to the false claims act, a person is liable to the state or a political subdivision of the state for a civil penalty if the person commits, conspires to commit, or aids and abets the commission of any of the following (collectively, "false claims"):

• Knowingly presenting, or causing to be presented, a false or fraudulent claim for payment or approval;
• Knowingly making, using, or causing to be made or used a false record or statement material to a false or fraudulent claim;
• Having possession, custody, or control of property or money used, or to be used, by the state or a political subdivision and knowingly delivering, or causing to be delivered, less than all of the money or property;
• Authorizing the making or delivery of a document certifying receipt of property used, or to be used, by the state or a political subdivision and, with the intent to defraud the state or political subdivision, making or delivering the receipt without completely knowing that the information on the receipt is true;
• Knowingly buying, or receiving as a pledge of an obligation or debt, public property from an officer or employee of the state or a political subdivision who lawfully may not sell or pledge the property;
• Knowingly making, using, or causing to be made or used a false record or statement material to an obligation to pay or transmit money or property to the state or political subdivision, or knowingly concealing or knowingly and improperly avoiding or decreasing an obligation to pay or transmit money or property to the state or political subdivision; or
• Knowingly making, using, or causing to be made or used, a false record or statement resulting in the underpayment of unemployment premiums or the payment of unemployment insurance benefits of more than $15,000 in a calendar year.

A person who makes a false claim is liable to the state for a civil penalty of $11,800 to $23,600 per violation, plus 3 times the amount of the damages sustained by the state. A court may assess a reduced penalty if the person who makes a false claim furnishes to investigators all the information the person knows about the violation within 30 days after first learning of a potential violation, the person did not know about the investigation when the person furnished the information, and the person fully cooperated with the investigation as follows:

• If the person furnished the information prior to an action being filed, the person is subject to a civil penalty of $5,900 to $11,800 per violation, plus 1.5 times the amount of the damages.
• If the person furnished the information while a pending action was under seal, the person is subject to a civil penalty of $7,800 to $15,700 per violation, plus double the amount of the damages.

The civil penalty range amounts for a violation are annually adjusted for inflation, rounded upward or downward to the nearest ten-dollar increment and certified by the secretary of state. A person who makes a false claim is also liable for the costs incurred for the investigation and prosecution of the false claim.

The attorney general may accept from a person alleged to have made a false claim an assurance of discontinuance or a consent order approved by a court in lieu of, or as a part of, a false claims action. Proof by a preponderance of the evidence of a violation of an assurance or stipulation or consent order is prima facie evidence of a violation for the purposes of any civil action or proceeding brought by the attorney general after the alleged violation of the assurance or stipulation or consent order, whether a new action or a motion or petition in a pending action or proceeding.

The false claims act requires the attorney general to investigate false claims. The attorney general or a private person may bring a civil action against a person who made a false claim. The attorney general may intervene in an action brought by a private person. A private person who brings a false claims action may be awarded up to 30% of the proceeds from the action based on the extent the private person contributed to the investigation and prosecution of the false claim. If the private person is an employee of the state and learns information about the false claim in the course of the person's work, the court will award that amount to the state.

The false claims act requires that a false claims action be filed in a state district court or federal court with jurisdiction over the action. A court cannot hear a false claim action:

• Brought against a serving member of the general assembly, a member of the state judiciary, an executive director of a state agency, or an elected official in the executive branch of the state of Colorado, acting in the member's, executive director's, or official's official capacity;
• Brought against an elected official of a political subdivision, a member of a political subdivision's judiciary, of an appointed official of a political subdivision, acting in the official's or member's official capacity; or
• Based on the same allegations or transactions that are the subject of a different civil or administrative proceeding.

The false claims act prohibits retaliatory action against an individual because of the individual's efforts in furtherance of investigating, prosecuting, or stopping false claims. A court hearing a false claims action may hear a claim for retaliation against the individual.

The false claims act clarifies how information subject to a person's attorney-client privilege is protected, unless the privilege is waived, an exception to the privilege applies, or disclosure of the information is permitted by an attorney pursuant to certain federal regulations applicable to attorneys appearing and practicing before the federal securities and exchange commission, the applicable Colorado rules of professional conduct, or otherwise.

The false claims recovery cash fund (fund) is created and any proceeds retained by the state from a false claims action are transferred to the fund. Subject to annual appropriation, the department of law may use money in the fund for the costs of investigating and prosecuting false claims. Remaining proceeds are transferred to the fund from which the false claim was paid and the false claims act sets forth the process for paying to a political subdivision any proceeds recovered that are attributable to the political subdivision.

The false claims act requires the attorney general to annually submit a report to specified committees of reference about false claims actions during the previous fiscal year.

The act authorizes the state auditor to share information about potential false claims with the attorney general and a political subdivision.

The act appropriates $13,568 from the general fund to the legislative department for use by the office of the state auditor.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

For income tax years beginning on or after January 1, 2023, but before January 1, 2030, the bill creates an income tax credit (tax credit) for any employer that:

• Creates a clean commuting plan to implement strategies to increase the use of alternative transportation options and reduce the number of measurable vehicle miles driven by its employees in single-occupancy vehicles when commuting to and from their work site (clean commuting plan) for the purpose of reducing automobile-related air pollution, traffic congestion, and transportation costs, particularly for essential workers and workers earning under $40,000 per year;
• Conducts an employer commuter survey to determine how its employees commute to and from their work site; and
• Offers 2 or more alternative transportation options to some or all of its employees in furtherance of the employer's clean commuting plan.

The amount of the tax credit is 50% of the amount spent by the employer to provide alternative transportation options to some or all of its employees.

In addition, the bill requires the executive director of the department of transportation (director), in coordination with the Colorado energy office and metropolitan planning organizations, to create an annual commuter survey for employers to use to determine how their employees commute to and from their work site. The director and the Colorado energy office are required to determine the content of the commuter survey and the form and manner in which the commuter survey will be completed and returned to the department of transportation.

Beginning in specified calendar years, in an effort to reduce the number of employees who commute to and from their work site in a single-occupancy vehicle, employers with over 100 employees are required to:

• Annually conduct a commuter survey of its employees and submit the completed commuter surveys to the department of transportation by April 30 of the year in which the survey was conducted;
• Offer its employees qualified transportation fringe benefits allowed pursuant to federal law;
• Offer its employees commuter choice information in electronic or hard copy format and update the information every 6 months; and
• Offer a cash allowance in lieu of a parking space under certain circumstances.

The bill requires that any private sector employer that wishes to claim the tax credit participate in the employer commuter survey and submit the results of the survey to the department by April 30 of the year in which the survey is conducted, even if the employer's participation in the commuter survey is not otherwise required.

For the 2023-24 state fiscal year, and for each state fiscal year thereafter through the 2029-30 state fiscal year, of the money allocated to the transportation commission for state multimodal projects from the multimodal transportation and mitigation options fund, the transportation commission is required to allocate $250,000 to each of the transportation management associations and transportation management organizations operating in a nonattainment area for the purposes of assisting employers in creating a clean commuting plan and complying with the requirements of the bill.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act authorizes the state treasurer to stagger the terms of the state treasurer's 3 appointed members to the public school fund investment board (investment board), commencing with new appointments beginning on and after July 1, 2022, to ensure that no more than 2 members' terms expire in the same year.

Beginning in the 2022-23 state fiscal year, the act reorganizes the distribution of interest or income earned on the investment of the money in the public school fund (fund) to:

• Pay first from the distribution the services of the investment consultant hired by the investment board;
• Credit next to the state public school fund, for distribution for school finance, all remaining interest and income, not to exceed $21 million dollars; and
• Credit next to the public school capital construction assistance fund all remaining interest and income, not to exceed $20 million dollars.

The act creates a working group, convened by the state treasurer, to consider opportunities to improve the growth of the public school fund and its distributions for the intergenerational benefit of public schools. The act authorizes the state treasurer, after consulting with the investment board, to select the members of the working group, and the act specifies the issues the working group must study. Not later than February 28, 2023, the state treasurer shall report the findings and recommendations of the working group to the joint budget committee and to the education committees of the house of representatives and of the senate.

The act modifies the time frame and clarifies the circumstances in which a realized investment loss to the fund may be offset by realized gains before the general assembly is required to appropriate money to cover losses to the fund.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill prohibits an employer from taking adverse action against an employee, including an applicant for employment, who engages in the use of:

• Medical marijuana on the premises of the employer during working hours; or
• Retail or medical marijuana off the premises of the employer during nonworking hours.

An employer is permitted to impose restrictions on employee use of medical or retail marijuana under specified circumstances.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

Section 1 of the act relocates existing statutes that require contractors to offer certain resource efficiency options when constructing certain buildings. Section 1 also requires certain new commercial buildings and multifamily residences to include electric vehicle charging as follows:

• If the building is 25,000 square feet or more or the building is part of a project that is 40,000 square feet or more of floor space in more than one building, with a total of 25 or more sets of living quarters or commercial units among all the buildings:
• 25% of the parking spaces used by the occupants of the building must be EV capable, which means that the building is ready to run the wiring and install a 208 to 240 volt receptacle;
• 10% of the parking spaces used by the occupants of the building must be EV ready, which means that each parking space has a working 208 to 240 volt receptacle; and
• If the building is multifamily housing with at least 3 units and at least 10 parking spaces, the building must have:
• In 50% of the units, a parking space used by the occupants of the building that is EV capable;
• In 20% of the units, a parking space used by the occupants of the building that is EV ready.

The act applies to the construction of a new high-occupancy building project or to the renovation of 50% or more of an existing high-occupancy building project and to:

• A contract executed on or after July 1, 2023, to construct a high-occupancy building project;
• The planning of or drafting for the design of a high-occupancy building project on or after August 10, 2022; and
• The laying out of or construction of a high-occupancy building project on or after August 10, 2022.

Section 3 requires a project to comply with these provisions to obtain a building permit. The state electrical board is required to set standards for waiving the requirement to comply with these provisions for renovations. Local governments that perform inspections may also issue such a waiver.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act concerns provisions of a public school contract, which is defined in the act as an agreement between a public school contracting entity and a contractor where the principal purpose is to acquire supplies, services, or construction or to dispose of supplies for the direct benefit of or in support of a public school other than an agreement for the acquisition of certain types of professional services. For public school contracts executed on or after July 1, 2022, the act requires specified provisions to be included in a public school contract, states that a public school contract shall be deemed to include such provisions if they are inadvertently or otherwise omitted, and specifies that certain specified types of terms or conditions in a public school contract, including any provision that conflicts with Colorado law or rules or any provision required to be included in a public school contract, are void.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Under current law, a defendant may be awarded reasonable attorney fees in tort actions if a case is dismissed on a motion of the defendant prior to trial. The act states that a defendant may not be awarded reasonable attorney fees in cases dismissed prior to trial in which the plaintiff brought non-frivolous claims in order to challenge precedent or for a similar reason.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The federal "Setting Every Community Up for Retirement Enhancement Act of 2019" expanded qualified distributions from a qualified state tuition program (529 account) to include expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in certain apprenticeship programs.

In light of these changes to federal law, the act amends Colorado law to clarify what qualifies as a qualified distribution from a 529 account for the purpose of determining state taxable income. The act allows expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in certain apprenticeship programs to be treated as such a qualified distribution.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Sections 1 and 5 of the act authorize the director of the division of professions and occupations (division) in the department of regulatory agencies to appoint or employ individuals who are licensed or, if not licensed, who demonstrate substantial work experience in the electrical, plumbing, or construction industry to:

• Conduct compliance checks to ensure compliance with licensing and supervisor-to-apprentice ratio requirements applicable to electricians and plumbers on projects throughout the state; and
• Prioritize for compliance checks projects that provide or will provide critical needs to state residents.

The act also:

• Specifies that only a homeowner performing work on the homeowner's home or a licensed master electrician or plumber who is either a registered electrical or plumbing contractor or directly employed by a registered electrical or plumbing contractor may apply for an electrical or a plumbing permit (sections 2 and 6);
• Prohibits a licensed master electrician or plumber who is not a registered electrical or plumbing contractor and who is working as an independent contractor from applying for an electrical or a plumbing permit (sections 2 and 6) and makes a violation of this prohibition specific grounds for discipline by the electrical or plumbing board, as applicable (sections 3 and 4);
• Requires the entity issuing the permit to verify that the applicant meets the qualifications to apply for the permit (sections 2 and 6); and
• Requires inspecting entity procedures to include a provision allowing the inspecting entity to request worker documentation indicating compliance with worker license requirements and the supervisor-to-apprentice ratio (sections 2 and 6).

Section 7 of the act appropriates $191,991 for the 2022-23 state fiscal year from the division of professions and occupations cash fund to the department of regulatory agencies to implement the act, allocated as follows:

• $127,110 for use by the division for personal services, including 2.0 additional FTE;
• $45,847 for the division's operating expenses; and
• $19,034 for the purchase of vehicle lease services, which amount is reappropriated to the department of personnel to provide vehicle replacement lease/purchase services.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act establishes the regional talent development initiative grant program (grant program) in the office of economic development (office) to fund talent development initiatives across the state that meet regional labor market needs and specified grant program goals, including initiatives that meet workforce development needs in regions as they recover from the negative economic impacts of the COVID-19 pandemic. The office, a state agency designated by the office, or a third party with whom the office contracts is to serve as the administrator of the grant program (program administrator). The office is directed to appoint a steering committee of 5 to 8 business, civic, education, and nonprofit professionals (steering committee), including at least one member representing a rural area of the state, one member representing a 2-year institution of higher education, and one member representing a 4-year institution of higher education. The steering committee will support the program administrator in:

• Developing a grant application process;
• Establishing grant application selection and prioritization criteria; and
• Appointing a selection committee to review grant applications and make grant award recommendations.

The office, in collaboration with the departments of labor and employment, higher education, and education and the steering committee, is to identify regions throughout the state to inform the selection of grant applications.

The office is to publish a report on the grant program by November 1, 2023, and by each November 1 through November 1, 2027.

The act creates the regional talent development initiative grant program fund (grant program fund) and directs the state treasurer to transfer $91 million from the workers, employers, and workforce centers cash fund (cash fund) to the grant program fund as follows:

• $89,123,184 from federal money in the cash fund that the state received pursuant to the "American Rescue Plan Act of 2021"; and
• $1,876,816 from money in the cash fund that originated from the general fund.

The money in the grant program fund is continuously appropriated to the office for the grant program and related costs. The grant program repeals on July 1, 2028.

The act also directs the state treasurer to transfer $32,373,184 from the money in the cash fund that originated from the general fund back to the general fund.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act clarifies provisions in the "Workers' Compensation Act of Colorado" (workers' compensation act) relating to the release and disclosure of mental health records pertaining to an injured employee making a claim under the workers' compensation act (claimant).

The act:

• Defines "mental health records" psychological or psychiatric tests, including neuropsychological testing; other records prepared by or for a mental health provider; independent medical examination records, audio recordings, and reports that address psychological or psychiatric issues; division independent medical evaluation records and reports that address psychological or psychiatric issues; and records relating to the evaluation, diagnosis, or treatment of a substance use or abuse disorder;
• Requires a mental health provider to provide an insurer or employer, if self-insured, with mental health records, as necessary for payment, adjustment, and adjudication of claims involving psychological or psychiatric issues; to the employer, as necessary, to enable to employer to comply with applicable state and federal laws, rules, and regulations; and to the referring physician and any other relevant treating or evaluating providers;
• Prohibits the disclosure of mental health records to any person who is not reasonably necessary for the medical evaluation, adjustment, or adjudication of claims involving psychological or psychiatric issues, unless otherwise directed by order of the director of the division of workers' compensation (director) or an administrative law judge;
• Permits an insurer to release information from a claimant's mental health records to the claimant's employer concerning work restrictions and information necessary for the adjustment or adjudication of the claim, but prohibits the disclosure of the claimant's actual mental health records to third parties that do not need the information; and
• For a self-insured employer:
• Requires the employer to keep a claimant's mental health records separate from personnel files;
• Limits disclosure of the claimant's mental health records to a supervisor or manager to only information from the mental health records pertaining to work restrictions placed on the claimant; and
• Prohibits disclosure of the claimant's mental health records to any third party and redisclosure by the third party to any person who is not directly involved in adjusting or adjudicating claims involving psychological or psychiatric issues, unless the disclosure is otherwise ordered by the director or an administrative law judge.

The act authorizes the director to promulgate rules necessary for the implementation of the act.

The act requires a person providing mental health services under the workers' compensation act to be a licensed mental health provider.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act requires the director of the Colorado energy office (office) and the executive director of the department of local affairs to appoint an energy code board (board) that will develop for adoption by counties, municipalities, and state agencies 2 sets of model codes. The director of the office and the executive director of the department shall also appoint an executive committee for the board. The board shall develop a model electric and solar ready code on or before June 1, 2023, and a model low energy and carbon code on or before July 1, 2025. The office shall, independent of the board, identify model green code language for adoption by counties, municipalities, and state agencies.

Every element of either model code adopted by the board must be approved by two-thirds of the board. If two-thirds of the board fail to adopt an element required by statute for either model code, the executive committee must vote on that element. An element of either model code must be approved by the majority of the executive committee to be adopted.

In the event of a conflict between the 2021 international energy conservation code, the 2024 international energy conservation code, the model electric ready and solar ready code, or any other model codes adopted by either a local government or divisions in the executive branch and either the Colorado plumbing code or the national electric code, the Colorado plumbing code or the national electric code prevails.

The act establishes when the office of the state architect, the division of housing, and the division of fire prevention and control must adopt and enforce codes that achieve equivalent or better energy performance than the codes adopted by the board as follows:

• On or before January 1, 2025, the office of the state architect, the division of housing, and the division of fire prevention and control shall adopt and enforce an energy code that achieves equivalent or better energy performance than the 2021 international energy conservation code and the model electric and solar ready code developed by the board; and
• On or before January 1, 2030, the office of the state architect, the division of housing, and the division of fire prevention and control shall adopt and enforce an energy code that achieves equivalent or better energy and carbon emissions performance than the model low energy and carbon code developed by the board.

Likewise, the act establishes when municipalities and counties must adopt and enforce codes that achieve equivalent or better energy performance than the codes adopted by the board as follows:

• On or after July 1, 2023, and before July 1, 2026, municipalities and counties that update a building code shall adopt and enforce an energy code that achieves equivalent or better energy performance than the 2021 international energy conservation code and the model electric and solar ready code developed by the board; and
• On or after July 1, 2026, municipalities and counties that update a building code shall adopt and enforce an energy code that achieves equivalent or better energy performance than the model low energy and carbon code language developed by the board.

However, rather than either the model electric and solar ready code or the model low energy and carbon code, a rural county that applies for and is not awarded a grant that significantly assists in energy code adoption and enforcement training is instead required to adopt and enforce an energy code that achieves equivalent or better energy performance than one of the 3 most recent editions of the international energy conservation code.

The act also creates 2 primary grant programs that will be administered by the office:

• The building electrification for public buildings grant program to provide grants to local governments, school districts, state agencies, and special districts for the installation of high-efficiency electric heating equipment; and
• The high-efficiency electric heating and appliances grant program to provide grants to local governments, utilities, nonprofit organizations, and housing developers for the installation of high-efficiency electric heating equipment in multiple structures within a neighborhood and the purchase of electrical installations and upgrades necessary to support the installation of high-efficiency electric equipment.

The clean air building investments fund, a continuously appropriated cash fund, is established by the act to fund the creation, implementation, and administration of both of these grant programs.

Lastly, the act also requires the following transfers from the general fund:

• $3 million to the energy fund created for the office to issue grants and provide training related to the 2021 international energy conservation code, electric and solar ready codes, and low energy and carbon codes;
• $150,000 to the energy fund created for the office for the costs associated with administering the board;
• $10 million to the clean air building investments fund for the creation, implementation, and administration of the building electrification for public buildings grant program; and
• $10,850,000 to the clean air building investments fund for the creation, implementation, and administration of the high-efficiency electric heating and appliances grant program.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill makes the following modifications to statutory provisions governing special districts to increase the accountability of special districts to taxpayers:

• If a separate legal entity established by contract includes one or more special districts, requires the separate legal entity to file with the division of local government in the department of local affairs certain financial information pertaining to the special district. In such circumstances, the directors of the special district are also required to comply with oath and bond requirements for directors of special districts.
• Expands existing requirements on the information a metropolitan district must include on its public website to include information that is required by the service plan of the metropolitan district, by an ordinance or resolution adopted by the board of commissioners of a county, or by the governing body of a municipality, as applicable;
• Expands the applicability of statutory provisions governing the approval and oversight of special districts to specify that these provisions do not apply when a special district that was originally approved at any time thereafter becomes wholly included within the boundaries of one or more municipalities;
• Specifies information to be included in the financial plan that a new district submits along with its service plan;
• Removes an existing cap on the amount of the fee that a special district must pay the board of county commissioners for processing review of a service plan;
• For any proposed special metropolitan district that has any property within its boundaries that is zoned or valued for assessment as residential, enumerates certain acts that are disallowed for any service plan required to be filed by the district. A local government acting on a service plan is prohibited from approving a service plan for a special metropolitan district that permits any of these same acts the purchase of district debt by any entity with respect to which any director of the district has a conflict of interest necessitating disclosure .
• Clarifies requirements affecting the oversight by a municipality that is wholly contained within the boundaries of the municipality, especially in connection with an annexing municipality;
• Expands the circumstances under which material modifications of a special district's service plan are approved by the county or municipality, as applicable, to include the situation when the special district after initial approval of the plan becomes wholly included within the boundaries of a newly annexed municipality;
• Specifies that approval is also required for any action or omission of a special district that is materially inconsistent with the district's service plan. Expands the list of examples of acts or omissions necessitating approval.
• Authorizes a board of county commissioners for a district that lies entirely within the territorial boundaries of a county or the governing body of a municipality for a district that lies entirely within the boundaries of a municipality to impose a fee to offset the costs incurred by the county or municipality, as applicable, in reviewing the operations of the district and the district's compliance with its service plan. The fee is not payable more than once annually.
• Prohibits a member of the board of a district that approved the issuance of any debt while the member was serving on the board from thereafter acquiring any interest in the debt individually or on behalf of any organization or entity for which the board member is engaged as an employee, counsel, consultant, representative, or agent; except that this requirement does not apply to debt acquired indirectly through an investment fund if the member has no input into or control over the individual securities that the fund purchases;
• Prior to issuing debt to a director of a metropolitan district or to an entity with respect to which a director of a metropolitan district must make disclosure of a conflict of interest, the bill requires the board of the metropolitan district to receive a statement of a registered municipal advisor certifying that the interest rate of the debt does not exceed the lesser of:
• The interest rate allowed under a method of calculation specified in the bill; or
• The current market interest rate for the debt based on criteria determined by the municipal advisor, examples of which are listed in the bill;

• Requires all meetings of a board of a special district that are held solely at physical locations to be held at physical locations that are within the boundaries of the district or that are within the boundaries of any county in which the district is located, in whole or in part, without exceptions or the possibility of a waiver;
• Clarifies that the powers of the board of directors of any metropolitan district are limited by the district's service plan;
• On and after September 1, 2022, prohibits a metropolitan district from entering into any new contract or agreement as of that date to furnish covenant enforcement and design review services. On and after September 1, 2022, the bill prohibits a metropolitan district from renewing any existing agreement entered into prior to that date to furnish covenant enforcement and design review services. Upon the expiration of the agreement, the master association or similar entity contracting with the metropolitan district is required to assume covenant enforcement and design review services.
• Under current law, under specified circumstances, the board of county commissioners or the governing body of the municipality that has adopted a resolution of approval of the special district may require the board of the special district to file an application for a finding of reasonable diligence every 5 years. The bill makes this an annual requirement.
• Makes proof of the commission of such act by a preponderance of the evidence proof that the director has breached the director's fiduciary duty and the public trust.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The act amends employment discrimination laws, commonly referred to as the "Colorado Anti-discrimination Act" or "CADA", as follows:

• With regard to the jurisdiction of the Colorado civil rights commission (commission) over discrimination complaints, instead of allowing the commission 270 days to notice a hearing on the complaint and the ability to grant the parties an extension of up to an additional 180 days, allows the commission a total of 450 days to notice a hearing on the complaint or lose jurisdiction over the complaint;
• Expands the definition of "employee" to include individuals in domestic service and specifies that it is not a discriminatory or an unfair employment practice with respect to sex for a person to consider sex when hiring an employee to engage in child-care-related domestic services;
• Extends the time limit to file a charge with the commission from 6 months to 300 days after the alleged discriminatory or unfair employment practice occurred; and
• Repeals the prohibition, applicable in age discrimination cases only, against the relief and recovery of certain damages so that the remedies available in employment discrimination claims are consistent, regardless of the type of discrimination alleged.

The act appropriates $113,548 from the general fund to the department of regulatory agencies for use by the civil rights division to implement the act, with $98,718 allocated for personal services and $14,830 for operating expenses.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

In order to enable the streamlining of the imposition, collection, and administration of sales and use taxes imposed by local taxing jurisdictions on retail sales made by retailers that have a state standard retail license and either do not have physical presence within a local taxing jurisdiction or have only incidental physical presence within a local taxing jurisdiction through the streamlining of application requirements for and elimination of fees for local general business licenses, the act requires the department of revenue (department) to require sufficient information to be collected from such a retailer, when the retailer applies for or renews a state standard retail business license through the state's electronic sales and use tax simplification system (SUTS) or by other means or at any other time to the extent necessary, and made available to local taxing jurisdictions to ensure that concerns of local taxing jurisdictions, including but not limited to concerns relating to administrative efficiency, retailer compliance, and collection of sales and use tax revenue, are addressed. The department is required to consult with local taxing jurisdictions when determining what information to collect and how to make the information collected available to local taxing jurisdictions. The department is also required to consult with retailers and to address any reasonable concerns that they may have. The department is required to accomplish these tasks expeditiously so that no later than July 1, 2023, and sooner if feasible, a retailer that has a state standard retail license and either does not have physical presence within a local taxing jurisdiction or has only incidental physical presence can make retail sales within the local taxing jurisdiction without having to obtain a general business license from the local taxing jurisdiction.

On and after July 1, 2022, a local taxing jurisdiction is prohibited from charging a fee for a local general business license to a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence within the local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction. On and after July 1, 2023, a local taxing jurisdiction is prohibited from requiring such a retailer to apply separately to the local taxing jurisdiction for a general business license. A local taxing jurisdiction must automatically issue a general business license to such a retailer unless the local taxing jurisdiction has previously revoked a general business license held by the retailer for a violation of its local code.

For the 2022-23 state fiscal year, $2,100 is appropriated to the department for use by the taxation services division to implement the act.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act clarifies the opportunities available to inmates imprisoned by the department of corrections (department). The act clarifies that the rehabilitation and work opportunities available to inmates are to promote the person's successful rehabilitation, reentry, and reintegration into the community. The act clarifies a distinction between external programs, which occur in partnership with employers outside of department facilities, and internal programs, which occur inside a department facility and may be in partnership with employers outside of department facilities. The act amends inmate compensation and permissible deductions from an inmate's account.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

For income tax years beginning on or after January 1, 2023, but before January 1, 2025, any purchaser of an air-source heat pump system, ground-source heat pump system, water-source heat pump system, or variable refrigerant flow heat pump system (heat pump system) or a heat pump water heater that installs a residential or commercial heat pump system or a residential or commercial heat pump water heater into real property in the state is allowed an income tax credit in an amount equal to 10% of the purchase price of the heat pump system or heat pump water heater.

For income tax years beginning on or after January 1, 2023, but before January 1, 2025, any purchaser of an energy storage system that installs the energy storage system in a residential dwelling in the state is allowed an income tax credit in an amount equal to 10% of the purchase price of the energy storage system.

For the heat pump system and heat pump water heater income tax credit and for the energy storage system income tax credit, the purchaser may assign the income tax credit to the seller of the heat pump system, heat pump water heater, or energy storage system (seller) at the time of purchase. If the purchaser assigns the credit, the seller must compensate the purchaser for the full nominal value of the tax credit. The act specifies the requirements of the purchaser, seller, and the department of revenue in connection with the assignment of either income tax credit.

Beginning July 1, 2024, all sales, storage, and use of eligible decarbonizing building materials are exempt from state sales and use tax. "Eligible decarbonizing building materials" are building materials that have a maximum acceptable global warming potential as determined by the office of the state architect (office) and that are on a list of eligible materials maintained by the office. Manufacturers may submit the environmental product declaration of an eligible material to the office for the office's review. The office is required to compile a list of eligible materials and the manufacturers of those materials based on the information voluntarily submitted to the office by the manufacturers.

Beginning January 1, 2023, all sales, storage, and use of heat pump systems or heat pump water heaters that are used in commercial or residential buildings are exempt from state sales and use tax. To be eligible for the sales and use tax exemption under certain circumstances, the purchaser of the heat pump system or heat pump water heater is required to certify that all necessary mechanical, plumbing, and electrical work performed in connection with the installation of the heat pump system or heat pump water heater will be performed by a certified contractor on a certified contractor list created pursuant to current law or by employees of a utility, subject to state licensing requirements and all applicable state and local rules, codes, and standards.

Beginning January 1, 2023, all sales, storage, and use of energy storage systems that are used in a residential dwelling are exempt from state sales and use tax.

A statutory town, city, or county may exempt the same items that are exempt from state sales and use tax pursuant to the act only by express inclusion of the exemption in its initial sales tax ordinance or resolution or by amendment thereto.

After January 1, 2023, an investor-owned gas utility may apply to the public utilities commission for approval to measure the amount of use for billing purposes in either fuel commodity units or for energy services provided. The public utilities commission is required to approve, deny, or modify the utility's application.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill:

• Requires the state treasurer to transfer $1.1 billion from the general fund to the unemployment compensation fund (fund) to restore the balance of the fund to the fund's pre-pandemic level; and
• Requires the director of the division of unemployment insurance to repay the federal government for $1.014 billion of advances received from the federal government in responding to the COVID-19 pandemic.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

Under current law, there is a tuition assistance program (program) for students enrolled in career and technical education certificate programs at certain state institutions. The commission on higher education establishes policies and procedures for the program. The bill requires the policies and procedures to give some preference to students enrolled in building and construction trade certificate programs. The bill also requires the general assembly to annually appropriate $650,000 for the program.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The executive director of the department of personnel (executive director) is required to:

• Create requirements regarding the authority for state public entities to initiate requests for proposals or bids or to review any private partner-initiated proposals for public projects to be completed through public-private partnerships;
• Create requirements regarding the authority for state public entities to execute public-private partnership agreements for public projects;
• Further define any relevant terms defined in the act; and
• Develop cost thresholds for public projects that qualify as a public-private partnership or a public-private agreement.

The public-private collaboration unit is established in the department of personnel (department). The unit is required to:

• In coordination with relevant state public entities, identify, prioritize, and advance potential public projects that may be best delivered through a public-private partnership;
• Facilitate collaboration between state public entities and private partners in connection with public projects;
• Provide technical assistance and expertise to state public entities in connection with any aspect of proposed or approved public-private partnerships;
• Create best practices that incorporate lessons learned from other public-private partnerships for every stage of the life cycle of a public-private partnership;
• Conduct public and stakeholder engagement to encourage transparency, accountability, and information sharing regarding public-private partnerships;
• Track proposed, ongoing, and completed public-private partnerships;
• Attract private investments for public projects; and
• In coordination with the department of early childhood, distribute funding to help increase the supply of child care facilities using public buildings or other appropriate public assets.

For the 2023-24 state fiscal year and for each state fiscal year thereafter, money is appropriated from the general fund to the department for the standard operating expenses of the public-private collaboration unit, including personal services and related costs.

A state public entity is authorized to initiate solicitations, review any private partner-initiated proposals, execute public-private partnership agreements, or execute public-private agreements to develop or operate a public project subject to the requirements of the act. Any public-private agreement entered into pursuant to the act must comply with applicable state laws and processes developed by the executive director. Nothing in the act prohibits, limits, or otherwise modifies the specific statutory authority of state public entities to enter into a public-private partnership, a public-private agreement, or other agreement or to use a statutory mechanism as authorized by any other provision of law. Public-private partnerships authorized by the act are exempt from the state "Procurement Code".

The Colorado economic development commission is required to establish a public-private partnership subcommittee (subcommittee) to review proposed contracts, sales, and leases of state property. The subcommittee consists of at least 3 members of the commission as selected by the commission. A state public entity that intends to enter into a contract, sale, or lease of state property is required to submit the proposed contract, sale, or lease of state property to the subcommittee for review before entering into the contract, sale, or lease of state property. The state public entity, in coordination with the Colorado economic development commission staff, is required to submit a report to the subcommittee regarding the anticipated use of the state property. The subcommittee is required to review the report and make any recommendations it deems necessary to the state public entity.

The executive director is required to annually report on the implementation and use of public-private partnerships pursuant to the act at its presentation to its committee of reference at a hearing held pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act". The executive director is also required to submit the report to the joint budget committee.

The existing definition of "unused state-owned real property" is modified to require that the unused state-owned real property be identified in the inventory list of unused state-owned real property maintained by the department and that the property is not being used at its optimal or best use. Money in the existing unused state-owned real property fund is continuously, rather than annually, appropriated to the department for existing purposes and for public-private agreements and any associated costs of the agreements.

The state, by and through the division of employment and training the department of labor and employment, is authorized to dispose of a parcel of real property in Summit County. The proceeds must be credited to the employment support fund.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Section 1 of the bill extends the powers of the initiative and referendum reserved to the people in the state constitution to the electors of special districts.Section 2 requires each developer-affiliated board (board) of a special district (district) to issue an agenda and board packet for each board meeting. The board must send the agenda and board packet by regular United States mail and by e-mail to each resident of the district along with a separate statement that expressly discloses to each resident the fact that the board has a conflict of interest with the residents and that residents of the district may serve on the board.

The bill also requires each board to send a self-nomination form to each resident of the district with each agenda and board packet with instructions that a resident may follow for completing the form and delivering the completed form to the manager and legal counsel of the district.

Immediately upon receiving a self-nomination form from a resident for a position on the board, the board must identify the board position to be terminated and immediately appoint the resident who submitted the self-nomination form to fill the position. A developer-affiliated position is immediately terminated upon receipt by the board of a self-nomination form from a resident. If self-nomination forms are received from residents in an amount that exceeds the positions on the board, the board is required to immediately call a special election to fill all of the developer-affiliated positions.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act requires, on or before January 1, 2023, the department of labor and employment (department), in partnership with the business experiential-learning commission in the department, the office of economic development, the state work force development council, local district colleges, the departments of education and higher education, the state board for community colleges and occupational education, and area technical colleges, to provide incentives to eligible employers to create high-quality, work-based learning opportunities for adults and youth (incentive program).

The department is required to select at least 2 work-based learning intermediaries (intermediaries) to coordinate employers, schools, youth, and adults participating in the incentive program to establish work-based learning opportunities and select employers to participate in the incentive program.

The department is required to provide monetary incentives to the selected intermediaries and employers for the implementation of work-based learning opportunities. The department is required to compile data concerning the incentive program and submit a report to the business committees of the senate and house of representatives during the "SMART Act" hearings held each legislative session.

On or before January 1, 2023, the office of future work in the department and its partners are required to create a digital navigation program and employ digital navigators to:

• Reach out to youth and adults who have been historically excluded or disengaged from work-based learning opportunities and connect them with available opportunities;
• Address digital inequities, including access to digital technology and computer and technology skills training, cybersecurity, and affordable internet service;
• Refer youth and adults to career navigation services; and
• Provide a one-stop service that includes: Making referrals to work-based learning programs; facilitating enrollment in digital literacy classes, workshops, and upskilling and work-based learning opportunities; and assisting with digital skill development, job applications, and access to other benefits and services.

The act authorizes the executive director of the department to promulgate rules to implement the incentive program and the digital navigation program.

The office of new Americans in the department is required to:

• By September 1, 2022, convene a global talent task force to study the pathways for obtaining certain in-demand occupational licenses, look at international credentials, and take advantage of the global pool of skilled workers; and
• By January 1, 2023, establish a virtual, career-aligned English as a second language program to provide tools for new Americans and English language learners to enter into work-based learning programs to improve language and skills development for specific occupations and careers.

$6,100,000 is appropriated from the general fund to the department for use in the 2022-23 state fiscal year for:

• State operations and program costs;
• The office of future work; and
• The office of new Americans.

If the department does not expend the appropriated amount by July 1, 2023, the money ir further appropriated to the department for use in the 2023-24 state fiscal year.

$11,319 is appropriated from the general fund to the legislative department for use by the general assembly.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act updates and modifies laws pertaining to the payment of wages and employee misclassification, and the enforcement procedures and remedies for violations of those laws, as follows:

• Changes the penalties for failure to provide requested information to the division of labor standards and statistics in the department of labor and employment (DLSS) or for hindering or obstructing the director of the DLSS or other person authorized by the director in accessing an employer's premises from a misdemeanor criminal offense to a daily penalty of not less than $50 (sections 1 and 2 of the act);
• Directs the DLSS to transmit penalties it imposes to the wage theft enforcement fund (sections 1 through 5 and 10);
• Requires an employer to: Provide notice to an employee, within 10 days after the employment terminates, before deducting from wages or compensation any amount of money or property the employee failed to return or repay upon termination of employment and pay the employee the deducted amount within 14 days after the employee returns or repays the money or property if the employee did so within 14 days after notice is provided (section 6);
• Imposes automatic penalties of the greater of 2 times the amount of the unpaid wages or $1,000 on an employer that fails to pay all past-due wages within 14 days after a written demand or civil or administrative action for the past-due wages is sent to or served on the employer. If an employee shows that the employer's failure or refusal to pay wages was willful, the employer is subject to penalties equal to the greater of 3 times the amount of unpaid wages or $3,000. The act further states that an employer's second or subsequent failure or refusal to pay wages of the same or similar type within the 5 years preceding a claim is considered per se willful (section 7).
• If an employer makes a full legal tender of all amounts demanded in good faith within 14 days after a written demand is sent or an administrative claim or civil action is sent or served, the employee is required to dismiss the action (section 7);
• Eliminates the authority of a court to award an employer reasonable attorney fees and costs in an action in which the employee claimed wages in excess of the greater of $7,500 or the jurisdictional limit for small claims court and the employee does not recover an amount greater than the amount the employer tendered and instead permits a court to award an employer reasonable attorney fees and costs if, within 14 days after a written demand is sent or a civil action is served, the employer makes full legal tender of all amounts demanded in good faith for all employees and the employees ultimately fail to recover a total sum that is greater than the amount tendered (section 8);
• Allows the DLSS to award an employee reasonable costs incurred in an administrative claim when the employee recovers a sum that is greater than the amount the employer tendered, and, if the employee recovers more than $5,000 in unpaid wages, allows the DLSS to also award the employee attorney fees (section 8);
• Allows the director of the DLSS to use existing authority under labor laws to gather information pertinent to wage claims from employers, employees, and other persons or entities (section 9);
• Allows recovery of attorney fees, an additional fine of 50% of the amount of past-due wages, and a penalty of the greater of 50% of past-due wages or $3,000 from an employer that fails to pay an employee past-due wages within 60 days after the determination in favor of the employee (section 9);
• For a citation, notice of assessment, or order issued against an employer on or after January 1, 2023, requires the DLSS, upon request of an employee, to file a certified copy of the citation, notice, or order with the appropriate clerk of court, after which the clerk is required to enter the citation, notice, or order as a judgment of the court, and the judgment is sufficient to support the issuance of writs of garnishment if the judgment is wholly or partially unsatisfied (section 10);
• On or after January 1, 2023, authorizes the DLSS, either on its own initiative or within 60 days after receiving a written request from an employee, to issue a notice of administrative lien and levy, similar to a child support enforcement lien, when an employer fails to pay past-due wages, fines, or penalties, which lien attaches to the employer's real or personal property that is in the possession, custody, or control of another person (section 10);
• Allows an employee who alleges that the employee's employer discriminated or retaliated against the employee for filing or participating in a wage claim to file a civil action to seek relief, including back pay, reinstatement or front pay, payment of unlawfully withheld wages, interest on past-due wages, penalties, liquidated damages, injunctive relief, and attorney fees and costs. The DLSS, after an investigation of a discrimination or retaliation claim, may also order similar relief to an employee, other than attorney fees and costs (section 11).
• Establishes the worker and employee protection unit (unit) in the department of law to investigate and enforce wage theft and unemployment insurance and misclassification of employees claims under specified circumstances and requires the director of the DLSS to share with the unit any orders the director issued in the previous 12 months finding that an employer has misclassified employees (sections 12 through 15).

Section 16 appropriates $345,069 to the department of labor and employment for the 2022-23 state fiscal year to implement the act as follows:

• $314,019 for use by the DLSS for program costs, including an additional 3.4 FTE; and
• $31,050 to purchase legal services, which amount is reappropriated to the department of law to provide legal services to the department of labor and employment.

Section 16 also appropriates $95,200 to the department of law for the 2022-23 state fiscal year for use by consumer protection to implement the act, which amount assumes the department will require an additional 0.8 FTE.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act establishes the state procurement equity program (program) in the department of personnel (department) for the purpose of reducing disparities identified in the state disparity study report prepared as required by Senate Bill 19-135 between the availability of historically underutilized businesses and the utilization of such businesses in state procurement.

For preliminary implementation of the program, the department, in line with recommendations made in the state disparity study report, is required to:

• Provide solicitation assistance, defined by the act as the provision of real-time responses to questions asked by potential contractors who seek guidance as to how best to respond to solicitations for state contracts; and
• Create a bond assistance program to help historically underutilized businesses to offset all or a portion of the cost of obtaining a surety bond that is required for a solicitation for a state procurement opportunity. The act transfers $2 million from the general fund to a newly created bond assistance program cash fund, and the fund is continuously appropriated to the department to implement the bond assistance program.

The department is also required to convene, contract with a facilitator to facilitate discussion among, engage in consultation with, and strongly consider the formal policy recommendations of a stakeholder group, which, to the extent practicable, consists of government employees with procurement expertise, an employee of the procurement technical assistance center, a representative of the associated general contractors, owners or high-ranking employees of various types of historically underutilized businesses, and owners or high-ranking employees of businesses that are not historically underutilized businesses but have a demonstrable record of successful engagement and contracting with small businesses and have competed for or been awarded state contracts. The stakeholder group also includes any other individuals who have a demonstrable commitment to furthering equity in government procurement and substantial knowledge of procurement equity best practices who the department deems necessary or appropriate to include. The stakeholder group is required to:

• Closely examine the findings, conclusions, and recommendations in the state disparity study report;
• Using the information in the state disparity study report as a baseline for studying procurement equity programs in other states and at the federal and large local government level, identify best practices for successful program implementation and administration; and
• No later than November 1, 2023, present to the department a report of specific findings, remedial measures, and recommendations that includes, at a minimum:
• Prioritization of the recommendations in the state disparity study report;
• Confirmation or refutation of specified disparity study report findings;
• A preliminary estimate of the amount of initial and ongoing funding, personnel, information technology resources, and other resources needed to implement the policy recommendations and remedial measures in accordance with identified best practices;
• A step-by-step timeline for full implementation of the program;
• Suggested methodologies and metrics for evaluating the success of the program and ensuring program accountability on both the state agency and prime contractor sides; and
• Identification of any public or private sources of funding or other resources that may be available to expedite the implementation or ongoing administration of the program and reduce costs to the state.

The department is required to report on its progress and policy recommendations and any suggested remedial measures of the stakeholder group, the preliminary plans, recommendations, and remedial measures of the department regarding full implementation of the program, and any recommendations that the department has regarding the need for related legislation during its January 2025 annual presentation to legislative oversight committees required by the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".

$2,007,707 is appropriated from the general fund to the department, of which:

• $1,046,345 is for use by the executive director's office for the state procurement equity program;
• $961,362 is for use by the division of human resources for liability claims and liability legal services; and
• $114,824 is reappropriated from the money appropriated to the department to the office of information technology for the purpose of providing information technology services for the department.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act requires:

• The department of higher education (department), in consultation with state institutions of higher education (institutions) and a business organization or industry representative, to develop and implement a process that encourages institutions to identify incremental achievements on the path to degree completion, organize stackable credentials, and identify how credentials may be evaluated and then may become stacked into stackable credential pathways to provide increased access to employment and may result in a degree;
• The department to facilitate the creation of stackable credential pathways for at least 3 growing industries by January 1, 2024, and at least 2 more growing industries by January 1, 2025;
• The general assembly to appropriate $1 million to the department from the workers, employers, and workforce centers cash fund for the 2022-23 fiscal year; and
• The department of higher education to submit a report to the education committees regarding implementation of the act that includes data collected by institutions to measure the total number of credits, credentials, certificates, and professional licenses earned in each pathway at each institution and the funding allocated and distributed to implement the act.

The act requires the department to allocate and disburse funds to community and technical colleges and local district colleges to fund student access to nondegree credential programs. The general assembly is required to appropriate $1.8 million to the department for this purpose for the 2022-23 fiscal year.

The act requires the general assembly to appropriate $800,000 to the department of education for the adult education and literacy grant program for the 2022-23 fiscal year.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act creates the "Infrastructure Investment and Jobs Act" cash fund (fund) and requires the state treasurer to transfer $80,250,000 to the fund. The money in the fund is subject to annual appropriation by the general assembly to the office of the governor (office) and to departments. Money in the fund is to be used, subject to approval by the governor, as the nonfederal matching funding necessary for the state or a local government to be eligible to receive federal approval and federal funds for certain categories of infrastructure projects allowed under the federal "Infrastructure Investment and Jobs Act". The office must establish a process for receiving, reviewing, and approving applications and awarding and distributing money from the fund. The office, as well as state departments receiving money from the fund, are subject to annual reporting requirements.

$60 million is appropriated from the fund to the office and to a department, as defined in the act, for the 2021-22 state fiscal year, and any money appropriated and not expended prior to July 1, 2022, is further appropriated through the 2026-27 state fiscal year.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act:

• Amends the existing authority of the division of unemployment insurance (division) to issue bonds by clarifying that the division may issue the bonds through the state treasurer and granting the division the authority to levy bond assessments;
• Makes a temporary increase in partial unemployment benefits provided in current law permanent;
• Repeals the requirement that an individual wait at least one week before becoming eligible for unemployment compensation. This repeal will take effect when the unemployment compensation fund reaches a balance of at least $1 billion.
• Requires the division to study how to implement a dependent allowance for individuals receiving unemployment compensation.
• Requires the department of labor and employment to award grants to one or more third-party administrators for the purpose of providing recovery benefits to eligible individuals. The grants to the third-party administrators and the recovery benefits are funded through .00035 of the premium each employer is required to submit to the division.
• Provides that an individual is eligible to receive recovery benefits if the individual, regardless of the individual's immigration status: Separated from employment through no fault of the individual; received income from employment during a qualified base period or alternative base period; attests that the individual is not currently receiving any state-administered wage replacement assistance; is not eligible for state-administered wage replacement assistance for reasons related to the individual's authorization to work; and has a pay stub or form W-2 to verify the individual's employment and wage withholding.
• Requires an employer to provide an employee with certain information about unemployment compensation upon the employee's separation from employment;
• Extends the hold on an employer's solvency surcharge through calendar year 2023;
• Requires the state treasurer to transfer $600 million to a newly created fund. The transfer is from money received by the state through the federal "American Rescue Plan Act of 2021". The money in the fund may be used only to repay the outstanding balance of federal advances provided to the state through the unemployment insurance trust fund and interest owed on the advances.
• Sets forth factors that the division must consider in determining whether the repayment of overpaid unemployment compensation benefits repayment would be inequitable.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

On September 1, 2022, the state treasurer is required transfer to the capitol complex renovation fund (fund) any amounts credited to state agency capital reserve accounts on June 30, 2022, for annual depreciation-lease equivalent payments that are funded in connection with every appropriation in the capital construction section of the annual general appropriation act. For the 2022-23 fiscal year through the 2028-29 fiscal year, the state controller is required to credit the annual depreciation-lease equivalent payments to the fund rather than to the state agency capital reserve accounts.

Each state agency that terminates a lease for private space is required to calculate the annual reduction in its costs for leased space. Beginning in the 2023-24 fiscal year, the general assembly is required to annually transfer an amount equal to each state agency's annual reduction in lease costs to the capital construction fund. Such transfers continue until the state treasurer determines that the amount transferred to the capital construction fund from lease savings equals the amount transferred to the fund from the annual depreciation-lease equivalent payments.

The capitol complex renovation fund is created, and the money in the fund is appropriated to the department of personnel for certain capital construction needs for existing state-owned buildings in the capitol complex. Up to $23 million of the money in the fund is set aside for use by the legislative department for improvements to legislative spaces in the capitol complex. The department of personnel is required to submit a quarterly report to the capital development committee regarding the status of the capitol complex renovations funded with money in the fund.

Any unexpended and unencumbered money appropriated to a department in a specific line item for utilities in a fiscal year remains available for expenditure in the next fiscal year without further appropriation for the department to purchase utilities conservation equipment or services.

$18,600,000 is transferred from the capitol complex master plan implementation fund to the fund.

Two floors of the capitol building annex at 1375 Sherman street are included in the spaces over which the general assembly has control and for which the general assembly is responsible for the supervision of maintenance.

For the 2022-23 state fiscal year, $26,721,314 is appropriated to the department of personnel from the fund. The department may use the appropriation for capital construction related to capitol complex renovation projects pursuant to the act.

(Note: This summary applies to this bill as enacted.)

Fiscal Note