The commercial property assessed clean energy program (C-PACE) is part of the new energy improvement program. C-PACE allows owners of eligible real property to apply to the Colorado new energy improvement district (district) to finance certain energy efficiency improvements. The bill allows owners to also apply to the district to finance resiliency improvements and water efficiency improvements.

Additionally, when the district approves a C-PACE application, an owner consents to the district levying a special assessment on an owner's eligible real property. Current law requires the district to notify district members and existing lienholders about the special assessment and the availability of a hearing to resolve any complaints or objections. After a hearing, current law further requires the district to pass a resolution resolving any complaints or objections. The bill eliminates the requirements for the district to give notice about a hearing, conduct a hearing, and pass a resolution resolving complaints or objections. Instead of notifying district members and existing lienholders about the availability of a hearing, the bill requires the district to send a notice of assessment, which specifies the amount of the special assessment to be levied on the eligible real property, explains that the special assessment constitutes a lien against the eligible real property, and explains that the district is not a party to any private financing agreements.

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

Sales and Use Tax Simplification Task Force. As part of an effort to simplify the sales and use tax system, the department of revenue (department) created the electronic sales and use tax simplification system (SUTS), which is a one-stop portal designed to facilitate the collection and remittance of sales and use tax. As soon as possible, but no later than January 1, 2025, the bill requires the department to modify SUTS: to:

• Notify a local taxing jurisdiction when there has been a change in an account's attributes or when an account has been closed;
• To populate a local account number on all returns and summary reports, if the retailer filing the return has a number and provides the number in SUTS;
• Ensure that the missing license tool is working properly;
• Facilitate the automation of the filing process;
• Develop By developing a simplified spreadsheet filing system or a filing option that does not use a spreadsheet user interface for filing returns as an alternative to the current spreadsheet method ;
• To provide taxpayers with a bulk testing option for address files; and
• Create a simplified process for filing a zero return; and
• To include additional use taxes, additional information about deductions, filtering options, and certain tabs.

The bill permits the department to modify SUTS to:

• Require retailers to register with a local taxing jurisdiction in which taxes are due before using SUTS; and
• Prohibit a retailer from filing a return in SUTS unless the retailer has the correct local number on the account.

With the exception of charges for payments by credit cards, the bill prohibits the department from imposing a convenience fee or any other type of charge for a payment through SUTS and from passing those charges on to local taxing jurisdictions.

The bill also requires the department to:

• Create a campaign to promote SUTS for the purpose of increasing the awareness, participation, and compliance by retailers and local taxing jurisdictions; and
• Solicit and consider feedback from interested stakeholders about enhancements to SUTS that lead to greater local taxing jurisdiction participation and greater compliance by retailers.

(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.)

The bill creates a dependent allowance for an individual receiving unemployment compensation (eligible individual) for each of the eligible individual's dependents. The dependent allowance starts on July 1, 2025 2026, is $35 per dependent per week, and increases annually for inflation if necessary. The bill defines "dependent" as a child of an eligible individual who receives at least half of the child's financial support from the eligible individual and who is:

• Under 18 years of age; or
• 18 years of age or older and incapable of self-care because of a mental or physical disability.

The bill requires the division of unemployment insurance to report to the general assembly regarding the dependent allowance annually, beginning August 31, 2025 2026, and by August 31 of each year thereafter.The bill appropriates $655,530 to the department of labor and employment for the 2023-24 state fiscal year to implement the act.

(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.)

For any proposed metropolitan district that has any property within its boundaries that is zoned or valued for assessment as residential, section 1 of the bill prohibits requires the service plan to include a prohibition on the purchase of district debt by any entity with respect to which any director of the district has a conflict of interest necessitating disclosure under current law. Section 2 prohibits a board of county commissioners from approving a service plan for such a metropolitan district unless the service plan includes the prohibition. Section 3 prohibits a court from considering a petition for the organization for such a metropolitan district unless the service plan includes the prohibition.Section 2 4 prohibits a member of the board of a metropolitan district that approved the issuance of any debt while the member was serving on the board from 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 unless the debt is acquired indirectly through an investment fund and the member has no input into or control over the individual securities that the fund purchases.Section 3 5 states that proof of a violation of the prohibition set forth in section 2 4 is proof that the violator has breached the actor'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.)

The bill repeals statutory provisions prohibiting counties and municipalities from enacting any ordinance or resolution that would control rent on private residential property or a private residential housing unit (rent control) and sets the following guidelines for the enactment of rent control:

• Rent control must be uniformly applied among all renters that are similarly situated;
• Rent control must be uniformly applied among all private residential properties and private residential housing units that are similarly situated; except that:
• For 15 years from the date on which the first certificate of occupancy was issued, no rent control may be applied;
• Rent control may be applied to a mobile home or mobile home park regardless of the date the mobile home or mobile home park was built or the date a certificate of occupancy was issued; and
• No rent control may be applied to housing units provided by nonprofit organizations and regulated by fair market rents published by the United States department of housing and urban development or any other similar federal or state program; and
• Rent control that limits the amount of an annual rent increase must not impose a limit less than the percentage increase in the consumer price index plus three percentage points plus reasonable increases reflective of the actual costs of substantial renovations.

Regardless of the first two of these guidelines, the bill permits a local government to have or adopt an ordinance or regulation that is expressly intended and designed to increase the supply of affordable housing. The bill also makes a conforming amendment.

(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.)

The bill imposes requirements for certain types of employers with regard to:

• The determination of employee work schedules;
• Employee requests for changes to work schedules; and
• Notices and posting of employee work schedules.

In addition to pay for hours worked by the employee, the bill requires certain types of employers to pay employees:

• Predictability pay when an employer makes certain changes to an employee's work schedule;
• Rest shortfall pay when an employee is required to work hours without a minimum period of rest after a prior shift;
• Retention pay when an employer provides work hours to a new employee without first offering the work hours to existing employees; and
• Minimum weekly pay in an amount that corresponds to 15% of the average weekly hours indicated on the employee's anticipated work plan, paid at the greater of the employee's regular rate of pay or the minimum wage, regardless of whether the employee works such hours.

The bill prohibits employers from discriminating or taking any adverse action against an employee based on the hours an employee is scheduled or actually works, the expected duration of employment, or the employee's desired work schedule. The bill also prohibits retaliation against an employee for attempting to exercise any right created in the bill. Employers are required to retain records demonstrating their compliance with the requirements of the bill.

A person who is aggrieved by a violation of the requirements of the bill may file a complaint with the division of labor standards and statistics (division) in the department of labor and employment or bring a civil action in district court. The division is authorized to investigate complaints and, upon determining that a violation occurred, to impose fines, penalties, or damages and award attorney fees and costs. The division is also authorized to bring a civil action to enforce the requirements of the bill. The bill includes protections for whistleblowers and establishes penalties for violations.

The director of the division is required to promulgate rules to implement the bill.

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

Current law establishes water and energy efficiency standards (standards) for certain appliances and fixtures sold in Colorado. Sections 1 through 7 of the bill expand the appliances and fixtures that are subject to the standards and update the standards.

Specifically, section 4 updates standards for certain appliances and fixtures that are sold in Colorado on and after certain dates, including:

• Showerheads, urinals, water closets, and certain faucets and urinals ;
• Certain lamps;
• Commercial hot food holding cabinets;
• Portable electric spas;
• Residential ventilating fans; and
• Spray sprinkler bodies.

Section 4 also creates new standards for certain appliances and other fixtures that are sold in Colorado on and after January 1, 2024, 2026, including:

• Air purifiers;
• Commercial ovens;
• Electric storage water heaters;
• Electric vehicle supply equipment;
• Gas fireplaces;
• Irrigation controllers;
• Tub spout diverters and showerhead tub spout diverter combinations; and
• Certain residential windows, residential doors, and residential skylights; and
• Thermostats.

Section 4 also removes standards for air compressors, general service lamps, and uninterruptible power supplies.Section 5 requires the executive director (executive director) of the department of public health and environment (executive director) (department) to promulgate rules on or before January 1, 2026, and every 5 years thereafter:

• Adopting a more recent version of any standard; and
• Establishing standards for appliances and other devices that are not subject to the standards if certain conditions are met.

Section 6 exempts manufacturers of products subject to the standards from having to demonstrate that a product complies with the law if the product appears in the state appliance standards database maintained by the Northeast Energy Efficiency Partnerships, or a successor organization. Section 6 also requires the executive director to conduct periodic, unannounced inspections of major distributors or retailers, including online retailers, of new products in order to determine verify major retailers' and distributors' compliance with the standards through online spot-checks, coordination with other states that have similar standards, or both. The executive director must deliver a report to the legislative committees of reference concerning the method and findings of the verifications, post the report on the department's website, and report any findings of violations to the attorney general.

Under current law, any person who sells or offers to sell in the state any new consumer product that is required to meet an efficiency standard but that the person knows does not meet that standard is subject to a civil penalty of not more than $2,000 for each violation, which amount is credited to the general fund. Section 7 credits any penalties imposed to the energy fund created in the Colorado energy office rather than to the general fund and specifies that each transaction or online for-sale product listing constitutes a separate violation.Section 8 establishes the "Clean Lighting Act" to phase out the sale of general-purpose fluorescent light bulbs that contain mercury. With certain exceptions:

• On and after January 1, 2024, 2025, a person shall not manufacture, distribute, sell, or offer for sale in Colorado any new linear florescent lamp or compact fluorescent lamp. with a screw- or bayonet-type base; and
• On and after January 1, 2025, a person shall not manufacture, distribute, sell, or offer for sale in Colorado any linear fluorescent lamp or any compact fluorescent lamp with a pin-type base.

Section 9 establishes standards for heating and water heating appliances. With certain exceptions, on and after January 1, 2025, 2026, a person shall not manufacture, distribute, sell, offer for sale, lease, or offer for lease in Colorado any new water heater boiler, or fan-type central furnace unless the emissions of the product do not exceed certain limits on emissions. On or before January 1, 2029, the air quality control commission in the department of public health and environment must promulgate rules lowering the emission limits. Section 9 also requires manufacturers to use certain testing protocols, display certain information on each product, and demonstrate compliance through one of various 2 described means.Section 9 also allows the executive director to promulgate rules updating any emission standard, definition, or test method for new water heaters or fan-type central furnaces in order to maintain or improve consistency with other comparable standards in other states so long as the updated version results in air quality that is equal to or better than air quality achieved using the prior standard. On or before January 1, 2030, the executive director must conduct an analysis to determine whether statewide greenhouse gas emissions from water heaters and fan-type central furnaces are declining in comparison to emission levels in 2023 in a manner that comports with the statewide greenhouse gas reduction goals. Unless the analysis determines that the emissions trajectory is consistent with achieving the statewide greenhouse gas reduction goals, the executive director shall propose to the commission rules to bring the emission levels in line with the reduction goals.Sections 8 and 9 both require the executive director to conduct periodic, unannounced inspections of major distributors or retailers, including online retailers, of new products to determine compliance and to report violations to the attorney general. verify major retailers' and distributors' compliance with the prohibitions through online spot-checks, coordination with other states that have similar standards, or both. The executive director must deliver a report to the legislative committees of reference concerning the method and findings of the verifications, post the report on the department's website, and report any findings of violations to the attorney general. If the attorney general has probable cause to believe that a violation occurred, the attorney general may bring a civil action on behalf of the state to seek the imposition of civil penalties, and any civil penalties are to be deposited in the energy fund.

For the 2023-24 state fiscal year, the bill appropriates $49,730 to the department from the general fund to be used by the department as follows:

• $5,848 for use by the division of environmental health and sustainability for administration and support; and
• $43,882 for the purchase of legal services, which amount is reappropriated to the department of law to provide legal services for the department.

(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.)

The bill creates a right of first refusal of a local government to match an acceptable offer for the sale of a residential or mixed-use multifamily property (property). The right to the purchase of the property by the local government is subject to the local government's commitment to using the property as long-term affordable housing. The local government may assign its right of first refusal to the state, to any political subdivisions, or to any housing authority in the state , or to the Colorado housing and finance authority subject to the limitation that the assignee make the same commitment to using the property as long-term affordable housing.

The bill requires notices to be given by the seller to local governments and by local governments to the seller and to residents of the property. Upon receiving notice of intent to sell or of a potential sale of property, a local government has 14 business calendar days to preserve its right of first refusal and an additional 90 business 60 calendar days to make an offer and must agree to close on the property within 180 business 120 calendar days of the execution of an agreement for the sale and purchase of the qualifying property. Prior to the sale of the property, the seller is required to execute and record an affidavit in the real property records of the county in which the property is located certifying that the seller has complied with the right of first refusal requirements.

The bill allows certain sales of property to be exempt from the right of first refusal and the requirements established by the bill for the right of first refusal. The bill also allows the local government to waive its right of first refusal to purchase a property if the local government elects to disclaim its rights to any proposed transaction or for any duration of time or if there is a third-party buyer interested in purchasing the property with the same commitment to preserving or converting the property for long-term affordable housing and if the third-party buyer enters into an agreement with the local government concerning the third-party buyer's commitment to long-term affordable housing.

If the local government, its assignee, or a third-party buyer who has committed to preserving or converting the property for long-term affordable housing has acquired the property and maintained the property for long-term affordable housing for 50 years, the property may be converted to another use if the following conditions are met:

• Notice is given to residents prior to the conversion;
• Any displaced residents are provided with compensation for relocation; and
• The local government, its assignee, or a third-party buyer who has committed to preserving or converting the property for long-term affordable housing guarantees the development or conversion of an equal or greater amount of units within the boundaries of the local government for long-term affordable housing and offers the units first to any residents displaced by the conversion of the property.

The bill also provides that the attorney general's office has responsibility to enforce the provisions of the bill and that the attorney general's office, a local government, or a mission-driven organization has standing to bring a civil action for violations of the bill. If a court finds that a seller or a third-party buyer that has entered into an agreement with a local government for the waiver of the local government's right of first refusal has materially violated the law with respect to the provisions of the right of first refusal, the court must award a statutory penalty of not less than $50,000 or an amount equal to 30% of the purchase or listing price of the property, whichever amount is greater.

(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.)

Section 1 of the bill:

• Removes the knowingly or recklessly mental state from the general unfair or deceptive trade practice provision concerning an unfair, unconscionable, deceptive, deliberately misleading, false, or fraudulent act or practice , removes "deliberately misleading" from that provision, and adds "knowingly" before "false" within that provision ;
• Establishes as a deceptive trade practice the act of including in a contract offered to or entered into with a consumer a term that is substantially substantively unconscionable or void as against public policy as of the time of the contract's execution ;
• Establishes that evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact to the public; and
• Amends Adds to the definition of "recklessly" with regard to unfair or deceptive trade practices , to mean without regard to consequences or to the rights, interests, or safety of others the failure to exercise reasonable care to:

• Ensure that a statement, advertisement, or conduct is truthful and accurate; or
• Avoid a substantial and unjustifiable risk of consumer harm.

Under current law, a person commits an unfair and unconscionable act or practice if the person engages in price gouging with regard to the sale or provision of certain goods or services during, and for a certain period after, a declared emergency disaster (disaster period). Section 2 extends the disaster period from 180 days after the first declaration of the disaster to 180 days after the final declaration concerning the disaster expires.Section 3 repeals and reenacts the "Colorado Antitrust Act of 1992" as the "Colorado State Antitrust Act of 2023" (act) and:

• Establishes that the facilitation or aiding and abetting of another person's violation of the act is itself a violation of the act;
• Authorizes the attorney general (AG) to request discovery from any person that the AG believes may in the future engage in, or has information related to, a violation of the act;
• Authorizes the AG to deem investigatory or intelligence records related to the act available for public inspection, but allows the AG to issue public statements or warnings regarding conduct forming the basis of the investigatory or intelligence records ; without waiving the AG's authority not to deem the records available for public inspection ;
• Authorizes a court, upon request of the AG, to compensate a person that has been injured from a violation of the act as part of a civil action that the AG brings on behalf of the person;
• Increases the maximum civil penalty that a court may award for a violation of the act from $250,000 to $1,000,000 per violation; and
• With regard to the statute of limitations for commencing a civil action under the act:
• Clarifies that a cause of action accrues on the date of the last in a series of acts or practices that, in the aggregate, constitute a violation of the act; and
• Tolls the statute of limitations for any civil action pertaining to an alleged violation of the act during the pendency of a federal proceeding regarding the conduct forming the basis of the alleged violation of the act. ; and
• Exempts the AG from the statute of limitations.

(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.)

The bill amends the "Colorado Youth Employment Opportunity Act of 1971" (act) to allow aggrieved parties, including parents of children protected by the act, to pursue remedies at law and in equity for violations of the act, that are not within the scope of in addition to workers' compensation remedies, if:

• An injury occurs to a minor during a week when the employer intentionally required the minor to work hours in violation of those allowed by the act; or
• An injury occurs to a minor while the minor was engaging in work prohibited by the act.

The bill also clarifies that economic damages for claims in tort recovered by a party aggrieved by a violation of the act against the employer of a minor pursuant to the bill must be reduced by the amount of compensation and benefits that the minor or the minor's dependents received for the same harm through the employer's workers' compensation insurance.

(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.)

For group benefit plan contracts a contract between a pharmacy benefit manager (PBM) or a health insurance carrier (carrier) and an employer, a certificate holder or policyholder, the bill requires that the amount charged by the PBM or carrier to the employer, certificate holder or policyholder for a prescription drug be equal to or less than the amount paid by the PBM or carrier to the contracted pharmacy for the drug.For group health benefit plans in effect during calendar year 2025, and each calendar year thereafter, the bill creates transparency requirements for PBMs and carriers regarding prescription drug benefits and grants audit authority to the department of health care policy and financing for self-funded plans and to the commissioner of insurance for fully insured plans on request of the office of the attorney general, to ensure compliance with the requirements. The bill grants rulemaking authority to the commissioner of insurance.

A violation of the requirements of the bill is a deceptive trade practice under the "Colorado Consumer Protection Act", with regard to self-funded plans, and a deceptive trade practice in the business of insurance, with regard to fully insured plans.

For contracts between a PBM and the department of health care policy and financing(state department) or one of its affiliated managed care organizations offering a prescription benefit plan, the bill requires the amount charged by the PBM to the state department or managed care organization for a prescription drug dispensed to an enrollee in the Colorado medical assistance to be equal to or less than the amount paid by the PBM to a medicaid pharmacy for the prescription drug dispensed to the enrollee.

(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.)

The bill directs the office of future of work (office) in the department of labor and employment to create an a two year apprenticeship navigator pilot program (program) with 2 full-time apprenticeship navigators, with each apprenticeship navigator assigned to a different school district selected by the office. The purpose of the program is to increase awareness of registered apprenticeship programs among graduating high school students in the selected school districts.

The bill also directs the office to promote apprenticeship programs to high school students by creating and maintaining a web-based job board of apprenticeships and incorporating apprenticeships in the state's career planning tools.

The bill appropriates $342,638 to the department of labor and employment for use by the executive director's office for the 2023-24 state fiscal year. The bill also appropriates $44,000 to the department of education from the general fund for the 2023-24 state fiscal year.

(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.)

The bill defines "health-care provider" as a person that is licensed or otherwise authorized in this state to furnish a health-care service, which includes a hospital and other providers and health facilities.

The bill prohibits a health-care provider (provider) affiliated with or owned by a hospital or health system, other than a critical access hospital, a sole community hospital in a rural or frontier area, or a community clinic affiliated with a sole community hospital in a rural or frontier area, from charging a facility fee for health-care services furnished by the provider for:

• Outpatient services provided at an off-campus location or through telehealth; or
• Preventive health-care services, as described in section 10-16-104, that are provided in an outpatient setting or .
• Certain outpatient, diagnostic, or imaging services identified by the medical services board as services that may be provided safely, reliably, and effectively in nonhospital settings.

The bill:

• Requires a provider that charges a facility fee to provide notice to a patient that the provider charges the fee and to use a standardized bill that includes itemized charges identifying the facility fee, as well as other information;
• Requires a health facility that is newly affiliated with or owned by a hospital or health system on or after July 1, 2024, to provide written notice to patients of the health facility during the previous 12 months concerning the change in ownership and that the health facility may now charge a facility fee ;
• Requires the administrator of the all-payer health claims database to prepare an annual report of the number and amount of facility fees by payer, codes with the highest total paid amounts and highest volume, and other information; and
• Makes it a deceptive trade practice to charge, bill, or collect a facility fee when doing so is prohibited.

The bill requires the department of health care policy and financing (department) to issue a report on or before December 1, 2023, detailing the impact of facility fees on the Colorado health-care system, consumers, health-care providers, and hospitals (report). The department shall contract for actuarial research or economic modeling to identify and evaluate the impact of facility fees. The bill lists specific data and information to be evaluated in the report, and authorizes compliance with requests for information.

(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.)

Currently, several local governments governmental entities have laws restricting the growth of residential housing. The bill declares that the state has an interest in encouraging housing growth statewide, preempts any existing local governmental entity housing growth restriction, and forbids the enactment or enforcement of any future local housing growth restriction, unless the local government governmental entity has experienced a disaster emergency, has developed or amended land use plans or land use laws covering residential development or the residential component of a mixed-use development, or is extending or acquiring public infrastructure, public services, or water resources. A governmental entity that has experienced a disaster emergency, has developed or amended land use plans or land use laws covering residential development or the residential component of a mixed-use development, or is extending or acquiring public infrastructure, public services, or water resources may implement a growth-cap for up to 24 months in a 5-year period.

(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.)

Section 2 of the bill removes the requirement that the air quality control commission (AQCC) promulgate rules setting the conditions and limitations for periods of start-up, shutdown, or malfunction of a source of air pollution (source) that justify temporary relief from an emission control regulation creates the legislative interim committee on ozone air quality (committee) to study ozone air quality in the state. The committee consists of six members of the senate and six members of the house of representatives. The committee may meet up to six times during the 2023 interim and may introduce up to a total of five bills.Current law provides that a person shall not permit the emission of air pollutants at a nonresidential structure unless an air pollution emission notice has been filed with the division of administration in the department of public health and environment (division). Section 5 adds the requirements that any:

• Relevant permits have been approved by the division; and
• Applicable period of review by the federal environmental protection agency has been completed.

Section 6 removes the prohibition against the AQCC adopting rules covering indirect sources that are more stringent than applicable federal law.Section 6 also requires the division, in evaluating a construction permit application for a source that includes new oil and gas operations, to:

• Aggregate emissions from a proposed or modified oil and gas system; and
• Consider emissions from exploration and preproduction activities if a proposed or modified oil and gas system is in an ozone nonattainment area and if the activities will be conducted beginning May 1 and ending August 31 of any year (ozone season).

Section 8 clarifies that only the filing of a renewable operating permit application can operate as a defense to an enforcement action for operating without a permit during the time period that the division or the AQCC is reviewing the permit application.Current law requires the division or the AQCC to give public notice of certain construction permit applications or renewable operating permit applications and of certain public hearings through a newspaper publication or another method that ensures effective public notice. Current law also requires the division to maintain a copy of a construction permit application and applicable preliminary analysis or a notice of public hearing with the county clerk and recorder of the county where the applicable project is located. Section 8 also removes the newspaper publication option and the county clerk and recorder filing requirements and provides for alternative methods of giving public notice, including posting information about the application or any public hearings on the division's or the AQCC's website.Current law requires the division or AQCC to make a finding that a source or activity will meet all applicable emission control regulations, including ambient air quality standards (AAQS), before granting a permit for the source or activity. Section 8 also requires that, beginning January 1, 2024, for at least any source or activity that has the potential to emit levels of air contaminants above certain modeling thresholds, the division or AQCC must base any finding that the source or activity will not cause or contribute to an exceedance of applicable AAQS on air quality modeling.Section 8 also allows the division, after an investigation into whether an activity meets the requirements of a construction permit, to propose additional terms and conditions of the construction permit.

With respect to a complaint alleging or the division's own belief of the division of administration in the department of public health and environment (division) regarding a violation or noncompliance (violation), section 9 section 3 requires the division to:

• Cause a diligent investigation into the violation to be made unless the complaint clearly appears to be frivolous or trivial or the complainant withdraws the complaint;
• Notify the owner or operator of the applicable air pollution source of the complaint or the division's belief of an alleged violation within 30 days after the complaint was filed or the division discovered the alleged violation; Respond to a complainant to outline the steps of the complaint investigation within 30 days after receipt of the complaint;
• If the division is acting in response to a complaint, notify the complainant that an investigation has commenced at the time that the division provides notice to the owner or operator of the air pollution source; and
• Accept and consider all relevant evidence that it acquires when investigating the alleged violation. and
• Determine whether a violation occurred within 90 days after the division gives notice that it has commenced an investigation on the matter.

If the division determines that a violation has occurred, current law requires the division to issue a compliance order unless the responsible party gives timely notice that the violation occurred during a period of start-up, shutdown, or malfunction. Section 9 Section 3 removes the exception for periods of start-up, shutdown, or malfunction.Section 9 Section 3 also requires, if a hearing is requested, after the receipt of a compliance order, the air quality control commission to provide at least 45 days' notice to any complainant that submitted a complaint alleging the applicable violation.Section 9 also allows a complainant to submit a request for a hearing within 20 calendar days after receipt of a determination by the division that no violation occurred.

Current law provides that any noncompliance that occurs during a period of start-up, shutdown, or malfunction exempts the owner or operator of a source from the duty to pay penalties related to that noncompliance. Section 9 Section 3 removes this provision.Section 9 also allows a person, with respect to certain clean air regulations, to commence a civil action (action) against an alleged violator for a current or past violation of the regulation. A person shall not commence an action until at least 60 days after a notice has been provided to the executive director of the department, the director of the division, and the alleged violator. Except for violations of an ongoing or recurring nature, any action that is not commenced within 5 years after the discovery of the alleged violation is time barred.

Current law requires the division to consider certain factors in determining the amount of a civil penalty to assess for a violation. Section 10 Section 4 requires the division to also consider the impact of the violation on safety and wildlife and biological resources and the severity of the violation.

Current law provides that any action related to an alleged violation of air quality laws that is not commenced within 5 years after the occurrence of the alleged violation is time barred. Section 11 Section 5 excludes actions commenced to address a failure to obtain a permit from this statute of limitation.Section 12 creates new electrification requirements and emissions standards for stationary engines used in oil and gas operations.Section 13 creates new control measures that must be included in any state implementation plan for ozone adopted by the AQCC until a serious, severe, or extreme ozone nonattainment area in the state is redesignated as a maintenance area by the federal environmental protection agency.Section 15 Section 7 requires the district court, in a suit against a person that has violated a state law, rule, or order related to oil and gas, to award the initial complaining party any costs of litigation incurred by the initial complaining party if the court determines that the award is appropriate. Section 16 Section 8 allows any person to submit a complaint to the oil and gas conservation commission (COGCC) alleging a violation of a state law, rule, or order related to oil and gas. Upon receipt of the complaint, the COGCC or the director of the COGCC is required to promptly commence and complete an investigation into the violation alleged by the complaint, unless the complaint clearly appears on its face to be trivial or the complainant withdraws the complaint.Section 17 requires the COGCC to evaluate and address adverse cumulative impacts on the environment and disproportionately impacted communities for each permit application for a new or substantially modified oil and gas location through a cumulative impact analysis.Section 9 makes an appropriation.

(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.)

The office of future of work (OFW) was created in the department of labor and employment (department) by executive order of the governor in 2019 for the purpose of studying unemployment assistance. The bill creates the OFW in statute and expands the duties of the OFW. The purpose of the OFW is to:

• Identify opportunities for Colorado's communities to transition effectively to emerging industries;
• Ensure the inclusion of key stakeholders and engage partnerships across public and private sectors;
• Host, organize, and convene task forces, summits, and other appropriate meetings with diverse stakeholders, designed to improve the state's understanding of the social and economic impacts of the changing nature of work;
• Explore ways that the state can prepare for current and future impacts, including through the modernization of worker benefits and protections, the development of a skilled and resilient workforce through coordination of registered apprenticeship programs, and the identification of new policy and program solutions; and
• Undertake studies, research, and factual reports related to issues of concern and importance to Colorado's future workforce.

The executive director of the department is required to submit a report to the governor, at least once per calendar year, that includes recommendations for potential policy initiatives.

In 2021, House Bill 21-1007 created the state apprenticeship agency (SAA) in the department. The bill amends Colorado statutes to enable the United States department of labor's office of apprenticeship to recognize Colorado's state apprenticeship agency and authorize the SAA to register and oversee apprenticeship programs. To conform with regulations promulgated by the United States secretary of labor under the federal "National Apprenticeship Act", the bill:

• Modifies references to apprenticeships in Colorado statutes;
• Changes the state apprenticeship council to the council for apprenticeship in the building and construction trades; and
• Changes the interagency advisory committee on apprenticeship to the council for apprenticeship in new and emerging industries.
  (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

For the career development success program (program), the bill removes the requirement for successful completion of a qualified industry pre-apprenticeship program and the requirement for successful completion of a qualified industry apprenticeship.

The bill adds boards of cooperative services to the program.

Current law requires the general assembly to annually appropriate $1 million to the department of education for the program. Beginning in the 2023-24 budget year, and each budget year thereafter, the bill increase the appropriation to $10 $9.5 million.

The bill requires a school district or charter school participating in the program to receive 120% of the per-pupil amount for each pupil who is eligible for free or reduced-price lunch and who successfully earned an industry certificate by completing a qualified industry-credential program, a qualified workplace training program, or a qualified advanced placement course.

The bill authorizes a participating school district or participating charter school to contract with a third party to provide specified services under the program.

The bill extends the repeal date from September 1, 2024, to September 1, 2034.

(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.)

Under current law, prior to filing a petition for the organization of a special district in a district court, the people proposing the organization of the special district are required to submit a service plan to the board of county commissioners of each county that has unincorporated territory included within the boundaries of the proposed special district. If the boundaries of the proposed special district are wholly contained within the boundaries of one or more municipalities, the service plan is submitted to the governing body of the municipality or municipalities. For a proposed metropolitan district that submits a service plan to one or more boards of county commissioners or one or more governing bodies of a municipality on or after January 1, 2024, sections 1 and 2 of the bill require the service plan to include:

• The maximum mill levy that may be imposed for the payment of general obligation indebtedness, as determined by the board of county commissioners of each county that is approving the service plan or the governing body of each municipality that is approving the service plan, as applicable; and
• The maximum debt that may be issued by the metropolitan district, as determined by the board of county commissioners of each county that is approving the service plan or the governing body of each municipality that is approving the service plan, as applicable.

In addition to any other meetings held by the board of directors of a metropolitan district (board), beginning in the 2023 calendar year, section 3 requires the board to hold an annual meeting if the metropolitan district was organized after January 1, 2020 2000 , has residential units within its boundaries, and is not in inactive status. The board is prohibited from taking any official action at the annual meeting and must ensure that the annual meeting includes a presentation from the metropolitan district regarding the status of any of the district's projects public infrastructure projects within the metropolitan district and outstanding bonds, if any, a review of unaudited financial statements showing the year-to-date revenue and expenditures of the metropolitan district in relation to its adopted budget for that calendar year , and an opportunity for members of the public to ask questions about the metropolitan district. In addition, section 3 requires the board to provide a public comment period during the meeting at which the board adopts the annual budget for the metropolitan district.Section 4 specifies that 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 a disclosure pursuant to current law, the board is required to receive a statement of a registered municipal advisor certifying specified criteria regarding the interest rate of the debt.

Sellers of real property are currently required to make various disclosures regarding the property. On and after a specified date, section 5 requires the seller of residential real property that is located within a metropolitan district to provide the purchaser of the property with the official website established by the metropolitan district. The seller is required to provide the information on the Colorado real estate commission approved seller's property disclosure.

(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.)

Currently, the state and several state enterprises impose fees on retail sales of taxable tangible personal property delivered by motor vehicle to a location in the state. These fees are collectively known as the retail delivery fee (RDF), and a retailer who makes a retail delivery is required to add the RDF to the price of the retail delivery, collect it from the purchaser, and pay the RDF revenue to the department of revenue (department), which distributes the revenue to the appropriate cash funds.

The department generally administers the RDF in the same manner as the state sales and use tax. The bill modifies this administration by permitting a retailer to pay the RDF on behalf of the purchaser. If the retailer elects to pay the RDF, then the retailer is:

• Not required to add the RDF to the price of the retail delivery, separately itemize the RDF, or collect the RDF from the purchaser, who is not liable for the amount nor eligible for a refund of an erroneously paid RDF; and
• Required to remit the RDF on the date that would be required if the RDF had been received from the purchaser on the date of the retail delivery.

The department is required to waive any processing costs for a retailer's electronic payment by automated clearing house (ACH) debit of the RDF if the charges would exceed the amount of the RDF revenue being remitted.

The bill creates an exemption from the RDF for a retail delivery by a qualified business, which is a business that has $500,000 or less of retail sales in the prior year or is new, that applies retroactively to when RDFs were first imposed. A purchaser is not eligible for a refund of any RDF that is collected and remitted to the department by a qualified business prior to the effective date of the bill.

The bill also creates a primary definition for "retail delivery" that is cross-referenced in other RDF provisions, and related to this change, a definition of "retail sale" is repealed where the cross reference makes it unnecessary.

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

The bill establishes a wildfire resiliency code board (board) in the division of fire prevention and control (division) within the department of public safety (department) for the purposes of ensuring community safety from and more resiliency to wildfires by reducing the risk of wildfires to people and property through the adoption of statewide codes and standards. The board consists of 21 appointed voting members with specific government or industry qualifications and 3 non-voting members. The board is required to promulgate rules concerning the adoption and administration of codes and standards for the hardening of structures and parcels reducing fire risk in the defensible space surrounding structures in the wildland-urban interface in Colorado, including rules that:

• Define the wildland-urban interface and identify areas of the state that are within it;
• Adopt minimum codes and standards based on best practices to reduce the risk to life and property from the effects of wildfires;
• Identify hazards and types of buildings, entities, and defensible space around structures to which the codes apply; and
• Establish a process for a governing body to petition the board for a modification to the codes and establish the criteria and process for the board to grant or deny an appeal from a decision of the board on a petition for modification.

The bill also creates the wildfire resiliency code board cash fund and continuously appropriates the money in the fund to the department to implement the provisions of the bill.

The bill requires a governing body with jurisdiction in an area within the wildland-urban interface that has the authority to adopt building codes or fire codes to adopt and enforce a code that meets or exceeds the minimum standards of the codes adopted by the board within three months of the date the board adopts its codes . Enforcement of the governing body's adopted codes is done in accordance with the rules and regulations for code enforcement adopted by the governing body and the period to comply with a governing body's adopted codes must be in accordance with the governing body's rules and regulations or within three months of adoption, whichever is sooner . If the governing body does not have rules and regulations for code enforcement, the governing body may request support from the division to enforce the code.

(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.)

For purposes of addressing discriminatory or unfair employment practices pursuant to Colorado's anti-discrimination laws, the bill enacts the "Protecting Opportunities and Workers' Rights (POWR) Act", which:

• Directs the Colorado civil rights division (division) to include "harassment" as a basis or description of discrimination on any charge form or charge intake mechanism;
• Adds a new definition of "harass" or "harassment" and repeals the current definition of "harass" that requires creation of a hostile work environment;
• Adds protections from discriminatory or unfair employment practices for individuals based on their "marital status";
• Specifies that in harassment claims, the alleged conduct need not be severe or pervasive to constitute a discriminatory or unfair employment practice;
• For purposes of the exception to otherwise discriminatory practices for an employer that is unable to accommodate an individual with a disability who is otherwise qualified for the job, eliminates the ability for the employer to assert that the individual's disability has a significant impact on the job as a rationale for the employment practice;
• Specifies that it is a discriminatory or an unfair employment practice for an employer to fail to initiate an investigation of a complaint or to fail to take prompt, reasonable, and remedial action;
• Specifies the requirements for an employer to assert an affirmative defense to an employee's proven claim of unlawful harassment by a supervisor; and
• Specifies the requirements that must be satisfied for a nondisclosure provision in an agreement between an employer and an employee or a prospective employee to be enforceable; and
• Requires an employer to maintain personnel and employment records for at least 5 years and, with regard to complaints of discriminatory or unfair employment practices, to maintain those records in a designated repository.

The bill appropriates a total of $1,248,170 from the general fund for the 2023-24 state fiscal year, allocated as follows to the following state departments and offices, to implement the bill:

• $152,866 to the department of corrections;
• $23,469 to the department of education;
• $35,415 to the office of the governor;
• $23,363 to the department of health care policy and financing;
• $129,081 to the department of human services;
• $146,894 to the judicial department;
• $46,833 to the department of labor and employment;
• $17,708 to the department of law;
• $76,276 to the department of natural resources;
• $89,090 to the department of personnel;
• $52,912 to the department of public health and environment;
• $52,912 to the department of public safety;
• $266,298 to the department of regulatory agencies;
• $47,045 to the department of revenue; and
• $88,008 to the department of transportation.

(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.)

The bill establishes the universal high school scholarship program (program) in the office of economic development (office) to provide scholarships for the 2024-25 academic year to students who pursue an in-demand or high-priority postsecondary pathway, including degrees, certificates, and registered apprenticeships, with a provider on the eligible training provider lists disseminated by the department of labor and employment, a provider in the Colorado state apprenticeship resource directory, a public or private institution of higher education operating in Colorado, or an organization approved by the office (service providers).

The office, or a vendor contracted by the office, administers the program. The office shall develop policies and procedures necessary to administer the program.

A student is eligible for the program if the student graduated from a Colorado high school or was awarded a high school equivalency credential during the 2023-24 academic year; completes the free application for federal student aid or the Colorado application for state financial aid; and did not receive a grant from the Colorado opportunity scholarship initiative.

Scholarships are awarded in the following priority: To all eligible students who intend to enroll at a service provider to pursue an in-demand or high-priority postsecondary pathway, then to other eligible students who intend to enroll at a service provider. Each scholarship award is for up to $1,500. Scholarship money is distributed to the service provider for use by the student for tuition, fees, and books.

The bill requires the office to contract with vendors to provide postsecondary and career advising at schools identified by the office. The office shall make efforts to identify a diversity of schools in rural and urban areas of the state to receive postsecondary advising support .

The bill requires the general assembly to appropriate state treasurer to transfer $25 million for the program from the general fund to the universal high school scholarship cash fund (cash fund). The bill appropriates $25 million from the cash fund to the office for the program.

(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.)

For the state fiscal year beginning July 1, 2025, and for each state fiscal year thereafter through the state fiscal year beginning July 1, 2034, the bill allows a data center business or a data center operator (taxpayer) to claim a refund of all state sales and use tax that the taxpayer paid for construction materials or data center equipment that is for the construction or operation of an eligible data center.

To be eligible to claim a sales and use tax refund, the taxpayer is required to obtain certification from the Colorado office of economic development (office) stating that the data center is an eligible data center and that the taxpayer may claim a refund of state sales and use tax (certification). An "eligible data center" is defined as a data center that creates a specified number of jobs, generates a specified amount of revenue, and requires a specified amount of power. The sales and use tax refund is allowed only for the sale, storage, or use of construction materials or data center equipment that occurs on or after the date that the taxpayer obtains certification from the office.

When a taxpayer believes that the data center that will be identified in a sales and use tax refund application satisfies the criteria to be an eligible data center, the taxpayer may apply to the office for the certification. The taxpayer must demonstrate in the certification application that the data center is an eligible data center and the taxpayer is required to submit any documentation or proof that the office deems necessary to determine whether a data center satisfies the criteria to be an eligible data center.

If, based on the information provided to the office and after consultation with the economic development commission, the office determines that a data center satisfies the criteria to be an eligible data center, the office is required to notify the department of revenue (department) and issue a certification to the taxpayer.

To claim a sales and use tax refund, a taxpayer must submit a refund application and a copy of the certification from the office to the department. A taxpayer is required to submit certain documentation with the application.

The bill allows a taxpayer to assign a certification to specified types of parties after it is awarded.

The bill requires the office and the department to prepare an annual report including information regarding eligible data centers and state sales and use tax refunds allowed. The office is required to submit the report to the finance committees of the house of representatives and senate.

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

Joint Budget Committee. For purposes of complying with requirements of the "Federal Unemployment Tax Act", the bill reduces employer premium rates by 10% across all rates in the standard premium rate schedule. Additionally, the bill creates a schedule for the support surcharge rate (schedule), which is used to establish contributions to the employment support fund, to the employment and training technology fund, and to the benefit recovery fund. The new schedule uses the same methodology as is used in calculating an employer's percent of excess, which is the percentage resulting from the calculation of an employer's excess of premiums paid over benefits charged, divided by the average chargeable payroll.

The bill changes the cap on the amount of money in the employment support fund at the end of any state fiscal year, from an amount calculated based on a portion of the employer premium plus $17 million, to a total of $32.5 million for the next state fiscal year, which amount is adjusted annually based on changes in average weekly earnings. Additionally, the bill repeals, effective June 30, 2025, the ability of the department of labor and employment (department) to use money in the employment support fund to provide funding for labor standards, labor relations, and Colorado works grievance procedures.

The bill expands the authorized use of money in the Title XII repayment fund to allow the division of unemployment insurance (division) in the department of labor and employment (department) to use the money for costs associated with bonds or notes issued by the division, including interest on the bonds or notes , to the extent permitted by federal law .

The bill eliminates the requirement for employers to submit premium reports to the division and instead requires employers to submit wage reports.

The bill adjusts the appropriations in the annual general appropriation act for the 2023-24 state fiscal year to the department for use by the division as follows:

• Decreases the general fund appropriation for program costs related to labor standards by $899,537; and
• Increases the cash funds appropriation from the employment support fund for program costs related to labor standards by $899,537.

(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.)

Section 1 of the bill increases the percent of appropriated funds that the department of public health and environment (department) may use for the administration and management of the public water systems and domestic wastewater treatment works grant program from 5% to 10%.Section 3 modifies the composition of the water quality control commission (commission) by requiring that:

• No more than 5 members of the commission be affiliated with the same political party; and
• The commission include members with specific types of expertise, including expertise in areas of science and environmental law or policy or areas such as municipal water or wastewater treatment, industry, or labor.

Section 4 requires the commission, on or before October 31, 2025, and after engaging in stakeholder outreach, to set the following fees by rule:

• Drinking water fees assessed on public water systems;
• Commerce and industry sector permitting fees;
• Construction sector permitting fees;
• Pesticide sector permitting fees;
• Public and private utilities sector permitting fees;
• Municipal separate storm sewer systems sector permit fees;
• Review fees for requests for certification under section 401 of the federal "Clean Water Act";
• Preliminary effluent limitation determination fees;
• Wastewater site application and design review fees;
• On-site wastewater treatment system fees; and
• Biosolids management program fees.

The commission's fee-setting rules must become effective on or before January 1, 2026, and the commission may by rule authorize the division to phase in the fee-setting rules.

Section 4 also creates the clean water cash fund into which the fees collected under the commission's rules, other than the drinking water fees assessed on public water systems, are credited.

The statutory fee provisions in sections 2, 5, 6, and 8 repeal on July 1, 2026. Before the repeal, the state treasurer is required to transfer any money remaining in the various funds into which the statutory fees are credited to the clean water cash fund; except that section 2 specifies that drinking water fees will continue to be credited to the drinking water cash fund and that any money in the drinking water cash fund will remain in that cash fund.Section 7 repeals the division's regulatory authority concerning nuclear and radioactive wastes.Section 9 requires the division to include, in its annual reporting to the commission and the general assembly, information on:

• The division's implementation and enforcement of the discharge permitting program (program);
• For reports submitted before October 1, 2025, the division's fee revenue and direct and indirect costs associated with the program; and
• For the report submitted in 2025, the fee structure set forth in the commission's proposed or adopted fee-setting rules.
  (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current labor requirements for public projects. In 2019, the general assembly adopted an apprenticeship utilization law (apprenticeship utilization law) that requires the general contractor for a public project that does not receive federal money, and that is in the amount of one million dollars or more, to submit, at the time a mechanical, electrical, or plumbing subcontractor is put under contract, documentation to the contracting agency that identifies the contractors or subcontractors that will be used for specified aspects of the public project and certifies that all firms identified participate in specified apprenticeship programs.

At the same time, the general assembly also adopted a prevailing wage law (prevailing wage law) that requires any contractor who is awarded a contract for a public project by an agency of government for $500,000 or more and that does not include federal money, and any subcontractors working on the public project, to pay their employees a prevailing wage at weekly intervals. The contractors and subcontractors are required to comply with prevailing wage enforcement provisions and requirements.

Energy sector public works projects. The bill creates a new category of public works projects defined as "energy sector public works projects", and requires these projects to comply with the requirements of the apprenticeship utilization law and the prevailing wage law for energy sector public works projects. An "energy sector public works project" is any project that:

• Has the purpose of generating, transmitting, or distributing electricity or natural gas for the purpose of providing energy to Colorado individual consumers and businesses; or
• Has the purpose of generating or distributing electricity or natural gas for the purpose of providing energy to Colorado individual consumers and businesses from utility customer funding as approved by a cooperative electric association.

With certain exceptions, the bill requires that a contract for an energy sector public works project include provisions that expressly require that all work performed under the contract comply with the state mechanical, electrical, and plumbing apprenticeship utilization law and the state prevailing wage law if the project is an electric power generation project with a nameplate generation capacity of one megawatt or higher or if the project is a project other than an electric power generation project with a total cost of one million dollars or more. All contracts with subcontractors on the project are also required to include such provisions. If the contract for an energy sector public works project does not include such provisions, the project will not be eligible to receive state funding or to receive required authorizations or approvals from the public utilities commission (PUC).

The lead contractor for an energy sector public works project is required to:

• Prepare certified payroll records for workers directly employed by the contractor and any subcontractors on the project and submit the records to the public utility or other owner of the energy sector public works project weekly; and
• Prepare a quarterly craft labor certification that attests that the lead contractor and all subcontractors are compliant with the apprenticeship utilization law and the prevailing wage law.

The public utility, cooperative electric association, independent power producer, or other owner of an energy sector public works project is required to maintain the records for all craft labor certifications and is required to either provide copies quarterly to the department of labor and employment or require the lead contractor to provide such copies.

The state auditor's office , in conjunction with the PUC and the department of labor and employment, is required to conduct periodic random audits of the labor certifications for energy sector public works projects an audit of the PUC's approval of energy sector public works projects no later than January 1, 2029, and at least 5 years thereafter. The purpose of the audit is to establish oversight and accountability for compliance with the "best value" employment metrics for electric resources acquisition and the employment, training, wage, and apprenticeship requirements specified in the bill.

Violations of the requirements for energy sector public works project contracts are subject to the penalties described in the apprenticeship utilization law and the prevailing wage law.

For projects funded in whole or in part by the state, the requirements to comply with the apprenticeship utilization law and the prevailing wage law apply only when the total project cost is one million dollars or more and the aggregated public assistance from the state is $500,000 or more or when the project is a power generation project with a nameplate generation capacity of one megawatt or higher, and the aggregated public assistance from the state is $500,000 or more. project is a power generation project with a nameplate generation capacity of one megawatt or higher or an energy storage system with an energy rating of one megawatt of power capacity or four megawatt hours of useable energy capacity or higher and the aggregated public assistance from the state is $500,000 or more. For other projects, the apprenticeship utilization law and the prevailing wage law apply only when the total project cost is one million dollars or more and the aggregated public assistance from the state, funding from a public utility, or funding from a cooperative electric association is $500,000 or more.

The requirements to comply with the apprenticeship utilization law and the prevailing wage law do not apply to a project that is covered by a project labor agreement, work on an energy sector public works project performed by employees of a utility company, a utility-incentivized demand-side management or electrification program, a utility or state-funded building energy efficiency program, service agreements that were entered into on or before a certain date, projects that involve an electric distribution line with a specified capacity, work on an energy sector public works project put out to bid on or after January 1, 2024, that is qualified for and claims the increased federal production tax credit or investment tax credit amount, excluding any domestic content, energy community, or low-income community bonus credit, and projects that involve pipelines with a specified minimum yield strength. Project labor agreements. In lieu of compliance with the apprenticeship utilization law and the prevailing wage law, a public utility, cooperative electric association, or independent power producer may incorporate a project labor agreement requirement for an energy sector public works project. A project labor agreement is a prehire collective bargaining agreement that establishes the terms and conditions of employment of the construction workforce on an energy sector public works project. A project labor agreement is required to:

• Include provisions for resolving labor disputes and grievances;
• Guarantee against strikes and lockouts;
• Ensure a reliable source of trained and skilled labor;
• Further public policy objectives regarding improved employment opportunities for minorities, women, and other economically disadvantaged populations in the construction industry;
• Permit the selection of the lowest qualified responsible bidder or lowest qualified responsible offeror without regard to union or non-union status at other construction sites; and
• Bind all contractors and subcontractors on the energy sector public works project to the project labor agreement through the inclusion of appropriate bid specifications in all relevant bid documents.

The PUC is prohibited from denying approval of an energy sector public works project solely because it uses a project labor agreement.

The bill specifies which provisions of the apprenticeship utilization law for public projects apply to energy sector public works projects.

Regarding "best value" employment metrics that the PUC is required to consider when it evaluates electric resource acquisitions and requests for certificates of public convenience and necessity for construction or expansion of generating facilities, the bill:

• Requires the PUC to promulgate rules requiring utilities, when submitting annual progress reports for an electric resource acquisition, to collect and provide to the PUC information concerning the implementation of "best value" employment metrics;
• Requires the PUC to report annually to committees of reference of the general assembly concerning the information that is reported; and
• Repeals obsolete language requiring the state auditor to conduct a performance audit.

The bill adds enforcement mechanisms for the existing mechanical, electrical, and plumbing apprenticeship utilization requirements for gas demand-side management projects and beneficial electrification projects.

In addition, the bill requires that projects undertaken pursuant to specified existing state laws comply with the state mechanical, electrical, and plumbing apprenticeship utilization law and the state prevailing wage law.

(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.)