SB 52 — Coal Transition Community Investment

NOTE:SENATE BILL 26-052 BY SENATOR(S) Roberts and Catlin, Amabile, Ball, Bridges, Exum, Gonzales J., Hinrichsen, Jodeh, Kipp, Kirkmeyer, Lindstedt, Liston, Marchman, Michaelson Jenet, Mullica, Pelton R., Simpson, Snyder, Sullivan, Wallace, Coleman;

This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.

To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

SENATE BILL 26-052 BY SENATOR(S) Roberts and Catlin, Amabile, Ball, Bridges, Exum, Gonzales J., Hinrichsen, Jodeh, Kipp, Kirkmeyer, Lindstedt, Liston, Marchman, Mullica, Pelton R., Simpson, Snyder, Sullivan, Wallace, Coleman;

CONCERNING COAL TRANSITION COMMUNITIESCOMMUNITIES, ,AND, AND , IN CONNECTION THEREWITHTHEREWITH, ,PROVIDINGAHIRINGPREFERENCEFORCOALTRANSITIONPROVIDING AHIRING PREFERENCEFORCOALTRANSITION WORKERS IN COAL TRANSITION COMMUNITIES AND EXPANDING THE ALLOWABLE WAYS IN WHICH A PUBLIC ENTITY MAY DEPOSIT OR INVEST JUST TRANSITION MONEYMONEY. .

Be it enacted by the GeneralGeneralAssembly Assemblyofthe of the State ofofColorado: Colorado:

(a) Coal transition workers have powered the state for decades, and the loss of coal-related employment has profound economic and personal ________ Capital letters or bold & italic numbers indicate new material added to existing law;

dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.

(b) Coal transition workers possess specialized, high-value skills that are directly transferable and critical to the state's transportation, infrastructure,clean-energy,manufacturing,andindustrialfuture,includinginfrastructure, skillsdevelopedthroughyearsofworkinhighlyregulated,safety-sensitive,clean-energy,manufacturing, andindustrial future, including skillsdevelopedthroughyears ofworkinhighly regulated, safety-sensitive, and technical environments;

(c) As coal facilities wind down and close pursuant to state policy, regulatoryapprovals,andstatutoryclean-energyrequirements,thestatehasregulatory alegitimateandcompellinginterestinmitigatingtheforeseeableeconomicapprovals, and statutory clean-energyrequirements, thestatehas a legitimate and compelling interest in mitigatingthe foreseeable economic harm to workers and communities that results from those state-directed actions;

(d) Displacedcoaltransitionworkersshouldhaveclear,reliable,andDisplacedcoaltransitionworkers shouldhaveclear, reliable, and timely pathways into new careers of equal quality, including comparable wages, benefits, andandjob job security, within or near the communities in which they live;

(e) Thestate'sclean-energyeconomyalreadyemploysnearly70,000Thestate's clean-energyeconomyalreadyemploysnearly70,000 workers, which is more than twice as many as the fossil-fuel sector, and stateandregionalclimateworkforceanalysesidentifysignificantshortagesstate and regional climateworkforce analyses identify significantshortages across at least twenty climate-critical occupations, requiring thousands of additionalskilledworkers,includingelectricians,constructionlaborersandadditional skilledworkers, includingelectricians, construction laborers and managers, HVAC and building technicians, wind and solar technicians, power-line workers, electric-vehicle technicians, and other skilled trades, to meet the state's statutory climate goals, including the goal of net-zero greenhouse gas emissions by 2050;

(f) The state is simultaneously experiencing a substantial shortage of construction workers, with construction trades projected to grow significantlythroughsignificantly through 2030 and employers needing to fill tens ofofthousands thousands of high-demand positions.

PAGE 2-SENATE BILL 26-052 (g) Economic development, transportation, energy, and infrastructure projects in coal transition communities must prioritize reemploymentopportunitiesforqualifiedcoaltransitionworkerssothatthereemploymentopportunities for qualifiedcoaltransitionworkers sothatthe economic transition does not come at the expense of the individuals and communities that built and sustained these regions;

and (h) A targeted, qualification-based, and narrowly tailored hiring preference, implemented through good faith efforts and tied to state interestsineconomicrecoveryandworkforcedevelopment,isalawfulandinterests in economic recovery and workforce development, is a lawful and necessary tool to ensure that coal transition workers directly benefit from ongoing and future development in their communities and are not left behind.

(1) AAs S USED IN THIS SECTIONSECTION, ,UNLESSUNLESS THE CONTEXT OTHERWISE REQUIRESREQUIRES: :

(a) "C"COAL OAL TRANSITION COMMUNITYCOMMUNITY" " MEANS A CCOLORADO OLORADOMUNICIPALITY,COUNTY,ORREGIONWHEREACOALTRANSITION MUNICIPALITYFACILITYOR ,COUNTYACENTERFORTHE ,ORREGIONWHEREACOALTRANSITIONFACILITYORMANUFACTURINGORTRANSPORTATION ACENTERFORTHEMANUFACTURINGORTRANSPORTATIONSUPPLYCHAINOFSUPPLY CHAIN OF A COAL TRANSITION FACILITY WAS OR IS LOCATEDLOCATED. .

(b) "COALTRANSITIONWORKER"COALTRANSITION "MEANSANINDIVIDUALWHOWORKSWORKER" MEANS AN INDIVIDUAL WHO WORKS OR HAS WORKED IN A COLORADO COAL TRANSITION FACILITY OR IN THE MANUFACTURING OR TRANSPORTATION SUPPLY CHAIN OF A COAL TRANSITION FACILITYFACILITY. .

(c) "C"COVERED OVEREDBUSINESS" BUSINESSMEANS "MEANS A BUSINESS ENTITY OPERATING IN A COAL TRANSITION COMMUNITY THAT IS ENGAGED IN THE BUSINESS OF CONSTRUCTINGOROPERATINGRAILROADSCONSTRUCTINGOROPERATINGRAILROADS, ,UTILITIESENERGYGENERATIONUTILITIES, FACILITIES,ORENERGYGENERATION FACILITIES, OR ADVANCED MANUFACTURING FACILITIESFACILITIES. .

A "COVERED BUSINESSBUSINESS" " DOES NOT INCLUDE THE STATE GOVERNMENT OR A LOCAL GOVERNMENTGOVERNMENT. .

(d) "H"HIRING IRINGPREFERENCE" PREFERENCE " MEANS A FIRST AND PREFERRED PAGE 3-SENATE BILL 26-052 OPPORTUNITY FOR AVAILABLE EMPLOYMENT IN A COAL TRANSITION COMMUNITYCOMMUNITY. .

(e) "Q"QUALIFIED UALIFIED COAL TRANSITION WORKERWORKER" " MEANS A COAL TRANSITION WORKER WHO MEETS THE QUALIFICATIONS FOR AN EMPLOYMENT POSITION WITH A COVERED BUSINESSBUSINESS. .

(2)(a)(2)(a)ONANDAFTERJANUARY ONANDAFTER1,2027,ACOVEREDBUSINESSSHALL JANUARYPROVIDEA 1,2027,ACOVEREDBUSINESSSHALLHIRING PROVIDEAHIRINGPREFERENCEFORAQUALIFIEDCOALTRANSITIONWORKERPREFERENCEFORAQUALIFIEDCOALTRANSITION WORKER TO A PROSPECTIVE NEW EMPLOYEEEMPLOYEE. .

(I) A QUALIFIED COAL TRANSITION WORKER DID NOT APPLY TO BE EMPLOYED BY A COVERED BUSINESSBUSINESS; ;

(II) EACH QUALIFIED COAL TRANSITION WORKER TO WHOM THE COVERED BUSINESS EXTENDS AN OFFER OF EMPLOYMENT DECLINES THE OFFER;OROFFER; (III) QUALIFIEDCOALTRANSITIONWORKER SQUALIFICATIONSDID NOT MEET THE QUALIFICATIONS OF OTHER CANDIDATES FOR THE SAME JOB.

(3)OR (III) A COVEREDQUALIFIED BUSINESSCOALTRANSITION SHALLWORKER'S CONSULTQUALIFICATIONS WITHDID THENOT JUSTMEET TRANSITIONTHE OFFICE,OPERATORSQUALIFICATIONS OF EXISTINGOTHER COALCANDIDATES -FUELED GENERATION FACILITIES SCHEDULED FOR RETIREMENTTHE ,SAME ANDJOB. ORGANIZATIONS REPRESENTING QUALIFIED COAL TRANSITION WORKERS TO IDENTIFY QUALIFIED COAL TRANSITION WORKERS .

(4)(3) IF A QUALIFIEDCOVERED COALBUSINESS SHALL CONSULT WITH THE JUST TRANSITION WORKEROFFICE, APPLIESOPERATORS FOROF EMPLOYMENTWITHACOVEREDBUSINESSEXISTING ,THENACOVEREDBUSINESSSHALLCOAL-FUELED REPORTGENERATION ANNUALLYFACILITIES TOSCHEDULED THEFOR JUSTRETIREMENT, TRANSITIONAND OFFICEORGANIZATIONS THEREPRESENTING FOLLOWINGQUALIFIED INFORMATIONCOAL REGARDINGTRANSITION THEWORKERS PRIORTO YEARIDENTIFY :QUALIFIED COAL TRANSITION WORKERS.

(a)(4) TIF HEA TITLEQUALIFIED OFCOAL ANYTRANSITION POSITIONWORKER FILLEDAPPLIES BYFOR AEMPLOYMENT QUALIFIEDWITHACOVERED COALBUSINESS,THEN ACOVERED BUSINESS SHALL REPORT ANNUALLY TO THE JUST TRANSITION WORKEROFFICE ;THE FOLLOWING INFORMATION REGARDING THE PRIOR YEAR:

(b)(a) THE NUMBERTITLE OF QUALIFIEDANY COALPOSITION TRANSITION WORKERS WHO FILLED POSITIONSBY ATA THE COVERED BUSINESS PAGE 4-SENATE BILL 26-052 (c) T HE NUMBER OF INDIVIDUALS WHO ARE NOT QUALIFIED COAL TRANSITION WORKERSWORKER; WHO FILLED POSITIONS AT THE COVERED BUSINESS ;

AND(b) (d)THE EFFORTSNUMBER UNDERTAKENOF BYQUALIFIED THECOAL COVEREDTRANSITION BUSINESSWORKERS TOWHO RECRUITFILLED QUALIFIEDPOSITIONS COALAT TRANSITIONTHE WORKERSCOVERED .BUSINESS;

(5)PA G E 4-SEN A COVEREDTE BUSINESSBILL SHALL26-052 MAKE(c) GOODTHE FAITHNUMBER EFFORTSOF TOINDIVIDUALS COMPLYWHO WITHARE THISNOT SECTIONQUALIFIED .COAL TRANSITION WORKERS WHO FILLED POSITIONS AT THE COVERED BUSINESS;

(6)AND THE(d) EXECUTIVEEFFORTS DIRECTORUNDERTAKEN ORBY THEIRTHE DESIGNEECOVERED SHALLBUSINESS DEVELOPTO POLICIESRECRUIT ANDQUALIFIED PROCEDURESCOAL FORTRANSITION THEWORKERS. IMPLEMENTATION OF THIS SECTION .

(7)(5) A HIRING PREFERENCE DOES NOT APPLY IF A COVERED BUSINESS PLACESSHALL ANMAKE EXISTINGGOOD EMPLOYEEFAITH INEFFORTS ANOTHER EMPLOYMENT POSITION WITH THE COVERED BUSINESS OR TO THECOMPLY EXTENT THAT A HIRING PREFERENCE CONFLICTS WITH THETHIS TERMSSECTION. OF A COLLECTIVE BARGAINING AGREEMENT THATAPPLIESTOTHERELATIONSHIPBETWEENACOVEREDBUSINESSANDITS EMPLOYEES .

(6) THE EXECUTIVE DIRECTOR OR THEIR DESIGNEE SHALL DEVELOP POLICIES AND PROCEDURES FOR THE IMPLEMENTATION OF THIS SECTION.

(7) A HIRING PREFERENCE DOES NOT APPLY IF A COVERED BUSINESS PLACES AN EXISTING EMPLOYEE IN ANOTHER EMPLOYMENT POSITION WITH THE COVERED BUSINESS OR TO THE EXTENT THAT A HIRING PREFERENCE CONFLICTS WITH THE TERMS OF A COLLECTIVE BARGAINING AGREEMENT THATAPPLIESTOTHE RELATIONSHIP BETWEEN ACOVERED BUSINESS AND ITS EMPLOYEES.

InInColorado Colorado Revised Statutes, 24-75-601.1,24-75-601.1amend amend (5) as follows:

(5) Nothing in this section applies to public fundsfttnds held or invested aspartofanypaymentorsettlementtooffsetthesocioeconomicimpactstoas part ofany payment or settlemenoffsetthe soeioeeonomie impacts to a communityorcommunity or government fromftonr the closureelosme ofofa a coal mine or coaleoal power generatinggenetating station.OTWITHSTANDINGstationNOTWITHSTANDING ANY LAWLA w TO THE CONTRARYCONTRARY, ,ININ ADDITION TO ANY OTHER DEPOSIT OR INVESTMENT OF PUBLIC FUNDS ALLOWED BYBYLAW, LAWA ,APUBLICENTITYISAUTHORIZEDPUBLIC ENTITY IS AUTHORIZED TO DEPOSIT OR INVESTINVEST, , EITHER DIRECTLY OR THROUGH AN INVESTMENT FIRM OR OTHER THIRD PARTYAUTHORIZEDBYTHEPUBLICENTITYPARTYAUTHORIZED ,ANYPAYMENTORSETTLEMENTBY THE PUBLIC ENTITY, ANY PAYMENT OR SETTLEMENT FUNDS THAT THE PUBLIC ENTITY HAS RECEIVED TO OFFSET THE SOCIOECONOMIC IMPACTS TO A COMMUNITY OR GOVERNMENT FROM THE CLOSURE OF A COAL MINE OR COAL POWER GENERATING STATION AND THE INTEREST, INVESTMENT INCOMEINCOME, , OR GAIN EARNED THEREON IN ANY INVESTMENT PERMITTED UNDER AN INVESTMENT POLICY ADOPTED BY THE PUBLIC ENTITYENTITY. .

FOR PURPOSES OF THIS SUBSECTION (5),UNLESS(5), UNLESS THE CONTEXT OTHERWISE REQUIRESREQUIRES, , "INVESTMENT FIRMFIRM" " MEANS A BANKBANK, ,PA PAGEG E 5-SENATE BILL 26-052 BROKERAGE FIRMFIRM, , OR OTHER FINANCIAL SERVICES FIRM CONDUCTING BUSINESS IN THE STATERSTATE, OR ANY AGENT THEREOFTHEREOF. .

Safety clause.clause.The general assembly finds, determines, and declares that this act is necessary for the immediate the support and maintenance of the departments of the state and stateons for institutions.

TheJames generalRashad assemblyColeman, finds,Sr. determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.