Senate Bill 26-052 Introduced

A Bill for an Act

• Page 1, Line 101Concerning coal transition communities, and, in connection

• Page 1, Line 102therewith, providing a hiring preference for coal

• Page 1, Line 103transition workers in coal transition communities and

• Page 1, Line 104expanding the allowable ways in which a public entity

• Page 1, Line 105may deposit or invest just transition money.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill establishes a first and preferred opportunity for available employment for coal transition workers (hiring preference). A business entity located in a coal transition community that is engaged in the business of constructing or operating railroads, utilities, energy generation facilities, or advanced manufacturing facilities (covered business) is required to comply with the hiring preference. A covered business does not include the state government or a local government.

A covered business is required to make good faith efforts to provide a hiring preference to a coal transition worker who meets the minimum qualifications for an employment position (qualified coal transition worker). A covered business may hire an individual who is not a qualified coal transition worker only if either a qualified coal transition worker did not apply for employment with the covered business or each qualified coal transition worker declined a job offer from a covered business.

A covered business is required to report annually to the executive director of the department of labor and employment or their designee (executive director). The executive director is required to adopt policies and procedures to implement the bill.

Currently, a public entity is not allowed to invest public funds in certain types of investments, such as equity instruments, instruments convertible to equity, or equity interests, or to deposit public funds with any person except certain depository institutions, which are primarily banks. The bill authorizes a public entity to deposit or invest, either directly or through an investment firm or other third party authorized by the public entity, public funds from a payment or settlement 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 in any investment permitted by an investment policy approved by the public entity.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly

• Page 2, Line 3finds and declares that:

• Page 2, Line 4(a)  Coal transition workers have powered the state for decades,

• Page 2, Line 5and the loss of coal-related employment has profound economic and

• Page 2, Line 6personal impacts on workers, their families, and the communities that

• Page 2, Line 7depend on them. These impacts are concentrated in specific regions of the

• Page 2, Line 8state and result directly from the planned and regulated decline of

• Page 3, Line 1coal-fueled generation and extraction.

• Page 3, Line 2(b)  Coal transition workers possess specialized, high-value skills

• Page 3, Line 3that are directly transferable and critical to the state's transportation,

• Page 3, Line 4infrastructure, clean-energy, manufacturing, and industrial future,

• Page 3, Line 5including skills developed through years of work in highly regulated,

• Page 3, Line 6safety-sensitive, and technical environments;

• Page 3, Line 7(c)  As coal facilities wind down and close pursuant to state policy,

• Page 3, Line 8regulatory approvals, and statutory clean-energy requirements, the state

• Page 3, Line 9has a legitimate and compelling interest in mitigating the foreseeable

• Page 3, Line 10economic harm to workers and communities that results from those

• Page 3, Line 11state-directed actions;

• Page 3, Line 12(d)  Displaced coal transition workers should have clear, reliable,

• Page 3, Line 13and timely pathways into new careers of equal quality, including

• Page 3, Line 14comparable wages, benefits, and job security, within or near the

• Page 3, Line 15communities in which they live;

• Page 3, Line 16(e)  The state's clean-energy economy already employs nearly

• Page 3, Line 1770,000 workers, which is more than twice as many as the fossil-fuel

• Page 3, Line 18sector, and state and regional climate workforce analyses identify

• Page 3, Line 19significant shortages across at least twenty climate-critical occupations,

• Page 3, Line 20requiring thousands of additional skilled workers, including electricians,

• Page 3, Line 21construction laborers and managers, HVAC and building technicians,

• Page 3, Line 22wind and solar technicians, power-line workers, electric-vehicle

• Page 3, Line 23technicians, and other skilled trades, to meet the state's statutory climate

• Page 3, Line 24goals, including the goal of net-zero greenhouse gas emissions by 2050;

• Page 3, Line 25(f)  The state is simultaneously experiencing a substantial shortage

• Page 3, Line 26of construction workers, with construction trades projected to grow

• Page 3, Line 27significantly through 2030 and employers needing to fill tens of

• Page 4, Line 1thousands of high-demand positions. These workforce gaps make it

• Page 4, Line 2imperative that just-transition policy deliberately and efficiently align

• Page 4, Line 3displaced coal transition workers with existing and projected labor needs

• Page 4, Line 4in clean energy, construction, transportation, and related sectors.

• Page 4, Line 5(g)  Economic development, transportation, energy, and

• Page 4, Line 6infrastructure projects in coal transition communities must prioritize

• Page 4, Line 7reemployment opportunities for qualified coal transition workers so that

• Page 4, Line 8the economic transition does not come at the expense of the individuals

• Page 4, Line 9and communities that built and sustained these regions; and

• Page 4, Line 10(h)  A targeted, qualification-based, and narrowly tailored hiring

• Page 4, Line 11preference, implemented through good faith efforts and tied to state

• Page 4, Line 12interests in economic recovery and workforce development, is a lawful

• Page 4, Line 13and necessary tool to ensure that coal transition workers directly benefit

• Page 4, Line 14from ongoing and future development in their communities and are not

• Page 4, Line 15left behind.

• Page 4, Line 16SECTION 2.  In Colorado Revised Statutes, add 8-83-507 as

• Page 4, Line 17follows:

• Page 4, Line 188-83-507.  Hiring preference - coal transition workers -

• Page 4, Line 19definitions.

• Page 4, Line 20(1)  As used in this section, unless the context otherwise

• Page 4, Line 21requires:

• Page 4, Line 22(a)  "Covered business" means a business entity operating

• Page 4, Line 23in a coal transition community that is engaged in the business of

• Page 4, Line 24constructing or operating railroads, utilities, energy

• Page 4, Line 25generation facilities, or advanced manufacturing facilities. A

• Page 4, Line 26"covered business" does not include the state government or a

• Page 4, Line 27local government.

• Page 5, Line 1(b)  "Hiring preference" means a first and preferred

• Page 5, Line 2opportunity for available employment.

• Page 5, Line 3(c)  "Qualified coal transition worker" means a coal

• Page 5, Line 4transition worker who meets the minimum qualifications for an

• Page 5, Line 5employment position with a covered business.

• Page 5, Line 6(2) (a)  On and after January 1, 2027, a covered business

• Page 5, Line 7shall provide a hiring preference for a qualified coal transition

• Page 5, Line 8worker to a prospective new employee.

• Page 5, Line 9(b)  A covered business may hire an individual who is not a

• Page 5, Line 10qualified coal transition worker only if:

• Page 5, Line 11(I)  A qualified coal transition worker did not apply to be

• Page 5, Line 12employed by a covered business; or

• Page 5, Line 13(II)  Each qualified coal transition worker to whom the

• Page 5, Line 14covered business extends an offer of employment declines the

• Page 5, Line 15offer.

• Page 5, Line 16(3)  A covered business shall consult with the just

• Page 5, Line 17transition office, operators of existing coal-fueled generation

• Page 5, Line 18facilities scheduled for retirement, and organizations

• Page 5, Line 19representing qualified coal transition workers to identify

• Page 5, Line 20qualified coal transition workers.

• Page 5, Line 21(4)  A covered business shall report annually to the just

• Page 5, Line 22transition office the following information regarding the prior

• Page 5, Line 23year:

• Page 5, Line 24(a)  The title of any position filled by a qualified coal

• Page 5, Line 25transition worker;

• Page 5, Line 26(b)  The number of qualified coal transition workers who

• Page 5, Line 27filled positions at the covered business;

• Page 6, Line 1(c)  The number of individuals who are not qualified coal

• Page 6, Line 2transition workers who filled positions at the covered business;

• Page 6, Line 3and

• Page 6, Line 4(d)  Efforts undertaken by the covered business to recruit

• Page 6, Line 5qualified coal transition workers.

• Page 6, Line 6(5)  A covered business shall make good faith efforts to

• Page 6, Line 7comply with this section.

• Page 6, Line 8(6)  The executive director or their designee shall develop

• Page 6, Line 9policies and procedures for the implementation of this section.

• Page 6, Line 10SECTION 3.  In Colorado Revised Statutes, 24-75-601.1, amend

• Page 6, Line 11(5) as follows:

• Page 6, Line 1224-75-601.1.  Legal investments of public funds - definition.

• Page 6, Line 13(5)  Nothing in this section applies to public funds held or invested

• Page 6, Line 14as part of any payment or settlement to offset the socioeconomic impacts

• Page 6, Line 15to a community or government from the closure of a coal mine or coal

• Page 6, Line 16power generating station. Notwithstanding any law to the

• Page 6, Line 17contrary, in addition to any other deposit or investment of

• Page 6, Line 18public funds allowed by law, a public entity is authorized to

• Page 6, Line 19deposit or invest, either directly or through an investment firm

• Page 6, Line 20or other third party authorized by the public entity, any

• Page 6, Line 21payment or settlement funds that the public entity has received

• Page 6, Line 22to offset the socioeconomic impacts to a community or

• Page 6, Line 23government from the closure of a coal mine or coal power

• Page 6, Line 24generating station and the interest, investment income, or gain

• Page 6, Line 25earned thereon in any investment permitted under an investment

• Page 6, Line 26policy adopted by the public entity. For purposes of this

• Page 6, Line 27subsection (5), unless the context otherwise requires,

• Page 7, Line 1"investment firm" means a bank, brokerage firm, or other

• Page 7, Line 2financial services firm conducting business in the state, or any

• Page 7, Line 3agent thereof.

• Page 7, Line 4SECTION 4.  Safety clause. The general assembly finds,

• Page 7, Line 5determines, and declares that this act is necessary for the immediate

• Page 7, Line 6preservation of the public peace, health, or safety or for appropriations for

• Page 7, Line 7the support and maintenance of the departments of the state and state

• Page 7, Line 8institutions.