First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 23-0647.01 Josh Schultz x5486 HOUSE BILL 23-1074 House Committees Senate Committees Business Affairs & Labor Appropriations A BILL FOR AN ACT C ONCERNING A STUDY REGARDING WORKFORCE TRANSITIONS TO101 OTHER INDUSTRIES, AND, IN CONNECTION THEREWITH, MAKING102 AN APPROPRIATION.103 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 requires the office of future of work (office) to contract with a third party to study workforce transitions in Colorado's economy. The workforce transitions study (study) must: ! Evaluate the skill transferability of workers in the oil and gas industry and in occupations in Colorado that are facing HOUSE 3rd Reading Unamended March 13, 2023 HOUSE Amended 2nd Reading March 11, 2023 HOUSE SPONSORSHIP Dickson and Amabile, Bacon, Bird, Boesenecker, Brown, English, Froelich, Garcia, Hamrick, Kipp, Lindsay, Lindstedt, Mabrey, McCluskie, McCormick, Michaelson Jenet, Ortiz, Parenti, Ricks, Story, Titone, Valdez, Vigil, Willford, Woodrow SENATE SPONSORSHIP Marchman, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. the most disruption due to automation; ! Explore training availability, skills needed, and transition strategies; and ! Provide recommendations for programs and policies to prepare the workforce for these transitions. On or before December 1, 2024, the office is required to submit a report of the study's research and findings to the governor and to the business, labor, and technology committee of the senate and the business affairs and labor committee of the house of representatives. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add part 7 to article2 83 of title 8 as follows: 3 PART 74 WORKFORCE TRANSITIONS STUDY5 8-83-701. Definitions. A S USED IN THIS PART 7, UNLESS THE6 CONTEXT OTHERWISE REQUIRES :7 (1) "E MERGING INDUSTRIES" MEANS INDUSTRIES THAT ARE IN THE8 EARLY STAGE OF POTENTIAL MARKET SHARE IN COLORADO BUT ARE9 GROWING IN ECONOMIC IMPORTANCE AND JOB CREATION .10 (2) "O FFICE" MEANS THE COLORADO OFFICE OF FUTURE OF WORK11 CREATED IN SECTION 8-77-110.12 (3) "S TUDY" MEANS THE WORKFORCE TRANSITIONS STUDY13 REQUIRED BY SECTION 8-83-702 (1).14 8-83-702. Workforce transitions study - report. (1) O N OR15 BEFORE DECEMBER 1, 2023, THE OFFICE SHALL CONTRACT WITH AN16 INDEPENDENT THIRD PARTY TO CONDUCT A STUDY THAT EXPLORES17 WORKFORCE TRANSITIONS IN COLORADO'S ECONOMY FOR WORKERS IN THE18 OIL AND GAS INDUSTRY AND WORKERS AFFECTED BY INDUSTRY19 DISRUPTION DUE TO AUTOMATION .20 1074-2- (2) THE OFFICE SHALL ADMINISTER A REQUEST FOR PROPOSALS1 AND SOLICIT FIRMS OR PUBLIC ENTITIES WITH THE NECESSARY2 CREDENTIALS, AS DETERMINED BY THE OFFICE, TO BID ON PERFORMING3 THE STUDY.4 (3) I N PERFORMING THE STUDY, THE CONTRACTOR SHALL:5 (a) R EGARDING OIL AND GAS WORKERS :6 (I) E VALUATE THE TRANSFERABLE AND NONTRANSFERABLE SKILLS7 OF WORKERS IN OIL AND GAS EXTRACTION JOBS, IDENTIFY KEY8 POPULATIONS OF THE WORKFORCE WHOSE JOBS MAY NOT EASILY9 TRANSITION TO NEW INDUSTRIES OR NEW TYPES OF WORK, AND MAKE10 RECOMMENDATIONS TO THE OFFICE ON NEXT STEPS TO DEVELOP11 WORKFORCE ASSISTANCE PROGRAMS TO ASSIST THESE WORKERS ;12 (II) IDENTIFY EXISTING AND EMERGING INDUSTRIES RELATED TO13 OIL AND GAS EXTRACTION AND THE UTILITY SECTOR, AND EVALUATE JOB14 TRANSFERABILITY TO AND RETRAINING FOR THESE EXISTING AND15 EMERGING INDUSTRIES, INCLUDING ADJACENT ENERGY AND CARBON16 MANAGEMENT INDUSTRIES SUCH AS HYDROGEN FUELS; ENHANCED17 GEOTHERMAL SYSTEMS ; CARBON CAPTURE , UTILIZATION, AND18 SEQUESTRATION; CONSTRUCTION; WELL-PLUGGING AND REMEDIATION;19 WORKFORCE DEVELOPMENT FOR ELECTRIC LINEWORKERS AND20 CONTRACTORS FOCUSED ON BENEFICIAL ELECTRIFICATION AND ENERGY21 EFFICIENCY PROJECTS, AND IDENTIFY WAYS TO REMOVE BARRIERS TO22 OBTAINING APPROPRIATE SKILLS AND LICENSES ;23 (III) I N PARTNERSHIP WITH THE COLORADO ENERGY OFFICE ,24 CREATED IN SECTION 24-38.5-101 (1), IDENTIFY POTENTIAL WORKFORCE25 NEEDS IN THE SHORT AND MEDIUM TERM IN EMERGING INDUSTRIES AND26 RENEWABLE ENERGY RESOURCES, AS DEFINED IN SECTION 40-2-12427 1074 -3- (1)(a)(VII), AND ASSESS EMPLOYMENT TRENDS, TAKING HISTORICAL DATA1 INTO ACCOUNT;2 (IV) E XPLORE SKILL DEVELOPMENT NEEDS , TRAINING3 AVAILABILITY, AND TRANSITION STRATEGIES FOR WORKERS AND4 EMPLOYERS SHIFTING FROM OIL AND GAS JOBS TO EMERGING INDUSTRIES5 IN THE REGION, INCLUDING CONSULTATION WITH OTHER WESTERN STATES6 FOR PURPOSES OF LEARNING ABOUT THEIR WORKFORCE TRANSITION IDEAS7 AND STRATEGIES; AND8 (V) DEVELOP POLICY AND INCENTIVE PROPOSALS FOR PROGRAMS9 TO TRANSITION WORKERS TO EXISTING AND EMERGING INDUSTRIES IN10 COLORADO AND THE SURROUNDING REGION, MAXIMIZING TRANSITION OF11 WORKERS TO JOBS IN THE SAME COMMUNITIES, AND INCLUDING ANALYSES12 OF FEDERAL FUNDING OPPORTUNITIES ; AND13 (b) R EGARDING INDUSTRY DISRUPTION DUE TO AUTOMATION :14 (I) E XPLORE HOW TECHNOLOGY IS SIMULTANEOUSLY REPLACING15 EXISTING WORK AND CREATING NEW WORK ;16 (II) E VALUATE WHICH OCCUPATIONS IN COLORADO ARE FACING17 THE MOST DISRUPTION DUE TO AUTOMATION ;18 (III) I DENTIFY SKILL TRANSFERABILITY TO EMERGING INDUSTRIES19 AND INDUSTRIES EXPERIENCING GROWTH FOR OCCUPATIONS THAT ARE20 DISPLACED DUE TO AUTOMATION AND DEVELOP TRANSITION STRATEGIES21 FOR THESE WORKERS AND EMPLOYERS ;22 (IV) I DENTIFY THE SKILLS NEEDED FOR EMERGING AND GROWING23 INDUSTRIES AND EXPLORE THE AVAILABILITY OF SKILLS TRAINING FOR24 WORKERS TRANSITIONING TO THESE INDUSTRIES ; 25 (V) P ROVIDE RECOMMENDATIONS FOR FUNDING , PROGRAMS, AND26 POLICIES NEEDED TO PREPARE EMPLOYERS AND WORKERS FOR THESE27 1074 -4- TRANSITIONS;1 (VI) CONSULT WITH RELEVANT STAKEHOLDERS ACROSS IMPACTED2 INDUSTRIES IN COLORADO TO DISCUSS THEIR HUMAN RESOURCE AND3 WORKFORCE STRATEGIES AND THEIR LONG-TERM OUTLOOK ON THE4 INDUSTRY AND THE STATE;5 (VII) CONSULT WITH RELEVANT EMPLOYERS AND EMPLOYEES6 ACROSS IMPACTED INDUSTRIES IN COLORADO, INCLUDING THOSE WHO7 MAY BE INDIRECTLY IMPACTED;8 (VIII) CONSULT WITH EMPLOYERS AND EMPLOYEES WHO MAY BE9 INDIRECTLY IMPACTED BY A WORKFORCE TRANSITION TO EMERGING10 INDUSTRIES, INCLUDING EMPLOYERS AND EMPLOYEES IN ENERGY SECTOR11 CONSTRUCTION, GAS DISTRIBUTION , NATURAL GAS UTILITIES ,12 EXPLORATION EQUIPMENT MANUFACTURING, AND WHOLESALE OR RETAIL13 SUPPLY; AND14 (c) REGARDING FUNDING FOR WORKFORCE TRANSITION AND15 COMMUNITY ECONOMIC DEVELOPMENT :16 (I) EVALUATE AND ANALYZE FEDERAL FUNDING SOURCES17 AVAILABLE TO THE STATE GOVERNMENT, LOCAL GOVERNMENTS, AND THE18 PRIVATE SECTOR FOR WORKFORCE DEVELOPMENT AND COMMUNITY19 ECONOMIC DEVELOPMENT ;20 (II) EVALUATE AND ANALYZE CURRENT STATE AND LOCAL21 GOVERNMENT WORKFORCE DEVELOPMENT, RESILIENCY, AND RECOVERY22 INFRASTRUCTURE;23 (III) TRACK CURRENT FEDERAL FUNDING SECURED FOR24 WORKFORCE TRANSITION AND ECONOMIC DEVELOPMENT IN COMMUNITIES25 AFFECTED BY WORKFORCE TRANSITION AND IDENTIFY F UNDING GAPS; AND26 (IV) RECOMMEND POLICIES THAT PROMOTE INTERAGENCY27 1074 -5- COLLABORATION TO MAXIMIZE THE POTENTIAL OF GOVERNMENT AGENCIES1 AND THE PRIVATE SECTOR TO SECURE AVAILABLE FEDERAL FUNDING,2 INCLUDING CONSIDERATION OF CREATING POSITIONS FOR STAFF WHO WILL3 SERVE AS A LIAISON WITH EXISTING STATE GOVERNMENT OFFICES, LOCAL4 GOVERNMENTS, AND THE PRIVATE SECTOR FOR THE PURPOSES OF GRANT5 WRITING AND OTHER SUPPORT.6 (4) (a) ON OR BEFORE DECEMBER 1, 2024, THE OFFICE SHALL7 SUBMIT A REPORT TO THE GOVERNOR AND TO THE BUSINESS , LABOR, AND8 TECHNOLOGY COMMITTEE OF THE SENATE AND THE BUSINESS AFFAIRS AND9 LABOR COMMITTEE OF THE HOUSE OF REPRESENTATIVES , OR THEIR10 SUCCESSOR COMMITTEES . THE REPORT MUST INCLUDE THE STUDY 'S11 RESEARCH, FINDINGS, AND RECOMMENDATIONS , IN ACCORDANCE WITH12 SUBSECTION (3) OF THIS SECTION.13 (b) THE REPORT REQUIRED BY THIS SUBSECTION (4) MUST INCLUDE,14 BUT SHOULD NOT BE LIMITED TO:15 (I) CONSIDERATION AND COMPARISON OF WAGES AND SALARIES IN16 BOTH EXISTING INDUSTRIES AND EMERGING INDUSTRIES , AND AN17 ASSESSMENT OF POTENTIAL GAPS THAT MAY EXIST ; AND18 (II) DISAGGREGATED DATA THAT MAPS THE IMPACT OF19 WORKFORCE TRANSITION AND MAPS THE GEOGRAPHIC LOCATION OF20 POTENTIAL JOBS IN EXISTING OR EMERGING INDUSTRIES .21 (c) THE OFFICE SHALL ISSUE AN UPDATE ON THE KEY FINDINGS OF22 THE STUDY TO THE BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE OF23 THE SENATE AND THE BUSINESS AFFAIRS AND LABOR COMMITTEE OF THE24 HOUSE OF REPRESENTATIVES, OR THEIR SUCCESSOR COMMITTEES, BY25 AUGUST 1, 2024.26 8-83-703. Repeal of part. T HIS PART 7 IS REPEALED, EFFECTIVE27 1074 -6- SEPTEMBER 1, 2025.1 SECTION 2. In Colorado Revised Statutes, amend 8-77-110 as2 follows:3 8-77-110. Office of future of work - study - report. (1) The4 office of future OF work in the department of labor and employment,5 created by executive order B 2019 009, shall, within the scope of the6 executive order, study unemployment assistance as part of its study on the7 modernization of worker benefits and protections.8 (2) On or before January 15, 2021, the office of future OF work9 shall submit an initial report as directed by executive order B 2019 00910 to the governor and to the business, labor, and technology committee of11 the senate and the business affairs and labor committee of the house of12 representatives, or their successor committees.13 SECTION 3. In Colorado Revised Statutes, 8-83-601, amend (7)14 as follows:15 8-83-601. Definitions. As used in this part 6:16 (7) "Office" means the office of future OF work described in17 section 8-77-110.18 SECTION 4. Appropriation. (1) For the 2023-24 state fiscal19 year, $317,318 is appropriated to the department of labor and employment20 for use by the executive director's office. This appropriation is from the21 general fund and is based on an assumption that the department will22 require an additional 0.2 FTE. To implement this act, the department may23 use this appropriation for the office of future work. Any money24 appropriated in this section not expended prior to July 1, 2024, is further25 appropriated to the department for the 2024-25 state fiscal year, for the26 same purpose.27 1074 -7- SECTION 5. Act subject to petition - effective date. This act1 takes effect at 12:01 a.m. on the day following the expiration of the2 ninety-day period after final adjournment of the general assembly; except3 that, if a referendum petition is filed pursuant to section 1 (3) of article V4 of the state constitution against this act or an item, section, or part of this5 act within such period, then the act, item, section, or part will not take6 effect unless approved by the people at the general election to be held in7 November 2024 and, in such case, will take effect on the date of the8 official declaration of the vote thereon by the governor.9 1074 -8-