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April 19, 2023 SB 23-292
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0302
Sen. Hansen; Fenberg
Rep. Duran; Bird
Date:
Bill Status:
Fiscal Analyst:
April 19, 2023
Senate Finance
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: LABOR REQUIREMENTS FOR ENERGY SECTOR CONSTRUCTION
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires energy sector public works projects to comply with apprenticeship and
prevailing wage requirements. It increases state revenue and expenditures beginning
in FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $108,401 to the Department of
Labor and Employment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 23-292
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue
- -
Expenditures General Fund $108,401 $81,219
Centrally Appropriated $36,679 $32,947
Total Expenditures $145,080 $114,166
Total FTE 1.0 FTE 1.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $16,260 $12,183
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April 19, 2023 SB 23-292
Summary of Legislation
The bill creates a category of public works projects called energy sector public works projects, which
consist of projects that generate, transmit, or distribute electricity or natural gas, and are built by a
public utility with some public funding or approved by a cooperative electric association. These
projects must comply the apprenticeship and prevailing wage requirements established by
Senate Bill 19-196. The bill specifies the parameters by which projects must comply and exceptions
from these requirements, which include projects supported by federal funds and those that include a
project labor agreement. The bill also applies these labor standards to certain other state projects.
The lead contractor for any applicable project must certify to the Department of Labor and
Employment (CDLE) that the contractor and any subcontractors are in compliance with the bill.
Any contract that does not include the required provisions is ineligible for state funding or approval
by the Public Utilities Commission (PUC). Any contractor or subcontractor found to be out of
compliance is subject to penalties and may be required to refund any rebates or incentives received
for the project. The State Auditor must conduct a performance audit of the PUC for energy sector
public works projects at least every five years.
The PUC must adopt rules requiring utilities to provide information concerning “best value”
employment metrics when submitting annual progress reports for electric resource acquisition. The
PUC must then submit a summary report to the General Assembly by December 31 of each year,
beginning in 2024.
State Revenue
Apprenticeship and prevailing wage requirements are enforced by CDLE. To the extent that CDLE
imposes administrative fines on a contractor for willful violations, state revenue will increase. Fines
range from $5,000 to $25,000. The fiscal note assumes most contractors and subcontractors will comply
with the law and that any revenue generated will be minimal. Also, to the extent that civil filings
increase from wage disputes, revenue will increase for the Judicial Department. These revenues are
subject to TABOR.
State Expenditures
The bill increases state expenditures in CDLE by $145,080 in FY 2023-24 and $114,166 in FY 2024-25,
paid from the General Fund. Expenditures are shown in Table 2 and detailed below.
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April 19, 2023 SB 23-292
Table 2
Expenditures Under SB 23-292
FY 2023-24 FY 2024-25
Department of Labor and Employment
Personal Services $87,770 $76,966
Operating Expenses $7,291 $4,253
Capital Outlay Costs $13,340 -
Centrally Appropriated Costs
1
$36,679 32,947
Total Cost $145,080 $114,166
Total FTE 1.0 FTE 1.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Labor and Employment. The department handles approval of apprenticeship
programs and enforcement of apprenticeship and prevailing wage requirements, including handling
reviews, handling appeals, and investigating complaints. CDLE requires 1.0 FTE to receive craft labor
certifications under the bill and address complaints as necessary. In addition, CDLE requires 0.9 FTE
in FY 2023-24 only to update guidance, conduct outreach, and update software to facilitate online
reporting. These positions are prorated for start dates in December 2023 and January 2024, and
account for the General Fund pay date shift. Standard operating, capital outlay, and some specialized
software license costs are included.
Department of Personnel and Administration. The bill increases workload for the Office of the State
Architect to update contracts and revise policies. This can be accomplished within existing
appropriations.
Public Utilities Commission. The bill increases PUC workload to update rules concerning “best
value” employment metrics and to verify that submitted projects are in compliance during the
approval process. This can be accomplished during the normal course of business, and no change in
appropriations is required.
Office of the State Auditor. The bill increases expenditures to perform the required audit every five
years. The fiscal note estimates that the first audit will occur in FY 2027-28 and that funding for the
audit will be requested through the annual budget process. For informational purposes, the cost of
an audit is estimated to be approximately $400,000.
State utility projects. The bill increases state expenditures for any energy sector public works projects
constructed by state agencies, including state institutions of higher education, and certain other state
projects to the extent that they are not otherwise required to comply with apprenticeship and
prevailing wage requirements. Depending on the funding mechanism for projects, the bill may
increase state expenditures or decrease the number of projects that receive state funding.
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April 19, 2023 SB 23-292
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs—which
include employee insurance, supplemental employee retirement payments, indirect costs, and leased
space—are shown in Table 2.
Effective Date
The bill takes effect January 1, 2024, assuming no referendum petition is filed, and it applies to projects
bid on or after that date.
State Appropriations
For FY 2023-24, the bill requires an appropriation of $108,401 from the General Fund to the
Department of Labor and Employment, and 1.0 FTE.
State and Local Government Contacts
Labor and Employment Law Legislative
Personnel and Administration Regulatory Agencies State Auditor
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.