Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-1124.01 Josh Schultz x5486 HOUSE BILL 24-1439 House Committees Senate Committees Finance A BILL FOR AN ACT C ONCERNING FINANCIAL INCENTIVES RELATED TO APPRENTICESHIP101 PROGRAMS.102 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 .) For income tax years commencing on or after January 1, 2025, but before January 1, 2035, section 1 of the bill creates a refundable state income tax credit (tax credit) that an employer may claim if the employer employs an apprentice for at least 6 months during an income tax year and either has a registered apprenticeship program or is an employer-partner of a registered apprenticeship program. The amount of HOUSE SPONSORSHIP Willford, SENATE SPONSORSHIP Coleman, 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 tax credit is up to $6,300 for 6 months of employment plus up to $1,050 for each consecutive additional month of employment, for a maximum of up to $12,600 per apprentice per income tax year. An employer may not claim a credit for: ! More than 10 apprentices per income tax year; ! The same apprentice for more than 24 consecutive months; and ! An apprentice for months when the apprentice did not receive wages from the employer. To claim a tax credit, an employer must submit an application for the reservation of the tax credit and an application to receive an income tax credit certificate to the state apprenticeship agency (SAA) in the department of labor and employment (department). The SAA shall review the applications for specified criteria to determine whether the employer qualifies for the tax credit and tax credit certificate. Section 2 ends the state income tax credit for qualified investments made in a qualified school-to-career program for income tax years after December 31, 2024. Section 4 creates the scale-up grant program in the department to start new registered apprenticeship programs or expand existing programs in Colorado. The scale-up grant program awards grants from the money in the scale-up grant fund, which is created in the bill. Eligible grant recipients include employers or entities operating an apprenticeship program and that: ! Plan to develop and register a new registered apprenticeship program; or ! Currently offer a registered apprenticeship program and plan to expand it. The bill requires the department to collect specified data regarding the scale-up grant program and submit a report to specified committees of the general assembly. Section 5 creates the qualified apprenticeship intermediary grant program in the department to support entities that demonstrate expertise in connecting employers or apprenticeship program participants to registered apprenticeship programs or in convening stakeholders to develop registered apprenticeship programs. The qualified apprenticeship intermediary grant program awards grants from the money in the qualified apprenticeship intermediary grant fund, which is created in the bill. An eligible grant recipient must be a qualified apprenticeship intermediary. The bill requires the department to collect specified data regarding the qualified apprenticeship intermediary grant program and submit a report to specified committees of the general assembly. Be it enacted by the General Assembly of the State of Colorado:1 HB24-1439-2- SECTION 1. In Colorado Revised Statutes, add 39-22-560 as1 follows:2 39-22-560. Apprenticeship tax credit - tax preference3 performance statement - legislative declaration - definitions - rules -4 repeal. (1) (a) T HE GENERAL ASSEMBLY FINDS AND DECLARES THAT :5 (I) C OLORADO IS COMMITTED TO ACCELERATING NEW6 APPRENTICESHIP PROGRAM GROWTH ON A DIVERSE BASIS , ESPECIALLY IN7 NEW AND EMERGING INDUSTRIES THAT HAVE BEEN TRADITIONALLY8 UNDERREPRESENTED IN REGISTERED APPRENTICESHIPS ; AND9 (II) M ANY EMPLOYERS ARE INTERESTED IN PROVIDING10 HIGH-QUALITY REGISTERED APPRENTICESHIPS TO ADDRESS THEIR SKILLED11 WORKER SHORTAGES BUT FACE FINANCIAL BARRIERS .12 (b) I N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH13 REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE14 A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY15 LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND16 DECLARES THAT THE PURPOSE OF THE TAX CREDIT PROVIDED FOR IN THIS17 SECTION IS TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS18 AND TO PROVIDE A REDUCTION IN INCOME TAX LIABILITY FOR CERTAIN19 BUSINESSES THAT HIRE APPRENTICES . SPECIFICALLY, THIS TAX20 EXPENDITURE IS INTENDED TO INCENTIVIZE THE HIRING OF APPRENTICES21 AND GROWTH OF REGISTERED APPRENTICESHIP PROGRAMS IN NEW AND22 EMERGING INDUSTRIES.23 (c) T HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL24 MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE25 PURPOSES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE26 NUMBER AND VALUE OF THE CREDITS CLAIMED .27 HB24-1439 -3- (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1 REQUIRES:2 (a) "A PPRENTICE" HAS THE SAME MEANING AS SET FORTH IN3 SECTION 8-15.7-101 (1).4 (b) "C ERTIFICATE OF REGISTRATION" HAS THE SAME MEANING AS5 SET FORTH IN SECTION 8-15.7-101 (6).6 (c) "C REDIT" MEANS THE CREDIT AGAINST INCOME TAX CREATED7 IN THIS SECTION.8 (d) "D EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .9 (e) "E MPLOYEE" HAS THE SAME MEANING AS SET FORTH IN10 SECTION 39-22-604 (2)(a); EXCEPT THAT "EMPLOYEE" INCLUDES ONLY11 THOSE INDIVIDUALS WHO PERFORM SERVICES FOR THE TAXPAYER FOR AT12 LEAST ONE THOUSAND FORTY HOURS PER INCOME TAX YEAR .13 (f) "N EW AND EMERGING I NDUSTRY " DOES NOT INCLUDE THE14 BUILDING AND CONSTRUCTION TRADES AS DESCRIBED IN SECTION15 8-15.7-105 (4).16 (g) "Q UALIFIED TAXPAYER" OR "TAXPAYER" MEANS A PERSON17 SUBJECT TO TAX PURSUANT TO THIS ARTICLE 22 THAT IS DOING BUSINESS18 IN THIS STATE AND THAT EMPLOYS AN APPRENTICE IN THE RELEVANT TAX19 YEAR.20 (h) "R EGISTERED APPRENTICESHIP PROGRAM " HAS THE SAME21 MEANING AS SET FORTH IN SECTION 8-15.7-101 (13).22 (i) "S TATE APPRENTICESHIP AGENCY " OR "SAA" HAS THE SAME23 MEANING AS SET FORTH IN SECTION 8-15.7-101 (16).24 (3) (a) S UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION25 (3)(b) OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR26 AFTER JANUARY 1, 2025, BUT BEFORE JANUARY 1, 2035, A QUALIFIED27 HB24-1439 -4- TAXPAYER IN A NEW AND EMERGING INDUSTRY IS ALLOWED AN1 APPRENTICESHIP TAX CREDIT AGAINST THE INCOME TAX IMPOSED BY THIS2 ARTICLE 22 FOR EACH APPRENTICE WHO IS AN EMPLOYEE OF THE3 TAXPAYER IN THIS STATE FOR NO LESS THAN SIX MONTHS DURING THE4 TAXPAYER'S INCOME TAX YEAR. THE CREDIT IS EQUAL TO UP TO SIX5 THOUSAND THREE HUNDRED DOLLARS FOR SIX MONTHS OF EMPLOYMENT6 PLUS UP TO ONE THOUSAND FIFTY DOLLARS FOR EACH ADDITIONAL MONTH7 OF EMPLOYMENT, FOR A MAXIMUM OF TWELVE THOUSAND SIX HUNDRED8 DOLLARS PER APPRENTICE PER INCOME TAX YEAR ; EXCEPT THAT THE9 TAXPAYER SHALL NOT CLAIM A CREDIT FOR :10 (I) M ORE THAN TEN APPRENTICES PER INCOME TAX YEAR ;11 (II) T HE SAME APPRENTICE FOR MORE THAN TWO CONSECUTIVE12 INCOME TAX YEARS; AND13 (III) A N APPRENTICE FOR MONTHS WHEN THE APPRENTICE DID NOT14 RECEIVE WAGES FROM THE TAXPAYER .15 (b) A QUALIFIED TAXPAYER MUST EITHER:16 (I) H AVE ESTABLISHED A REGISTERED APPRENTICESHIP PROGRAM17 AND RECEIVED A CERTIFICATE OF REGISTRATION FROM THE STATE18 APPRENTICESHIP AGENCY; OR19 (II) B E AN EMPLOYER-PARTNER OF A REGISTERED APPRENTICESHIP20 PROGRAM AS VERIFIED BY THE QUALIFIED TAXPAYER 'S INCLUSION ON THE21 C OLORADO STATE APPRENTICESHIP RESOURCE DIRECTORY PURSUANT TO22 SECTION 8-83-308.23 (c) T O CLAIM THE CREDIT, THE TAXPAYER MUST RESERVE THE24 CREDIT AS SET FORTH IN SUBSECTION (4) OF THIS SECTION AND ANNUALLY25 APPLY FOR AND RECEIVE AN INCOME TAX CREDIT CERTIFICATE FROM THE26 STATE APPRENTICESHIP AGENCY PURSUANT TO SUBSECTION (5) OF THIS27 HB24-1439 -5- SECTION.1 (4) (a) T O CLAIM A CREDIT PURSUANT TO THIS SECTION , A2 TAXPAYER MUST SUBMIT AN APPLICATION FOR THE RESERVATION OF A TAX3 CREDIT TO THE SAA IN THE FORM AND MANNER PRESCRIBED BY THE SAA.4 (b) T HE SAA SHALL REVIEW ALL SUBMITTED APPLICATIONS TO :5 (I) D ETERMINE WHETHER THE APPLICANT IS A QUALIFIED6 TAXPAYER;7 (II) D ETERMINE WHETHER THE APPLICANT HAS COMPLIED WITH8 THE REQUIREMENTS OF SUBSECTION (3)(b) OF THIS SECTION;9 (III) D ETERMINE WHETHER THE INDIVIDUAL FOR WHOM THE10 APPLICATION IS SUBMITTED IS AN APPRENTICE , IS AN EMPLOYEE, AND11 COMPLIES WITH ANY STANDARDS SET FORTH IN ARTICLE 15.7 OF TITLE 8;12 AND13 (IV) C ALCULATE THE NUMBER OF MONTHS EACH PROSPECTIVE14 APPRENTICE IS EXPECTED TO BE EMPLOYED .15 (c) (I) B ASED UPON THE NUMBER OF APPRENTICES THE QUALIFIED16 TAXPAYER EXPECTS TO EMPLOY , AND THE NUMBER OF MONTHS EACH17 APPRENTICE IS EXPECTED TO BE EMPLOYED , THE SAA MAY RESERVE FOR18 THE BENEFIT OF EACH QUALIFIED TAXPAYER ALL OR PART OF THE CREDIT19 AMOUNT REQUESTED BY THE QUALIFIED TAXPAYER ; EXCEPT THAT THE20 SAA SHALL NOT RESERVE AN AMOUNT IN EXCESS OF THE CREDIT21 ALLOWED BY SUBSECTION (3)(a) OF THIS SECTION.22 (II) E XCEPT AS PROVIDED IN SUBSECTION (5)(b)(III) OF THIS23 SECTION, THE AGGREGATE AMOUNT OF CREDITS RESERVED FOR ALL24 QUALIFIED TAXPAYERS MUST NOT EXCEED THIRTY MILLION DOLLARS PER25 CALENDAR YEAR. THE SAA MAY RESERVE CREDITS FOR THE CURRENT OR26 ANY FUTURE CALENDAR YEAR BASED UPON THE EXPECTED EMPLOYMENT27 HB24-1439 -6- DATES INDICATED IN A QUALIFIED TAXPAYER 'S APPLICATION. FOR A1 QUALIFIED TAXPAYER WHOSE INCOME TAX YEAR IS NOT A CALENDAR2 YEAR, THE RESERVATION IS EFFECTIVE FOR THE INCOME TAX YEAR THAT3 BEGINS DURING THE CALENDAR YEAR FOR THE RESERVATION .4 (III) I F, FOR ANY CALENDAR YEAR, THE AGGREGATE AMOUNT OF5 RESERVATIONS FOR TAX CREDITS THE SAA HAS APPROVED IS EQUAL TO6 THE TOTAL AMOUNT OF TAX CREDITS AVAILABLE FOR RESERVATION FOR7 A CURRENT OR FUTURE CALENDAR YEAR , THE SAA SHALL NOTIFY ALL8 QUALIFIED TAXPAYERS THAT HAVE SUBMITTED APPLICATIONS THEN9 AWAITING APPROVAL OR THAT HAVE SUBMITTED APPLICATIONS FOR10 APPROVAL AFTER THE CALCULATION IS MADE THAT ADDITIONAL11 APPROVALS OF APPLICATIONS FOR RESERVATIONS OF TAX CREDITS SHALL12 NOT BE GRANTED FOR THE CALENDAR YEAR . THE PENDING APPLICATIONS13 MUST REMAIN PENDING IN THE ORDER RECEIVED FOR UP TO TWO YEARS14 AFTER THE DATE THE ORIGINAL APPLICATION IS RECEIVED BY THE SAA15 AND SHALL BE CONSIDERED FOR RESERVATIONS OF TAX CREDITS IN THE16 EVENT THAT ADDITIONAL CREDITS BECOME AVAILABLE PURSUANT TO17 SUBSECTION (5)(b) OF THIS SECTION.18 (d) (I) I F THE SAA RESERVES CREDITS FOR THE BENEFIT OF A19 QUALIFIED TAXPAYER, THE SAA SHALL NOTIFY THE QUALIFIED TAXPAYER20 OF THE RESERVATION AND THE AMOUNT RESERVED . THE RESERVATION OF21 TAX CREDITS DOES NOT ENTITLE THE QUALIFIED TAXPAYER TO AN22 ISSUANCE OF A TAX CREDIT CERTIFICATE UNTIL THE QUALIFIED TAXPAYER23 COMPLIES WITH ALL OF THE REQUIREMENTS OF THIS SECTION OR24 STANDARDS OF THE SAA FOR THE ISSUANCE OF A TAX CREDIT25 CERTIFICATE.26 (II) T HE SAA SHALL NOTIFY ANY QUALIFIED TAXPAYER FOR27 HB24-1439 -7- WHICH THE SAA DID NOT RESERVE A CREDIT UNDER SUBSECTION (4)(c) OF1 THIS SECTION OF ITS DECISION IN WRITING. IF THE SAA DETERMINES THAT2 A QUALIFIED TAXPAYER'S APPLICATION IS INCOMPLETE OR THAT THE3 APPLICATION DOES NOT COMPLY WITH THE REQUIREMENTS OF THIS4 SECTION OR THE STANDARDS ESTABLISHED BY THE SAA, THE SAA SHALL5 REMOVE THE APPLICATION FROM THE REVIEW PROCESS AND NOTIFY THE6 QUALIFIED TAXPAYER IN WRITING OF ITS DECISION.7 (5) (a) (I) A QUALIFIED TAXPAYER SHALL SUBMIT AN APPLICATION8 TO THE SAA FOR AN INCOME TAX CREDIT CERTIFICATE TO CLAIM THE9 CREDIT ALLOWED BY THIS SECTION ON A FORM AND IN A MANNER10 PRESCRIBED BY THE SAA. THE APPLICATION MUST INCLUDE IDENTIFYING11 INFORMATION FOR EACH APPRENTICE EMPLOYED IN THE STATE FOR WHICH12 THE QUALIFIED TAXPAYER IS SUBMITTING AN APPLICATION FOR A TAX13 CREDIT, THE AMOUNT OF CREDIT REQUESTED , AND SUFFICIENT14 INFORMATION TO ALLOW THE SAA TO MAKE A DETERMINATION THAT :15 (A) T HE TAXPAYER MEETS THE REQUIREMENTS SET FORTH IN THIS16 SECTION;17 (B) T HE APPRENTICE FOR WHOM THE APPLICATION IS SUBMITTED18 MEETS THE STANDARDS SET FORTH IN ARTICLE 15.7 OF TITLE 8; AND19 (C) T HE APPRENTICE FOR WHOM THE APPLICATION IS SUBMITTED20 HAS NOT BEEN THE SUBJECT OF A TAXPAYER 'S APPLICATION FOR MORE21 THAN TWO INCOME TAX YEARS .22 (II) E XCEPT AS PROVIDED IN SUBSECTION (5)(b)(II) OF THIS23 SECTION, THE SAA:24 (A) M AY ISSUE ONE INCOME TAX CREDIT CERTIFICATE PER INCOME25 TAX YEAR TO EACH QUALIFIED TAXPAYER THAT , AT A MINIMUM, SPECIFIES26 THE TAXPAYER'S IDENTIFYING INFORMATION AND THE TOTAL AMOUNT OF27 HB24-1439 -8- THE CREDIT ALLOWED; AND1 (B) S HALL NOT ISSUE AN INCOME TAX CREDIT CERTIFICATE IN2 EXCESS OF THE AMOUNT RESERVED FOR THE QUALIFIED TAXPAYER FOR3 THE CALENDAR YEAR PURSUANT TO SUBSECTION (4) OF THIS SECTION.4 (b) I F THE ACTUAL AGGREGATE AMOUNT OF INCOME TAX CREDIT5 CERTIFICATES ISSUED FOR A CALENDAR YEAR IS LESS THAN THE MAXIMUM6 AGGREGATE AMOUNT OF CREDITS ALLOWED TO BE RESERVED FOR ALL7 QUALIFIED TAXPAYERS, THE SAA SHALL APPLY THE REMAINING BALANCE8 IN THE FOLLOWING ORDER:9 (I) R ESERVE THE REMAINING BALANCE FOR ANY APPLICATIONS10 PENDING IN ORDER OF PRIORITY PURSUANT TO SUBSECTION (4)(c)(III) OF11 THIS SECTION;12 (II) I SSUE AN ADDITIONAL TAX CREDIT CERTIFICATE UP TO THE13 AMOUNT ALLOWED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION TO14 ANY QUALIFIED TAXPAYER WHOSE ACTUAL CREDIT EARNED EXCEEDED THE15 AMOUNT RESERVED PURSUANT TO SUBSECTION (4) OF THIS SECTION; AND16 (III) I NCREASE THE MAXIMUM AGGREGATE AMOUNT OF CREDITS17 ALLOWED TO BE RESERVED FOR ALL QUALIFIED TAXPAYERS FOR THE NEXT18 CALENDAR YEAR; EXCEPT THAT UNUSED CREDITS SHALL NOT BE CARRIED19 FORWARD TO A CALENDAR YEAR BEGINNING ON OR AFTER JANUARY 1,20 2035.21 (c) (I) T HE SAA SHALL MAINTAIN A DATABASE OF ANY22 INFORMATION DETERMINED NECESSARY BY THE SAA TO EVALUATE THE23 EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN24 MEETING THE PURPOSE SET FORTH IN SUBSECTION (1)(b) OF THIS SECTION25 AND SHALL PROVIDE SUCH INFORMATION , AND ANY OTHER INFORMATION26 THAT MAY BE NEEDED, IF AVAILABLE, TO THE STATE AUDITOR AS PART OF27 HB24-1439 -9- THE STATE AUDITOR'S EVALUATION OF THE TAX EXPENDITURE REQUIRED1 BY SECTION 39-21-305.2 (II) T HE SAA SHALL, IN A SUFFICIENTLY TIMELY MANNER TO3 ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME4 TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH5 AN ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR LISTING EACH6 QUALIFIED TAXPAYER TO WHICH THE SAA ISSUED AN INCOME TAX CREDIT7 CERTIFICATE AND THAT INCLUDES THE FOLLOWING INFORMATION :8 (A) T HE TAXPAYER'S NAME;9 (B) T HE AMOUNT OF THE INCOME TAX CREDIT THAT THE TAX10 CREDIT CERTIFICATE INDICATES THE TAXPAYER IS ELIGIBLE TO CLAIM; AND11 (C) T HE TAXPAYER'S SOCIAL SECURITY NUMBER OR THE12 TAXPAYER'S COLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER13 IDENTIFICATION NUMBER.14 (III) T HE SAA SHALL PRESCRIBE FORMS AND PROMULGATE RULES15 PURSUANT TO ARTICLE 4 OF TITLE 24 ESTABLISHING THE STANDARDS FOR16 WHICH AN INCOME TAX CREDIT CERTIFICATE UNDER THIS SUBSECTION (5)17 IS ISSUED.18 (6) T O CLAIM THE CREDIT AUTHORIZED BY THIS SECTION , A19 TAXPAYER SHALL FILE THE INCOME TAX CREDIT CERTIFICATE WITH THE20 TAXPAYER'S STATE INCOME TAX RETURN . THE AMOUNT OF THE CREDIT21 THAT THE TAXPAYER MAY CLAIM PURSUANT TO THIS SECTION IS THE22 AMOUNT STATED ON THE INCOME TAX CREDIT CERTIFICATE .23 (7) I F A TAXPAYER CLAIMS THE CREDIT ALLOWED IN THIS SECTION ,24 THE TAXPAYER SHALL NOT CLAIM A CREDIT FOR THE SAME APPRENTICE25 PURSUANT TO SECTION 39-22-531, 39-30-105.1, OR 39-30.5-105.26 (8) I F AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION27 HB24-1439 -10- EXCEEDS THE INCOME TAX DUE ON THE INCOME OF THE TAXPAYER FOR1 THE TAXABLE YEAR , THE EXCESS CREDIT SHALL NOT BE CARRIED2 FORWARD AND MUST BE REFUNDED TO THE TAXPAYER .3 (9) T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.4 SECTION 2. In Colorado Revised Statutes, 39-22-520, amend5 (2)(a); and add (4) as follows:6 39-22-520. Credit against tax - investment in school-to-career7 program - definitions - repeal. (2) (a) For income tax years beginning8 on or after January 1, 1997, BUT BEFORE JANUARY 1, 2025, there shall be9 allowed to any person as a credit against the tax imposed by this article 10 ARTICLE 22 an amount equal to ten percent of the total qualified11 investment made in a qualified school-to-career program.12 (4) T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2028.13 SECTION 3. In Colorado Revised Statutes, 8-15.7-102, add14 (1)(s) as follows:15 8-15.7-102. State apprenticeship agency - created - director -16 powers and duties - rules - repeal. (1) There is created in the17 department the state apprenticeship agency. The executive director shall18 appoint a director of the SAA. The SAA shall:19 (s) (I) R EVIEW APPLICATIONS FOR AND ISSUE INCOME TAX CREDIT20 CERTIFICATES AS SPECIFIED IN SECTION 39-22-560 AND PROMULGATE21 RULES TO ESTABLISH STANDARDS FOR THE CERTIFICATES .22 (II) T HIS SUBSECTION (1)(s) IS REPEALED, EFFECTIVE DECEMBER23 31, 2037.24 SECTION 4. In Colorado Revised Statutes, add parts 2 and 3 to25 article 15.7 of title 8 as follows:26 PART 227 HB24-1439 -11- SCALE-UP GRANT PROGRAM1 8-15.7-201. Definitions. A S USED IN THIS PART 2:2 (1) "A PPLICANT" MEANS A PERSON THAT APPLIES TO RECEIVE A3 GRANT FROM THE SCALE-UP GRANT PROGRAM.4 (2) "S CALE-UP GRANT FUND" OR "FUND" MEANS THE SCALE-UP5 GRANT FUND CREATED IN SECTION 8-15.7-205.6 (3) "S CALE-UP GRANT PROGRAM" OR "GRANT PROGRAM" MEANS7 THE SCALE-UP GRANT PROGRAM CREATED IN SECTION 8-15.7-202.8 8-15.7-202. Scale-up grant program - creation - application9 process - data. (1) O N OR BEFORE JANUARY 1, 2025, THE DEPARTMENT10 SHALL ESTABLISH THE SCALE-UP GRANT PROGRAM TO ESTABLISH NEW11 REGISTERED APPRENTICESHIP PROGRAMS OR EXPAND EXISTING PROGRAMS12 IN COLORADO.13 (2) T HE DEPARTMENT SHALL:14 (a) C REATE AN APPLICATION PROCESS THROUGH WHICH IT SELECTS15 GRANT RECIPIENTS TO PARTICIPATE IN THE GRANT PROGRAM , WITH THE16 GOAL OF ACCELERATING NEW APPRENTICESHIP PROGRAM GROWTH ,17 DIVERSIFYING PARTICIPANTS IN APPRENTICESHIP PROGRAMS , AND18 DIVERSIFYING THE GEOGRAPHIC DISTRIBUTION OF APPRENTICESHIP19 PROGRAMS, ESPECIALLY IN HIGH-PRIORITY, HIGH-DEMAND INDUSTRIES,20 WHILE ENSURING QUALITY STANDARDS ;21 (b) S ELECT GRANT RECIPIENTS THAT ARE EMPLOYERS OR SPONSORS22 THAT:23 (I) P LAN TO DEVELOP AND REGISTER A NEW REGISTERED24 APPRENTICESHIP PROGRAM; OR25 (II) C URRENTLY OFFER A REGISTERED APPRENTICESHIP PROGRAM26 AND PLAN TO EXPAND IT;27 HB24-1439 -12- (c) OUTLINE PERFORMANCE EXPECTATIONS FOR GRANT RECIPIENTS1 PARTICIPATING IN THE GRANT PROGRAM , INCLUDING MAINTAINING2 ACCURATE AND TIMELY DATA IN THE FEDERAL REGISTERED3 APPRENTICESHIP PARTNERS INFORMATION DATABASE SYSTEM , OR A4 SUCCESSOR DATABASE; AND5 (d) C OLLECT DATA CONCERNING THE GRANT PROGRAM ,6 INCLUDING:7 (I) T HE NUMBER OF EMPLOYERS BENEFITING FROM THE GRANT8 PROGRAM;9 (II) T HE NUMBER OF APPRENTICES BENEFITING FROM THE GRANT10 PROGRAM;11 (III) T HE DEMOGRAPHICS OF THE APPRENTICES SERVED BY THE12 GRANT RECIPIENTS; AND13 (IV) A NY OTHER INFORMATION DEEMED APPROPRIATE BY THE14 DEPARTMENT.15 8-15.7-203. Applicants. (1) A N APPLICANT SHALL SUBMIT AN16 APPLICATION TO THE DEPARTMENT IN A FORM AND MANNER ESTABLISHED17 BY THE DEPARTMENT THAT IS DESIGNED TO MAXIMIZE PARTICIPATION . IN18 THE APPLICATION, THE APPLICANT SHALL:19 (a) P ROVIDE A DETAILED PROPOSAL AND OPERATIONS PLAN FOR20 THE GROWTH OR DEVELOPMENT OF A REGISTERED APPRENTICESHIP21 PROGRAM; AND22 (b) S UBMIT ANY OTHER INFORMATION DEEMED APPROPRIATE BY23 THE DEPARTMENT.24 (2) A PPLICANTS MUST NOT HAVE RECEIVED OR HAVE BEEN25 SELECTED TO RECEIVE FUNDING FROM THE QUALIFIED APPRENTICESHIP26 INTERMEDIARY GRANT PROGRAM PURSUANT TO SECTION 8-15.7-302.27 HB24-1439 -13- 8-15.7-204. Report. O N OR BEFORE DECEMBER 31, 2026, THE1 DEPARTMENT SHALL SUBMIT A REPORT COMPILING THE INFORMATION2 COLLECTED PURSUANT TO SECTION 8-15.7-202 (2)(d) TO THE HOUSE OF3 REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE AND THE4 SENATE BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE , OR THEIR5 SUCCESSOR COMMITTEES.6 8-15.7-205. Scale-up grant fund - creation - gifts, grants, or7 donations - transfer. (1) T HERE IS CREATED IN THE STATE TREASURY8 THE SCALE-UP GRANT FUND. MONEY IN THE FUND IS CONTINUOUSLY9 APPROPRIATED TO THE DEPARTMENT TO IMPLEMENT THE GRANT PROGRAM10 AND PAY FOR THE DEPARTMENT 'S DIRECT AND INDIRECT COSTS IN11 ADMINISTERING THE GRANT PROGRAM .12 (2) O N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER TWO13 MILLION DOLLARS FROM THE GENERAL FUND TO THE SCALE -UP GRANT14 FUND.15 (3) T HE DEPARTMENT MAY SEEK , ACCEPT, AND EXPEND GIFTS,16 GRANTS, AND DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE17 PURPOSES OF THIS PART 2.18 (4) T HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED19 AND UNENCUMBERED MONEY REMAINING IN THE FUND AT THE END OF20 STATE FISCAL YEAR 2026-27 TO THE GENERAL FUND.21 8-15.7-206. Repeal of part. T HIS PART 2 IS REPEALED, EFFECTIVE22 J ULY 1, 2027.23 PART 324 QUALIFIED APPRENTICESHIP INTERMEDIARY25 GRANT PROGRAM26 8-15.7-301. Definitions. A S USED IN THIS PART 3:27 HB24-1439 -14- (1) "APPLICANT" MEANS A PERSON THAT APPLIES TO RECEIVE A1 GRANT FROM THE QUALIFIED APPRENTICESHIP INTERMEDIARY GRANT2 PROGRAM.3 (2) "Q UALIFIED APPRENTICESHIP INTERMEDIARY " HAS THE SAME4 MEANING AS "QUALIFIED INTERMEDIARY" AS SET FORTH IN SECTION5 8-15.7-101 (11).6 (3) "Q UALIFIED APPRENTICESHIP INTERMEDIARY GRANT FUND " OR7 " FUND" MEANS THE QUALIFIED APPRENTICESHIP INTERMEDIARY GRANT8 FUND CREATED IN SECTION 8-15.7-305.9 (4) "Q UALIFIED APPRENTICESHIP INTERMEDIARY GRANT PROGRAM "10 OR "GRANT PROGRAM " MEANS THE QUALIFIED APPRENTICESHIP11 INTERMEDIARY GRANT PROGRAM CREATED IN SECTION 8-15.7-302.12 8-15.7-302. Qualified apprenticeship intermediary grant13 program - creation - application process - data. (1) O N OR BEFORE14 J ANUARY 1, 2025, THE DEPARTMENT SHALL ESTABLISH THE QUALIFIED15 APPRENTICESHIP INTERMEDIARY GRANT PROGRAM TO SUPPORT ENTITIES16 THAT DEMONSTRATE EXPERTISE IN CONNECTING EMPLOYERS OR17 APPRENTICESHIP PROGRAM PARTICIPANT S TO REGISTERED APPRENTICESHIP18 PROGRAMS OR IN CONVENING STAKEHOLDERS TO DEVELOP REGISTERED19 APPRENTICESHIP PROGRAMS.20 (2) T HE DEPARTMENT SHALL:21 (a) C REATE AN APPLICATION PROCESS THROUGH WHICH IT SELECTS22 GRANT RECIPIENTS TO PARTICIPATE IN THE GRANT PROGRAM , WITH THE23 GOAL OF EXP ANDING APPRENTICESHIP PROGRAMS , DIVERSIFYING24 PARTICIPANTS IN APPRENTICESHIP PROGRAMS , AND DIVERSIFYING25 GEOGRAPHIC DISTRIBUTION OF APPRENTICESHIP PROGRAMS , ESPECIALLY26 IN HIGH-PRIORITY, HIGH-DEMAND INDUSTRIES, WHILE ENSURING QUALITY27 HB24-1439 -15- STANDARDS;1 (b) S ELECT AND PRIORITIZE GRANT PROGRAM RECIPIENTS BASED2 ON:3 (I) A N APPLICANT'S RECORD OF SUCCESS IN SUPPORTING JOB4 SEEKERS, APPRENTICES, EMPLOYERS, AND SPONSORS;5 (II) T HE REGIONAL DIVERSITY OF THE AREAS SERVED BY AN6 APPLICANT;7 (III) T HE DIVERSITY OF POPULATIONS SERVED BY AN APPLICANT ;8 AND9 (IV) H OW THE REGISTERED APPRENTICESHIP PROGRAMS SERVED10 BY THE APPLICANT MEET TALENT NEEDS IN HIGH-PRIORITY, HIGH-DEMAND11 INDUSTRIES;12 (c) O UTLINE PERFORMANCE EXPECTATIONS FOR GRANT RECIPIENTS13 PARTICIPATING IN THE GRANT PROGRAM ; AND14 (d) C OLLECT DATA CONCERNING THE GRANT PROGRAM THAT15 INCLUDES:16 (I) T HE NUMBER OF EMPLOYERS BENEFITING FROM THE GRANT17 PROGRAM;18 (II) T HE NUMBER OF APPRENTICES BENEFITING FROM THE GRANT19 PROGRAM;20 (III) T HE DEMOGRAPHICS OF THE APPRENTICES SERVED BY THE21 GRANT RECIPIENTS;22 (IV) A DESCRIPTION OF THE SERVICES PROVIDED BY THE GRANT23 RECIPIENT;24 (V) T HE NAMES OF THE REGISTERED APPRENTICESHIP PROGRAMS25 AND OCCUPATIONS IMPACTED BY THE SERVICES PROVIDED BY THE GRANT26 RECIPIENT; AND27 HB24-1439 -16- (VI) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE1 DEPARTMENT.2 (3) G RANT RECIPIENTS SHALL NOT USE MONEY FROM THE GRANT3 PROGRAM FOR APPRENTICE WAGES .4 8-15.7-303. Application. (1) A N APPLICANT SHALL SUBMIT AN5 APPLICATION TO THE DEPARTMENT IN A FORM AND MANNER ESTABLISHED6 BY THE DEPARTMENT THAT IS DESIGNED TO MAXIMIZE PARTICIPATION . IN7 THE APPLICATION, THE APPLICANT SHALL:8 (a) D ESCRIBE HOW THE GRANT WILL BE USED TO EXPAND OR9 DIVERSIFY REGISTERED APPRENTICESHIP PROGRAMS IN COLORADO; AND10 (b) S UBMIT ANY OTHER INFORMATION DEEMED APPROPRIATE BY11 THE DEPARTMENT.12 (2) A N APPLICANT MUST:13 (a) B E A QUALIFIED APPRENTICESHIP INTERMEDIARY ; AND14 (b) A PPLICANTS MUST NOT HAVE RECEIVED OR HAVE BEEN15 SELECTED TO RECEIVE FUNDING FROM THE SCALE -UP GRANT PROGRAM16 PURSUANT TO SECTION 8-15.7-202.17 8-15.7-304. Report. O N OR BEFORE DECEMBER 31, 2026, THE18 DEPARTMENT SHALL SUBMIT A REPORT COMPILING THE INFORMATION19 COLLECTED PURSUANT TO SECTION 8-15.7-302 (2)(d) TO THE HOUSE OF20 REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE AND THE21 SENATE BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE , OR THEIR22 SUCCESSOR COMMITTEES.23 8-15.7-305. Qualified apprenticeship intermediary grant fund24 - creation - transfer - gifts, grants, or donations. (1) T HERE IS25 CREATED IN THE STATE TREASURY THE QUALIFIED APPRENTICESHIP26 INTERMEDIARY GRANT FUND . MONEY IN THE FUND IS CONTINUOUSLY27 HB24-1439 -17- APPROPRIATED TO THE DEPARTMENT TO IMPLEMENT THE GRANT PROGRAM1 AND PAY FOR THE DEPARTMENT 'S DIRECT AND INDIRECT COSTS IN2 ADMINISTERING THE GRANT PROGRAM .3 (2) O N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER TWO4 MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND .5 (3) T HE DEPARTMENT MAY SEEK , ACCEPT, AND EXPEND GIFTS,6 GRANTS, AND DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE7 PURPOSES OF THIS PART 3.8 (4) T HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED9 AND UNENCUMBERED MONEY REMAINING IN THE FUND AT THE END OF10 STATE FISCAL YEAR 2026-27 TO THE GENERAL FUND.11 8-15.7-306. Repeal of part. T HIS PART 3 IS REPEALED, EFFECTIVE12 J ULY 1, 2027.13 SECTION 5. Safety clause. The general assembly finds,14 determines, and declares that this act is necessary for the immediate15 preservation of the public peace, health, or safety or for appropriations for16 the support and maintenance of the departments of the state and state17 institutions.18 HB24-1439 -18-