Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 24-0628.02 Anna Petrini x5497 SENATE BILL 24-143 Senate Committees House Committees Education Appropriations A BILL FOR AN ACT C ONCERNING CREDENTIAL ASSESSMENT TOOLS , AND, IN CONNECTION101 THEREWITH, INTEGRATING FRAMEWORKS FOR NONDEGREE102 CREDENTIAL EVALUATION AND CLASSIFICATION INTO STATE103 EDUCATION AND WORKFORCE SYSTEMS , ALIGNING STACKABLE104 CREDENTIAL PATHWAYS AND APPRENTICESHIP PROGRAMS WITH105 INTERNATIONAL CLASSIFICATION STANDARDS , AND MAKING AN106 APPROPRIATION.107 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 .) SENATE Amended 2nd Reading April 18, 2024 SENATE SPONSORSHIP Coleman and Zenzinger, HOUSE SPONSORSHIP Herod and Hamrick, 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. Current law requires the department of higher education (department) and other higher education institutions to develop a framework for evaluating the quality of nondegree credentials. The bill formally recognizes the resulting quality and in-demand nondegree credentials framework (quality nondegree credentials framework) as the primary tool for assessing the quality of nondegree credentials offered in the state. The bill requires the department to collaborate with various agencies to ensure the effective integration of the quality nondegree credentials framework within the state's education and workforce systems and to evaluate nondegree credentials offered through state-recognized programs to ensure the credentials meet the framework's quality standards. At least annually, the department shall supply a list of nondegree credential programs that meet the framework's quality standards for inclusion in the Colorado talent report and a credential registry endorsed by the state. The department shall engage state agencies, educational institutions, international organizations, and other stakeholders to study and make recommendations about the adoption of the international standard classification of education (ISCED) as the state's standard framework for classifying nondegree credentials and ISCED's wider application in the state's education and workforce systems. The recommendations must include a process for assigning ISCED equivalency levels to nondegree credentials included in stackable credential pathways and apprenticeship programs. The bill requires the department to report its findings and recommendations on or before January 1, 2025. Current law requires the department to create stackable credential pathways in growing industries. The bill requires the department to align the stackable credential pathways with appropriate ISCED equivalency levels on or before January 1, 2025. The bill requires the office of future of work to coordinate with various agencies to determine ISCED equivalency levels for each apprenticeship program registered on and after January 1, 2025. The office of future of work shall then determine ISCED equivalency levels for each apprenticeship program registered before January 1, 2025. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) The strength and prosperity of Colorado's economy hinges on4 143-2- economic mobility and educational opportunities for all Coloradans and1 on the cultivation of a skilled workforce. According to the 2022 Colorado2 talent pipeline report, 91.4 percent of tier one top jobs and 70.4 percent3 of tier two top jobs in the state required some form of postsecondary4 education beyond high school, including traditional academic degrees, as5 well as industry certifications, badges, sub-baccalaureate certificates,6 professional licenses, and apprenticeships.7 (b) Traditional undergraduate and graduate degree programs are8 the foundation of our postsecondary training system. However, they9 cannot fully meet Colorado's evolving skilled workforce needs.10 Nondegree credentials provide a valuable and complementary approach11 to bridging the skills gap. They offer learners a practical and expedited12 pathway to acquire the precise skills that employers urgently require to13 meet their immediate workforce needs.14 (c) In 2021, Credential Engine reported 967,734 unique secondary15 and postsecondary education credentials in the United States. Existing16 accreditation and regulation systems provide quality assurance for degree17 programs but, with the exception of sub-baccalaureate certifications, do18 not take a sufficiently holistic approach to quality assurance for19 nondegree credentials. Existing systems fail to validate the legitimacy of20 nondegree credentials, specify how they relate to degree programs, and21 fail to indicate whether they develop in-demand skills that lead to good22 jobs. This places a considerable burden on both learners and employers23 who lack the time, expertise, and resources to verify the legitimacy and24 quality of these credentials. As a result, employers and learners continue25 to rely heavily on traditional degrees while quality nondegree credentials26 remain underused and undervalued.27 143 -3- (d) To address this need, Colorado requires a system that brings1 quality assurance, clarity, and order to the complex landscape of both2 nondegree and traditional degree credentials by validating high-quality3 credentials and indicating the level of training or skill mastery they4 deliver; and5 (e) With the help of a quality assurance framework and an6 internationally recognized standard classification system, Colorado7 employers can more easily assess candidate qualifications and skill8 profiles and align their hiring practices and policies with proper9 recognition of nondegree credentials. Knowing their chosen program10 carries validation, legitimacy, and value in the labor market empowers11 Colorado learners to make informed decisions about their careers.12 (2) Therefore, the general assembly declares that the13 implementation of a quality nondegree credentials framework and a14 standard classification system is an essential step toward an equitable15 economy, economic mobility, workforce development, and clarity in16 educational and training attainment.17 SECTION 2. In Colorado Revised Statutes, add 23-5-145.8 as18 follows:19 23-5-145.8. Credential quality standards - report - definitions.20 (1) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE21 REQUIRES:22 (a) "A PPRENTICESHIP CERTIFICATE OF COMPLETION " MEANS A23 CERTIFICATE AWARDED TO AN APPRENTICE IN RECOGNITION OF THE24 SUCCESSFUL COMPLETION OF A REGISTERED APPRENTICESHIP PROGRAM.25 (b) "C OLORADO TALENT REPORT " MEANS THE REPORT PREPARED26 PURSUANT TO SECTION 24-46.3-103.27 143 -4- (c) "DEPARTMENT" MEANS THE DEPARTMENT OF HIGHER1 EDUCATION CREATED AND EXISTING PURSUANT TO SECTION 24-1-114.2 (d) "I NDUSTRY CERTIFICATION" MEANS A CREDENTIAL AWARDED3 BY AN INDUSTRY-RECOGNIZED THIRD PARTY OR INDUSTRY -GOVERNING4 BOARD BASED ON AN INDIVIDUAL DEMONSTRATING BY ASSESSMENT THAT5 THE INDIVIDUAL HAS ACQUIRED THE DESIGNATED KNOWLEDGE , SKILLS,6 AND ABILITIES RELATED TO A SPECIFIC OCCUPATION OR SKILL . INDUSTRY7 CERTIFICATIONS MAY BE TIME -LIMITED DEPENDENT UPON THE8 OCCUPATION OR INDUSTRY.9 (e) "I NTERNATIONAL STANDARD CLASSIFICATION OF EDUCATION "10 OR "ISCED" MEANS A COMPREHENSIVE FRAMEWORK FOR ORGANIZING11 EDUCATION AND TRAINING PROGRAMS THAT APPLIES UNIFORM AND12 INTERNATIONALLY AGREED -UPON CLASSIFICATIONS TO FACILITATE13 COMPARISONS OF EDUCATION AND TRAINING PROGRAMS ACROSS14 COUNTRIES.15 (f) "N ONDEGREE CREDENTIAL " MEANS A POSTSECONDARY16 CERTIFICATE, APPRENTICESHIP CERTIFICATE OF COMPLETION ,17 PROFESSIONAL LICENSE, OR INDUSTRY CERTIFICATION.18 (g) "P OSTSECONDARY CERTIFICATE " MEANS A CREDENTIAL19 AWARDED BY AN INSTITUTION OF HIGHER EDUCATION AT AN20 UNDERGRADUATE LEVEL BASED ON COMPLETION OF ALL REQUIREMENTS21 FOR A PROGRAM OF STUDY , INCLUDING COURSEWORK AND EXAMS .22 P OSTSECONDARY CERTIFICATES ARE NOT TIME -LIMITED AND DO NOT23 REQUIRE RENEWAL. "POSTSECONDARY CERTIFICATE " DOES NOT INCLUDE24 A DEGREE OR A CREDENTIAL AWARDED BY AN INSTITUTION OF HIGHER25 EDUCATION AFTER COMPLETION OF A BACHELOR 'S DEGREE IN THE SAME26 PATHWAY.27 143 -5- (h) "QUALITY NONDEGREE CREDENTIALS FRAMEWORK " MEANS1 THE QUALITY AND IN-DEMAND NONDEGREE CREDENTIALS FRAMEWORK2 DEVELOPED PURSUANT TO SECTION 23-5-145.6 (2) TO ASSESS3 CERTIFICATIONS, OCCUPATIONAL LICENSES, APPRENTICESHIP CERTIFICATES4 OF COMPLETION, NON-CREDIT CERTIFICATES, MICRO-CREDENTIALS, AND5 SUB-BACCALAUREATE FOR -CREDIT CERTIFICATES AND ESTABLISHES A6 RUBRIC FOR EVALUATING CREDENTIALS IN STATE-RECOGNIZED PROGRAMS.7 (i) "S TACKABLE CREDENTIAL PATHWAY " MEANS A SEQUENCE OF8 DEGREE OR NONDEGREE CREDENTIALS EARNED THROUGH VARIOUS MEANS ,9 INCLUDING THROUGH ASSESSMENT OF PRIOR LEARNING , THAT MAY BE10 ACCUMULATED OVER TIME AND MOVE AN INDIVIDUAL ALONG A CAREER11 PATHWAY OR UP A CAREER LADDER .12 (j) "S TATE INSTITUTION OF HIGHER EDUCATION" OR "INSTITUTION"13 HAS THE SAME MEANING AS SET FORTH IN SECTION 23-1-135.14 (2) (a) T HE STATE OF COLORADO FORMALLY REC OGNIZES THE15 QUALITY NONDEGREE CREDENTIALS FRAMEWORK DEVELOPED PURSUANT16 TO SECTION 23-5-145.6 (2) AS THE PRIMARY TOOL FOR EVALUATING AND17 ENSURING THE QUALITY OF N ONDEGREE CREDENTIALS OFFERED WITHIN18 THE STATE.19 (b) T HE DEPARTMENT, IN COLLABORATION WITH THE COLORADO20 WORK FORCE DEVELOPMENT COUNCIL , THE DEPARTMENT OF EDUCATION ,21 THE DEPARTMENT OF LABOR AND EMPLOYMENT , THE COLORADO22 OFFICE OF ECONOMIC DEVELOPMENT , AND THE COLORADO COMMUNITY23 COLLEGE SYSTEM SHALL ENSURE THE EFFECTIVE INTEGRATION OF THE24 QUALITY NONDEGREE CREDENTIALS FRAMEWORK WITHIN THE STATE 'S25 EDUCATION AND WORKFORCE SYSTEMS .26 (c) B EGINNING JANUARY 1, 2026, AND ANNUALLY THEREAFTER , 27 143 -6- THE DEPARTMENT, IN COLLABORATION WITH THE COLORADO WORK FORCE1 DEVELOPMENT COUNCIL , THE DEPARTMENT OF EDUCATION , THE2 DEPARTMENT OF LABOR AND EMPLOYMENT , AND THE COLORADO OFFICE3 OF ECONOMIC DEVELOPMENT, SHALL EVALUATE NONDEGREE CREDENTIALS4 OFFERED THROUGH STATE -RECOGNIZED PROGRAMS TO ENSURE THE5 CREDENTIALS MEET THE QUALITY STANDARDS SET FORTH IN THE QUALITY6 NONDEGREE CREDENTIALS FRAMEWORK . STATE-RECOGNIZED PROGRAMS7 THAT ARE REQUIRED TO ENSURE NONDEGREE CREDENTIAL OFFERINGS8 MEET THE QUALITY STANDARDS SET FORTH IN THE QUALITY NONDEGREE9 CREDENTIALS FRAMEWORK INCLUDE , BUT ARE NOT LIMITED TO:10 (I) T HE CAREER DEVELOPMENT SUCCESS PROGRAM CREATED11 PURSUANT TO SECTION 22-54-138; AND12 (II) T HE STACKABLE CREDENTIAL PATHWAYS IDENTIFIED13 PURSUANT TO SECTION 23-5-145.6 (3).14 (d) B EGINNING JANUARY 1, 2026, AND ANNUALLY THEREAFTER , 15 THE DEPARTMENT, IN COLLABORATION WITH THE DEPARTMENT OF16 EDUCATION, THE DEPARTMENT OF LABOR AND EMPLOYMENT , AND THE17 C OLORADO OFFICE OF ECONOMIC DEVELOPMENT , SHALL SUPPLY THE18 STATE WORKFORCE DEVELOPMENT COUNCIL WITH A LIST OF QUALITY19 NONDEGREE CREDENTIAL PROGRAMS THAT MEET THE QUALITY20 STANDARDS SET FORTH IN THE QUALITY NONDEGREE CREDENTIALS21 FRAMEWORK FOR INCLUSION IN THE COLORADO TALENT REPORT22 PRODUCED PURSUANT TO SECTION 24-46.3-103 (3)(a) AND IN A23 CREDENTIAL REGISTRY ENDORSED BY THE STATE .24 (3) (a) T HE DEPARTMENT SHALL ENGAGE STATE AGENCIES ,25 EDUCATIONAL INSTITUTIONS, INTERNATIONAL ORGANIZATIONS, INDUSTRY 26 ASSOCIATIONS, AND OTHER STAKEHOLDERS TO STUDY AND MAKE27 143 -7- RECOMMENDATIONS CONCERNING THE ADOPTION OF ISCED AS THE1 STATE'S STANDARD FRAMEWORK FOR CLASSIFYING N ONDEGREE2 CREDENTIALS AND ISCED'S WIDER APPLICATION IN THE STATE 'S3 EDUCATION AND WORKFORCE SYSTEMS . ON OR BEFORE JULY 31, 2025, THE4 DEPARTMENT SHALL COMPLETE A STAKEHOLDER ENGAGE MENT PROCESS5 TO INFORM A REPORT. THE STAKEHOLDER ENGAGEMENT PROCESS MUST :6 (I) S OLICIT INPUT FROM EMPLOYERS AND THEIR INDUSTRY OR7 TRADE ASSOCIATIONS;8 (II) S OLICIT INPUT FROM STATE INSTITUTIONS OF HIGHER9 EDUCATION;10 (III) S OLICIT INPUT FROM THE COLORADO DEPARTMENT OF LABOR11 AND EMPLOYMENT, INCLUDING THE OFFICE OF FUTURE OF WORK AND THE12 STATE APPRENTICESHIP AGENCY, THE STATE WORKFORCE DEVELOPMENT13 COUNCIL, AND THE COLORADO DEPARTMENT OF EDUCATION STUDENT14 PATHWAYS UNIT; AND15 (IV) L EVERAGE THE RESOURCES AND TOOLS OF THE ISCED16 COMMUNITY.17 (b) T HE DEPARTMENT SHALL STUDY AND MAKE18 RECOMMENDATIONS CONCERNING HOW ISCED EQUIVALENCY LEVELS19 MAY BE:20 (I) I MPLEMENTED AS THE STATE 'S STANDARD FRAMEWORK FOR21 ORGANIZING AND CLASSIFYING NONDEGREE CREDENTIALS ;22 (II) A SSIGNED TO CREDENTIALS OR PACKAGES OF CREDENTIALS23 IDENTIFIED AND APPROVED PURSUANT TO SECTION 23-5-145.6 (3) AND (4);24 (III) A SSIGNED TO REGISTERED APPRENTICESHIPS ;25 (IV) W IDELY ADOPTED BY STAKEHOLDERS TO FACILITATE26 ALIGNMENT OF EDUCATION AND TRAINING PROGRAMS AND ASSOCIATED27 143 -8- QUALIFICATIONS; AND1 (V) E FFECTIVELY INTEGRATED WITHIN THE STATE 'S EDUCATION2 AND WORKFORCE SYSTEMS .3 (c) O N OR BEFORE JULY 31, 2025, THE DEPARTMENT SHALL REPORT4 ITS FINDINGS AND RECOMMENDATIONS TO THE EDUCATION COMMITTEES5 OF THE SENATE AND HOUSE OF REPRESENTATIVES , OR ANY SUCCESSOR6 COMMITTEES.7 (d) O N OR BEFORE JULY 31, 2025, USING THE PROCESS8 RECOMMENDED PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, THE9 DEPARTMENT SHALL ASSIGN ISCED EQUIVALENCY LEVELS TO THE10 CREDENTIALS INCLUDED IN THE STACKABLE CREDENTIAL PATHWAYS11 IDENTIFIED AND APPROVED PURSUANT TO SECTION 23-5-145.6 (3) AND (4).12 T HE ISCED ALIGNMENT PROCESS MUST CONSIDER CREDENTIAL PROGRAM13 RIGOR AND RELEVANCE.14 (4) T HE DEPARTMENT SHALL IMPLEMENT THIS SECTION SUBJECT TO 15 AVAILABLE APPROPRIATIONS.16 SECTION 3. In Colorado Revised Statutes, add part 10 to article17 83 of title 8 as follows:18 PART 1019 APPRENTICESHIP INTERNATIONAL STANDARDS20 8-83-1001. Definitions. A S USED IN THIS PART 10, UNLESS THE21 CONTEXT OTHERWISE REQUIRES :22 (1) "I NTERNATIONAL STANDARD CLASSIFICATION OF EDUCATION "23 OR "ISCED" MEANS A COMPREHENSIVE FRAMEWORK FOR ORGANIZING24 EDUCATION AND TRAINING PROGRAMS THAT APPLIES UNIFORM AND25 INTERNATIONALLY AGREED -UPON CLASSIFICATIONS TO FACILITATE26 COMPARISONS OF EDUCATION AND TRAINING PROGRAMS ACROSS27 143 -9- COUNTRIES.1 (2) "O FFICE" MEANS THE OFFICE OF FUTURE OF WORK CREATED IN2 SECTION 8-15.8-103.3 8-83-1002. Apprenticeship program alignment with4 international standards. (1) B EGINNING JANUARY 1, 2026, AND 5 ANNUALLY THEREAFTER , THE OFFICE, IN COORDINATION WITH THE6 DEPARTMENT OF EDUCATION , THE DEPARTMENT OF HIGHER EDUCATION ,7 THE DEPARTMENT OF LABOR AND EMPLOYMENT , AND THE CAREER AND8 TECHNICAL EDUCATION DIVISION WITHIN THE COLORADO COMMUNITY9 COLLEGE SYSTEM, SHALL COLLABORATE WITH THE STATE APPRENTICESHIP10 AGENCY TO DETERMINE ISCED EQUIVALENCY LEVELS FOR EACH11 APPRENTICESHIP PROGRAM REGISTERED ON OR AFTER JULY 31, 2025. IN12 MAKING ISCED EQUIVALENCY LEVEL DETERMINATIONS , THE OFFICE13 SHALL:14 (a) A PPLY THE PROCESS RECOMMENDED PURSUANT TO SECTION15 23-5-145.8 (3)(b); AND16 (b) R EQUIRE POSTING OF THE DETERMINED ISCED LEVEL17 ALONGSIDE THE APPRENTICESHIP PROGRAM ON ALL ISSUED18 APPRENTICESHIP CERTIFICATES OF COMPLETION AND IN ALL PUBLIC19 LISTINGS, INCLUDING, BUT NOT LIMITED TO, THE ELIGIBLE TRAINING20 PROVIDER LISTS DISSEMINATED BY THE DEPARTMENT OF LABOR AND21 EMPLOYMENT PURSUANT TO SECTION 8-83-225 (1)(c) AND THE COLORADO22 STATE APPRENTICESHIP RESOURCE DIRECTORY CREATED PURSUANT TO23 SECTION 8-83-308.24 (2) O N OR BEFORE JANUARY 1, 2027, THE OFFICE SHALL25 DETERMINE ISCED EQUIVALENCY LEVELS FOR EACH APPRENTICESHIP26 PROGRAM REGISTERED BEFORE JULY 31, 2025. AFTER MAKING ISCED27 143 -10- EQUIVALENCY LEVEL DETERMINATIONS , THE OFFICE SHALL REQUIRE1 POSTING OF THE DETERMINED ISCED LEVEL ALONGSIDE THE2 APPRENTICESHIP PROGRAM ON ALL ISSU ED APPRENTICESHIP CERTIFICATES3 OF COMPLETION AND IN ALL PUBLIC LISTINGS , INCLUDING, BUT NOT4 LIMITED TO, THE ELIGIBLE TRAINING PROVIDER LISTS DISSEMINATED BY5 THE DEPARTMENT OF LABOR AND EMPLOYMENT PURSUANT TO SECTION6 8-83-225 (1)(c) AND THE COLORADO STATE APPRENTICESHIP RESOURCE7 DIRECTORY CREATED PURSUANT TO SECTION 8-83-308.8 SECTION 4. In Colorado Revised Statutes, 22-54-138, amend9 (3)(a) as follows:10 22-54-138. Career development success program - created -11 funding - report - legislative declaration - definitions - repeal.12 (3) (a) On or before August 15, 2016, and on or before July 1 each year13 thereafter, the work force development council, in collaboration with the14 department of higher education, the department of education, the15 department of labor and employment, the Colorado community college16 system, and the Colorado office of economic development, shall publish17 on the council's website a list of the qualified industry-credential18 programs and qualified workplace training programs THAT MEET THE19 QUALITY STANDARDS REQUIRED PURSUANT TO SECTION 23-5-145.8 (2)(c)20 for that school year. At least annually, the council and its partners shall21 identify and review the qualified industry-credential programs and22 qualified workplace training programs by identifying the jobs included in23 the Colorado talent report, prepared pursuant to section 24-46.3-103, with24 the greatest regional and state demand, including high-skill, high-wage25 jobs in in-demand industries, and, after consultation with relevant26 industries, identifying the programs that have labor market value and are27 143 -11- likely to lead to the identified jobs. Any programs that the council1 determines do not demonstrate labor market value may be removed from2 the council's website.3 SECTION 5. In Colorado Revised Statutes, 23-5-145.6, add (4.5)4 as follows:5 23-5-145.6. Opportunities for credential attainment - fund -6 report - definitions - repeal. (4.5) T HE STACKABLE CREDENTIAL7 PATHWAYS MUST MEET THE QUALITY STANDARDS REQUIRED PURS UANT TO8 SECTION 23-5-145.8 (2)(c).9 SECTION 6. Appropriation. (1) For the 2024-25 state fiscal 10 year, $124,287 is appropriated to the department of higher education for11 use by the Colorado commission on higher education and higher12 education special purpose programs. This appropriation is from the13 general fund and is based on an assumption that the commission will14 require an additional 1.2 FTE. To implement this act, the office may use15 this appropriation for S.B. 22-192 development and implementation of16 stackable credentials.17 (2) For the 2024-25 state fiscal year, $30,000 is appropriated to18 the department of labor and employment for use by the office of future of19 work. This appropriation is from the general fund. To implement this act,20 the office may use this appropriation for program costs.21 SECTION 7. Act subject to petition - effective date. This act22 takes effect at 12:01 a.m. on the day following the expiration of the23 ninety-day period after final adjournment of the general assembly; except24 that, if a referendum petition is filed pursuant to section 1 (3) of article V25 of the state constitution against this act or an item, section, or part of this26 act within such period, then the act, item, section, or part will not take27 143 -12- effect unless approved by the people at the general election to be held in1 November 2024 and, in such case, will take effect on the date of the2 official declaration of the vote thereon by the governor.3 143 -13-