SENATE 3rd Reading Unamended April 21, 2010 SENATE 2nd Reading Unamended April 20, 2010Second Regular Session Sixty-seventh General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 10-0457.01 Brita Darling SENATE BILL 10-039 SENATE SPONSORSHIP Carroll M., Heath, Hudak, Shaffer B., Tochtrop, Williams HOUSE SPONSORSHIP Gagliardi, Fischer, Kefalas Senate Committees House Committees Education Appropriations A BILL FOR AN ACT Concerning scholarships for job training, and making an appropriation therefor. 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://www.leg.state.co.us/billsummaries.) Section 1 of the bill creates the Colorado job retraining scholarship program (scholarship program), implemented and administered through collegeinvest in the department of higher education. Through the scholarship program, collegeinvest will award scholarships to persons who have been determined eligible to receive unemployment insurance benefits on or after July 1, 2008, by the department of labor and employment and who are pursuing job training or education programs that meet the goal of the scholarship program to assist persons to achieve gainful employment, including self-employment, in a recognized occupation or a high-need employment area. The collegeinvest board of directors (board) shall adopt policies to implement and administer the scholarship program. A scholarship recipient may use the scholarship toward a skilled trades apprenticeship program and to attend courses and programs at institutions of higher education, including public universities, community colleges, junior colleges, public occupational education, and nonpublic institutions of higher education. Collegeinvest shall annually award and pay $1 million in scholarships pursuant to the 3-year scholarship program. Scholarships shall not be funded from general fund appropriations. The board shall report to the general assembly in 2011, 2012, and 2013 concerning the scholarships awarded. The Colorado job retraining scholarship program is repealed, effective July 1, 2013. Section 2 of the bill amends the teach Colorado grant initiative by creating a fund for the grant initiative. Section 3 of the bill transfers $500,000 annually, commencing in the 2010-11 fiscal year, from the collegeinvest fund to the teach Colorado grant initiative fund for appropriation to the department of higher education for the implementation of the teach Colorado grant initiative. Section 4 of the bill appropriates $500,000 from the teach Colorado grant initiative fund to the department of higher education for purposes of implementing the teach Colorado grant initiative. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 2 of article 3.1 of title 23, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 23-3.1-206.6. Scholarships for education and job retraining - legislative declaration - administration - repeal. (1) (a) The general assembly finds and declares that: (I) A number of Coloradans have recently experienced loss of employment as a result of a significant downturn in the economy and a contraction in the job market. As a result, many Coloradans have applied for unemployment insurance benefits and are looking for work. (II) Some unemployed Coloradans will be unable to find work in their current field or with their current level of education or training. (III) The general assembly therefore finds and declares that it is appropriate to use Colorado collegeinvest scholarship trust fund moneys pursuant to section 23-3.1-206.9 (5), to award scholarships to persons who are receiving unemployment insurance benefits from the department of labor and employment to assist these persons in obtaining the additional job retraining or education necessary to be reemployed. (2) As used in this section, "institution of higher education" means: (a) A state institution of higher education as defined in section 23-18-102 (10); (b) A junior college that is part of a junior college district organized pursuant to article 71 of this title; (c) An area vocational school as defined in section 23-60-103 (1); and (d) A nonpublic institution of higher education as defined in section 23-3.7-102 (3). (3) (a) There is hereby created the Colorado job retraining scholarship program, referred to in this section as the "scholarship program", for the purpose of providing job training and retraining opportunities and increased access to higher education for individuals who are unemployed. (b) The authority shall implement and administer the scholarship program. Subject to the approval of the executive director, the board shall adopt any policies necessary to implement the scholarship program. The board shall ensure that the policies adopted by the board do not pose significant barriers to participation for applicants or add inefficient administrative burdens for the authority or participating institutions of higher education. (c) The authority shall review each scholarship application when received, applying the following eligibility criteria: (I) At any time on or after July 1, 2008, the department of labor and employment has determined the applicant for the scholarship program to be eligible to receive unemployment benefits pursuant to the "Colorado Employment Security Act", articles 70 to 82 of title 8, C.R.S.; and (II) The applicant certifies that the job training or education courses or program for which the applicant seeks a scholarship will assist the applicant to achieve gainful employment, including self-employment, in a recognized occupation or a high-need employment area. (4) A person who receives a scholarship awarded pursuant to this section may apply the scholarship to a skilled trades apprenticeship program, one or more higher education courses, or a certificate or degree program at an institution of higher education. (5) In the 2010-2011 fiscal year, the authority shall award and pay one million dollars in scholarships pursuant to this section from moneys in the Colorado collegeinvest scholarship trust fund. In the 2011-12 and 2012-13 fiscal years, the authority is authorized to annually use one million dollars from the Colorado collegeinvest scholarship trust fund to administer the scholarship program and to award scholarships pursuant to that program. The authority shall not use general fund appropriations to pay scholarships awarded pursuant to this section. If any portion of the one million dollars in annual scholarship program moneys remains uncommitted at the end of a fiscal year, said amount shall be transferred, pursuant to the provisions of section 23-3.1-206.9 (5), to the teach Colorado grant initiative fund created in section 23-3.3-901. (6) On or before February 1, 2011, and on or before February 1 each year thereafter in which a scholarship is awarded pursuant to the scholarship program, the authority shall report to the education committees of the senate and the house of representatives, or any successor committees, concerning the status of the scholarship program. The report shall include, but need not be limited to, the amount of money available to award scholarships, the amount of money annually spent in administering the scholarship program, the total amount awarded in scholarships, the average scholarship award amount, the number of students participating in the scholarship program, and a general description of the participants' career goals. (7) This section is repealed, effective July 1, 2013. SECTION 2. 23-3.1-206.9 (4), Colorado Revised Statutes, is amended, and the said 23-3.1-206.9 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read: 23-3.1-206.9. Colorado collegeinvest scholarship program - administration - fund - policies - repeal. (4) On or before February 1 of each year, the board authority shall report to the education committees of the senate and the house of representatives, or any successor committees, on the status of the Colorado collegeinvest scholarship program. The report shall include, but need not be limited to, the financial status of the Colorado collegeinvest scholarship trust fund, the amount of money annually spent on administration, the average scholarship award amount, and the number of students participating in the Colorado collegeinvest scholarship program. (5) (a) (I) Notwithstanding any provisions of subsection (2) of this section to the contrary, in the 2010-11 fiscal year, the authority shall use one million dollars of the moneys in the Colorado collegeinvest scholarship trust fund created in subsection (2) of this section, other than moneys appropriated from the general fund, to administer the Colorado job retraining scholarship program created in section 23-3.1-206.6 and to award scholarships pursuant to that program. (II) In the 2011-12 and 2012-13 fiscal years, the authority is authorized to annually use one million dollars from the Colorado collegeinvest scholarship trust fund to administer the Colorado job retraining scholarship program created in section 23-3.1-206.6 and to award scholarships pursuant to that program. (b) Any portion of the one million dollars in annual Colorado job retraining scholarship program moneys that remains uncommitted at the end of each fiscal year shall be transferred to the teach Colorado grant initiative fund created in section 23-3.3-901 to implement the teach Colorado grant initiative. (c) This subsection (5) is repealed, effective July 1, 2013. SECTION 3. 23-3.1-206 (1) (x) and (1) (y), Colorado Revised Statutes, are amended, and the said 23-3.1-206 (1) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read: 23-3.1-206. General powers and duties of the authority - repeal. (1) In addition to any other powers and duties specifically granted to the authority in this part 2, the authority has the following powers: (x) To organize entities pursuant to title 7, C.R.S., and transfer funds to the entities for the purpose of investing the moneys in the Colorado collegeinvest scholarship trust fund and any other trusts and funds under the authority's control; and (y) To develop and administer loan forgiveness programs, including those established under article 3.6 of this title; and (z) (I) To implement and administer the Colorado job retraining scholarship program created in section 23-3.1-206.6. (II) This paragraph (z) is repealed, effective July 1, 2013. SECTION 4. 23-3.3-901 (7), Colorado Revised Statutes, is amended to read: 23-3.3-901. Teach Colorado grant initiative created - award of grants - legislative declaration - fund. (7) (a) In addition to any general funds appropriated by the general assembly to the department for the implementation of the teach Colorado grant initiative, The department is authorized to seek and accept gifts, grants, and donations from private and public sources for the implementation of the teach Colorado grant initiative; except that the department may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with this section or any other law of the state. The department shall transfer all moneys received through gifts, grants, or donations to the state treasurer, who shall credit the same to the teach Colorado grant initiative fund created in paragraph (b) of this subsection (7). (b) (I) There is hereby created in the state treasury the teach Colorado grant initiative fund, referred to in this subsection (7) as the "fund". The fund shall consist of moneys credited to the fund pursuant to paragraph (a) of this subsection (7), moneys transferred to the fund pursuant to section 23-3.1-206.9 (5), and such additional moneys as the general assembly may appropriate to the fund. The moneys in the fund shall be subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with implementing this section; except that any moneys transferred to the fund pursuant to section 23-3.1-206.9 (5) are continuously appropriated to the department for the direct and indirect costs associated with implementing this section. (II) Any moneys in the fund not expended for the purpose of this section may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. (III) Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year shall remain in the fund and shall not be credited or transferred to the general fund or another fund. SECTION 5. Adjustment to the 2010 long bill. For the implementation of this act, the appropriation made in the annual general appropriation act for the fiscal year beginning July 1, 2010, as adjusted by House Bill 10-1383, for the department of higher education, Colorado commission on higher education financial aid, for the need-based student financial assistance program established pursuant to section 23-3.3-102, Colorado Revised Statutes, shall be reduced by one million dollars ($1,000,000) cash funds. Said sum shall be from the Colorado collegeinvest scholarship trust fund created in section 23-3.1-206.9 (2) (a), Colorado Revised Statutes, out of moneys transferred to the trust fund from the student loan guarantee fund created in section 23-3.1-107 (1) (a), Colorado Revised Statutes. SECTION 6. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.