SENATE 3rd Reading Unamended April 19, 2013 SENATE Amended 2nd Reading April 18, 2013First Regular Session Sixty-ninth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 13-0626.01 Julie Pelegrin x2700 SENATE BILL 13-218 SENATE SPONSORSHIP Heath, HOUSE SPONSORSHIP Young, Senate Committees House Committees Education Appropriations A BILL FOR AN ACT Concerning workforce development for key industries in Colorado, and, in connection therewith, making an appropriation. 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.) The bill creates the Colorado key industries workforce program to provide moneys to state institutions of higher education (institution) to assist students who are seeking bachelor's degrees, including a bachelor's of applied science degree, in key industry sectors. To receive a grant, an institution submits an application that must demonstrate that: The institution has partnered with a business in a key industry that expects to employ students who complete the bachelor's degree and that the business is agreeing to pay a dollar-for-dollar match to the institution for the grant moneys received; The institution has entered into the necessary agreements with other institutions to ensure transferability of credits; and There is a recognized workforce need for persons who hold the type of bachelor's degree that the institution will provide. The department of higher education (department) will review the applications and recommend to the Colorado key industries workforce program grant board (grant board), created in the bill, those applicants that should receive a grant and the amount and duration of the grant. The grant board will select grant recipients from among the applicants that the department recommends. In awarding grants, the department and the grant board will consider specific criteria, including: The need for the type of bachelor's degrees the applicant's program will offer; Whether there is an existing population of students who are likely to enroll in the program; and The cost structure of the program. Students who enroll in a bachelor's degree program that receives a grant are eligible for stipends from the Colorado opportunity fund. The grants are payable from the Colorado key industries workforce program fund (fund), created in the bill. The fund consists of moneys appropriated by the general assembly. The department must prepare an annual report concerning the grant moneys issued, how the grant moneys are used, and the graduation and employment success of students who obtain bachelor's degrees through a program that receives a grant. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 19.6 to title 23 as follows: ARTICLE 19.6 Colorado Key Industries Workforce Program 23-19.6-101. Short title. This article shall be known and may be cited as the "Colorado Key Industries Workforce Act". 23-19.6-102. Legislative declaration. (1) The general assembly finds that: (a) The continued growth in the Colorado economy requires a flexible and efficient system that ensures that institutions of higher education provide the degree programs most needed to produce the highly trained and ready workforce required by the state's key industries; (b) This system is best accomplished through a partnership between these key industries and institutions of higher education that will ensure that the degree programs that are available are the ones most needed by industry; (c) Industries and institutions of higher education must collaborate to quickly and strategically target the state's scarce resources to the critical degree programs that are identified by specific workforce needs; and (d) Creating a system that fosters Colorado industry and higher education partnerships will help ensure that Colorado's citizens have access to the degree programs and educational opportunities they need to meet the needs of Colorado's industries and that Colorado industries employ these citizens rather than seeking employees from other states. (2) The general assembly finds, therefore, that creating the Colorado key industries workforce program is necessary to facilitate partnerships between key Colorado industries and institutions of higher education and ensure that the state's workforce has the specific training and education required by the state's key industries. 23-19.6-103. Definitions. As used in this article, unless the context otherwise requires: (1) "Department" means the department of higher education created and existing pursuant to section 24-1-114, C.R.S. (2) "Grant board" means the Colorado key industries workforce program grant board created in section 23-19.6-105. (3) "Key industries" means the following industries: (a) Advanced manufacturing; (b) Aerospace; (c) Bioscience; (d) Creative industries, including design, film and media, heritage, literary and publishing, performing arts, and visual arts and crafts; (e) Defense and homeland security; (f) Electronics; (g) Energy and natural resources; (h) Financial services; (i) Food and agriculture; (j) Health and wellness; (k) Infrastructure engineering; (l) Technology and information; (m) Tourism and outdoor recreation; and (n) Transportation and logistics. (4) "Program" means the Colorado key industries workforce program created in section 23-19.6-104. (5) "State institution of higher education" or "institution" has the same meaning as provided in section 23-18-102 (10); except that it includes a junior college that is part of a junior college district organized pursuant to article 71 of this title. 23-19.6-104. Colorado key industries workforce program - created - administration. (1) There is created within the department the Colorado key industries workforce program to assist state institutions of higher education and key industry businesses to develop the workforce needed to meet the demand in key industries. A state institution of higher education in partnership with other institutions and in partnership with one or more key industry businesses may apply for a grant from the program to subsidize nontraditional students who have obtained associate degrees, including but not limited to associate of applied science degrees, and are seeking bachelor's degrees, including but not limited to bachelor's degrees in applied sciences. (2) To apply for a grant through the program, a state institution of higher education must submit to the department an application that, at a minimum, includes: (a) A description of the bachelor's degree program that is the subject of the grant application; (b) Evidence that the institution has partnered with at least one key industry business that anticipates employing the students who complete the bachelor's degree program and that has agreed to provide dollar-for-dollar matching funds for the moneys that the institution receives through the program; (c) Evidence that the institution has entered into agreements with other institutions to ensure the transferability of credits earned through the applying institution's degree program such that a student who completes a two-year degree may enroll as a junior at a four-year institution and complete a four-year degree within two years; and (d) Evidence that there is a need within a key industry for employees who hold the type of degree that the applying institution will offer. Evidence of industry need may include, but need not be limited to, evidence from the most recent annual report regarding state workforce need projections and credential production created pursuant to section 23-1-130, reports from the office of economic development created in section 24-48.5-101, C.R.S., or a request from one or more key industry businesses. (3) The department shall review each application received pursuant to this section and recommend to the grant board whether the applicant should receive a grant and, if so, the amount of the grant and the duration of the grant. In selecting those applicants to recommend for a grant, the department shall consider, at a minimum, the following criteria: (a) Whether the degrees that will result from the bachelor's degree program are needed for the growth of key industries in Colorado; (b) The level of demand within the key industries for the degrees that will result from the bachelor's degree program; (c) Whether there is an existing population of students that is likely to enroll in the bachelor's degree program; and (d) The cost structure of the bachelor's degree program, including but not limited to the percentage of costs to be paid by the institution, any partnering business, and the students. (4) Students who enroll in a bachelor's degree program that receives a grant pursuant to this article and that is not operated by a junior district college are eligible to receive stipends from the Colorado opportunity fund created in section 23-18-201. 23-19.6-105. Colorado key industries workforce program grant board - created - duties - repeal. (1) There is created in the department the Colorado key industries workforce program grant board. The grant board exercises its powers and performs its duties and functions under the department as if the grant board were transferred to the department by a type 2 transfer as defined in the "Administrative Organization Act of 1968", article 1 of title 24, C.R.S. The grant board consists of eleven members as follows: (a) The director of the office of economic development or his or her designee; and (b) Ten members appointed by the governor, with the advice and consent of the senate, as follows: (I) A business person from each of seven of the key industry sectors; (II) A person who represents state institutions of higher education that offer primarily two-year degrees; (III) A person who represents state institutions of higher education that offer four-year degrees and are not research universities; and (IV) A person who represents state institutions of higher education that are research universities. (2) (a) The governor shall make the initial appointments to the grant board no later than September 1, 2013. The governor shall consider ethnicity, gender, and geographic representation in appointing the members of the grant board. (b) Each of the appointed members of the grant board serves at the pleasure of the governor. Each member of the board serves a four-year term; except that, of the members initially appointed, four serve four-year terms, three serve three-year terms, and three serve two-year terms. If a vacancy arises, the governor shall appoint a person to fill the vacancy for the remainder of the term. (c) Each member of the grant board serves without compensation but may receive reimbursement from moneys in the Colorado key industries workforce program fund created in section 23-19.6-106 for the actual and necessary expenses the member incurs in the performance of his or her duties as a member of the grant board. (3) (a) The grant board shall elect a chair from among its members to serve for a term not to exceed two years, as determined by the grant board. A member is not eligible to serve as chair for more than two successive terms. (b) The grant board shall meet as often as necessary at the call of the chair to complete the duties assigned to the grant board. Upon request of the chair of the grant board, the department shall provide staff assistance as necessary to assist the grant board in completing the duties assigned to it. (4) The grant board shall consider the recommendations for awarding grants that the department submits to the grant board pursuant to section 23-19.6-104 (3) and award grants from among the recommended applicants. The grant board shall consider, at a minimum, the criteria specified in section 23-19.6-104 (3) in selecting the grant recipients. (5) (a) This section is repealed, effective September 1, 2023. (b) Prior to repeal, the grant board shall be reviewed as provided in section 2-3-1203, C.R.S. 23-19.6-106. Colorado key industries workforce program fund - created. (1) There is created in the state treasury the Colorado key industries workforce program fund, referred to in this section as the "fund", consisting of moneys that the general assembly appropriates to the fund. The moneys in the fund are subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with implementing this article. (2) (a) The state treasurer may invest as provided by law any moneys in the fund not expended for the purpose of this article. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. (b) Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year must remain in the fund and must not be credited or transferred to the general fund or another fund. 23-19.6-107. Annual report. (1) For each year in which the department pays grants through the program, the department shall prepare a report describing, at a minimum: (a) The grant recipients and the types of bachelor's degree programs that receive grants; (b) The amount of grant moneys paid to each recipient and the duration of each recipient's grant; (c) The number of students enrolled in and graduating from each bachelor's degree program that receives a grant; and (d) The percentage of students from each program that are employed in a position that requires the bachelor's degree that the student earned through the program. (2) The department shall post the report on its web site and notify the governor, the Colorado commission on higher education, and the education committees of the senate and house of representatives, or any successor committees, when the report is posted. The department shall provide a copy of the report to any notified person upon request. SECTION 2. In Colorado Revised Statutes, 2-3-1203, add (3) (jj.5) as follows: 2-3-1203. Sunset review of advisory committees. (3) The following dates are the dates for which the statutory authorization for the designated advisory committees is scheduled for repeal: (jj.5) September 1, 2023: (I) The Colorado key industries workforce program grant board created in section 23-19.6-105, C.R.S. SECTION 3. Appropriation. (1) In addition to any other appropriation, for the fiscal year beginning July 1, 2013, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of higher education to be credited to the Colorado key industries workforce program fund created in section 23-19.6-106, Colorado Revised Statutes, the sum of $500,000, to be used for purposes consistent with the creation of the fund. (2) In addition to any other appropriation, there is hereby appropriated, out of the Colorado key industries workforce program fund, to the department of higher education, for the fiscal year beginning July 1, 2013, the sum of $500,000 and 0.2 FTE, or so much thereof as may be necessary, for allocation to the Colorado commission on higher education to facilitate partnerships between key industries and institutions of higher education as provided in article 19.6 of title 23, Colorado Revised Statutes. SECTION 4. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2013, if adjournment sine die is on May 8, 2013); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.