Date: 04/08/2013
Final
BILL SUMMARY for HB13-1292
HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS
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03:01 PM -- House Bill 13-1292
Representative Lee, co-prime sponsor, presented House Bill 13-1292, concerning modifications to procurement requirements for government contracts related to United States domestic employment. Representative Lee explained discussed the merits of the bill, and provided a detailed explanation of the bill's provisions.
03:13 PM
Representative Lee continued to explain the effect of the provisions of House Bill 13-1292. Representative Lee responded to questions regarding how the bill affects undocumented workers, and penalties associated with contractors hiring nonresidents for public works projects. Representative Lee responded to further questions regarding the applicability of the bill to certain construction project phases, and the definition of "work" under the bill. Representative Lee responded to additional questions regarding the definition of "direct labor" in the bill, and reporting requirements for projects over $500,000 as specified in the bill.
03:22 PM
The following persons testified regarding House Bill 13-1292:
03:22 PM -- Mr. Jeff Weist, representing the Colorado Competitive Council, the Associated General Contractors of Colorado, and the Colorado Association of Mechanical and Plumbing Contractors, testified on the bill from a neutral position, pending further work on the bill. Mr. Weist discussed costs that will be incurred by contractors under the bill, and requested that the bill be amended to clarify certain provisions. Mr. Weist responded to questions regarding a requirement in law mandating that 80 percent of employees working on a public works contract be Colorado residents. Mr. Weist responded to further questions regarding how the 80-percent rule applies to certain border areas in the state, and certain compromises that brought the organizations he represents to a neutral position. Discussion ensued regarding the potential fiscal impact of the bill, and the potential for witnesses to return to address the fiscal impact once a fiscal note is available.
03:31 PM -- Mr. Michael Gifford, representing the Associated General Contractors of Colorado, testified on the bill from a neutral position. Mr. Gifford discussed compromises on the bill's 80-percent rule, and costs associated with the bill's requirements. Mr. Gifford said he is unaware of evidence that out-of-state residents are working on state public works projects in great numbers, and voiced support for state spending on controlled maintenance projects. Mr. Gifford responded to questions regarding current requirements for contractors employing 80 percent in-state workers for public works projects.
03:35 PM -- Mr. David Lueders, representing the Associated General Contractors of Colorado, testified regarding House Bill 13-1292 from a neutral position. Mr. Lueders provided his opinion on the bill from a general contractor perspective, and discussed costs associated with compliance with federal, state, and local laws when working on public works projects, including record-keeping for employees during large projects. Mr. Lueders responded to questions regarding his estimate for the increase in costs that will be driven by the bill, and the factors driving these cost increases. Discussion ensued regarding current requirements for hiring 80 percent Colorado residents when accepting a public works contract. Discussion followed regarding potential cost increases if House Bill 13-1292 were to pass. Mr. Lueders responded to further questions regarding enforcement of the current 80-percent rule.
03:44 PM -- Mr. Craig Clark, representing the National Electrical Contractors Association, Sheet Metal Contractors Association, and the Mechanical Contractors Association, testified on the bill from a neutral perspective. Mr. Clark discussed the need for further clarification of certain provisions of the bill. Mr. Clark responded to questions about how to comply with a provision in the bill requiring sourcing of certain U.S.-made products for public works contracts.
03:48 PM -- Mr. Tony Milo, representing the Colorado Contractors Association, testified in opposition to the bill. Mr. Milo explained how the 80-percent rule could be improved upon, as well as provisions in the bill concerning best value metrics. Mr. Milo responded to questions regarding how to account for and enforce the 80-percent rule.
03:52 PM -- Mr. Mark Latimer, representing the Associated Builders and Contractors Rocky Mountain Chapter, testified in opposition to the bill, suggesting that the bill runs counter to his organization's stance on free markets. Mr. Latimer discussed his negotiations with the bill's sponsors on the bill's requirements, and suggested that there is no apparent problem in the area of hiring out-of-state workers for public works contracts.
03:55 PM -- Mr. Brandon Berumen, representing the Hispanic Contractors of Colorado and the Independent Electrical Contractors Association, testified in opposition to the bill. Mr. Berumen objected to certain definitions in the bill, and explained that the best-value metrics provisions in the bill will create a bar to woman- and minority-owned contractors. Mr. Berumen also objected to the costs that contractors will bear if the bill were to pass.
03:58 PM -- Mr. Ted Orf, representing the Association of Governments of Northwest Colorado, testified in opposition to House Bill 13-1292. Mr. Orf discussed cost increases that will result from the bill, leading to a reduction in public works projects. Mr. Orf also said the bill will be problematic from an administrative perspective.
04:00 PM -- Mr. Evan Goulding, representing the Special District Association of Colorado, testified in opposition to the bill. Mr. Goulding echoed previous concerns raised about the bill. Mr. Goulding responded to a question about the number of special districts he represents.
04:01 PM -- Mr. Phil Hayes, representing the Colorado AFL-CIO, and Ms. Kandice McKeon, representing the Colorado Building and Construction Trades Council, testified in support of the bill. Mr. Hayes discussed the merits of the bill. Ms. McKeon discussed the potential impact of the bill in the area of jobs preservation for Coloradans. Discussion ensued regarding the potential for administrative costs to increase as a result of amending the 80-percent rule by the bill. Mr. Hayes addressed concerns raised earlier about compliance with the 80-percent rule in areas of the state near the border. Discussion ensued on this point. Mr. Hayes responded to questions regarding evidence pertaining to violations of the current 80-percent rule.
04:15 PM
Discussion ensued regarding the plan for hearing the bill in the future.
04:16 PM
The committee adjourned.