Date: 02/22/2012

Final
BILL SUMMARY for HB12-1113

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved prepared amendment L.001(Attachment C). The
Moved prepared amendment L.002 (Attachment D). The
Moved prepared amendment L.003 (Attachment E). The
Moved to postpone indefinitely House Bill 12-1113.
Moved to refer House Bill 12-1113, as amended, to 		Pass Without Objection
Pass Without Objection
Pass Without Objection
PASS
FAIL



01:42 PM -- House Bill 12-1113

Representative Lee, prime sponsor, presented House Bill 12-1113, concerning the creation of certain procurement preferences to be applied in the state procurement process. Representative Lee explained the effect of the bill, and discussed its benefits. Discussion ensued regarding the fiscal impact of the bill.


01:49 PM

The following persons testified regarding House Bill 12-1113:

01:49 PM -- Mr. Larry Friedberg, State Architect, and Mr. Judson Byrn, State Purchasing Director, both of the Department of Personnel and Administration, made themselves available to respond to technical questions about the bill. Discussion ensued regarding the potential impact of the legislation on the ability of the state to contract with foreign entities. Mr. Byrn responded to questions regarding the number of jobs associated with state procurement, and the competitiveness benefit to be realized by in-state contractors if granted a 5 percent contracting benefit. Representative Lee addressed the issue of contracting with foreign entities under the bill, and the potential benefits in the area of job creation for Colorado that may be realized under the bill. Representative Lee responded to questions regarding parties that are in opposition to the bill.


01:59 PM

Representative Lee responded to questions regarding provisions in the bill that offer contracting preferences to contractors that provide certain benefits to their employees, including health care and retirement benefits. Discussion ensued regarding the use of government policy, including the tax code, to encourage or discourage certain behavior, and the merits of employers providing benefits to employees. Discussion followed regarding a provision in the bill that provides a state procurement preference to military veteran contractors.


02:12 PM

Representative Lee responded to questions regarding mandates in House Bill 12-1113, and the position of the Governor's Office on the bill. Discussion returned to the provisions in the bill that incentivize employers to provide employee benefits through a procurement preference. Mr. Friedberg responded to questions regarding state statistics concerning the number of state contractors that provide benefits to their employees. Representative Lee responded to additional questions about the provisions in the bill concerning the provision of benefits by employers. Discussion ensued regarding federal health care reform.


02:23 PM

Discussion ensued regarding how the procurement preferences in the bill would work in practical terms.

02:27 PM -- Mr. Jeff Weist, representing the Associated General Contractors, Colorado Competitive Council, the Colorado Association of Commerce and Industry, and Building Jobs for Colorado, testified in opposition to the bill. Committee members received a handout detailing state controlled maintenance funding in recent years (Attachment A), and an editorial in opposition to creating procurement preferences (Attachment B). Mr. Weist discussed the impact of state construction contracting on job creation, and highlighted certain problems he sees in the bill. He discussed procurement preferences already in state law, and explained why such preferences do not create jobs. Mr. Weist discussed the fiscal impact of the bill. Mr. Weist responded to questions regarding the percentage of Colorado residents employed by the members of the organizations he represents. Discussion ensued regarding current statutes that require the hiring of Colorado residents by state contractors, and a provision in the bill that provides a procurement preference to those contractors that hire veterans. Mr. Weist responded to questions regarding the impact of state capital construction on job creation, and why bidding preferences do not create jobs.

HseState0222AttachA.pdf HseState0222AttachB.pdf

02:39 PM

Mr. Weist responded to questions regarding the percentage of construction contractors in Colorado that offer employee benefits. Mr. Weist responded to further questions regarding the number of in-state employees associated with state and federal construction contracts, versus the number of out-state employees that temporarily relocate to Colorado to work these contracts.

02:46 PM -- Mr. Ken Knapp, representing the Colorado Procurement Technical Assistance Center, testified in support of the House Bill 12-1113. Mr. Knapp read a statement in support of the bill, and specifically the portion of the bill that provides a procurement preference to veteran-owned businesses. Mr. Knapp responded to questions regarding state incentives provided to employees for hiring veterans, and the provisions of the bill that do not relate to veteran hiring. Discussion followed regarding competitiveness with other states that provide a state procurement preference to veteran-owned businesses. Mr. Knapp responded to questions regarding his position on provisions in the bill pertaining to employers providing health care.


03:00 PM

Mr. Knapp responded to questions regarding differences in employment opportunities between younger and older veterans. Mr. Knapp clarified the effect of the provision of the bill pertaining to a veteran-owned business procurement preference.

03:04 PM -- Mr. Phil Hayes, representing the Colorado AFL-CIO, testified in support of House Bill 12-1113. Mr. Hayes discussed procurement preferences in effect in other states, and compared state procurement preferences based on the headquarters of a company versus where employees reside. Mr. Hayes discussed how the various procurement preferences in the bill interact, and addressed the provisions in the bill related to health care. Mr. Hayes addressed earlier testimony pertaining to what satisfies retirement benefits under the bill, and the potential for the bill to benefit union contractors. Mr. Hayes also discussed the amount of out-of-state contracts that Colorado enters into.


03:14 PM

Mr. Hayes responded to questions regarding provisions in House Bill 12-1113 related to federal health care reform, and the budget ramifications of granting procurement preferences. Mr. Hayes clarified the level of contracting entered into by the state in dollar terms, and the percentage of those contracts that are entered into with out-of-state contractors. Mr. Hayes responded to further questions on the rate at which those workers who do not receive employment benefits utilize state services.


03:24 PM

Discussion returned to the number of jobs that may be created if House Bill 12-1113 were to pass.

03:26 PM -- Ms. Margaret Gomez, representing 9 to 5 National Association of Working Women, testified in support of the bill. She discussed the importance of state budgeting policy that provides family-supporting jobs.

03:28 PM -- Ms. Kathy White, representing the Colorado Fiscal Policy Institute, testified in support of House Bill 12-1113. Ms. White discussed the benefits of hiring Coloradans through state contracting, and provided statistics on unemployment in the state.
BILL:HB12-1113
TIME: 03:32:16 PM
MOVED:Todd
MOTION:Moved prepared amendment L.001(Attachment C). The motion passed without objection.

HseState0222AttachC.pdf
SECONDED:Court
VOTE
Baumgardner
Casso
Court
Duran
Nikkel
Todd
Waller
Coram
Kerr J.
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB12-1113
TIME: 03:34:20 PM
MOVED:Court
MOTION:Moved prepared amendment L.002 (Attachment D). The motion passed without objection.

HseState0222AttachD.pdf
SECONDED:Todd
VOTE
Baumgardner
Casso
Court
Duran
Nikkel
Todd
Waller
Coram
Kerr J.
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB12-1113
TIME: 03:35:37 PM
MOVED:Court
MOTION:Moved prepared amendment L.003 (Attachment E). The motion passed without objection.

HseState0222AttachE.pdf
SECONDED:Casso
VOTE
Baumgardner
Casso
Court
Duran
Nikkel
Todd
Waller
Coram
Kerr J.
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


03:37 PM

Representative Lee provided closing remarks in support of House Bill 12-1113. Various committee members expressed their support or opposition to the bill.
BILL:HB12-1113
TIME: 03:41:14 PM
MOVED:Todd
MOTION:Moved to refer House Bill 12-1113, as amended, to the Committee on Appropriations with a favorable recommendation. The motion failed on a vote of 4-5.
SECONDED:Court
VOTE
Baumgardner
No
Casso
Yes
Court
Yes
Duran
Yes
Nikkel
No
Todd
Yes
Waller
No
Coram
No
Kerr J.
No
YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB12-1113
TIME: 03:45:13 PM
MOVED:Baumgardner
MOTION:Moved to postpone indefinitely House Bill 12-1113. The motion passed on a vote of 5-4.
SECONDED:Nikkel
VOTE
Baumgardner
Yes
Casso
No
Court
No
Duran
No
Nikkel
Yes
Todd
No
Waller
Yes
Coram
Yes
Kerr J.
Yes
Final YES: 5 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:46 PM

The committee recessed.