First Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 09-0436.01 Bob Lackner HOUSE BILL 09-1165 HOUSE SPONSORSHIP Lambert, SENATE SPONSORSHIP Cadman, House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the creation of a state database containing information about sole-source contracts to which governmental entities are a party for the purpose of implementing changes to article XXVIII of the state constitution approved by the voters in the 2008 general election. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) For the purpose of implementing changes to article XXVIII of the state constitution enacted by the voters in the 2008 general election (campaign contributions from certain government contractors), requires the department of personnel (department) to establish, operate, and maintain a publicly available database of all sole-source government contracts entered into by the state or any of its political subdivisions, and specifies the database is to be accessible from the web site maintained by the state. Requires the database to contain a summary of each sole-source government contract (government contract) to which the state and any of its political subdivisions is a party (summary). Within a specified time, requires the contract holder of each contract to prepare and deliver to the department a true and correct copy of the summary, in a digital format as prescribed by the department, which shall: Identify the names and addresses of the contract holders and all other parties to the government contract; Briefly describe the nature of the government contract and the goods or services performed under the government contract; Disclose the beginning and expected completion dates of the government contract, the government contract's estimated dollar amount or rate of payment, and the sources of payment under the government contract; and Disclose such additional information about the government contract as the department may require for the implementation of the database that will not otherwise result in a violation of federal law, the disclosure of trade secrets, or the unauthorized or improper transfer of intellectual property. Authorizes the department to charge contract holders a fee for submitting a summary. Specifies that any fees collected by the department are to be transmitted to the state treasurer, who shall credit the same to the sole-source government contract database fund (fund). Creates the fund in the state treasury. Specifies that all moneys credited to the fund shall be used as provided in the act and shall not be deposited in or transferred to the general fund of the state or any other fund. Within a specified period after a summary of the government contract has been delivered to the department by the contract holder, requires the department to publish and maintain the summary on the web site. Requires the department to maintain the summary on the web site for a specified time. Requires the web site to allow electronic read-only access free of charge to any person who wishes to review a summary. Requires information concerning the government contracts contained in the database and accessible on the web site to be searchable by the criteria specified in the act. Allows any person to programmatically access and search all data in the database contained in a summary in a serialized machine readable structured format. Specifies how this requirement may be satisfied. Requires the department to promulgate rules for the more effective administration of the act. Requires the department and the department of state to allow for the transfer of information contained in the database to the database maintained by the department of state for campaign finance purposes. Specifies that nothing in the act shall be construed to require the department to create a new database if the use of any existing database will facilitate the department's ability to satisfy the requirements of the act. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 102 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read: PART 6 DATABASE OF SOLE-SOURCE GOVERNMENT CONTRACTS 24-102-601. State database concerning sole-source government contracts - fee - fund - rules - legislative declaration - definitions. (1) The general assembly hereby finds, determines, and declares that: (a) (I) In the 2008 general election, the voters of the state approved certain changes to article XXVIII of the state constitution concerning sole-source government contracts. (II) Among the changes to article XXVIII of the state constitution is the addition of section 16, which requires the state to publish and maintain a summary of each sole-source government contract issued. (b) By enacting this part 6, the general assembly intends to provide sufficient direction to persons affected by provisions of section 16 of article XXVIII of the state constitution to facilitate the effective implementation of this constitutional mandate. (2) As used in this part 6, unless the context otherwise requires: (a) "Contract holder" means any nongovernmental party to a sole-source government contract, including persons that control ten percent or more of shares or interest in that party, that party's officers, directors, or trustees, or, in the case of collective bargaining agreements, a labor organization and any political committees created or controlled by the labor organization. (b) "Department" means the department of personnel. (c) "Publish" means making a summary accessible on the web site in accordance with the requirements of this part 6. (d) (I) "Sole-source government contract" means any government contract that: (A) Does not use a public and competitive bidding process soliciting at least three bids prior to awarding the contract; and (B) Is a government contract awarded by the state or any of its political subdivisions for amounts greater than one hundred thousand dollars indexed for inflation per the United States bureau of labor statistics consumer price index for the Denver-Boulder-Greeley metropolitan statistical area after the year 2012, adjusted every four years, beginning January 1, 2012, to the nearest lowest twenty-five dollars. (II) The amount specified in sub-subparagraph (B) of subparagraph (I) of this paragraph (d) is cumulative and includes all sole-source government contracts with any and all governmental entities involving the contract holder during a calendar year. (III) A sole-source government contract shall include collective bargaining agreements with a labor organization representing employees but not employment contracts with individual employees. A collective bargaining agreement qualifies as a sole-source government contract if the contract confers an exclusive representative status to bind all employees to accept the terms and conditions of the contract. (e) "State or any of its political subdivisions" means the state of Colorado and its agencies or departments, as well as the political subdivisions within this state including counties, municipalities, school districts, special districts, and any public or quasi-public body that receives a majority of its funding from the taxpayers of the state of Colorado. (f) "Summary" means the government contract summary prepared by the contract holder of a sole-source government contract in accordance with section 16 of article XXVIII of the state constitution and this part 6. (g) "Web site" means the web site maintained by the state allowing access by the public to the database of summaries in accordance with the requirements of this part 6. (3) For the purpose of implementing, administering, and enforcing the provisions of sections 15, 16, and 17 of article XXVIII of the state constitution as approved by the voters in the 2008 general election, on or before December 20, 2009, the department shall establish, operate, and maintain a publicly available database of all sole-source government contracts entered into by the state or any of its political subdivisions, which shall be accessible from the web site maintained by the state. (4) The database required to be maintained by subsection (3) of this section shall contain a summary of each sole-source government contract to which the state and any of its political subdivisions is a party. Not more than three business days after execution of a sole-source government contract, the contract holder of each contract shall prepare and deliver to the department a true and correct copy of the summary of the contract, in a digital format as prescribed by the department, which shall: (a) Identify the names and addresses of the contract holders and all other parties to the sole-source government contract; (b) Briefly describe the nature of the sole-source government contract and the goods or services performed under the contract; (c) Disclose the beginning and expected completion dates of the sole-source government contract, the contract's estimated dollar amount or rate of payment, and the sources of payment under the contract; and (d) Disclose such additional information about the sole-source government contract as the department may require for the implementation of section 15, 16, or 17 of article XXVIII of the state constitution or this part 6 that will not otherwise result in a violation of federal law, the disclosure of trade secrets, or the unauthorized or improper transfer of intellectual property. (5) (a) As part of the submission of the summary required by subsection (4) of this section, the department may charge contract holders a fee. The amount of any such fee shall be set by the department by rule in accordance with the requirements of subsection (9) of this section and shall be set at a level that allows the department to recover the actual direct and indirect costs of the department in operating and maintaining the database, including costs incurred by the department in processing the information submitted by the contract holder. (b) Any fees collected by the department pursuant to paragraph (a) of this subsection (5) shall be transmitted to the state treasurer, who shall credit the same to the sole-source government contract database fund, which fund is hereby created in the state treasury. All moneys credited to the sole-source government contract database fund shall be used as provided in this part 6 and shall not be deposited in or transferred to the general fund of the state or any other fund. (6) Not more than three business days after a summary of the sole-source government contract has been delivered to the department by the contract holder pursuant to subsection (4) of this section, the department shall publish and maintain the summary of such contract on the web site. Once added to the web site, the department shall maintain the summary on the web site for a minimum period of two years beyond the duration of the contract. By rule, the department may extend the period for maintaining a summary on the web site. (7) The web site shall allow electronic read-only access free of charge to any person who wishes to review a summary. Information concerning the sole-source contracts contained in the database and accessible on the web site shall be searchable by criteria enumerated in paragraphs (a) to (d) of subsection (4) of this section. The database shall allow any person to programmatically access and search all data in the database contained in a summary in a serialized machine readable structured format. This requirement may be satisfied by means of a language such as XML, by means of a web services application programming interface, or in accordance with standards and best practices maintained by the industry or the office of information technology created in section 24-37.5-103. (8) Any web site maintained by the state or any of its political subdivisions that provides information inviting requests for proposals or that offers similar communication to vendors in connection with contract bid solicitations shall provide a short advisory concerning the requirement of a contract holder to prepare and deliver a summary pursuant to section 16 of article XXVIII of the state constitution and a link to the web site required to be administered by the department in accordance with the requirements of this part 6. (9) The department shall promulgate rules for the more effective administration of this part 6 in accordance with article 4 of this title. (10) (a) The department and the department of state shall allow for the transfer of information contained in the database required by subsection (3) of this section to the database maintained by the department of state for campaign finance purposes. (b) Notwithstanding any other provision of this part 6, nothing in this part 6 shall be construed to require the department to create a new database to satisfy the requirements of this part 6 if the use of any existing database will facilitate the department's ability to satisfy the requirements of this part 6. SECTION 2. Severability. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of the act are declared to be severable. SECTION 3. Effective date. This act shall take effect July 1, 2009. SECTION 4. 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.