SENATE Amended 2nd Reading April 22, 2009First Regular Session Sixty-seventh General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 09-0949.01 Dan Cartin SENATE BILL 09-255 SENATE SPONSORSHIP Cadman, HOUSE SPONSORSHIP (None), Senate Committees House Committees Business, Labor and Technology A BILL FOR AN ACT Concerning the Colorado shared services authority. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Creates the Colorado shared services authority (authority). Includes the authority within the definition of a "special purpose authority" for purposes of constitutional state fiscal policies. Designates the members of the board of directors of the authority. Specifies the powers and duties of the authority and that it is the mission of the authority to: Develop an innovative shared services delivery model that provides shared services to eligible public sector entities; Enter into fee-for-services contracts with eligible public sector entities for purposes of enabling and coordinating shared services among eligible public sector entities; Issue requests for bids or proposals for contracts with any public or private parties for the design, implementation, operation, and improvement of shared services among eligible public sector entities; Enter into agreements with the office of information technology for the purpose of implementing shared services among state agencies; Procure, license, and contract for products and services on behalf of eligible public sector entities; Establish one or more statewide data centers for utilization by eligible public sector entities; Establish one or more statewide call centers for utilization by eligible public sector entities that provides technology-enabled tiered call center services cost effectively; Facilitate shared services through agreements with eligible public sector entities and public-private partnerships; and Pursue advancing technologies. Requires the authority to follow the information and communications technology industry's best practices. Authorizes the authority to utilize any existing governmental price agreements. Specifies that the authority may issue requests for bids or proposals for contracts with any private entity that is engaged in providing shared services for private sector entities. Specifies the sources of funding for the authority. Authorizes the issuance of bonds and notes of the authority payable from revenues of the authority. Specifies that such bonds and notes shall not be a debt of the state or a local government. Provides that all moneys received by the authority are held as trust funds. Authorizes the office of information technology to enter into contracts with the authority to implement shared services for state agencies. Directs the state's chief information security officer to coordinate or contract with the authority in connection with sharing services among public agencies related to information security. Excludes the authority from the definition of "local government" under the "Local Government Budget Law of Colorado" and "Colorado Local Government Audit Law". Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 37.9 Colorado Shared Services Authority 24-37.9-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Authority" means the Colorado shared services authority created pursuant to section 24-37.9-102. (2) "Board" means the board of directors of the authority appointed pursuant to section 24-37.9-102. (3) "Chief executive officer" means the chief executive officer of the authority appointed pursuant to section 24-37.9-104 (1) (n). (4) "Eligible public sector entity" means a state agency, local government, school district, or nonprofit agency. (5) "Local government" means the government of any county, city and county, home rule or statutory city, town, special district, school district, or other political subdivision of the state. (6) "School district" means any public school district organized under the laws of this state, an institute charter school created pursuant to part 5 of article 30.5 of title 22, or a junior college district. (7) "Shared services" means specific technology components including but not limited to the following: (a) Enterprise resource planning, including but not limited to integrated financial, payroll, human resources, purchasing, supply chain management, asset management, customer relationship management, grant management, reporting, analytics, and project costing and time keeping; (b) Law enforcement services, including but not limited to computer-aided dispatch, records management systems, emergency 911 services, and support for mobile computing devices in patrol cars; (c) Utility billing; (d) The state digital trunked radio system; (e) Data center hosting services, including but not limited to server hosting, tiered storage solutions, network management services, system administration services, server database administration services, and disaster recovery; (f) Enterprise content management, including but not limited to the creation, development, and implementation of an enterprise solution for digital documents; (g) Information security managed services in coordination with the chief information security officer appointed pursuant to section 24-37.5-403 (1); (h) Electronic mail services; and (i) Governmental notification services including but not limited to 211 and 311 communications systems. (8) "State agency" means any department, commission, council, board, bureau, committee, institution of higher education, agency, or other governmental unit of the executive, legislative, or judicial branch of state government. 24-37.9-102. Colorado shared services authority - creation - board. (1) There is hereby created an independent public body politic and corporate to be known as the Colorado shared services authority. The authority shall be a body corporate and a political subdivision of the state and shall not be an agency of the state government and shall not be subject to administrative direction by any department, commission, board, or agency of the state. (2) The governing body of the authority shall be a board of directors that shall consist of the following thirteen voting members: (a) The chief information officer of the office of information technology, created in section 24-37.5-103, who shall serve as chairperson of the board; (b) The secretary of state; (c) The executive directors of two principal departments of the state appointed by the governor; (d) The chief information officer of a county appointed by the governor with the consent of the senate; (e) The chief information officer of a municipality appointed by the governor with the consent of the senate; (f) One member representing school districts in the state appointed by the governor with the consent of the senate; (g) One member representing institutions of higher education appointed by the governor with the consent of the senate; (h) Two members from the private sector who have a background in information management and technology and who are users of electronic information, products, and services or information technology services that are offered through the private sector appointed by the governor with the consent of the senate. No private sector board member shall be a professional lobbyist registered pursuant to section 24-6-303. (i) One member representing the judicial department of the state appointed by the chief justice of the supreme court; and (j) One member of the senate appointed by the president of the senate and one member of the house of representatives appointed by the speaker of the house of representatives, both of whom shall have a background in information management and technology, have experience as members of an oversight committee for information management and technology, or have experience in shared services, in enterprise-wide operational management, or as an enterprise-wide director or above the director level. (3) The members of the board appointed pursuant to paragraphs (d) to (h) of subsection (2) of this section shall serve for terms of four years each; except that, of those members first appointed to the board, the terms of office shall be as follows: (a) Three members shall be appointed for one year; (b) Two members shall be appointed for two years; and (c) Two members shall be appointed for three years. (4) The terms of members appointed or reappointed by the speaker of the house of representatives and the president of the senate shall expire on the convening date of the first regular session of each general assembly, and all subsequent appointments and reappointments by the speaker and the president shall be made as soon as practicable after such convening date. Members appointed or reappointed by the speaker and the president shall serve at the pleasure of the appointing authority and shall continue in office until the member's successor is appointed. (5) Each member of the board shall serve until his or her successor has been appointed and qualified. The person making the original appointment shall fill any vacancy by appointment for the remainder of an unexpired term. (6) The members of the board shall elect from among the membership of the board a vice-chair, a secretary, and a treasurer and may provide for their duties and terms of office. (7) Any appointed member of the board may be removed by his or her appointing authority for misconduct, incompetence, or neglect of duty. Actions constituting neglect of duty shall include, but not be limited to, the failure of a board member to attend three consecutive meetings or at least three-fourths of the meetings of the board in any one calendar year. (8) Neither the members of the board nor any person authorized by the board to act in an official capacity shall be held personally liable for any act undertaken pursuant to the provisions of this article. (9) The board may appoint such additional nonvoting members to the board as it deems necessary. Additional members appointed pursuant to this subsection (9) shall not be included in determining whether a quorum is present. 24-37.9-103. Meetings of board - quorum - expenses. (1) All meetings of the board shall be subject to the provisions of section 24-6-402. No business of the board shall be transacted except at a regular or special meeting at which a quorum consisting of at least a majority of the total voting membership of the board is present. Any action of the board shall require the affirmative vote of a majority of the voting members present at any meeting at which a quorum is present. Members may participate in any meeting of the board by telephone or other electronic connection for purposes of establishing a quorum and voting. (2) Members of the board shall be reimbursed for all necessary expenses incurred in the performance of their duties under this article. Any payments to board members pursuant to this subsection (2) shall be paid from moneys of the authority. 24-37.9-104. Authority - duties and powers. (1) In addition to any other powers granted to the authority pursuant to this article, the authority shall have the following powers: (a) To have the duties, privileges, immunities, rights, liabilities, and disabilities of a body corporate and political subdivision of the state; (b) To have perpetual existence and succession; (c) To adopt, have, and use a seal and to alter the same at its pleasure; (d) To sue and be sued; (e) To enter into any contract or agreement not inconsistent with this article or the laws of this state and to authorize the chief executive officer to enter into contracts, execute all instruments, and do all things necessary or convenient in the exercise of the powers granted in this article and to secure the payment of bonds; (f) To borrow money and to issue bonds evidencing the same; (g) To purchase, lease, trade, exchange, or otherwise acquire, maintain, hold, improve, mortgage, sell, and dispose of personal property, whether tangible or intangible, or any interest therein; and to purchase, lease, trade, exchange, or otherwise acquire real property or any interest therein and to maintain, hold, improve, mortgage, lease, or otherwise transfer such real property, so long as such transactions do not interfere with the mission of the authority as specified in section 24-37.9-105; (h) To acquire space, equipment, services, supplies, and insurance necessary to carry out the purposes of this article; (i) To deposit any moneys of the authority in any banking institution within the state or in any depository authorized in section 24-75-603, and to appoint, for the purpose of making such deposits, one or more persons to act as custodians of the moneys of the authority, subject to the supervision of the chief information officer and the treasurer of the authority, who shall give surety bonds in such amounts and form and for such purposes as the board requires; (j) To contract for and to accept any gifts, grants, or loans of funds, property, or any other aid in any form from the federal government, the state, any state agency, or any other source, or any combination thereof, and to comply, subject to the provisions of this article, with the terms and conditions thereof; (k) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this article, which specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this article; (l) To fix the time and place or places at which its regular and special meetings are to be held. Meetings shall be held on the call of the presiding officer, but no less than six meetings shall be held annually. (m) To adopt and from time to time amend or repeal bylaws and rules and regulations consistent with the provisions of this article; except that article 4 of this title shall not apply to the promulgation of any policies, procedures, rules, or regulations of the authority; (n) To appoint a chief executive officer and such agents, employees, and professional and business advisers as may from time to time be necessary in its judgment to accomplish the purposes of this article, to fix the compensation of such chief executive officer, employees, agents, and advisers, and to establish the powers and duties of all such agents, employees, and other persons contracting with the authority; (o) To waive, by such means as the authority deems appropriate, the exemption from federal income taxation of interest on the authority's bonds, notes, or other obligations provided by the federal "Internal Revenue Code of 1986", as amended, or any other federal statute providing a similar exemption; (p) To make and execute agreements, contracts, or other instruments necessary or convenient to the exercise of the powers and functions of the authority under this article, including but not limited to contracts with any person, firm, corporation, state agency, local government, or other entity. All state agencies and local governments are hereby authorized to enter into and do all things necessary to perform any such arrangement or contract with the authority. (q) To arrange for guarantees or insurance of its bonds, notes, or other obligations by the federal government or by any private insurer, and to pay any premiums therefor. 24-37.9-105. Mission of the authority - best practices. (1) The mission of the authority is to: (a) Develop an innovative shared services delivery model and Colorado economic development initiative to provide shared services to eligible public sector entities; (b) Enter into fee-for-services contracts with eligible public sector entities for purposes of enabling and coordinating shared services among eligible public sector entities; (c) Issue requests for bids or proposals for contracts with any public or private parties for the design, implementation, operation, and improvement of shared services among eligible public sector entities; (d) Enter into agreements with the office of information technology, created in section 24-37.5-103, for the purpose of implementing shared services among state agencies; (e) Procure, license, and contract for products and services on behalf of eligible public sector entities; (f) Establish one or more statewide data centers for utilization by eligible public sector entities; (g) Establish one or more statewide call centers, for utilization by eligible public sector entities, that provide technology-enabled tiered call center services cost effectively; (h) Facilitate shared services through agreements with eligible public sector entities and public-private partnerships; and (i) Pursue advancing technologies. (2) The authority shall follow the information and communications technology industry's best practices. (3) The authority may utilize any existing governmental price agreements. (4) Nothing in this section shall restrict the ability of the authority to issue requests for bids or proposals for contracts with any private entity that is engaged in providing shared services for private sector entities. 24-37.9-106. Access to data - compliance with law. Access to the data and electronic information, products, and services of an eligible public sector entity by the authority shall be consistent with any law governing such access. 24-37.9-107. Financing. (1) The authority shall fund its operations from: (a) Federal or private moneys granted or allocated to the authority; (b) Revenues derived by the authority pursuant to contracts and agreements entered into by the authority pursuant to this article; (c) Moneys, goods, or in-kind services donated from public or private sources; (d) Moneys loaned to the authority by any person or entity; or (e) Moneys derived from the issuance and sale of bonds. 24-37.9-108. Bonds and notes. (1) The authority may, from time to time, issue bonds and notes for any of its corporate purposes. The bonds and notes shall be issued pursuant to resolution of the board and shall be payable solely out of all or a specified portion of the revenues of the authority as designated by the board. (2) Bonds of the authority, as provided in the resolution of the authority under which the bonds are authorized or as provided in a trust indenture between the authority and any commercial or trust company having full trust powers, may: (a) Be executed and delivered by the authority in the form, in denominations, upon the terms and maturities, and at the times established by the board; (b) Be subject to optional or mandatory redemption prior to maturity with or without a premium; (c) Be in fully registered form or bearer form registrable as to principal or interest or both; (d) Bear such conversion privileges and be payable in such installments and at such times not exceeding twenty years from the date of issuance as established by the board; (e) Be payable at such place or places whether within or without the state as established by the board; (f) Bear interest at such rate or rates per annum, which may be fixed or vary according to index, procedure, or formula or as determined by the authority or its agents without regard to any interest rate limitation appearing in any other law of the state; (g) Be subject to purchase at the option of the holder or the board; (h) Be evidenced in the manner established by the board, and executed by the officers of the authority, including the use of one or more facsimile signatures so long as at least one manual signature appears on the bonds, which may be either of an officer of the authority or of an agent authenticating the same; (i) Be in the form of coupon bonds that have attached interest coupons bearing a manual or a facsimile signature of an officer of the authority; and (j) Contain any other provisions not inconsistent with this article. (3) The bonds may be sold at public or private sale at the price or prices, in the manner, and at the times as determined by the board, and the board may pay all fees, expenses, and commissions that it deems necessary or advantageous in connection with the sale of the bonds. The power to fix the date of sale of the bonds, to receive bids or proposals, to award and sell bonds, to fix interest rates, and to take all other action necessary to sell and deliver the bonds may be delegated to an officer or agent of the authority. Any outstanding bonds may be refunded by the authority pursuant to article 56 of title 11, C.R.S. All bonds and any interest coupons applicable thereto are declared to be negotiable instruments. (4) The resolution or trust indenture authorizing the issuance of the bonds or notes may pledge all or a portion of the property or revenues of the authority, may contain such provisions for protecting and enforcing the rights and remedies of holders of any of the bonds or notes as the authority deems appropriate, may set forth the rights and remedies of the holders of any of the bonds or notes, and may contain provisions that the authority deems appropriate for the security of the holders of the bonds or notes, including but not limited to provisions for letters of credit, insurance, standby credit agreements, or other forms of credit ensuring timely payment of the bonds or notes, including the redemption price or the purchase price. (5) Any pledge of revenues or property made by the authority or by any person or governmental unit with which the authority contracts shall be valid and binding from the time the pledge is made. The revenues or property so pledged shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party, regardless of whether the party has notice of such lien. The instrument by which the pledge is created need not be recorded or filed. (6) Neither the members of the board, employees of the authority, nor any person executing the bonds shall be liable personally on the bonds or notes or subject to any personal liability or accountability by reason of the issuance thereof. (7) Bonds and notes issued by the authority shall not constitute or become an indebtedness, a debt, or a liability of the state or a local government. The bonds shall contain on the face thereof a statement to such effect. (8) The authority may purchase its bonds or notes out of any available moneys and may hold, pledge, cancel, or resell such bonds and notes subject to and in accordance with agreements with the holders thereof. (9) Any bonds, notes, or other securities issued pursuant to this section and the income therefrom, including any profit from the sale thereof, shall be exempt from all taxation of the state or any agency, political subdivision, or instrumentality of the state. 24-37.9-109. Agreement of the state not to limit or alter rights of obligees. The state hereby pledges and agrees with the holders of any bonds or notes issued under this article and with those parties who enter into contract with the authority that the state will not limit, alter, restrict, or impair the rights vested in the authority or the rights or obligations of any person with which it contracts to fulfill the terms of any agreements made pursuant to this article. The state further agrees that it will not in any way impair the rights or remedies of the holders of any bonds or notes of the authority until such bonds or notes have been paid or until adequate provision for payment has been made. The authority may include this provision and undertaking for the state in such bonds or notes. 24-37.9-110. Investments. The authority may invest or deposit any moneys in the manner provided by part 6 of article 75 of this title. In addition, the authority may direct a corporate trustee that holds moneys of the authority to invest or deposit such moneys in investments or deposits other than those specified by said part 6 if the board determines, by resolution, that the investment or deposit meets the standard established in section 15-1-304, C.R.S., and the income is at least comparable to income available on investments or deposits specified by said part 6. 24-37.9-111. Bonds eligible for investment. All banks, trust companies, savings and loan associations, insurance companies, executors, administrators, guardian trustees, and other fiduciaries may legally invest any moneys within their control in any bonds issued under this article. Public entities, as defined in section 24-75-601 (1), may invest public funds in such bonds only if the bonds satisfy the investment requirements established in part 6 of article 75 of this title. 24-37.9-112. Proceeds as trust funds. All moneys received pursuant to this article, whether as proceeds from the sale of bonds, notes, or other obligations or as revenues or receipts, shall be deemed to be trust funds to be held and applied solely as provided in this article. Any officer, bank, or trust company with which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes of this article, subject to such regulations as the authority and the resolution authorizing the bonds, notes, or other obligations of any issue or the trust agreement securing such obligations provides. SECTION 2. 24-37.5-105 (3), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 24-37.5-105. Office - responsibilities - rules. (3) The office shall: (j) Have the discretion to enter into contracts with the Colorado shared services authority, created pursuant to section 24-37.9-102, to implement shared services for state agencies. SECTION 3. 24-37.5-403 (2), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 24-37.5-403. Chief information security officer - duties and responsibilities. (2) The chief information security officer shall: (j) Coordinate or contract with the Colorado shared services authority, created pursuant to section 24-37.9-102, in connection with sharing services among public agencies related to information security. SECTION 4. 24-51-101 (20), Colorado Revised Statutes, is amended to read: 24-51-101. Definitions. As used in this article, unless the context otherwise requires: (20) "Employer" means the state of Colorado, the general assembly, any state department, board, commission, bureau, agency, or institution, the Colorado association of school boards, the Colorado high school activities association, the Colorado association of school executives, the fire and police pension association, the special districts association, the Colorado water resources and power development authority, the Colorado shared services authority, the public employees' retirement association, the Colorado consortium for earth and space science education, all school districts in Colorado, except, until the effective date of the merger described in sections 22-64-220 (4) (a) and 22-64-221, C.R.S., in the city and county of Denver including a charter school district, and any political subdivision, city, municipality, county, housing authority, special district, library district, regional planning commission, public hospital, county or district health department, state university, state college, state junior college, or other public entity that is affiliated with the plan. SECTION 5. 24-77-102 (15) (b), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read: 24-77-102. Definitions. As used in this article, unless the context otherwise requires: (15) (b) "Special purpose authority" includes, but is not limited to: (XVII) The Colorado shared services authority created pursuant to section 24-37.9-102, C.R.S. SECTION 6. 29-1-102 (13), Colorado Revised Statutes, is amended to read: 29-1-102. Definitions. As used in this part 1, unless the context otherwise requires: (13) "Local government" means any authority, county, municipality, city and county, district, or other political subdivision of the state of Colorado; any institution, department, agency, or authority of any of the foregoing; and any other entity, organization, or corporation formed by intergovernmental agreement or other contract between or among any of the foregoing. The office of the county public trustee shall be deemed an agency of the county for the purposes of this part 1. "Local government" does not include the Colorado educational and cultural facilities authority, the university of Colorado hospital authority, collegeinvest, the Colorado health facilities authority, the Colorado housing and finance authority, the Colorado agricultural development authority, the Colorado sheep and wool authority, the Colorado beef council authority, the Colorado horse development authority, the Colorado shared services authority, the fire and police pension association, any public entity insurance or investment pool formed pursuant to state law, any county or municipal housing authority, any association of political subdivisions formed pursuant to section 29-1-401, or any home rule city or town, home rule city and county, cities and towns operating under a territorial charter, school district, or junior college district. SECTION 7. 29-1-602 (5) (b), Colorado Revised Statutes, is amended to read: 29-1-602. Definitions. As used in this part 6, unless the context otherwise requires: (5) (b) Except for purposes of section 29-1-603 (4), "local government" does not include the fire and police pension association, any county or municipal housing authority, any public entity insurance pool formed pursuant to state law, the Colorado sheep and wool authority, the Colorado beef council authority, the Colorado horse development authority, the statewide internet portal authority, the Colorado shared services authority, or any association of political subdivisions formed pursuant to section 29-1-401. SECTION 8. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, (August 5, 2009, if adjournment sine die is on May 6, 2009); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.