NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 11-1202
      
      
      BY REPRESENTATIVE(S) Labuda, Casso, Soper, Brown, Fields, Fischer,
      Schafer S., Wilson;
      also SENATOR(S) Tochtrop.
      
      
      Concerning a requirement that a public entity have
           appropriations available to it prior to the performance of
           any work conducted by a contractor pursuant to a change
           order.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration.  (1)  The general assembly
      hereby finds and declares that:
      
           (a)  The timely payment for properly completed work under public
      construction agreements in Colorado is a matter of statewide concern;
      
           (b)  The construction industry is a significant component of the
      state's economy;
      
           (c)  There is a substantial statewide interest in fostering the growth
      and stability of the construction industry and ensuring that it remains
      economically viable; and
      
           (d)  Timely payment for all work, including work directed by a
      change order, will assist parties to construction agreements in managing
      their respective operations.
      
           SECTION 2.  24-91-103.6 (2) (b), Colorado Revised Statutes, is
      amended to read:
      
           24-91-103.6.  Public entity - contracts - appropriations - change
      orders - severability.  (2)  Every public works contract, as defined in
      section 24-91-103.5 (1) (b), shall contain the following:
      
           (b)  A clause that prohibits the issuance of any change order, as
      defined in section 24-101-301 (2), or other form of order or directive by
      the public entity requiring additional compensable work to be performed,
      which work causes the aggregate amount payable under the contract to
      exceed the amount appropriated for the original contract, unless the
      contractor is given written assurance by the public entity that lawful
      appropriations to cover the costs of the additional work have been made
      and the appropriations are available prior to performance of the
      additional work or unless such work is covered under a remedy-granting
      provision in the contract; and
      
           SECTION 3.  Act subject to petition - effective date -
      applicability.  (1)  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 (August 10, 2011, if adjournment sine die is on May
      11, 2011); 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 shall
      not take effect unless approved by the people at the general election to be
      held in November 2012 and shall take effect on the date of the official
      declaration of the vote thereon by the governor.
      
           (2)  The provisions of this act shall apply to contracts entered into on
      or after January 1, 2012.
      
      
      
      
      ________________________________________________________
      Frank McNulty                      Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO