First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0392.01 Nicole Myers x4326 HOUSE BILL 13-1093 HOUSE SPONSORSHIP Lawrence, SENATE SPONSORSHIP (None), House Committees Senate Committees Local Government A BILL FOR AN ACT Concerning the requirement that a local government use competitive sealed bidding for procurement contracts over a certain dollar amount. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill requires an agency of local government (local government) to procure or dispose of supplies, services, or construction through competitive sealed bidding unless the appropriation or expenditure of moneys by the local government for a single contract for the supplies, services, or construction may be reasonably expected not to exceed $50,000 in the aggregate in any fiscal year. The bill includes an exception to the competitive sealed bidding requirement if the local government does not receive any bids, the agency of local government has rejected all bids, or the responsible officer determines that it is necessary to make procurements or contracts under emergency conditions because there exists a threat to public health, welfare, or safety. The bill prohibits a local government from dividing the procurement or disposal of supplies, services, or construction into 2 or more separate projects for the sole purpose of evading or attempting to evade the competitive sealed bidding requirement. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 13 to article 1 of title 29 as follows: PART 13 BIDDING FOR LOCAL GOVERNMENT PROCUREMENT CONTRACTS 29-1-1301. Legislative declaration. The general assembly hereby finds and declares that local government procedures for procuring or disposing of supplies, services, or construction that will be funded in whole or in part by taxpayer dollars is a matter of statewide concern; that the identification and widespread publication of contracts for supplies, services, or construction will increase the competition for such contracts leading to a decreased cost to taxpayers throughout the state; that increased privatization of the work procured through such contracts by local governments will aid in the development and retention of local small businesses, industries, and construction firms, will broaden the economic base of local areas, and will contribute to increased economic vitality throughout the state; and that the provisions of this part 13 are enacted in the exercise of the police powers of this state for the purpose of protecting the health, peace, safety, and welfare of the people of this state. 29-1-1302. Definitions. As used in this part 13, unless the context otherwise requires: (1) "Agency of local government" means any municipality, county, home rule county, home rule city, or home rule city and county, or any agency, department, division, board, bureau, commission, institution, or other authority thereof that is a budgetary unit exercising contracting authority or discretion. (2) "Construction" means the process of building, altering, repairing, improving, or demolishing any public structure or building or any other public improvements of any kind to any public real property. "Construction" includes capital construction and controlled maintenance. (3) "Contract" means any type of agreement, regardless of what it may be called, for the procurement or disposal of supplies, services, or construction. "Contract" does not include an agreement for supplies, services, or construction for which the appropriation or expenditure of moneys for a single contract may be reasonably expected not to exceed fifty thousand dollars in the aggregate in any fiscal year. (4) "Services" means the furnishing of labor, time, or effort by a contractor not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. "Services" does not include professional services as defined in section 24-30-1402 (6), C.R.S. (5) "Supplies" means all property, including but not limited to equipment, materials, and insurance. "Supplies" does not include land, the purchase of an interest in land, water or mineral rights, workers' compensation insurance, or benefit insurance for state employees. 29-1-1303. Competitive sealed bidding. (1) All contracts entered by an agency of local government shall be awarded by competitive sealed bidding except as provided in subsection (2) of this section. (2) Competitive sealed bidding shall not be required when: (a) The agency of local government does not receive any bids or the agency of local government has rejected all bids; or (b) The responsible officer determines that it is necessary to make procurements or contracts under emergency conditions because there exists a threat to public health, welfare, or safety; except that such emergency procurements or contracts shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. (3) Nothing in this part 13 shall be construed to affect or limit any additional requirements imposed upon an agency of local government for the procurement or disposal of supplies, services, or construction. 29-1-1304. Prohibition of dividing work of state-funded public project. It is unlawful for any agency of local government to divide the procurement or disposal of supplies, services, or construction into two or more separate projects for the sole purpose of evading or attempting to evade the requirements of this part 13. SECTION 2. Act subject to petition - effective date. This act takes 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 7, 2013, if adjournment sine die is on May 8, 2013); 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 will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.