First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0916.01 Nicole Myers x4326 HOUSE BILL 13-1321 HOUSE SPONSORSHIP Ryden, SENATE SPONSORSHIP Heath, House Committees Senate Committees Business, Labor, Economic, & Workforce Development Legislative Council A BILL FOR AN ACT Concerning the creation of the procurement improvement task force. 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 creates the procurement improvement task force, which is required to meet after the first regular session of the 69th general assembly. The task force is directed to make recommendations to the general assembly regarding how to best support the state's economic growth by delivering social and environmental benefits, supporting innovation, and promoting public procurement processes and systems that are transparent, streamlined, standardized, proportionate, fair, and business-friendly. The bill specifies the number of people who will serve on the task force, the entities that those people shall represent, and who is required to appoint certain task force members. The bill also specifies the duties of the task force, including researching procurement best practices and standards, reviewing the "Procurement Code" and making recommendations to the general assembly for its improvement, considering the factors that should be used to define a local Colorado company, considering how to incentivize state agencies to use local companies over out-of-state competitors, ways to streamline the procurement process to encourage more local companies to compete for state contracts, and methods for better coordination and maintenance of certain data. The department of personnel (department) is authorized to accept and expend gifts, grants, or donations from any public or private entity for any direct or indirect costs associated with the duties and functions of the task force. By a specified date, the department is required to notify the speaker of the house of representatives and the president of the senate whether the department has received adequate moneys to conduct the work of the task force. The legislative council staff and the office of legislative legal services shall be available to assist the task force in carrying out its duties. In addition, the task force may call upon the department to assist and cooperate with the task force in carrying out its duties. The bill specifies that the members of the task force serve without compensation; except that the department may cause moneys from any gifts, grants, or donations received by the department to be transmitted to the state treasurer, who shall credit the same to the legislative department cash fund, and if available, such moneys shall be used to provide payment of per diem and reimbursement for actual and necessary expenses as allowed by law to the legislative members of the task force. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 5 to article 101 of title 24 as follows: PART 5 PROCUREMENT IMPROVEMENT TASK FORCE 24-101-501. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) Good stewardship of public moneys is of the utmost importance to ensure that taxpayers receive the highest possible return on the investment of their money; (b) The state of Colorado is an ideal place to start and grow a company, and the state should continue to seek opportunities to strengthen Colorado's business environment; (c) It is imperative that the state recognize and reward companies that are committed to Colorado and provide a procurement process that is fair and accessible to Colorado's small businesses; (d) The state has a responsibility to procure a responsible contractor for a project and to consider the economic impact achieved through the contract award; (e) The state should endeavor to make the procurement process efficient, fair, accessible, and easy to use; (f) Many different stakeholders are affected by the procurement process, including but not limited to state agencies, businesses, business organizations, nonprofits, and the general public; (g) Each stakeholder in the procurement process can offer a unique perspective and provide valuable input; and (h) Input from stakeholders can inform policymakers and procurement professionals and be used to improve the procurement policies of the state. (2) The general assembly further finds and declares that it is in the best interests of the state to establish a task force to study Colorado's state procurement process. 24-101-502. Procurement improvement task force - creation - membership. (1) There is hereby created the procurement improvement task force, referred to in this part 5 as the "task force". (2) The task force consists of the following members: (a) Four members of the general assembly appointed as follows: (I) One member of the house of representatives appointed by the speaker of the house of representatives; (II) One member of the house of representatives appointed by the minority leader of the house of representatives; (III) One member of the senate appointed by the president of the senate; and (IV) One member of the senate appointed by the minority leader of the senate; (b) The director of the division of finance and procurement in the department of personnel; (c) The director of the state purchasing office in the division of finance and procurement; (d) The supplier diversity liaison in the division of finance and procurement; (e) The procurement directors from two different executive branch state agencies, which agencies shall be determined by the director of the state purchasing office in the division of finance and procurement; (f) The director of the Colorado office of economic development or the director's designee; (g) One small business owner or his or her designee, appointed by the governor; (h) One person, appointed by the governor, who represents a chamber of commerce that focuses on business owners who are women; (i) One person, appointed by the governor, who represents a chamber coalition that focuses on business owners who are minorities; (j) One person, appointed by the governor, who represents a local business alliance in Colorado; (k) One business owner, appointed by the governor, who is a person with a disability or who employs one or more persons with a disability; (l) One person, appointed by the governor, who represents a local nonprofit organization that offers procurement technical assistance to businesses regarding federal, state, and local procurement; (m) One person who represents a Colorado association that works in the areas of commerce and industry appointed by the governor; (n) One person, appointed by the governor, who represents a local vendor who, at the time of appointment, is doing business with the state and was awarded one of the thirty largest state contracts; and (o) If the grant moneys obtained by the department of personnel pursuant to section 24-101-505 allow, a professional procurement consultant who shall be chosen by the executive director of the department or the executive director's designee. (3) The member of the house of representatives appointed by the speaker of the house is the chair of the task force. The member of the senate appointed by the minority leader of the senate is the vice-chair of the task force. (4) In addition to the people designated as members of the task force pursuant to subsection (2) of this section, the chair and vice-chair of the task force may invite representatives from the business community or any other interested party to attend and participate in the meetings of the task force. (5) Any person who is required to make an appointment pursuant to subsection (2) of this section shall make such appointment no later than thirty days after the department provides notification of available moneys for the operation of the task force pursuant to section 24-101-504 (2). 24-101-503. Task force - duties. (1) The task force shall meet as necessary, as determined by the members of the task force, after the first regular session of the sixty-ninth general assembly; except that the task force shall not meet more than six times. The task force shall complete its work and make recommendations to the general assembly as specified in subsection (3) of this section. (2) The task force shall examine the current public procurement system in the state. In the course of such examination, the task force shall: (a) Research procurement best practices and standard operating procedures in the field, including those of large corporations and other state governments; (b) Review and evaluate the state's current cooperative contracts and make recommendations to the general assembly regarding how to improve such contracts when they are renegotiated to ensure equal opportunity for small businesses in Colorado; (c) Review the form and content of this code and make recommendations to the general assembly regarding possible statutory changes to this code; (d) Consider the factors used to define a local Colorado company, including the number of employees the company employs in the state, whether the company has a mailing address in Colorado, or whether the company is headquartered in Colorado; (e) Consider how to best incentivize state executive branch departments and other state entities to use local Colorado companies over out-of-state competitors, including cost-benefit analyses of any savings to taxpayers, return on investment by using local companies, or impacts on Colorado businesses' opportunities when competing for work in other states; (f) Consider ways to streamline the procurement process to encourage more Colorado companies to compete for state business; (g) Examine the information that is readily and easily accessible from the state purchasing office about with whom the state does business and make recommendations to the general assembly regarding standardized reporting metrics so that the state purchasing office can most effectively report on this information in a transparent and meaningful manner; and (h) Coordinate procurement data with the database of Colorado business that is maintained by the secretary of state's office. (3) The task force shall make recommendations to the general assembly regarding how to best support the state's economic growth by delivering social and environmental benefits, supporting innovation, and promoting public procurement processes and systems that are transparent, streamlined, standardized, proportionate, fair, and business-friendly. The task force must make its recommendations to the legislative council by January 1, 2014. 24-101-504. Task force funding. (1) The department is authorized to receive and expend gifts, grants, or donations from any public or private entity for any direct or indirect costs associated with the duties and functions of the task force as established in this part 5. The department is the custodian of any moneys received for the operation of the task force. (2) No later than June 1, 2013, the task force shall notify the speaker of the house of representatives and the president of the senate whether the department received adequate moneys to cover the anticipated expenses of the task force for conducting its work and for the operation of the task force through January 1, 2014. (3) The executive director of the department may cause moneys from any gifts, grants, or donations received by the department to be transmitted to the state treasurer, who shall credit the same to the legislative department cash fund, created in section 2-2-1601, C.R.S. Any moneys credited to the legislative department cash fund pursuant to this section shall be used only to compensate the legislative members of the task force, as allowed pursuant to section 24-101-505. (4) The legislative council staff and the office of legislative legal services shall be available to assist the task force in carrying out its duties. In addition, the task force may call upon the department of personnel to assist and cooperate with the task force in carrying out its duties. 24-101-505. Compensation of task force members. (1) Except as otherwise provided in subsection (2) of this section, the members of the task force serve without compensation. This section shall not be construed to prevent members of the task force from receiving their regular salary if they participate in task force meetings during their regular business hours. (2) Notwithstanding the provisions of section 2-2-307, C.R.S., legislative members of the task force may receive payment of per diem and reimbursement for actual and necessary expenses authorized pursuant to said section and any other direct or indirect costs associated with the duties of the legislative members of the task force only with any moneys that were credited to the legislative department cash fund pursuant to section 24-101-504 (3). 24-101-506. Repeal of part. This part 5 is repealed, effective January 1, 2015. SECTION 2. 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.