Colorado Legislative Council Staff
NO FISCAL IMPACT
January 6, 1998
Senate Business Affairs
Steve Tammeus (866-2756)
TITLE: CONCERNING THE ELIMINATION OF THE EXPRESS AUTHORITY OF THE BOARD OF DIRECTORS OF THE METROPOLITAN FOOTBALL STADIUM DISTRICT TO WAIVE ANY REQUIREMENT THAT A CONTRACTOR PROVIDE A PERFORMANCE BOND PRIOR TO THE CONTRACTOR COMMENCING CONSTRUCTION ON A STADIUM.
Summary of Assessment
Sections 32-1-103, 38-26-101, and 38-26-106, C.R.S., currently require all contractors who are awarded a contract for more than $50,000 for certain types of projects for the state and political subdivisions of the state to provide a bond, or other surety acceptable to the contracting body, prior to the performance of the contract. The law requires the bond, or surety, to be not less than one-half of the total amount payable by the terms of the contract.
Current law, under Section 32-15-106, C.R.S., authorizes the Board of Directors of the Metropolitan Football Stadium District (a political subdivision of the state) to waive any requirement that stadium contractors provide performance bonds prior to commencing construction if the contractor provides a security in another form and in the amount necessary to cover the contractor’s obligations under the terms of the contract. This bill repeals the board’s authority to waive that requirement.
The bill would take effect at 12:01 a.m. on the day following the expiration of the 90-day period after final adjournment of the General Assembly; or upon proclamation of the Governor if a referendum petition is filed against this act and approved by a vote of the people.
This bill will repeal provisions in Section 32-15-106, C.R.S., that are similar or redundant to provisions in Sections 32-1-103, 38-26-101, and 38-26-106, C.R.S., regarding requirements for performance bonds or other acceptable sureties. Therefore, the provisions of this bill will not change the performance bonding, or surety, requirements for the Metropolitan Football Stadium District. This bill is assessed as having no fiscal impact.