Author: doris beaver

Doris Beaver’s
EYE ON THE LEGISLATURE . . . 
February 20, 2012 
   Jobs! Jobs! Jobs! That three-letter word came to be probably one of the most frequently spoken words during last year’s election cycle here in Colorado and across the country. One has to wonder just how serious all the politicians are when they made promises adamantly that “jobs will be the number one priority.” 
   Republicans are taking pot shots at the Democrats over what was to be a prime piece of legislation this session. There’s a fly in the ointment that is not being addressed in all the hype and publicity of the bill(s). Read on to see why. 
Senate Bill 12-001: To be known as “Hiring Coloradans Act,” SB 001 is meant to encourage bidders for construction or service contracts with preferences if bidders “certify at least 90 percent of the employees who will complete the contracted work are Colorado residents.” 
   Additional preferences are possible, if bidders certify that employees performing the contracted work on construction contracts will be offered health care and retirement benefits (1 percent for each). 
   For service contracts, an additional two percent preference is possible if bidders certify that employees will be offered health care and retirement benefits to employees who will perform the work. 
   Under the preference criteria as set forth in SB 001, a bidder could “bid up to five percent greater than the next lowest bid and win the construction contract.” 
   The Fiscal Impact analysis by the Colorado Legislative Services staff addresses the expenditures to the state of Colorado should SB 001 pass and be enacted. Tables 1 and 2 of the analysis show the total dollars it will cost the state to implement SB 001. 
   The “fly in the ointment” on SB 001 is this. The analysis also includes the Colorado Department of Transportation’s (CDOT) opinion/interpretation of the bill.
•	this bill will preclude the department  from accessing its annual apportionment of federal highway funding;
•	federal highway funding is projected to be $398.7 for Fiscal Year 2012-13 (typically the apportionment was $500 million consistently); 
•	participation in the federal highway program is voluntary;
•	certain costs for eligible projects are reimbursed from the federal treasury provided CDOT abides by federal law; 
•	federal law generally prohibits bidder preferences in contracting; 
•	CDOT believes it would have no legal authority to disregard the provisions of SB 12-001 as introduced, therefore making it ineligible for federal highway funding; and
•	costs in such a scenario are not included in the fiscal note because it is not clear how any potential conflict would be resolved. 
   This question should jump out at the reader. Where will Colorado get the $398.7 million in federal highway funds CDOT estimates will be lost if SB 001 becomes law as introduced? 
Lead Sponsors of Senate Bill 12-001:  Senator Edie Hudak, D-Jefferson, 866-4840; Senate co-sponsors: Bob Boyd, D-Larimer, 866-4841; Betty Boyd, D-Jefferson, 866-4857; Joyce Foster, D-Arapahoe/Jefferson, 866-4875; Rollie Health, D-Boulder 866-4872; Pat Steadman, D-Adams/Denver, 866-4881; and Senate President Brandon Shaffer, D-Boulder, 866-5291
   House Sponsors: Representatives Crisanta Duran, D-Denver, 866-2925, and Su Reyden, D-Arapahoe, 866-2942.
Senate Bill 12-004: This bill concerns “The creation of a procurement preference to be granted for materials manufactured in the United States.” As with SB 001, there is also a fly in the ointment of SB 004. 
   State agencies are to “grant a 1 percent preference to bidders for contracts expected to cost more than $1 million [amended to read $250,000.00] for the purchase of assembled materials, supplies, products, provisions or equipment manufactured in the United States. In order to qualify for the 1 percent preference, the bill requires that the purchased goods be of equal quality, available in sufficient quantity and not exceed by more than 5 percent the cost of such items manufactured outside the United States.” 
   The Department of Personnel and Administration (DPA) is responsible for the state-wide procurement of many goods such as computers and vehicles, acts as purchasing agent for approximately ten other state agencies, and for “promulgating rules for the administration of the preferences, including a process for a bidder to certify and an agency to verify a bidder’s eligibility.” 
   The “fly in the ointment” on SB 004? The assumption of the fiscal note is the projected costs to the state are presented on this basis: “That verification of a bidder’s eligibility will only occur during the contracting process, rather than throughout the term of the contract.” Yeah! 
   The additional “fly in the ointment?” The Fiscal Impact analysis states: “The department anticipates the need to source all of the components of the goods to be purchased. This fiscal note assumes that only the final design or assembly of a product must occur in the United States, and that the department will not need to source the individual components of goods to be purchased.” 
   The “flies” in SB 004 warrant repeating: 
•	that verification of a bidder’s eligibility will only occur during the contracting process rather than throughout the term of the contract; and 
•	the escape included in the bill – only the final design or assembly of a product must occur in the United States, and that the department will not need to source the individual components of good to be purchases. 
   With these two escape clauses, how long will it take for a successful bidder to find an end run around the purpose of the law as well as the spirit of it? 
Lead Sponsors of Senate Bill 12-004: Senator Joyce Foster, D-Arapahoe/Denver, 866-4875; Representative Joe Miklosi, D-Arapahoe, 866-2910. 
Senate Bill 12-020:  The bill concerns “Immunity From Certain Criminal Offenses When a Person Reports in Good Faith an Emergency Drug or Alcohol Overdose Event.” The bill was passed in the Senate on a roll-call vote of 25-10. 
   Lead sponsor of SB 020, Senator Irene Aguilar, said, “The bill sends a very strong message that saving lives is much more important than putting people into the criminal justice system; if we can get this information to people who are using prescription and other drugs and let them know that they’re not going to be arrested for helping someone who overdoses, we can help save lives.” 
   “The immunity provided by the bill extends to the individual reporting the overdose, up to two individuals acting in concert with the reporter [of the event] and the individual suffering the overdose,” according to the Fiscal Impact analysis; the reporter of the event must “remain at the scene of the event until law enforcement or emergency medical personnel arrive; must also identify themselves to and cooperate with the law enforcement officer or emergency medical response.” 
Lead Sponsor of Senate Bill 12-020:  Senator Irene Aguilar, M.D., D-Denver/Jefferson, 866-4852; Representative Ken Summers, R-Jefferson, 866-2927.
The reader’s comments or questions are always welcome.  E-mail me at doris@dorisbeaver.com.
Doris Beaver