News
CCA Sine Die Report
The 2019 legislative session certainly brought more than its share of drama
and challenges as the Democrat majority in the House and Senate and Governor
Polis implemented their agenda. Through it all, CCA was aggressive and
successful on a number of fronts including in our fight for infrastructure
funding and in protecting our members from some of the most onerous
proposals of 2019. Below is a recap of the highlights. For more detail,
check out the Capstone Group’s
Sine Die Report.
Transportation Funding - $800 Million
Additional for FY 2020
After significant lobbying and bi-partisan negotiating facilitated by CCA in
the final days of session,
SB19-262 and
SB19-263 were introduced that will transfer an additional $100 million
on top of the original budget number of $200 million from the General Fund
to the Highway User Tax Fund (HUTF) and postpone the referred bonding
measure from 2019 to 2020. This brought the total funding for CDOT to about
$760 million above the base program, for this construction season. $260
million is a direct general fund transfer and $500 million funded through
lease purchase agreements that would have been delayed had the referred
measure moved forward this year. An additional $40 million was distributed
to counties and cities through the HUTF to help boost local construction
projects. As a direct result of CCA’s and the CIC 527’s efforts, the CDOT
construction program is expected to be around $1 billion in lettings for the
2019-20 fiscal year which starts in July 2019. This is up from about $650
million in the 2018 FY.
This session, Speaker of the House KC Becker led the push for two statewide
“de-brucing” bills that will ask voters for permission to permanently retain
revenue above the TABOR cap and use the revenue above the TABOR limit for
K-12 education, transportation, and higher education. CCA supported both
bills.
HB19-1257 sends the question to the voters and
HB19-1258 delineates how the revenue would be spent if the ballot
measure is approved by the voters. The ballot measure, Proposition CC, will
require a simple majority to pass at the 2019 November election and if
approved could mean hundreds of millions of dollars dedicated to
transportation over the coming years.
Water Funding – Potential for $10 Million
Per Year
Sports betting is currently prohibited in Colorado, but a recent Supreme
Court case allows states to individually decide to authorize sports betting.
CCA-supported
HB19-1327allows facilities where limited gaming currently occurs to
apply for a sports betting license. Voters must first decide whether to
approve a 10% tax on sports betting proceeds. If the ballot measure is
successful, the majority of the new tax revenue would fund implementation of
the Colorado Water Plan. The measure, if approved by voters is expected to
general about $10 million per year for water projects. CCA is participating
in a broad coalition working to fund the State Water Plan. The group is
supporting the referred measure in 2019 and exploring additional measure on
the 2020 ballot to fund water projects.
CCA and AGC Fight Off Attack on The Low Bid
System
SB19-196 as introduced would have virtually eliminated the traditional
low bid system for all CDOT as well as local agency work by mandating best
value or Integrated Project Delivery (such as Design Build or CMGC). In
addition it would have placed a cumbersome apprentice utilization and
reporting requirements on the industry. Prior to the bill's first hearing,
CCA and AGC Colorado met with the bill sponsors and proponents to explain
the many pitfalls of the legislation and the importance of maintaining the
traditional low bid system of procurement. CCA and AGC Colorado were
successful in getting the bill sponsors to issue a "strike below" amendment
to the bill which eliminates all of the original language and replaces it
with an amendment. The amended bill puts into place a state prevailing wage
mirroring the federal David Bacon program for state funded projects bid
through CDOT. It also exempts political subdivisions such as cities,
counties and special districts from the bill. The bill was approved by the
General Assembly and is awaiting the Governor’s signature. CCA members with
state-only funded projects who need help with the new OJT requirements
should contact Moses Alvarez, CCA’s Director of Training at 303-290-6611 or
malvarez@ccainfo.org.
CCA and AGC Advance Workforce Development
HB19-1008 was passed by the General Assembly and signed by the Governor
earlier this year. The bill will help bring traditional shop classes back to
Colorado high schools by amending the "Building Excellent Schools Today Act"
to allow the public school capital construction assistance board to provide
grants to support career and technical education capital construction, which
is defined as new construction or retrofitting of public school facilities
for certain career and technical education programs; and equipment necessary
for individual student learning and classroom instruction, including
equipment that provides access to instructional materials or that is
necessary for professional use by a classroom teacher. This is one of a
number of measures CCA and AGC Colorado has supported to help increase the
pipeline of young people interested in construction as a career.
SB 76 Amended Per CCA’s Suggestion, Will
Study Use of Consultants
As introduced,
SB19-76 would have required the Department to procure consulting
engineering services on Design-Bid-Build projects via fixed bids. CCA took a
position of “actively monitor” on the bill and suggested to the bill sponsor
Sen. Ray Scott that it be amended to instead require a study of CDOT’s
procurement process for consulting engineering services. CCA articulated
the position that although we believe there is a problem with the way
consultants are utilized currently, we were not convinced requiring a fixed
bid would solve the problem and believe the issue needs to be further
studied. During the Senate Transportation Committee hearing for SB 76, the
bill sponsor, per our request, amended the bill to require the Efficiency
and Accountability Committee study CDOT’s processes. CCA holds a seat on the
Efficiency and Accountability Committee and will actively advocate for a
timely and unbiased study of these issues and that appropriate
administrative changes be made by CDOT once the study is complete. With the
suggested changes made, the CCA supported bill was approved by the General
Assembly and signed by the Governor.
Fighting Costly Mandates
In the face of stringent opposition from the business community, the Senate
Democrats abandoned their plan for a mandated state-run paid family leave
act and instead will study the issue for a year. CCA was part of a broad
coalition fighting the costly, job-killing
SB19-188. CCA issued an Action Alert mobilizing members and employees to
contact their Senator and the Senate leadership where the bill had been
stalled for weeks. "This is great news for employers, employees and the
Colorado economy," said CCA's Tony Milo. "The issue will no-doubt return
next session, but for now we can be relieved that enough members of the
Senate understood the profound costs this measure would have forced upon
Colorado businesses and employees."
For more detail on the 2019 session, check out the Capstone Group’s
Sine Die Report.