§ 24-103-1102 — Legislative declaration

(1) The general assembly hereby
finds, determines, and declares that:

(a) When it enacted Senate Bill 19-135 in 2019, it found, determined and
declared, in section 24-103-1001, the importance of ensuring an equitable state
procurement process;

(b) As required by Senate Bill 19-135, the department contracted with an
entity independent of the department to conduct a state disparity study regarding
the participation of historically underutilized businesses, which included a review of
minority-owned businesses, women-owned businesses, businesses owned by
persons with disabilities, and businesses owned by members of the lesbian, gay,
bisexual, and transgender community, in state contracts entered into by any
department, agency, or institution of the executive branch of state government;

(c) The state disparity study examined whether a disparity exists between
the percentage of state contract dollars going to historically underutilized
businesses and the percentage that might be expected to go to those businesses
based on the relative number of those businesses that are ready, willing, and able
to perform different types, sizes, and locations of state contracts;

(d) The independent entity completed the required state disparity study and
issued the 2020 state of Colorado disparity study final report in November 2020,
which found that:

(I) Minority-owned and women-owned businesses received about eight
percent of state contract dollars, below the twenty-eight percent expected from
the availability analysis;

(II) Utilization of firms owned by persons with disabilities was less than one
percent of contract dollars, below the twelve percent expected from the availability
analysis;

(III) A very small percentage of contract dollars went to businesses certified
as being owned by members of the lesbian, gay, bisexual, and transgender
community (LGBT-certified businesses), but because a very small number of
businesses in the availability analysis were LGBT-certified businesses, that
utilization is comparable to the availability benchmark for LGBT-certified
businesses;

(IV) There was a substantial disparity between utilization and availability for
firms owned by African American persons, Hispanic American persons, Native
American persons, white women, and persons with disabilities for state
construction, construction-related professional services, other professional
services, goods and other services contracts;

(V) There was a substantial disparity for businesses owned by Asian
American persons for other professional services contracts; and

(VI) For state brokerage and investment contracts, there were substantial
disparities between utilization and availability of businesses owned by African
American persons, Hispanic American persons, Native American persons, and white
women;

(e) As detailed in the state disparity study report, the results of the study
indicate that disparities between availability of historically underutilized businesses
and utilization of such businesses exists in state contracting;

(f) Although the state is already endeavoring to help small businesses obtain
state contracts, it is doing so with limited tools and resources;

(g) The disparities identified in the state disparity report are likely to persist
unless further action is taken; and

(h) The state disparity study report recommended that the general assembly
consider enacting legislation to authorize and fund a procurement equity program
to address the specific disparities shown in the state disparity study report for
historically underutilized businesses based on industry and business ownership.

Legislative History

Source: L. 2022: Entire part added, (SB 22-163), ch. 433, p. 3046, � 1, effective June 8.