2007 Legislative Summary: Purchasing and Contracting

Changes affecting the bidding procedures for public construction projects continue to dominate the legislative agenda in the public contracting area. The legislature increased the dollar threshold at which formal bidding of construction contracts is required, after having increased the informal bid threshold in 2005. New laws about Department of Insurance approval of project plans, retainage on payments due to contractors, and certification of historically underutilized businesses for public contracts will also affect the public construction process. Several bills that were introduced but not passed focused on illegal immigrants, including some that would have required verification of individuals’ immigration status as a precondition of contracting with public agencies. The legislature enacted a new exception authorizing local governments to purchase from federal contract vendors. Finally, as is typical in every session, the legislature approved several local exemptions to the state bidding requirements.