Special Districts Now Have Additional Contracting Requirements

In 2006 the Colorado legislature adopted a law that prohibits the State as well as any political subdivision, including special districts, from entering into or renewing a public contract for services with a contractor who knowingly employs or contracts with an illegal alien.  SB08-193, which became effective on May 13, 2008, makes some significant changes to that law.  The significant changes are: 1) contractors can now limit their confirmation of employment eligibility to only those employees that will provide services to the special district; 2) the law applies only to employees hired since the date of the contract; 3) the law does not apply to agreements related to the offer, issuance or sale of securities, agreements for investment advisory services or fund management services, contracts concerning research projects at institutions of higher education, intergovernmental agreements and agreements for information technology services or products and services.  It remains debatable whether the law applies to contracts for things like legal services, engineering services, etc. but our advise is to be safe rather than sorry and assume the law does include these types of contracts.