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COLORADO'S FRONTPAGE

Face the State

Sole-source contract reporting up, but Amendment 54 hangs in limbo

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June 29, 2009

Face The State Staff Report

Despite a lawsuit challenging the constitutionality of the voter-approved Amendment 54, reporting of no-bid government contracts - a requirement under the disputed law - has increased.

Amendment 54, which was narrowly approved by 51 percent of voters last November, restricts the recipients of sole-source or "no bid" government contracts of $100,000 or more from contributing to political candidates. It also requires the creation of a searchable database listing the recipients of such contracts.

In January, Face The State reported only 5 vendors had reported a combined 46 sole-source government contracts, including only 2 with state government. Six months later, that number has increased to 39 firms reporting 229 contracts.

According to the language of Amendment 54, holders of sole-source government contracts are responsible for reporting that information to the Department of Personnel and Administration, which is then required to for publish that information in a publicly available database.

But the fate of the Amendment 54 database is uncertain. A coalition of non-profits, business groups and labor unions allege Amendment 54 unconstitutionally limits free speech by banning political contributions. The Attorney General is defending the case on behalf of the state.

Denver District Court Judge Catherine Lemon issued an injunction against Amendment 54 on Tuesday, which will temporarily shelve the donations ban. There is no word yet on what will become of the database.

According to Mike Saccone, communications manager for the Attorney General’s Office, that question should be answered in once Lemon releases a written order. “We’re expecting it soon, but that is up to the judge,” he said.