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Some Lawmakers Want To Reward Businesses That Hire Coloradans

DENVER (CBS4) - State lawmakers want to give businesses that hire Coloradans a leg up in winning state contracts.

Democrats already have their first bill even though the new legislature doesn't start until next month.

At Raymond's Painting in Denver workers get health insurance, retirement and training. But they don't always get the contract. Owner Estevan Trujillo says he's often undercut by companies that offer no benefits, and many of them are from out of state.

"They'll come in with three or four vans and a number of people. They paint a complex and then they leave. It's very short-lived for Colorado, and that happens a lot," Trujillo said.

"At the very core this is about hiring Colorado workers," Senate President Brandon Schaffer said.

Schaffer says its time the state gave preference to company's like Trujillo's.

Democratic lawmakers announced Tuesday the first bill they will introduce this session would make it easier for businesses that employ Coloradans and provide benefits to win bids.

At the state, the low bid wins. So if Company A bids $10.4 million and Company B bids $10 million, Company B gets the contract.

But under Senate Bill 1, if 90 percent of Company A's workers live in Colorado, its bid is lowered 3 percent. If it provides health insurance and retirement it goes down another 1 percent. And if it offers an apprentice program it drops by an additional 1 percent. So Company A's bid would now come in at $9.9 million. But the state would pay $10.4 million -- more than it would have -- and that doesn't sit well with some Republicans.

"I think we are concerned about how this might hurt universities in terms of, where are they going to find new money," said Rep. BJ Nichols, R-Loveland.

But Democrats say the state will more than make up the difference.

"Which is more income tax, sales tax, less unemployment in Colorado, which through the turn in the economy will actually generate more money," said Rep. Mark Ferrandino, D-Denver said.

From Trujillo's point of view, it makes sense.

"We keep our guys employed and hopefully we expand and get bigger and employ more people," he said.

The National Federation of Small Businesses has opposed similar bills in the past. The head of the local chapter told CBS4 the money is better spent on lowering the tax and regulatory burden on businesses.

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