AGO 90-1.

Case Date:January 12, 1990
Colorado Attorney General Opinions 1990. AGO 90-1. STATE OF COLORADO OFFICE OF THE ATTORNEY GENERAL FORMAL OPINION OF DUANE WOODARD Attorney General Opinion No. 90-1 AG Alpha No. AD PU AGARE January 12, 1990Michael K. Ghourdjian State Purchasing Director Division of Purchasing Department of Administration 303 West Colfax Avenue, Suite 600 Denver, Colorado 80204 RE: Procurement status of University Hospital after divestitureDear Mr. Ghourdjian, This opinion letter is written in response to your inquiry about the authority of University Hospital after divestiture to enter into cooperative purchasing agreements. QUESTION PRESENTED AND CONCLUSION Does the Corporation which operates University Hospital after divestiture qualify as a "public procurement unit" for purposes of participating in cooperative purchasing agreements authorized by the Colorado Procurement Code? No. ANALYSIS Among other things, the State Procurement Code, Sections 24-101-101 to 24-112-101, C.R.S. (1988 & 1989 Supp.), authorizes "public procurement units" to enter into cooperative purchasing agreements. Section 24-110-201, C.R.S. (1988). "Public procurement units" include "local" public procurement units, Section 24-110-103(4), C.R.S. (1988), which, by definition, include "any educational, health, or other institution, and, to the extent provided by law, any other entity which expends public funds for the procurement of supplies, services and construction." Section 24-110-101(3), C.R.S. (1988). University Hospital was established by the University of Colorado Board of Regents (hereafter, "the Board") to meet the needs and demands for medical, dental, nursing, and pharmacy schools and other health-related programs. Colo. Const. art. VIII Section 5; Section 23-21-101, C.R.S. (1988). Prior to 1989, the Board managed, controlled, and governed the operation of the Hospital. Section 23-21-101, C.R.S. (1988). In 1989, however, the General Assembly determined that the public interest would "be best served if the hospital is reorganized to operate as a private nonprofit corporation charged with the mission of operating a teaching hospital for the benefit of the health sciences schools and providing care for the medically indigent." Section 23-21-401(1)(e), C.R.S. (1989 Supp.). Upon transfer of Hospital assets, the Corporation, not the Board, became...

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