First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0092.03 Pierce Lively x2059
HOUSE BILL 25-1101
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING DISBURSEMENTS MADE TO NONGOVERNMENTAL ENTITIES101
ON BEHALF OF STATE AGENCIES .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Currently, the controller is required to adopt fiscal rules requiring
the state to make disbursements in the payment of any liability incurred
on behalf of the executive branch of the state within 45 days of receiving
a correct notice that this liability was incurred. The bill modifies this
requirement so that either a correct notice of the state's liability or a
demonstration of a good faith effort to provide a correct notice of the
HOUSE SPONSORSHIP
Garcia and Bacon,
SENATE SPONSORSHIP
Weissman,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. state's liability initiates the 45-day period.
A state agency that awards a grant generally requires the grant
recipient to access the grant amount awarded by applying for the
reimbursement of costs incurred in completing the activity for which the
state agency awarded the grant. The bill directs the controller to adopt
fiscal rules requiring a state agency to award a nonprofit organization a
retainer when entering into a contract with or awarding a grant to a
nonprofit organization. The retainer amount must equal at least 35% of
the grant amount or 35% of the amount to be disbursed by the state to the
nonprofit organization in the first year of a contract between the state and
the nonprofit organization. A nonprofit organization is required to spend
the retainer amount within a year of the state awarding the grant to or
entering into the contract with the nonprofit organization. A nonprofit
organization may only expend a retainer on expenses the nonprofit
organization incurs in connection with the relevant grant or contract.
The bill also requires a nonprofit organization that receives
disbursements from the state to provide the following information to the
controller and requires the controller to make that information available
upon request:
! The ethnicity of the nonprofit organization's leadership;
! The business structure of the nonprofit organization; and
! Whether the nonprofit organization has previously received
a disbursement from the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-30-202, amend2
(24)(b); and add (24)(c), (29), and (30) as follows:3
24-30-202. Procedures - vouchers, warrants, and checks -4
rules - penalties - definitions - repeal. (24) (b) B
EFORE JULY 1, 2025,5
as used in subsection (24)(a) of this section, "liability incurred on behalf6
of the state" means the receipt of supplies, as defined in section7
24-101-301 (47), or services, as defined in section 24-101-301 (42), and8
receipt of a correct notice of the amount due, by the state agency9
procuring such supplies or services from a nongovernmental entity. No10
liability is incurred on behalf of the state if a good faith dispute exists as11
to the state's obligation to pay all or a portion of the account. Nothing in12
HB25-1101-2- this subsection (24) shall be construed to affect any provision for the time1
of payment in a written contract between a state agency procuring2
services or supplies and a nongovernmental entity.3
(c) B
EGINNING JULY 1, 2025, AS USED IN SUBSECTION (24)(a) OF4
THIS SECTION, "LIABILITY INCURRED ON BEHALF OF THE STATE " MEANS5
THE RECEIPT OF SUPPLIES, AS DEFINED IN SECTION 24-101-301 (47), OR6
SERVICES, AS DEFINED IN SECTION 24-101-301 (42), AND RECEIPT OF7
EITHER A CORRECT NOTICE OF THE AMOUNT DUE BY THE STATE AGENCY8
PROCURING SUCH SUPPLIES OR SERVICES FROM A NONPROFIT9
ORGANIZATION OR A DEMONSTRATION OF A GOOD FAITH EFFORT TO10
PROVIDE A CORRECT NOTICE OF THE AMOUNT DUE BY THE STATE AGENCY11
PROCURING SUCH SUPPLIES OR SERVICES FROM A NONPROFIT12
ORGANIZATION. IF A GOOD FAITH DISPUTE EXISTS AS TO THE STATE 'S13
OBLIGATION TO PAY ALL OR A PORTION OF THE ACCOUNT , THE STATE DOES14
NOT INCUR LIABILITY IN CONNECTION WITH THE PORTION OF THE ACCOUNT15
FOR WHICH THERE IS A GOOD FAITH DISPUTE . NOTHING IN THIS16
SUBSECTION (24) SHALL BE CONSTRUED TO AFFECT ANY PROVISION FOR17
THE TIME OF PAYMENT IN A WRITTEN CONTRACT BETWEEN A STATE18
AGENCY PROCURING SERVICES OR SUPPLIES AND A NONPROFIT19
ORGANIZATION.20
(29) (a) O
N OR AFTER DECEMBER 31, 2025, THE CONTROLLER21
SHALL ADOPT FISCAL RULES REQUIRING A STATE AGENCY TO AWARD A22
NONPROFIT ORGANIZATION A RETAINER WHEN ENTERING INTO A23
CONTRACT WITH OR AWARDING A GRANT TO A NONPROFIT ORGANIZATION .24
A
NONPROFIT ORGANIZATION IS NOT REQUIRED TO COMPLETE ANY25
PORTION OF THE ACTIVITY FOR WHICH A STATE AGENCY ENTERED INTO A26
CONTRACT WITH THE NONPROFIT ORGANIZATION OR AWARDED A GRANT27
HB25-1101
-3- TO THE NONPROFIT ORGANIZATION, PRIOR TO RECEIVING THE RETAINER. A1
NONPROFIT ORGANIZATION SHALL SPEND A RETAINER WITHIN ONE YEAR OF2
RECEIVING THE RETAINER FROM A STATE AGENCY . A NONPROFIT3
ORGANIZATION MAY SUBMIT A NOTICE OF AN AMOUNT DUE TO THE STATE4
AFTER THE GRANT OR CONTRACT HAS BEEN IN PLACE FOR A MONTH AND5
BEFORE EXPENDING ANY AMOUNT OF THE RETAINER , BUT A NONPROFIT6
ORGANIZATION SHALL NOT SUBMIT A NOTICE OF AMOUNT DUE TO THE7
STATE FOR EXPENSES COVERED BY THE RETAINER .8
(b) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE9
REQUIRES:10
(I) "N
ONPROFIT ORGANIZATION" MEANS AN ORGANIZATION THAT11
IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501 (c)(3) OF THE12
FEDERAL "INTERNAL REVENUE CODE OF 1986".13
(II) "R
ETAINER" MEANS AN AMOUNT EQUAL TO EITHER AT LEAST14
THIRTY-FIVE PERCENT OF THE VALUE OF A GRANT AWARDED BY A STATE15
AGENCY TO THE NONPROFIT ORGANIZATION OR AT LEAST THIRTY -FIVE16
PERCENT OF THE AMOUNT TO BE DISBURSED BY THE STATE TO THE17
NONPROFIT ORGANIZATION IN THE FIRST YEAR OF A CONTRACT BETWEEN18
A STATE AGENCY AND A NONPROFIT ORGANIZATION . A NONPROFIT19
ORGANIZATION MAY ONLY EXPEND A RETAINER ON EXPENSES THAT THE20
NONPROFIT ORGANIZATION INCURS IN CONNECTION WITH THE RELEVANT21
GRANT OR CONTRACT.22
(III)
"STATE AGENCY" MEANS ANY DEPARTMENT , COMMISSION,23
COUNCIL, BOARD, BUREAU, COMMITTEE, INSTITUTION OF HIGHER24
EDUCATION, AGENCY, OR OTHER GOVERNMENTAL UNIT OF THE EXECUTIVE ,25
LEGISLATIVE, OR JUDICIAL BRANCH OF STATE GOVERNMENT , INCLUDING26
THE OFFICE OF THE GOVERNOR.27
HB25-1101
-4- (30) (a) BEGINNING JANUARY 1, 2026, THE CONTROLLER SHALL1
REQUIRE THAT EACH NONPROFIT ORGANIZATION THAT RECEIVES2
DISBURSEMENTS FROM THE STATE PROVIDE THE FOLLOWING3
INFORMATION:4
(I) T
HE ETHNICITY OF THE NONPROFIT ORGANIZATION 'S5
LEADERSHIP, INCLUDING THE NONPROFIT ORGANIZATION 'S DIRECTOR OR6
DIRECTOR EQUIVALENT, GOVERNING BODY, AND ANY OTHER LEADERSHIP7
IDENTIFIED BY THE NONPROFIT ORGANIZATION ;8
(II) T
HE BUSINESS STRUCTURE OF THE NONPROFIT ORGANIZATION9
AS THAT BUSINESS STRUCTURE IS IDENTIFIED BY THE NONPROFIT10
ORGANIZATION; AND11
(III) W
HETHER THE NONPROFIT ORGANIZATION HAS PREVIOUSLY12
RECEIVED A DISBURSEMENT FROM THE STATE .13
(b) B
EGINNING JUNE 1, 2026, THE CONTROLLER SHALL MAKE THE14
INFORMATION THAT IT COLLECTS PURSUANT TO THIS SUBSECTION (30)15
AVAILABLE UPON REQUEST.16
SECTION 2. Act subject to petition - effective date. This act17
takes effect at 12:01 a.m. on the day following the expiration of the18
ninety-day period after final adjournment of the general assembly; except19
that, if a referendum petition is filed pursuant to section 1 (3) of article V20
of the state constitution against this act or an item, section, or part of this21
act within such period, then the act, item, section, or part will not take22
effect unless approved by the people at the general election to be held in23
November 2026 and, in such case, will take effect on the date of the24
official declaration of the vote thereon by the governor.25
HB25-1101
-5-