Colorado 2025 Regular Session

Colorado House Bill HB1101 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fifth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 25-0092.03 Pierce Lively x2059
8	8	HOUSE BILL 25-1101
9	9	House Committees Senate Committees
10	10	Finance
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING DISBURSEMENTS MADE TO NONGOVERNMENTAL ENTITIES101
14	14	ON BEHALF OF STATE AGENCIES .102
15	15	Bill Summary
16	16	(Note: This summary applies to this bill as introduced and does
17	17	not reflect any amendments that may be subsequently adopted. If this bill
18	18	passes third reading in the house of introduction, a bill summary that
19	19	applies to the reengrossed version of this bill will be available at
20	20	http://leg.colorado.gov
21	21	.)
22	22	Currently, the controller is required to adopt fiscal rules requiring
23	23	the state to make disbursements in the payment of any liability incurred
24	24	on behalf of the executive branch of the state within 45 days of receiving
25	25	a correct notice that this liability was incurred. The bill modifies this
26	26	requirement so that either a correct notice of the state's liability or a
27	27	demonstration of a good faith effort to provide a correct notice of the
28	28	HOUSE SPONSORSHIP
29	29	Garcia and Bacon,
30	30	SENATE SPONSORSHIP
31	31	Weissman,
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing law.
34	34	Dashes through the words or numbers indicate deletions from existing law. state's liability initiates the 45-day period.
35	35	A state agency that awards a grant generally requires the grant
36	36	recipient to access the grant amount awarded by applying for the
37	37	reimbursement of costs incurred in completing the activity for which the
38	38	state agency awarded the grant. The bill directs the controller to adopt
39	39	fiscal rules requiring a state agency to award a nonprofit organization a
40	40	retainer when entering into a contract with or awarding a grant to a
41	41	nonprofit organization. The retainer amount must equal at least 35% of
42	42	the grant amount or 35% of the amount to be disbursed by the state to the
43	43	nonprofit organization in the first year of a contract between the state and
44	44	the nonprofit organization. A nonprofit organization is required to spend
45	45	the retainer amount within a year of the state awarding the grant to or
46	46	entering into the contract with the nonprofit organization. A nonprofit
47	47	organization may only expend a retainer on expenses the nonprofit
48	48	organization incurs in connection with the relevant grant or contract.
49	49	The bill also requires a nonprofit organization that receives
50	50	disbursements from the state to provide the following information to the
51	51	controller and requires the controller to make that information available
52	52	upon request:
53	53	! The ethnicity of the nonprofit organization's leadership;
54	54	! The business structure of the nonprofit organization; and
55	55	! Whether the nonprofit organization has previously received
56	56	a disbursement from the state.
57	57	Be it enacted by the General Assembly of the State of Colorado:1
58	58	SECTION 1. In Colorado Revised Statutes, 24-30-202, amend2
59	59	(24)(b); and add (24)(c), (29), and (30) as follows:3
60	60	24-30-202. Procedures - vouchers, warrants, and checks -4
61	61	rules - penalties - definitions - repeal. (24) (b) B
62	62	EFORE JULY 1, 2025,5
63	63	as used in subsection (24)(a) of this section, "liability incurred on behalf6
64	64	of the state" means the receipt of supplies, as defined in section7
65	65	24-101-301 (47), or services, as defined in section 24-101-301 (42), and8
66	66	receipt of a correct notice of the amount due, by the state agency9
67	67	procuring such supplies or services from a nongovernmental entity. No10
68	68	liability is incurred on behalf of the state if a good faith dispute exists as11
69	69	to the state's obligation to pay all or a portion of the account. Nothing in12
70	70	HB25-1101-2- this subsection (24) shall be construed to affect any provision for the time1
71	71	of payment in a written contract between a state agency procuring2
72	72	services or supplies and a nongovernmental entity.3
73	73	(c) B
74	74	EGINNING JULY 1, 2025, AS USED IN SUBSECTION (24)(a) OF4
75	75	THIS SECTION, "LIABILITY INCURRED ON BEHALF OF THE STATE " MEANS5
76	76	THE RECEIPT OF SUPPLIES, AS DEFINED IN SECTION 24-101-301 (47), OR6
77	77	SERVICES, AS DEFINED IN SECTION 24-101-301 (42), AND RECEIPT OF7
78	78	EITHER A CORRECT NOTICE OF THE AMOUNT DUE BY THE STATE AGENCY8
79	79	PROCURING SUCH SUPPLIES OR SERVICES FROM A NONPROFIT9
80	80	ORGANIZATION OR A DEMONSTRATION OF A GOOD FAITH EFFORT TO10
81	81	PROVIDE A CORRECT NOTICE OF THE AMOUNT DUE BY THE STATE AGENCY11
82	82	PROCURING SUCH SUPPLIES OR SERVICES FROM A NONPROFIT12
83	83	ORGANIZATION. IF A GOOD FAITH DISPUTE EXISTS AS TO THE STATE 'S13
84	84	OBLIGATION TO PAY ALL OR A PORTION OF THE ACCOUNT , THE STATE DOES14
85	85	NOT INCUR LIABILITY IN CONNECTION WITH THE PORTION OF THE ACCOUNT15
86	86	FOR WHICH THERE IS A GOOD FAITH DISPUTE . NOTHING IN THIS16
87	87	SUBSECTION (24) SHALL BE CONSTRUED TO AFFECT ANY PROVISION FOR17
88	88	THE TIME OF PAYMENT IN A WRITTEN CONTRACT BETWEEN A STATE18
89	89	AGENCY PROCURING SERVICES OR SUPPLIES AND A NONPROFIT19
90	90	ORGANIZATION.20
91	91	(29) (a) O
92	92	N OR AFTER DECEMBER 31, 2025, THE CONTROLLER21
93	93	SHALL ADOPT FISCAL RULES REQUIRING A STATE AGENCY TO AWARD A22
94	94	NONPROFIT ORGANIZATION A RETAINER WHEN ENTERING INTO A23
95	95	CONTRACT WITH OR AWARDING A GRANT TO A NONPROFIT ORGANIZATION .24
96	96	A
97	97	NONPROFIT ORGANIZATION IS NOT REQUIRED TO COMPLETE ANY25
98	98	PORTION OF THE ACTIVITY FOR WHICH A STATE AGENCY ENTERED INTO A26
99	99	CONTRACT WITH THE NONPROFIT ORGANIZATION OR AWARDED A GRANT27
100	100	HB25-1101
101	101	-3- TO THE NONPROFIT ORGANIZATION, PRIOR TO RECEIVING THE RETAINER. A1
102	102	NONPROFIT ORGANIZATION SHALL SPEND A RETAINER WITHIN ONE YEAR OF2
103	103	RECEIVING THE RETAINER FROM A STATE AGENCY . A NONPROFIT3
104	104	ORGANIZATION MAY SUBMIT A NOTICE OF AN AMOUNT DUE TO THE STATE4
105	105	AFTER THE GRANT OR CONTRACT HAS BEEN IN PLACE FOR A MONTH AND5
106	106	BEFORE EXPENDING ANY AMOUNT OF THE RETAINER , BUT A NONPROFIT6
107	107	ORGANIZATION SHALL NOT SUBMIT A NOTICE OF AMOUNT DUE TO THE7
108	108	STATE FOR EXPENSES COVERED BY THE RETAINER .8
109	109	(b) A
110	110	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE9
111	111	REQUIRES:10
112	112	(I) "N
113	113	ONPROFIT ORGANIZATION" MEANS AN ORGANIZATION THAT11
114	114	IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501 (c)(3) OF THE12
115	115	FEDERAL "INTERNAL REVENUE CODE OF 1986".13
116	116	(II) "R
117	117	ETAINER" MEANS AN AMOUNT EQUAL TO EITHER AT LEAST14
118	118	THIRTY-FIVE PERCENT OF THE VALUE OF A GRANT AWARDED BY A STATE15
119	119	AGENCY TO THE NONPROFIT ORGANIZATION OR AT LEAST THIRTY -FIVE16
120	120	PERCENT OF THE AMOUNT TO BE DISBURSED BY THE STATE TO THE17
121	121	NONPROFIT ORGANIZATION IN THE FIRST YEAR OF A CONTRACT BETWEEN18
122	122	A STATE AGENCY AND A NONPROFIT ORGANIZATION . A NONPROFIT19
123	123	ORGANIZATION MAY ONLY EXPEND A RETAINER ON EXPENSES THAT THE20
124	124	NONPROFIT ORGANIZATION INCURS IN CONNECTION WITH THE RELEVANT21
125	125	GRANT OR CONTRACT.22
126	126	(III)
127	127	"STATE AGENCY" MEANS ANY DEPARTMENT , COMMISSION,23
128	128	COUNCIL, BOARD, BUREAU, COMMITTEE, INSTITUTION OF HIGHER24
129	129	EDUCATION, AGENCY, OR OTHER GOVERNMENTAL UNIT OF THE EXECUTIVE ,25
130	130	LEGISLATIVE, OR JUDICIAL BRANCH OF STATE GOVERNMENT , INCLUDING26
131	131	THE OFFICE OF THE GOVERNOR.27
132	132	HB25-1101
133	133	-4- (30) (a) BEGINNING JANUARY 1, 2026, THE CONTROLLER SHALL1
134	134	REQUIRE THAT EACH NONPROFIT ORGANIZATION THAT RECEIVES2
135	135	DISBURSEMENTS FROM THE STATE PROVIDE THE FOLLOWING3
136	136	INFORMATION:4
137	137	(I) T
138	138	HE ETHNICITY OF THE NONPROFIT ORGANIZATION 'S5
139	139	LEADERSHIP, INCLUDING THE NONPROFIT ORGANIZATION 'S DIRECTOR OR6
140	140	DIRECTOR EQUIVALENT, GOVERNING BODY, AND ANY OTHER LEADERSHIP7
141	141	IDENTIFIED BY THE NONPROFIT ORGANIZATION ;8
142	142	(II) T
143	143	HE BUSINESS STRUCTURE OF THE NONPROFIT ORGANIZATION9
144	144	AS THAT BUSINESS STRUCTURE IS IDENTIFIED BY THE NONPROFIT10
145	145	ORGANIZATION; AND11
146	146	(III) W
147	147	HETHER THE NONPROFIT ORGANIZATION HAS PREVIOUSLY12
148	148	RECEIVED A DISBURSEMENT FROM THE STATE .13
149	149	(b) B
150	150	EGINNING JUNE 1, 2026, THE CONTROLLER SHALL MAKE THE14
151	151	INFORMATION THAT IT COLLECTS PURSUANT TO THIS SUBSECTION (30)15
152	152	AVAILABLE UPON REQUEST.16
153	153	SECTION 2. Act subject to petition - effective date. This act17
154	154	takes effect at 12:01 a.m. on the day following the expiration of the18
155	155	ninety-day period after final adjournment of the general assembly; except19
156	156	that, if a referendum petition is filed pursuant to section 1 (3) of article V20
157	157	of the state constitution against this act or an item, section, or part of this21
158	158	act within such period, then the act, item, section, or part will not take22
159	159	effect unless approved by the people at the general election to be held in23
160	160	November 2026 and, in such case, will take effect on the date of the24
161	161	official declaration of the vote thereon by the governor.25
162	162	HB25-1101
163	163	-5-