First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0145.01 Jed Franklin x5484
SENATE BILL 25-023
Senate Committees House Committees
Local Government & Housing
A BILL FOR AN ACT
C
ONCERNING LOCAL GOVERNMENT AUDIT EXEMPTION THRESHOLDS .101
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/
.)
Legislative Audit Committee. Currently, a local government must
obtain an audit of its financial statements for each fiscal year or obtain
approval from the state auditor for an exemption if they meet certain
requirements. A local government with total revenues and expenditures
that are each less than or equal to $100,000 during a fiscal year may
complete an application for exemption from audit. A local government
seeking this exemption must provide the state auditor with an application
prepared by a person who is skilled in government accounting. A local
SENATE SPONSORSHIP
Pelton R. and Michaelson Jenet, Frizell, Gonzales J., Pelton B.
HOUSE SPONSORSHIP
Lindstedt, Boesenecker
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. government with total revenues or expenditures that are over $100,000
and no more than $750,000 during a fiscal year may also complete an
application for exemption from audit. A local government seeking this
exemption must provide the state auditor with an application that is
prepared by an independent accountant with knowledge of government
accounting.
The bill changes these 2 thresholds for any fiscal year commencing
on or after January 1, 2025. First, the bill changes the $100,000 threshold
to $200,000. Second, the bill changes the $750,000 threshold to
$1,000,000. The bill would provide consistency with federal requirements
and align statutory thresholds with current inflationary values.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 29-1-604, amend (1)2
and (2)(b) as follows:3
29-1-604. Exemptions. (1) Any local government where neither4
revenues nor expenditures exceed one hundred thousand dollars in any5
fiscal year commencing on or after January 1, 1998,
BUT BEFORE6
J
ANUARY 1, 2025, AND WHERE NEITHER REVENUES NOR EXPENDITURES7
EXCEED TWO HUNDRED THOUSAND DOLLARS FOR ANY FISCAL YEAR8
COMMENCING ON OR AFTER JANUARY 1, 2025, may, with the approval of9
the state auditor, be exempt from the provisions of section 29-1-603.10
(2) (b) (I) Any local government where revenues or expenditures11
for any fiscal year commencing on or after January 1, 2015,
BUT BEFORE12
J
ANUARY 1, 2025, are at least one hundred thousand dollars but not more13
than seven hundred fifty thousand dollars may, with the approval of the14
state auditor, be exempt from the provisions of section 29-1-603.15
(II) A
NY LOCAL GOVERNMENT WHERE REVENUES OR16
EXPENDITURES FOR ANY FISCAL YEAR COMMENCING ON OR AFTER17
J
ANUARY 1, 2025, ARE MORE THAN TWO HUNDRED THOUSAND DOLLARS18
BUT NOT MORE THAN ONE MILLION DOLLARS MAY , WITH THE APPROVAL OF19
SB25-023-2- THE STATE AUDITOR, BE EXEMPT FROM THE PROVISIONS OF SECTION1
29-1-603.2
SECTION 2. Act subject to petition - effective date. This act3
takes effect at 12:01 a.m. on the day following the expiration of the4
ninety-day period after final adjournment of the general assembly; except5
that, if a referendum petition is filed pursuant to section 1 (3) of article V6
of the state constitution against this act or an item, section, or part of this7
act within such period, then the act, item, section, or part will not take8
effect unless approved by the people at the general election to be held in9
November 2026 and, in such case, will take effect on the date of the10
official declaration of the vote thereon by the governor.11
SB25-023
-3-