CO
Colorado Senate Bill SB023

Colorado 2025 Regular Session

Colorado Senate Bill SB023 Compare Versions

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1+First Regular Session
2+Seventy-fifth General Assembly
3+STATE OF COLORADO
4+REREVISED
5+This Version Includes All Amendments
6+Adopted in the Second House
7+LLS NO. 25-0145.01 Jed Franklin x5484
18 SENATE BILL 25-023
2-BY SENATOR(S) Pelton R. and Michaelson Jenet, Frizell, Gonzales J.,
3-Pelton B., Rodriguez;
4-also REPRESENTATIVE(S) Lindstedt, Boesenecker, Bird, McCluskie.
9+Senate Committees House Committees
10+Local Government & Housing Transportation, Housing & Local Government
11+A BILL FOR AN ACT
512 C
6-ONCERNING LOCAL GOVERNMENT AUDIT EXEMPTION THRESHOLDS .
7-Be it enacted by the General Assembly of the State of Colorado:
8-SECTION 1. In Colorado Revised Statutes, 29-1-604, amend (1)
9-and (2)(b) as follows:
10-29-1-604. Exemptions. (1) Any local government where neither
11-revenues nor expenditures exceed one hundred thousand dollars in any
13+ONCERNING LOCAL GOVERNMENT AUDIT EXEMPTION THRESHOLDS .101
14+Bill Summary
15+(Note: This summary applies to this bill as introduced and does
16+not reflect any amendments that may be subsequently adopted. If this bill
17+passes third reading in the house of introduction, a bill summary that
18+applies to the reengrossed version of this bill will be available at
19+http://leg.colorado.gov/
20+.)
21+Legislative Audit Committee. Currently, a local government must
22+obtain an audit of its financial statements for each fiscal year or obtain
23+approval from the state auditor for an exemption if they meet certain
24+requirements. A local government with total revenues and expenditures
25+that are each less than or equal to $100,000 during a fiscal year may
26+complete an application for exemption from audit. A local government
27+seeking this exemption must provide the state auditor with an application
28+prepared by a person who is skilled in government accounting. A local
29+HOUSE
30+3rd Reading Unamended
31+March 25, 2025
32+HOUSE
33+2nd Reading Unamended
34+March 20, 2025
35+SENATE
36+3rd Reading Unamended
37+February 5, 2025
38+SENATE
39+2nd Reading Unamended
40+February 4, 2025
41+SENATE SPONSORSHIP
42+Pelton R. and Michaelson Jenet, Frizell, Gonzales J., Pelton B., Rodriguez
43+HOUSE SPONSORSHIP
44+Lindstedt, Boesenecker, Bird, McCluskie
45+Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
46+Capital letters or bold & italic numbers indicate new material to be added to existing law.
47+Dashes through the words or numbers indicate deletions from existing law. government with total revenues or expenditures that are over $100,000
48+and no more than $750,000 during a fiscal year may also complete an
49+application for exemption from audit. A local government seeking this
50+exemption must provide the state auditor with an application that is
51+prepared by an independent accountant with knowledge of government
52+accounting.
53+The bill changes these 2 thresholds for any fiscal year commencing
54+on or after January 1, 2025. First, the bill changes the $100,000 threshold
55+to $200,000. Second, the bill changes the $750,000 threshold to
56+$1,000,000. The bill would provide consistency with federal requirements
57+and align statutory thresholds with current inflationary values.
58+Be it enacted by the General Assembly of the State of Colorado:1
59+SECTION 1. In Colorado Revised Statutes, 29-1-604, amend (1)2
60+and (2)(b) as follows:3
61+29-1-604. Exemptions. (1) Any local government where neither4
62+revenues nor expenditures exceed one hundred thousand dollars in any5
1263 fiscal year commencing on or after January 1, 1998,
13-BUT BEFORE JANUARY
14-1, 2025, AND WHERE NEITHER REVENUES NOR EXPENDITURES EXCEED TWO
15-HUNDRED THOUSAND DOLLARS FOR ANY FISCAL YEAR COMMENCING ON OR
16-AFTER
17-JANUARY 1, 2025, may, with the approval of the state auditor, be
18-exempt from the provisions of section 29-1-603.
19-(2) (b) (I) Any local government where revenues or expenditures for
20-any fiscal year commencing on or after January 1, 2015,
21-BUT BEFORE
22-JANUARY 1, 2025, are at least one hundred thousand dollars but not more
23-NOTE: This bill has been prepared for the signatures of the appropriate legislative
24-officers and the Governor. To determine whether the Governor has signed the bill
25-or taken other action on it, please consult the legislative status sheet, the legislative
26-history, or the Session Laws.
27-________
28-Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29-through words or numbers indicate deletions from existing law and such material is not part of
30-the act. than seven hundred fifty thousand dollars may, with the approval of the
31-state auditor, be exempt from the provisions of section 29-1-603.
64+BUT BEFORE6
65+J
66+ANUARY 1, 2025, AND WHERE NEITHER REVENUES NOR EXPENDITURES7
67+EXCEED TWO HUNDRED THOUSAND DOLLARS FOR ANY FISCAL YEAR8
68+COMMENCING ON OR AFTER JANUARY 1, 2025, may, with the approval of9
69+the state auditor, be exempt from the provisions of section 29-1-603.10
70+(2) (b) (I) Any local government where revenues or expenditures11
71+for any fiscal year commencing on or after January 1, 2015,
72+BUT BEFORE12
73+J
74+ANUARY 1, 2025, are at least one hundred thousand dollars but not more13
75+than seven hundred fifty thousand dollars may, with the approval of the14
76+state auditor, be exempt from the provisions of section 29-1-603.15
3277 (II) A
33-NY LOCAL GOVERNMENT WHERE REVENUES OR EXPENDITURES
34-FOR ANY FISCAL YEAR COMMENCING ON OR AFTER
35-JANUARY 1, 2025, ARE
36-MORE THAN TWO HUNDRED THOUSAND DOLLARS BUT NOT MORE THAN ONE
37-MILLION DOLLARS MAY
38-, WITH THE APPROVAL OF THE STATE AUDITOR , BE
39-EXEMPT FROM THE PROVISIONS OF SECTION
40-29-1-603.
41-SECTION 2. Act subject to petition - effective date. This act
42-takes effect at 12:01 a.m. on the day following the expiration of the
43-ninety-day period after final adjournment of the general assembly; except
44-that, if a referendum petition is filed pursuant to section 1 (3) of article V
45-of the state constitution against this act or an item, section, or part of this act
46-within such period, then the act, item, section, or part will not take effect
47-unless approved by the people at the general election to be held in
48-PAGE 2-SENATE BILL 25-023 November 2026 and, in such case, will take effect on the date of the official
49-declaration of the vote thereon by the governor.
50-____________________________ ____________________________
51-James Rashad Coleman, Sr.
52-Julie McCluskie
53-PRESIDENT OF SPEAKER OF THE HOUSE
54-THE SENATE OF REPRESENTATIVES
55-____________________________ ____________________________
56-Esther van Mourik Vanessa Reilly
57-SECRETARY OF CHIEF CLERK OF THE HOUSE
58-THE SENATE OF REPRESENTATIVES
59- APPROVED________________________________________
60- (Date and Time)
61- _________________________________________
62- Jared S. Polis
63- GOVERNOR OF THE STATE OF COLORADO
64-PAGE 3-SENATE BILL 25-023
78+NY LOCAL GOVERNMENT WHERE REVENUES OR16
79+EXPENDITURES FOR ANY FISCAL YEAR COMMENCING ON OR AFTER17
80+J
81+ANUARY 1, 2025, ARE MORE THAN TWO HUNDRED THOUSAND DOLLARS18
82+BUT NOT MORE THAN ONE MILLION DOLLARS MAY , WITH THE APPROVAL OF19
83+023-2- THE STATE AUDITOR, BE EXEMPT FROM THE PROVISIONS OF SECTION1
84+29-1-603.2
85+SECTION 2. Act subject to petition - effective date. This act3
86+takes effect at 12:01 a.m. on the day following the expiration of the4
87+ninety-day period after final adjournment of the general assembly; except5
88+that, if a referendum petition is filed pursuant to section 1 (3) of article V6
89+of the state constitution against this act or an item, section, or part of this7
90+act within such period, then the act, item, section, or part will not take8
91+effect unless approved by the people at the general election to be held in9
92+November 2026 and, in such case, will take effect on the date of the10
93+official declaration of the vote thereon by the governor.11
94+023
95+-3-