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Bill > HB1101

CO HB1101

CO HB1101
State Disbursement Process

summary

Introduced
01/27/2025
In Committee
02/10/2025
Crossed Over
Passed
Dead
05/07/2025

Introduced Session

Potential new amendment
2025 Regular Session

Bill Summary

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 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.

AI Summary

This bill modifies the state disbursement process for nonprofit organizations in several key ways. Beginning July 1, 2025, the state will consider a liability incurred not just upon receiving a correct notice, but also when a nonprofit organization demonstrates a good faith effort to provide a correct notice. Starting December 31, 2025, state agencies will be required to award a retainer (at least 35% of the grant or contract amount) to nonprofit organizations when entering into contracts or awarding grants. The nonprofit must spend this retainer within one year and only on expenses directly related to the specific grant or contract. Additionally, beginning January 1, 2026, nonprofit organizations receiving state disbursements will need to provide the controller with information about their leadership's ethnicity, business structure, and previous state funding history. The controller will be required to make this information available upon request starting June 1, 2026. These changes aim to provide more upfront financial support to nonprofit organizations and increase transparency about their organizational makeup and funding history. The bill includes provisions defining key terms like "nonprofit organization" and "retainer" and specifies that these rules apply to organizations exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

House Committee on Appropriations Lay Over Unamended - Amendment(s) Failed (on 05/13/2025)

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