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CO HB1254

CO HB1254
Audit Enforcement


summary

Introduced
02/18/2026
In Committee
02/18/2026
Crossed Over
Passed
Dead
03/12/2026

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

The bill defines "noncompliant state agency" with respect to the implementation date for an audit recommendation and requires the legislative audit committee (committee) to determine, by majority vote, whether or not a noncompliant state agency has made a good faith effort to comply with an audit recommendation by the implementation date. If the committee determines that the noncompliant state agency has made a good faith effort, the committee may accept an extended implementation date provided by the noncompliant state agency. If the committee determines there has not been a good faith effort, the committee may direct the state auditor to notify the state controller of the noncompliant state agency. The bill also requires the state controller to, upon receipt of notice from the state auditor, restrict, in an amount equal to 3% of the total amount of the noncompliant state agency's general fund appropriations, the noncompliant state agency's appropriations for the fiscal year following the fiscal year in which the state controller receives the notice from the state auditor. This restriction may only be released if the general assembly enacts a bill to do so, or if the committee directs the state auditor to notify the state controller to rescind the restriction.

AI Summary

This bill establishes a process for enforcing audit recommendations made to state agencies, defining a "noncompliant state agency" as one that has agreed to an audit recommendation but failed to implement it by the agreed-upon date. The Legislative Audit Committee (committee) will then determine if the agency made a good faith effort to comply; if so, the committee can grant an extended deadline. However, if the committee finds no good faith effort, it can direct the State Auditor to notify the State Controller, who will then restrict 3% of the agency's general fund appropriations for the following fiscal year. This restriction can only be lifted by a new bill passed by the General Assembly or if the committee directs the State Auditor to tell the State Controller to remove it.

Committee Categories

Military Affairs and Security

Sponsors (4)

Last Action

House Committee on State, Civic, Military, & Veterans Affairs Postpone Indefinitely (on 03/12/2026)

bill text


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bill summary

Document Type Source Location
State Bill Page https://leg.colorado.gov/bills/HB26-1254
House State, Civic, Military, & Veterans Affairs Amendment L.001 https://leg.colorado.gov/bill_amendments/18456/download
Fiscal Note FN1 https://leg.colorado.gov/bill_files/112846/download
BillText https://leg.colorado.gov/bill_files/112209/download
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