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Colorado bill penalizes state agencies failing audit recommendations by restricting 3% of general fund appropriations

Original title: Audit Enforcement

Last action · March 12, 2026: House Committee on State, Civic, Military, & Veterans Affairs Postpone IndefinitelySponsors: Max Brooks and 3 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

The bill penalizes state agencies that fail to comply with audit recommendations by restricting 3% of their for the following , unless an extension is granted or the restriction is formally lifted.

Why it matters

State agencies face direct funding restrictions affecting their operational budgets if they do not meet audit implementation deadlines or demonstrate a good faith effort to comply.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

noncompliant state agencies

State agencies subject to audit recommendations face a 3% restriction on their general fund appropriations if they fail to comply or show a good faith effort by the deadline.

Directly affected

legislative audit committee

The committee is tasked with voting on agency compliance, deciding on extended implementation dates, and directing the state auditor regarding noncompliant agencies.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What happens if a state agency fails to implement an audit recommendation on time?
The legislative audit committee votes on whether the agency made a good faith effort. If not, the committee can direct the state auditor to notify the state controller, who will then restrict 3% of the agency's for the following .
How can a restricted state agency get its funding restored?
The restriction can be released either if the general assembly enacts a bill to do so or if the legislative audit committee directs the state auditor to notify the state controller to rescind the restriction.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions
  1. Mar 12, 2026House
    House Committee on State, Civic, Military, & Veterans Affairs Postpone Indefinitely
  2. Feb 18, 2026HouseIntroduced
    Introduced In House - Assigned to State, Civic, Military, & Veterans Affairs

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Voting Record

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

state auditor, legislative audit committee, state controller and 1 more
Organizationstate auditor“Notifies the state controller if directed by the legislative audit committee.”Map →
Organizationlegislative audit committee“Determines by majority vote whether a noncompliant state agency made a good fait”Map →
Organizationstate controller“Restricts 3% of general fund appropriations upon receipt of notice from the stat”Map →
Organizationgeneral assembly“Can enact a bill to release funding restrictions on a noncompliant state agency.”Map →

Sources

Open source document

leg.colorado.gov

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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