BY REPRESENTATIVES Taylor, Clarke, and Leyba;
also SENATORS Reeves, Bishop, and Linkhart.
CONCERNING THE MODIFICATION OF REQUIREMENTS FOR THE
EXEMPTION OF CERTAIN LOCAL GOVERNMENTS FROM AUDITS.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 291604,
Colorado Revised Statutes, is amended to read:
291604. Exemptions.
(1) Any local government where neither revenues nor
expenditures exceed fifty thousand
ONE HUNDRED THOUSAND dollars in any fiscal year COMMENCING ON
OR AFTER JANUARY 1, 1998, may, with the approval of the state
auditor, be exempt from the provisions of section 291603.
(2) Any local government where revenues
or expenditures for any fiscal year COMMENCING ON OR AFTER JANUARY
1, 1998, are at least fifty thousand
ONE HUNDRED THOUSAND dollars but not more than one
hundred twentyfive thousand
THREE HUNDRED THOUSAND dollars may, with the approval of the state
auditor, be exempt from the provisions of section 291603.
for any two consecutive fiscal
years, shall not be exempt for the
third consecutive fiscal year, and may thereafter again be exempt
for any two consecutive fiscal years in the same manner.
(3) The governing body of any local government
wishing to claim exemption from the audit requirements pursuant
to subsection (1) or (2) of this section shall file an application
for exemption from audit. ANY APPLICATION FILED PURSUANT TO SUBSECTION
(1) OF THIS SECTION shall be prepared by a person skilled in GOVERNMENTAL
accounting. ANY APPLICATION FILED PURSUANT TO SUBSECTION (2)
OF THIS SECTION SHALL BE PREPARED BY AN INDEPENDENT ACCOUNTANT
WITH KNOWLEDGE OF GOVERNMENTAL ACCOUNTING. ANY APPLICATION FILED
PURSUANT TO THIS SUBSECTION (3) SHALL BE COMPLETED in accordance
with regulations issued by the state auditor and shall be personally
reviewed, approved, and signed by a majority of the members of
the governing body. The application is to be filed with the state
auditor within three months after the close of the local government's
fiscal year. No exemption shall be granted prior to the close
of said fiscal year. Failure to file such application shall cause
the local government to lose its exemption from the provisions
of section 291603 for that fiscal year and the ensuing
fiscal year.
SECTION 2. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Patricia K. Dicks
CHIEF CLERK OF THE HOUSE ASSISTANT SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO