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Second Regular Session
Sixty-first General Assembly
LLS NO. 980735.01D JAG
HOUSE BILL 981262
STATE OF COLORADO
BY REPRESENTATIVE T. Williams
A BILL FOR AN ACT
CONCERNING A REQUIREMENT THAT CERTAIN LOCAL GOVERNMENT
AUDITS DISPLAY INFORMATION RELATED TO GOVERNMENTAL COMMERCIAL
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Requires certain local government audits to include
exhibits displaying information related to governmental commercial
activities. Defines "commercial activities" to include
governmental provision of goods and services ordinarily obtained
from nongovernment sources.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 291602, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
291602. Definitions. As used in this part 6, unless the context otherwise requires:
(2.5) "COMMERCIAL ACTIVITY" MEANS PERFORMING SERVICES OR PROVIDING GOODS WHICH CAN NORMALLY BE OBTAINED FROM NONGOVERNMENT SOURCES INCLUDING, BUT NOT LIMITED TO, THE MANUFACTURING, PROCESSING, MANAGING, SALE, OFFERING FOR SALE, RENTAL, LEASING, DELIVERING, DISPENSING, DISTRIBUTING, OR ADVERTISING, IN WHOLE OR IN PART, OF ANY GOOD OR SERVICE.
SECTION 2. 291603 (4), Colorado Revised Statutes, is amended to read:
291603. Audits required. (4) (a) The entities listed in section 291602 (5) (b) shall annually have an audit made by a certified public accountant and shall file a copy of the audit report made pursuant to such audit with the state auditor no later than thirty days after the report is received by such entity.
(b) THE AUDIT REQUIRED BY PARAGRAPH (a) OF THIS SUBSECTION (4) SHALL INCLUDE SUCH EXHIBITS AS ARE NECESSARY TO DISPLAY FOR THE PUBLIC THE TRUE COST OF ANY ACTIVITY THAT IS A COMMERCIAL ACTIVITY. SUCH EXHIBITS SHALL BE BASED ON A SYSTEM OF UNIFORM ACCOUNTING STANDARDS DESIGNED TO FAIRLY AND ACCURATELY ACCOUNT FOR THE COSTS AND EXPENSES OF THE COMMERCIAL ACTIVITY, INCLUDING IMPUTED COSTS THAT REPRESENT THE FAIR AND COMPLETE TOTAL OF FEDERAL, STATE, AND LOCAL TAX OBLIGATIONS FROM WHICH THE COMMERCIAL ACTIVITY IS IN WHOLE OR IN PART EXEMPT, IN SUCH A MANNER AS TO PROVIDE A FAIR AND COMPLETE TOTAL OF THE DIRECT AND INDIRECT COSTS AND EXPENSES OF OR RELATING TO ANY SUCH COMMERCIAL ACTIVITY. SUCH EXHIBITS SHALL INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, THE FOLLOWING ITEMS:
(I) DIRECT AND ALLOCABLE INDIRECT LABOR COSTS AND COMPENSATORY BENEFITS;
(II) THE FAIR MARKET VALUE OF LEASED OR OWNED REAL ESTATE;
(III) DIRECT MATERIALS COST;
(IV) OTHER ALLOCABLE INDIRECT COSTS, INCLUDING INDIRECT MANUFACTURING OR OPERATIONAL COSTS SUCH AS COSTS OF UTILITIES, PARTS, SUPPLIES, INSURANCE, AND DEPRECIATION OF PLANT AND EQUIPMENT; AND
(V) SELLING, GENERAL ADMINISTRATIVE EXPENSES, INCLUDING ALLOCABLE PORTIONS OF SUCH EXPENSES.
SECTION 3. Effective date applicability. This act shall take effect July 1, 1998, and shall apply to any audit prepared for a fiscal year commencing on or after said date.
SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.