Date: 01/15/2009

BILL SUMMARY for HB09-1024


Votes: View--> Action Taken:

09:31 AM

Representative Peniston, chair, called the meeting to order and made opening comments to the committee members regarding committee procedures for the upcoming session.

09:35 AM -- House Bill 09-1024

Representative McNulty, prime sponsor, presented House Bill 09-1024, which concerns the application of specified audit reporting requirements within the Colorado Local Government Audit Law to certain entities that are otherwise not required to comply with the requirements. Representative McNulty explained that the bill was recommended by the Legislative Audit Committee to correct problems with exempt entities that do not have to meet certain reporting requirements and schedules with the State Auditor's Office. He explained that the bill requires certain local entities to submit financial audit reports to the state auditor on the same submission schedule as required of other local governments. The entities affected by the bill include: the Fire and Police Pension Association, local housing authorities, public entity insurance pools, the Colorado Sheep and Wool Authority, the Colorado Beef Council Authority, the Colorado Horse Development Authority, the Statewide Internet Portal Authority, and any association formed by political subdivisions. These entities are currently categorized as "exempt" under state law, with fewer reporting requirements and submission schedules for financial audits to the state.

09:39 AM

Representative McNulty addressed questions from the committee members concerning the fiscal accountability for these entities to submit state audits and whether the bill would create additional reporting requirements. Representative McNulty explained that this bill does not create a new requirement for the entities, but merely imposes uniform requirements for the submission of audit reports.

09:44 AM

Don May, representing the National Association of Housing Redevelopment, testified against the bill and explained that House Bill 09-1024 would place additional burdens on housing authorities throughout the state. Mr. May discussed various funding problems with smaller housing authorities and reasons for these smaller entities to delay submitting audits to the state. He also explained that housing authorities operate on different fiscal years, which may complicate reporting requirements to the state and federal government, and that new legislation may not solve reporting problems for housing authorities in the state. He addressed questions from the committee members concerning the standard operating budget for housing authorities, Section 8 Housing, and explained the complicated federal reporting requirements for housing authorities. He explained that housing authorities typically do not receive state funds, and current law does not allow these entities to delay submitting audits to the state for certain financial circumstances.

10:01 AM

Crystal Dorsey, representing the Office of the State Auditor, explained that the bill was recommended by the Legislative Audit Committee and distributed a summary of the bill to the members (Attachment A). Ms. Dorsey discussed the reporting requirements for exempt entities in state law and the provisions that allow time extensions for agencies that need more time to submit their state audit. She addressed questions concerning the lack of recourse that exists for the office when exempt entities have trouble submitting state audit reports. Ms. Dorsey discussed the option of withholding property tax revenue for some entities that have not submitted audit reports to the state, but she explained that delinquent entities may be prevented from receiving funding from outside sources. Ms. Dorsey explained the reason the bill was recommended by the Legislative Audit Committee.


10:14 AM

Representative McNulty entered closing comments and requested that the committee lay over House Bill 09-1024.

10:15 AM

Representative Peniston laid over House Bill 09-1024.