Colo. Rev. Stat. § 24-30-201, Accounts and control

(1) The powers, duties, and functions concerning accounts and control as set forth in this part 2 are the responsibility of the state controller. The executive director of the department of personnel shall appoint the controller, subject to section 13 of article XII of the state constitution. The controller must be bonded in such amount as the executive director shall fix. The powers and duties of the controller are:

(a) To keep in continuous touch with the operations, plans, and needs of the several departments and other agencies of the state and with the sources and amounts of revenue and other receipts of the state;

(b) Repealed.

(d) To examine and approve all statements and reports on the financial condition and estimated future financial condition and the operations of the state government and the several budget units before any such reports are released to the governor, to the general assembly, or for publication; receive and deal with all requests for information as to financial conditions and operations of the state; and prepare such statements of unit costs and other cost statistics as may be required from time to time or requested by the governor or the general assembly;

(e) To manage the finances and financial affairs of the state, except as otherwise provided in section 5 (2) of article VIII of the state constitution and by law for institutions of higher education and for the Auraria higher education center;

(f) To coordinate all the procedures for financial administration and financial control so as to integrate them into an adequate and unified system, including the devising, prescribing, and installing of accounting forms, records, and procedures for all state agencies;

(g) To conduct all central accounting and fiscal reporting for the state as a whole;

(h) To maintain a current audit of all cash, cash receipts, and receivables; to preaudit and control the incurring of obligations; and to preaudit all disbursements;

(i) To issue warrants and checks for the payment of claims against the state;

(j) To assist state agencies in their efforts to recover money owing to the state;

(k) To control all supply stocks, property, and equipment in use and enforce the keeping of inventory accounts.

(l) Repealed.

(2) The powers, duties, and functions of the department of personnel include the powers, duties, and functions concerning accounts and control and the office of the controller. The office of the controller is a type 2 entity, as defined in section 24-1-105.

Source: L. 41: p. 52, � 12. CSA: C. 3, � 12. L. 47: p. 221, � 2. CRS 53: � 3-3-1. L. 59: p. 147, � 2. C.R.S. 1963: � 3-3-1. L. 64: p. 113, � 2. L. 68: pp. 99, 100, �� 47, 49. L. 70: p. 107, � 4. L. 71: p. 1211, � 2. L. 73: p. 169, � 2. L. 75: (1)(j) added, p. 798, � 1, effective July 1. L. 79: (1)(k) added, p. 873, � 1, effective July 1. L. 84: (1)(l) added, p. 673, � 1, effective July 1. L. 86: (1)(b) repealed, pp. 961, 964, �� 4, 4, effective May 27. L. 95: IP(1) and (1)(j) amended and (2) added, p. 641, � 34, effective July 1. L. 96: IP(1), (1)(j), and (2) amended, p. 1494, � 2, effective June 1. L. 99: (1)(l) amended, p. 687, � 7, effective August 4. L. 2009: (1)(l) amended, (HB 09-1218), ch. 132, p. 569, � 1, effective July 1. L. 2010: (1)(e) amended, (SB 10-003), ch. 391, p. 1848, � 24, effective June 9; (1)(l) and (2) amended, (HB 10-1422), ch. 419, p. 2082, � 61, effective August 11. L. 2014: (1)(i) amended, (HB 14-1391), ch. 328, p. 1449, � 5, effective June 5. L. 2017: IP(1) amended and (1)(l) repealed, (HB 17-1058), ch. 18, p. 57, � 1, effective March 8. L. 2021: (1)(j) amended, (SB 21-055), ch. 12, p. 76, � 10, effective March 21. L. 2022: (2) amended, (SB 22-162), ch. 469, p. 3419, � 192, effective August 10.

Cross references: (1) For the legislative declaration contained in the 1995 act amending the introductory portion to subsection (1) and subsection (1)(j) and enacting subsection (2), see section 112 of chapter 167, Session Laws of Colorado 1995. For the legislative declaration in the 2010 act amending subsection (1)(e), see section 1 of chapter 391, Session Laws of Colorado 2010.

(2) For the short title (the Debbie Haskins 'Administrative Organization Act of 1968' Modernization Act) in SB 22-162, see section 1 of chapter 469, Session Laws of Colorado 2022.

24-30-202. Procedures - vouchers, warrants, and checks - rules - penalties - definitions - repeal. (1) No disbursements shall be made in payment of any liability incurred on behalf of the state, other than from petty cash or by any alternative means of payment approved by fiscal rule promulgated by the controller, unless there has been previously filed with the office of the state controller a commitment voucher. The commitment voucher may be in the form of an advice of employment, a purchase order, a copy of a contract, or a travel authorization or in other form appropriate to the type of transaction as prescribed by the controller. Any state contract involving the payment of money by the state shall contain a clause providing that the contract shall not be deemed valid until it has been approved by the controller or such assistant as he or she may designate; except that a state contract for a major information technology project as defined in section 24-37.5-102 (19) shall contain a clause providing that the contract shall not be deemed valid until it has been approved by the chief information officer or the chief information officer's designee. Such contracts entered into on or after July 1, 1997, shall also contain a clause notifying the other party to the contract of the controller's authority to withhold debts owed to state agencies under the vendor offset intercept system pursuant to section 24-30-202.4 (3.5)(a)(I) and the types of debts that are subject to withholding under said system. The form and content of and procedures for filing such vouchers shall be prescribed by the fiscal rules promulgated by the controller.

(2) The controller, or such assistant as he may designate, shall examine each commitment voucher to ascertain whether or not the proposed expenditure is authorized by the appropriation and allotment to which it is proposed to be charged, whether or not the prices or rates are in accordance with law or administrative rules or are fair and reasonable and whether or not the amount of the expenditure exceeds the unencumbered balance of the allotment. The controller or his designated assistant shall record his approval or disapproval either on the face of each voucher or by electronically entering such approval or disapproval in the state computer-based accounting system. The head of the state department, institution, or other agency involved shall be notified of any proposed expenditures that are disallowed.

(3) In no event shall the head of any state department, institution, or other agency or the controller, either by himself or through any assistant designated by him, approve any commitment voucher involving expenditure of any sum in excess of the unencumbered balance of the appropriation to which the resulting disbursement would be charged. No person shall incur or order or vote for the incurrence of any obligation against the state in excess of or for any expenditure not authorized by appropriation and approved commitment voucher except as expressly authorized by this section. Any such obligation so raised in contravention of this section shall not be binding against the state but shall be null and void ab initio and incapable of ratification by any administrative authority of the state to give effect thereto against the state. But every person incurring or ordering or voting for the incurrence of such obligation and his surety shall be jointly and severally liable therefor.

(4) The controller is hereby authorized to grant special authority for any department, institution, or other agency, during any fiscal year, to make specific purchases of supplies or materials to be used in the next ensuing fiscal year or to enter into contracts in anticipation of appropriations already made or to be made for the next ensuing fiscal year for any purpose authorized by any existing law, including contracts by the department of transportation for state highway reconstruction, repair, maintenance, and capacity expansion projects to be funded by the revenues appropriated out of the capital construction fund under section 24-75-302 (2), but in no case for any amount exceeding that necessary to meet the requirements for the first quarter of the next fiscal year. No such purchase order shall be issued nor contract entered into unless such purchase order or contract has been approved and countersigned by the controller or the controller's authorized agent, whose duty it shall be to see that the special authority so granted is not exceeded; except that this restriction shall not apply to contracts for capital outlay projects for which appropriations have been provided for obligations to be incurred in two or more fiscal years. Payments made at the close of a fiscal year under such authority shall be treated as deferred charges to the appropriations and expenses of the next ensuing fiscal year until the beginning of such year.

(4.3) (a) The controller may retroactively adjust encumbrances against appropriations for contracts and grants authorized pursuant to the authority to spend money from the American Rescue Plan Act of 2021 cash fund, created in section 24-75-226 (4)(a)(II), if the funding source for the contract or grant is subsequently refinanced. Any retroactive contract or grant encumbrance adjustments between funding sources authorized in this section are not permitted to increase the total encumbrance.

(b) This subsection (4.3) is repealed, effective July 1, 2027.

(5) (a) No money of the state or for which the state is responsible shall be withdrawn from the treasury or otherwise disbursed for any purpose except to pay obligations under expenditures authorized by appropriation and allotment and not in excess of the amount so authorized. Each such expenditure shall have been authorized by the head of the department, institution, or other agency by or for which the expenditure was made. Such authorization shall contain the manual or facsimile signature of the head of the department, institution, or agency or any assistant designated by him. The controller, or his authorized agent, shall have approved a commitment voucher therefor, and a claim on a prescribed form shall have been submitted to and approved by the controller or his agent. The provisions of this section shall not be construed to apply to withdrawals of funds from any state depository bank for immediate redeposit in any other state depository bank or for investment.

(b) If a state department, institution, or agency enters into a contract to purchase real property or any interest therein that has a total purchase price of more than one hundred thousand dollars, the contract must contain a contingency clause that requires the state to secure an appraisal of the subject real property or interest therein prior to closing by an independent appraiser licensed in the state of Colorado to substantiate the purchase price and that makes the closing of the purchase contingent on the approval of the contract by the state controller. When the state department, institution, or agency entering into the contract receives the appraisal, the state department, institution, or agency shall provide a copy of the appraisal to the state controller. This subsection (5)(b) shall not apply to the acquisition of property by the department of transportation for the construction, maintenance, or supervision of the public highways of this state, nor shall it apply to any additional financed purchase of an asset or certificate of participation agreement entered into pursuant to the master lease program authorized by part 7 of article 82 of this title 24.

(c) (I) If a state department, institution, or agency enters into an option to purchase real property or any interest therein that has a total purchase price of more than one hundred thousand dollars, the appraisal requirement described in paragraph (b) of this subsection (5) must occur prior to closing on the purchase of the real property or interest therein.

(II) Prior to a state department, institution, or agency entering into an option to purchase real property or any interest therein that has a total purchase price of more than one hundred thousand dollars, the state department, institution, or agency shall obtain a written broker opinion of value completed by an independent broker licensed in the state of Colorado or an appraisal by an independent appraiser licensed in the state of Colorado of the subject property in order to complete a thorough analysis of the property or interests therein being considered. The opinion of value or the appraisal must be forwarded to the state controller prior to the state controller approving the option to purchase contract.

(5.5) Any commitment voucher that provides that the financial obligations of the state in subsequent fiscal years are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available shall not be deemed to create any state multiple-fiscal year direct or indirect debt or other financial obligation whatsoever for purposes of section 20 (4)(b) of article X of the state constitution. If a financed purchase of an asset or certificate of participation agreement is subject to the requirement of specific authorization by the general assembly under part 8 of article 82 of this title 24, such committees shall make a recommendation to the general assembly concerning whether to authorize the financed purchase of an asset or certificate of participation agreement. The department of personnel and the Colorado commission on higher education shall maintain comparative data which will assist in determining the relative costs to the state, over the entire term of the arrangement, of financing the purchase or lease of property through pay-as-you-go methods, certificates of participation, or other arrangements.

(6) The controller shall prescribe the form of warrants and checks to be drawn upon the state treasurer. All warrants and checks for approved expenditures and claims shall be drawn and issued under direction of the controller or his or her authorized agent and transmitted to the department of the treasury to be recorded.

(7) Each warrant and check drawn and issued shall be signed by the controller and countersigned by the state treasurer. Facsimiles of such signature and countersignature may be affixed by a mechanical device. The signature of the controller on a warrant or check, however affixed, shall constitute full and complete authority to the state treasurer to pay the amount thereof upon presentation to him or her.

(8) Each warrant or check drawn and issued shall bear a notation clearly printed in a prominent position upon its face stating that it shall be void after six months from its date of issue. Upon satisfactory proof furnished of loss or destruction, during said six-month period, of any warrant or check drawn and issued in payment of an approved expenditure or claim, the controller shall cause a duplicate of such lost or destroyed warrant or check to be drawn and issued in favor of the original payee or his or her assignee, as the case may be. The issuing state agency shall thereupon void said original warrant or check, and, if it thereafter is presented for payment, the state treasurer shall refuse payment thereof.

(8.5) Any other provision of law to the contrary notwithstanding, the controller may, after adequate notification to the state treasurer, make payment by means of an electronic fund transfer. Payment by electronic fund transfer shall be in lieu of payment by state warrant or check and shall discharge the controller's obligation with respect to payment. Any unauthorized use of the electronic fund transfer capability shall be reported to the controller within twenty-four hours after occurrence or disclosure becomes known. Immediately upon discovery of unauthorized use, measures that will prevent further unauthorized use shall be implemented.

(9) (a) Every warrant and check drawn and issued that has not been presented to the state treasurer for payment and remains unpaid shall be canceled pursuant to fiscal rules promulgated by the state controller and transferred to the unclaimed property trust fund created in section 38-13-801 (1)(a); except that the amount of any warrant or check drawn on the wildlife cash fund created in section 33-1-112 (1), other than a warrant or check refunding a license fee submitted as part of an unsuccessful limited license application, shall be credited to that fund and the amount of any warrant or check representing money received by the federal government shall be processed in accordance with federal program guidelines for disposition of those moneys.

(b) If at any time thereafter application is made to the controller for reissuance of any warrant or check that has been canceled and expunged from the records and it appears that the expenditure or claim that the canceled warrant or check represented is still valid and unpaid, the controller shall issue a new warrant or check, and the amount thereof shall be charged to the fund or account to which the amount of the canceled warrant or check was previously credited.

(c) In the event of any conflict between this subsection (9) and any provision of the Revised Uniform Unclaimed Property Act, article 13 of title 38, the provisions of the Revised Uniform Unclaimed Property Act shall control; except that this subsection (9) shall control with regard to:

(I) A tax warrant or check;

(II) Repealed.

(III) That portion of a warrant or check representing moneys received from the federal government;

(IV) A warrant or check drawn on the wildlife cash fund created in section 33-1-112 (1), C.R.S., other than a warrant or check refunding a license fee submitted as part of an unsuccessful limited license application.

(d) Notwithstanding any provision of this subsection (9) to the contrary, the provisions of this subsection (9) shall not apply to any warrant or check drawn by an institution of higher education or by the Auraria higher education center that is exempt from the state fiscal rules pursuant to paragraph (b) of subsection (13) of this section.

(10) The attorney general shall be the legal adviser of the controller and to the attorney general shall be referred any question concerning the legality of any obligation by or claim against the state.

(11) It is the duty of the controller to keep up to date a detailed list of all sources from which moneys accrue to the state, classified according to the departments, institutions, and other agencies responsible for the collection of the moneys, showing for each of the several units: The several kinds of taxes, fees, and other charges collected or to be collected; the name of the person responsible for collecting public moneys from each such source; and the name of the employee actually engaged in collecting, handling, and depositing such moneys. The controller has the power, and it is his duty with respect to each state tax, to prescribe or approve such accounts and procedures as will provide adequate accounting and current internal audit control of unpaid taxes and other charges and the proceeds of collections and as will furnish the information required for the maintenance of the general accounts of the state. The controller has the power and it is his duty to prescribe the forms to be used by the several units for licenses, permits, and certificates for which fees are prescribed by law and to establish controls of the supplies of such forms.

(12) The controller shall prescribe and cause to be installed a unified and integrated system of accounts for the state. Except as otherwise provided in sections 24-75-201 (2) and 25.5-4-201, C.R.S., such system shall be based upon the accrual system of accounting, as enunciated by the governmental accounting standards board, which shall include:

(a) A set of budgetary control accounts for each fund, which shall be maintained pursuant to the accounts and control functions of the department of personnel;

(b) A set of general controlling proprietary and operating accounts for each fund, which shall be maintained pursuant to the accounts and control functions of the department of personnel, recording the transactions of the fund in summary form and showing the actual current assets, prepaid expenses, current liabilities, deferred credits to income, reserves, actual income, actual expenditures, and current surplus or deficit as the case may be;

(c) A uniform classification of the sources of revenue and nonrevenue receipts, which shall be observed by all the departments, institutions, and other agencies;

(d) A standard classification of the departments, institutions, and other agencies and their principal functions, by major functions of government;

(e) A standard classification of expenditures by activities;

(f) A unified classification of ordinary recurring expenses, extraordinary expenses, and capital outlays, respectively, by the kinds of commodities and services involved, which shall be observed in reporting expenditures, in preparing budget estimates, and in allotting appropriations.

(13) (a) The controller shall promulgate fiscal rules to carry out the functions assigned and the procedures prescribed by this section. Such rules relating to the forms, records, and procedures involved in financial administration shall be binding upon the several departments, institutions, including institutions of higher education except as otherwise provided in paragraph (b) of this subsection (13), and other agencies of the state and upon their several officers and employees.

(b) It is the intent of the general assembly that fiscal rules promulgated by the controller shall be applicable to any institution of higher education; except that the governing board of an institution of higher education that has adopted fiscal procedures and has determined that the fiscal procedures provide adequate safeguards for the proper expenditure of the moneys of the institution may elect to exempt the institution from the fiscal rules promulgated by the controller pursuant to this subsection (13), including any procedures or forms required by law to be promulgated by the controller and any review or approval required to be performed by the controller, and shall not be required to comply with rules promulgated pursuant to this subsection (13) or with the provisions of subsection (1), (5)(b), (20.1), (22), or (26) of this section. The provisions of this paragraph (b) shall also apply to the board of directors of the Auraria higher education center with regard to the expenditure of moneys of the auraria higher education center.

(d) An institution of higher education, including the auraria higher education center, that is exempt from the state fiscal rules pursuant to paragraph (b) of this subsection (13) shall continue to provide to the controller such information as is necessary to enable the controller to meet the obligations set forth in subsection (11) of this section and sections 24-17-102 and 24-30-204; except that an institution of higher education shall be required to provide only such data and reports as are readily accessible to the institution or presently generated by the institution.

(14) If the controller or any other state employee knowingly draws or issues any warrant or check upon the state treasurer not authorized by law, he or she commits a class 2 misdemeanor.

(15) Any person holding the office of state treasurer or controller or any other state officer or employee who, directly or indirectly, receives from any person, body of persons, association, or corporation, for himself or herself or otherwise than in behalf of the state, any reward, compensation, or profit, either in money or other property or thing of value, in consideration of the loan to or deposit with any such person, body of persons, association, or corporation of any public money or other property belonging to the state or in the consideration of the approval or payment of any claim against the state or any other agreement or arrangement touching the use of such money or uses or knowingly permits the use of any such money for any purposes not authorized by law commits a class 6 felony and shall be punished as provided in section 18-1.3-401, C.R.S.

(16) Any person who, directly or indirectly, pays or gives to anyone holding the office of state treasurer or controller or to any other state officer or employee or other person any reward or compensation, either in money or other property or things of value, in consideration of the loan to or deposit with any such person, body of persons, association, or corporation of any public money belonging to the state or for which the state is responsible or in consideration of the approval or payment of any claim against the state or of any other agreement or arrangement touching the use of such money commits a class 6 felony and shall be punished as provided in section 18-1.3-401, C.R.S.

(17) Any state officer or employee who willfully neglects or refuses to perform the officer's or employee's duty as prescribed in this section or as prescribed in the fiscal rules promulgated by the controller in conformity with this section commits a civil infraction.

(18) (a) to (e) Repealed.

(f) All state agencies are required to make and preserve records of employees' wages and hours and other conditions and practices of employment.

(g) to (j) Repealed.

(19) If any money of the state is paid out from any appropriation or fund for any purpose and such money, or any part thereof, is for any reason subsequently refunded to the state, the controller is authorized to order the money so refunded to be credited to the fund or appropriation from which it was originally paid.

(20) Repealed.

(20.1) The controller, or the controller's designee, is hereby authorized, upon written request made to the controller, to allow any state department, institution, or agency to draw upon its appropriation a sum set by fiscal rule promulgated by the controller, which fiscal rule may not authorize a sum in excess of two thousand five hundred dollars, and considered appropriate for the circumstances, to be used for the payment of incidental expenses. Items of postage, express, telegrams, and other incidental expenses may be paid from such moneys. At the end of each month, or as often as is practicable, the department, institution, or agency making such incidental expenditures shall submit a voucher to the controller covering the total amount of such expenditures and shall submit a list of all such expenditures, together with proper receipts, if any, and the controller shall draw the controller's warrant or check against the proper appropriation to cover all items of expenditures that the controller approves. The controller is also authorized, upon the request of any state department, institution, or agency, to allow a reasonable advance of moneys to employees and officials for authorized travel on official state business not to exceed an amount set by fiscal rule promulgated by the controller.

(21) If, as a result of fire or other insured loss to state property, the state receives moneys from any insurance company, the controller is authorized to deposit such moneys in an account from which he may, without regard to the provisions of part 3 of article 37 of this title and without further legislative action, reimburse contractors for repair, replacement, or reconstruction of state properties damaged or destroyed under a contract executed in accordance with state contracting laws and procedures in effect at the time of the execution of the contract. If the amount of insurance recovery exceeds the actual cost of such repair, replacement, or reconstruction, any balance remaining in said account after payment of actual costs shall revert to the general fund. With respect to the loss or damage to state property which is not insured or the loss or damage to state property which is insured but the insurance does not fully cover the loss or damage, the controller may, with the approval of the governor, without further legislative action, reimburse contractors for the repair, replacement, or reconstruction of such state property up to a maximum amount of one hundred thousand dollars; except that the controller is not authorized to provide for reimbursement for repair, replacement, or reconstruction of state property if the state is self-insured for loss or damage to state property.

(22) The controller shall make uniform and equitable fiscal rules controlling the types of perquisites which may be allowed state employees in the executive branch of government in addition to their regular salaries. Such rules shall include the eligibility of employees to receive such perquisites, the charges to be made for such perquisites, and the method of payment of such charges to the state. Before such rules become effective, they shall be approved by the governor. No employee shall have authority to grant to himself or herself or to any other employee under his or her supervision any perquisite, nor shall any employee receive any perquisite without full payment therefor, except as provided for by statute or by the rules of the controller as authorized in this section. Charges prescribed by such rules shall be reviewed annually by the controller.

(23) Repealed.

(24) (a) The controller shall promulgate fiscal rules requiring that disbursements made in the payment of any liability incurred on behalf of the executive branch of this state be made within forty-five days after such liability was incurred or shall pay interest from the forty-fifth day at a rate of one percent per month on the unpaid balance until the account is paid in full.

(b) As used in subsection (24)(a) of this section, liability incurred on behalf of the state means the receipt of supplies, as defined in section 24-101-301 (47), or services, as defined in section 24-101-301 (42), and receipt of a correct notice of the amount due, by the state agency procuring such supplies or services from a nongovernmental entity. No liability is incurred on behalf of the state if a good faith dispute exists as to the state's obligation to pay all or a portion of the account. Nothing in this subsection (24) shall be construed to affect any provision for the time of payment in a written contract between a state agency procuring services or supplies and a nongovernmental entity.

(25) (a) (Deleted by amendment, L. 2005, p. 278, � 9, effective August 8, 2005.)

(b) On July 1, 1985, the controller shall, by fiscal rule, provide for the assessment of a reasonable monetary penalty based on cost against any person who issues a check returned for insufficient funds to any state department, institution, or agency in payment of fees, fines, or other moneys due the state.

(c) For the purposes of this subsection (25), insufficient funds means not having a sufficient balance in account with a bank or other drawee for the payment of a check when presented for payment within thirty days after issue.

(d) The penalty provided for in this subsection (25) shall be assessed in addition to any other penalties provided by law except for the penalty provided in section 24-35-114 relating to checks issued to the department of revenue.

(26) The controller shall promulgate equitable fiscal rules concerning travel policies applicable to state employees, including methods of transportation, travel advances, reimbursements, travel allowances, use of travel agents, and use of state or privately owned vehicles, and may promulgate such rules for the implementation of a state travel policy as he deems necessary to assure fair and reasonable expenditures.

(27) To avoid the imposition of duplicative or excessively burdensome or numerous reporting requirements upon state-supported institutions of higher education and to encourage the promulgation of reporting rules that, to the extent possible, require such institutions to provide only data and reports readily accessible to or presently generated by such institutions, the controller shall consult with the Colorado commission on higher education before adopting, amending, or repealing rules affecting or creating reporting requirements applicable to such institutions.

(28) (a) As used in this subsection (28):

(I) (A) Charitable food organization means a charitable organization, including a faith-based organization, exempt from federal taxation under the provisions of the federal Internal Revenue Code of 1986, as amended, that distributes food directly or indirectly for hunger relief in the community.

(B) Charitable food organization includes a school food authority as defined in section 22-32-120 (8).

(II) State agricultural products means agricultural products produced in the state in accordance with section 24-103-907 (3)(a).

(b) The controller shall promulgate fiscal rules to clarify that state agencies may, under review of the state controller, provide for advance payment for the purchase of state agricultural products by a charitable food organization using state grant money, and may include, as the controller deems necessary, rules for the implementation of the advance payment policy including proper accounting, compliance with industry standards, and determination that the advance payment provides a benefit to the state at least equal to the cost and risk of the advance payment.

Source: L. 47: p. 224, � 3. CSA: C. 3, � 12(1). L. 49: pp. 199, 200, 683, �� 1, 1, 4. CRS 53: � 3-3-2. L. 57: pp. 120, 121, �� 1, 1. L. 61: pp. 130-132, �� 1, 1, 1. L. 63: pp. 125, 230, �� 1, 2. C.R.S. 1963: � 3-3-2. L. 65: p. 142, � 1. L. 69: pp. 74, 75, �� 1, 1. L. 70: p. 107, � 4. L. 71: pp. 85, 87, 89, 91, �� 1, 1, 1, 1. L. 72: p. 576, � 1. L. 73: p. 168, � 1. L. 75: (23) added, p. 801, � 1, effective July 1. L. 76: (20) amended, p. 610, � 1, effective April 16; (21) amended, p. 305, � 43, effective May 20. L. 77: (5)(a) amended, p. 1170, � 1, effective May 27; (18) R&RE, p. 1171, � 1, effective July 1; (15) and (16) amended, p. 879, � 52, effective July 1, 1979. L. 80: (13) amended, p. 570, � 2, effective March 17. L. 83: (20) amended and (13)(c), (20.1), and (24) added, pp. 858, 859, 860, 882, �� 2, 4, 5, 1, effective July 1. L. 84: (25) added and (18)(j) and (20) amended, pp. 675, 677, �� 1, 2, effective July 1. L. 85: (26) added, p. 875, � 11, effective June 6. L. 86: (18)(a), (18)(e), and (18)(h) amended and (18)(j) repealed, pp. 889, 890, �� 1, 3, effective April 13. L. 86, 2nd Ex. Sess.: (21) amended, p. 68, � 14, effective August 25. L. 87: (20.1) amended, pp. 934, 1118, �� 1, 2, effective April 22. L. 88: (3) amended, p. 912, � 2, effective March 18; (21) amended, p. 1431, � 11, effective June 11. L. 89: (15) and (16) amended, p. 844, � 111, effective July 1. L. 90: (26) amended, p. 1307, � 1, effective July 1. L. 91: (2) amended and (8.5) added, p. 881, � 1, effective March 12; (5)(b) amended, p. 1058, � 14, effective July 1. L. 92: IP(12) amended, p. 1080, � 1, effective March 14; (18)(h) repealed, p. 1056, � 1, effective May 21. L. 93: (5.5) added, p. 2031, � 1, effective June 9; (18)(a) to (18)(e), (18)(g), and (18)(i) repealed, p. 35, � 1, effective July 1. L. 95: (5.5) amended, p. 641, � 35, effective July 1; (9)(c) added, p. 522, � 1, effective July 1; (27) added, p. 40, � 3, effective January 1, 1996. L. 96: (18)(f) amended and (23) repealed, p. 1495, �� 3, 4, effective June 1; (10), (12)(a), and (12)(b) amended, p. 1517, � 50, effective June 3; (4) amended, p. 1869, � 3, effective June 6. L. 97: (20.1) amended, p. 49, � 1, effective March 21; (1) amended, p. 941, � 1, effective July 1. L. 98: IP(12) amended, p. 849, � 4, effective May 26. L. 99: (5.5) and (26) amended, p. 688, � 8, effective August 4. L. 2001: (1) amended, p. 114, � 1, effective August 8. L. 2002: (15) and (16) amended, p. 1531, � 244, effective October 1. L. 2003: IP(12) amended, p. 14, � 1, effective March 5; (8) amended, p. 557, � 1, effective August 6; (9)(c)(II) repealed, p. 721, � 2, effective August 6. L. 2005: (25)(a) amended, p. 278, � 9, effective August 8. L. 2006: IP(12) amended, p. 2010, � 72, effective July 1. L. 2008: (9)(a) amended and (9)(c)(IV) added, p. 1075, �� 1, 2, effective May 22. L. 2010: (1) and (20.1) amended, (HB 10-1181), ch. 351, pp. 1630, 1619, �� 26, 1, effective June 7; (9)(d) added and (13) and (22) amended, (SB 10-003), ch. 391, pp. 1849, 1848, �� 26, 25, effective June 9. L. 2013: (5)(b) amended and (5)(c) added, (HB 13-1235), ch. 375, p. 2206, � 1, effective June 5. L. 2014: (6) to (9), (14), and (20.1) amended, (HB 14-1391), ch. 328, p. 1449, � 6, effective June 5. L. 2017: (26) amended, (HB 17-1058), ch. 18, p. 58, � 2, effective March 8; (9)(a) amended, (SB 17-046), ch. 116, p. 414, � 1, effective August 9; (24)(b) amended, (HB 17-1051), ch. 99, p. 350, � 64, effective August 9. L. 2018: (1) amended, (HB 18-1421), ch. 395, p. 2354, � 1, effective June 6. L. 2019: IP(9)(c) amended, (SB 19-088), ch. 110, p. 467, � 7, effective July 1, 2020. L. 2021: (5)(b) and (5.5) amended, (HB 21-1316), ch. 352, p. 2024, � 31, effective July 1; (1) amended, (HB 21-1236), ch. 211, p. 1116, � 16, effective September 7; (14) and (17) amended, (SB 21-271), ch. 462, p. 3225, � 411, effective March 1, 2022. L. 2023: (28) added, (HB 23-1087), ch. 45, p. 170, � 1, effective August 7. L. 2024: (4.3) added, (HB 24-1466), ch. 429, p. 2934, � 7, effective June 5. L. 2025: (9)(a) amended, (SB 25-300), ch. 428, p. 2449, � 29, effective August 6.

Editor's note: (1) The effective date for amendments made to this section by chapter 216, L. 77, was changed from July 1, 1978, to April 1, 1979, by chapter 1, First Extraordinary Session, L. 78, and was subsequently changed to July 1, 1979, by chapter 157, � 23, L.79. See People v. McKenna, 199 Colo. 452, 611 P.2d 574 (1980).

(2) Subsection (13)(c)(II) provided for the repeal of subsection (13)(c), effective June 30, 1985, and subsection (20) provided for the repeal of subsection (20), effective June 30, 1985. (See L. 83, p. 859.)

Cross references: For the legislative declaration contained in the 1995 act amending subsection (5.5), see section 112 of chapter 167, Session Laws of Colorado 1995. For the legislative declaration contained in the 2002 act amending subsections (15) and (16), see section 1 of chapter 318, Session Laws of Colorado 2002. For the legislative declaration in the 2010 act adding subsection (9)(d) and amending subsections (13) and (22), see section 1 of chapter 391, Session Laws of Colorado 2010. For the legislative declaration in HB 24-1466, see section 1 of chapter 429, Session Laws of Colorado 2024.

24-30-202.4. Collection of debts due the state - state agency options - controller's duties - offsetting disbursements - definitions. (1) A state agency is responsible for the collection of any debt owed to it. The controller shall advise the various state agencies concerning the collection of debts due the state through the agencies, in accordance with the fiscal rules promulgated by the controller in accordance with subsection (2) of this section, to achieve the prompt collection of debts due the agencies.

(2) (a) The controller shall promulgate fiscal rules for collection of debts due to a state agency; except that the fiscal rules do not apply to those debts under the jurisdiction of the department of revenue referred to in section 24-35-108 (1)(a). The controller shall include in the fiscal rules any requirements for a state agency to refer a debt to private counsel or a private collection agency under subsection (2)(b) of this section or to certify a debt to the department of revenue under subsection (2.5) of this section.

(b) A state agency may refer the debt to a private counsel or private collection agency. The controller shall establish a list of private counsel or private collection agencies that a state agency may contract with for debt collection services. The controller must select the private counsel or private collection agencies included in the list of private counsel or private collection agencies through competition pursuant to the Procurement Code, articles 101 to 112 of this title 24.

(2.5) A state agency may certify the amount of a debt due to the state to the department of revenue in order for the department to provide lottery offsets in accordance with section 24-30-202.7, and an offset of a state tax refund due the debtor under section 39-21-108 (3), and to the registry operator in order for the registry operator to provide limited gaming offsets in accordance with the Gambling Payment Intercept Act, part 6 of article 35 of this title 24.

(3) (a) (Deleted by amendment, L. 2021.)

(b) (Deleted by amendment, L. 91, p. 839, � 1, effective January 1, 1992.)

(c) The controller, with the consent of the state treasurer, is authorized to release or compromise any debt due the state, but only in accordance with the rules applicable thereto. Such rules may provide delegated authority and criteria for release and compromise of debts and may include provisions to prohibit the referral of debts for tax offset based on the age or amounts of debts.

(d) Proceeds of debts collected by a state agency or by a private counsel or private collection agency are accounted for and paid into the fund from which the receivable was derived, and if the fund is no longer in existence, it is paid into the general fund.

(e) Repealed.

(f) and (g) (Deleted by amendment, L. 2021.)

(3.5) (a) (I) The controller shall approve disbursements from state funds from the state's central accounting system in accordance with section 24-30-202 (2). If there is an unpaid balance or debt owed, a state agency may direct the controller to withhold the amount of the disbursement that does not exceed the amount of:

(A) Any unpaid child support debt as set forth in section 14-14-104, or child support arrearages that are the subject of enforcement services provided pursuant to section 26-13-106, as certified by the department of human services;

(B) Any unpaid balance of tax, accrued interest, or other charges specified in article 21 of title 39, that is subject to offset under section 39-21-108 (3), and owing by the payee according to the records of the controller;

(C) Any unpaid debt owing to the state or any agency thereof by a payee, the amount of which is found to be owing as a result of a final agency determination or the amount of which has been reduced to judgment;

(D) Any unpaid loan due to the student loan division of the department of higher education as set forth in section 23-3.1-104 (1)(p), found to be owing to the division by a payee as a result of final agency determination; or

(E) Any amount required to be paid to the unemployment compensation fund pursuant to articles 70 to 82 of title 8, the amount of which has been determined to be owing as a result of a final agency determination or judicial decision or that has been reduced to judgment by the division of unemployment insurance in the department of labor and employment.

(II) Any money withheld for payment of child support debt or child support arrearages pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer for disbursement by the department of human services. For all names and amounts certified by the department of human services pursuant to section 26-13-111, the controller shall provide to the department of human services the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(II) and any other identifying information as required by the department of human services.

(III) Any money withheld for payment of an unpaid balance of tax, interest, or other charges specified in subsection (3.5)(a)(I) of this section and subject to offset under section 39-21-108 (3), is deposited with the state treasurer. For all names and amounts submitted by the executive director of the department of revenue pursuant to section 39-21-114 (10), the controller shall provide to the department the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(III).

(IV) Any money withheld for payment of an unpaid debt owing to the state pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer. For all names and amounts certified by a state agency pursuant to subsection (3.5)(a) of this section, the controller shall provide to the state agency the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(IV).

(V) All money withheld for payment of a student loan division debt pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer for disbursement by the state treasurer to the division. For all names and amounts certified by the division pursuant to section 23-3.1-104 (1)(q), the controller shall provide to the division the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(V).

(VI) The controller shall deposit with the state treasurer any money withheld for payment of unemployment compensation debt pursuant to subsection (3.5)(a)(I) of this section, and the state treasurer shall credit the money to the unemployment compensation fund. For all names and amounts certified by the division of unemployment insurance, the controller shall provide to the division the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(VI).

(VII) The controller shall pay any approved disbursement in excess of the unpaid balance or debt to the approved payee.

(b) In the event that there are debts for unpaid child support, as set forth in section 26-13-111, debts for an unpaid balance of tax, interest, or other charges pursuant to article 21 of title 39, and other debts owing to the state or any agency thereof as set forth in subsection (3.5)(a)(I) of this section, the amount withheld pursuant to subsection (3.5)(a)(I) of this section is credited to the unpaid debts and is applied first to those unpaid debts in the order they appear in this subsection (3.5)(b), and any remaining amounts withheld pursuant to subsection (3.5)(a)(I) of this section is applied based on the priority determined by the controller.

(4) (Deleted by amendment, L. 99, p. 689, � 9, effective August 4, 1999.)

(5) (Deleted by amendment, L. 2021.)

(6) Any contract awarded to private counsel or private collection agency shall require that the contractor remain licensed under the contractor's respective occupational licensing statutes or rules during the term of the contract. The contract shall require that a private counsel or private collection agency shall at all times act in compliance with the provisions of the Colorado Fair Debt Collection Practices Act, article 16 of title 5, and in compliance with any rules promulgated by the controller.

(7) (Deleted by amendment, L. 2021.)

(8) (a) A collection fee for a private collection agency shall not exceed eighteen percent of the debt, and the fee for private counsel shall not exceed twenty-five percent of the debt. All fees collected and retained by a private collection agency or private counsel as payment for services collecting a debt that are not deposited in the state treasury are not subject to article 36 of title 24 or section 20 of article X of the state constitution.

(b) The debtor is liable for repayment of the total amount of a debt due to the state, including collection fee charged by the private collection agency or private counsel, plus allowable fees and costs pursuant to subsection (8)(c) of this section and the delinquency charge pursuant to section 24-79.5-102.

(c) If a debt due to the state is litigated and the state prevails, in addition to the collection fee, the debtor shall also be liable for the following:

(I) Reasonable attorney fees as may be determined by the court;

(II) Court costs as described in section 13-16-122; and

(III) Fees incurred by the state's attorney in processing the litigation and collection of any judgment.

(d) If a debt due to the state is in the form of a check, draft, or order not paid upon presentment, the state agency is entitled, in addition to a collection fee, if applicable, to collect damages as specified in section 13-21-109 (1)(b)(II) and (2)(a).

(9) and (10) (Deleted by amendment, L. 2021.)

Source: L. 75: Entire section added, p. 798, � 2, effective July 1. L. 83: (2) amended, p. 793, � 3, effective June 3. L. 84: (3)(a) and (3)(d) amended and (3)(e) added, p. 1013, � 2, effective April 27. L. 91: (3)(a) amended and (7) added, p. 802, � 1, effective May 24; (2), (3)(a)(I), (3)(b), (3)(d), (3)(e), and (4) amended and (5) and (6) added, p. 839, � 1, effective January 1, 1992. L. 95: (1), (2), and (3)(a) amended, p. 642, � 36, effective July 1. L. 97: (3.5) added, p. 941, � 2, effective July 1. L. 99: (3)(d), (4), and (7) amended, p. 689, � 9, effective August 4. L. 2002: (3)(a)(II) amended, p. 101, � 4, effective August 7. L. 2006: (1), (2), (3)(c), (3)(d), and (5) amended and (2.5), (8), and (9) added, p. 1159, � 2, effective May 25. L. 2010: (2), (8)(a), and (8)(b) amended, (HB 10-1181), ch. 351, p. 1619, � 2, effective June 7; (2) and (3)(a)(II) amended, (SB 10-003), ch. 391, p. 1850, � 28, effective June 9. L. 2011: (3)(f) added, (SB 11-226), ch. 190, p. 733, � 3, effective May 19; (3)(g) added, (SB 11-051), ch. 286, p. 1331, � 1, effective August 10. L. 2012: IP(3.5)(a)(I), (3.5)(a)(I)(E), and (3.5)(a)(VI) amended, (HB 12-1120), ch. 27, p. 107, � 22, effective June 1. L. 2013: (2.5) amended and (10) added, (SB 13-247), ch. 296, p. 1581, � 1, effective August 7. L. 2017: (6) and IP(9) amended, (HB 17-1238), ch. 260, p. 1173, � 20, effective August 9. L. 2018: (2) amended, (HB 18-1047), ch. 155, p. 1096, � 9, effective April 23; (8)(a) amended, (HB 18-1057), ch. 314, p. 1896, � 2, effective July 1, 2019. L. 2021: Entire section amended, (SB 21-055), ch. 12, p. 67, � 1, effective March 21.

Editor's note: (1) Amendments to subsection (3)(a) by Senate Bill 91-15 and Senate Bill 91-140 were harmonized.

(2) Amendments to subsection (2) by Senate Bill 10-003 and House Bill 10-1181 were harmonized.

(3) The effective date for amendments to this section by House Bill 12-1120 (chapter 27, Session Laws of Colorado 2012) was changed from August 8, 2012, to June 1, 2012, by House Bill 12S-1002 (First Extraordinary Session, chapter 2, p. 2432, Session Laws of Colorado 2012.)

(4) Subsection (3)(e)(II) provided for the repeal of subsection (3)(e), effective July 1, 2021. (See L. 2021, p. 67.)

Cross references: For the legislative declaration contained in the 1995 act amending subsections (1), (2), and (3)(a), see section 112 of chapter 167, Session Laws of Colorado 1995. For the legislative declaration in the 2010 act amending subsections (2) and (3)(a)(II), see section 1 of chapter 391, Session Laws of Colorado 2010.