CO HB1101

State agencies must provide nonprofit organizations with a retainer of at least 35% of a grant amount or 35% of first-year contract disbursements when entering into contracts or awarding grants, with fiscal rules to be adopted by December 31, 2025

Nonprofits must spend retainer funds within one year and may only use them for expenses connected to the relevant grant or contract

Beginning July 1, 2025, the 45-day payment deadline for state liabilities can be triggered by either a correct invoice or a demonstration of good faith effort to provide a correct invoice from nonprofit organizations

Starting January 1, 2026, nonprofits receiving state disbursements must report to the controller: the ethnicity of their leadership, their business structure, and whether they have previously received state funds

The controller must make the collected nonprofit information available upon request beginning June 1, 2026