CO HB1254

Defines "noncompliant state agency" as an executive branch agency that was audited for a significant problem or material weakness, agreed to a recommendation with an implementation date, and failed to complete it by that date

Requires the Legislative Audit Committee to determine by majority vote whether a noncompliant agency made a good faith effort to comply; if so, the committee may grant an extended deadline

Authorizes the committee to direct the state auditor to notify the state controller when an agency has not made a good faith effort to implement audit recommendations

Imposes a 3% restriction on a noncompliant agency's general fund appropriations for the fiscal year following notification to the state controller

Allows the restriction to be released only through legislation enacted by the General Assembly or by the Legislative Audit Committee directing the state auditor to rescind it after the agency becomes compliant