SB 25-248

Senate Bill 25-248, which has been signed into law, changes how Colorado state agencies handle lease savings. Previously, when a state agency ended a lease for private space and saved money on costs, the government was required to transfer those savings to a fund used for capital construction projects. The new law cancels this requirement, meaning that state agencies no longer need to calculate these cost reductions or make transfers to the capital construction fund. This affects how funds are managed within state agencies but does not directly impact individual voters or taxpayers. Since it has been signed into law, the bill is now in effect and changes how lease savings are handled by state agencies going forward.

Official Summary

Since July 1, 2023, a state agency that terminates a lease for private space has been required to calculate the associated amount of the annual reduction in the state agency's leased space costs (cost reduction). The general assembly has been required to annually transfer to the capital construction fund, from the fund that was the source of the funding for the lease, an amount equal to the cost reduction from the fund that was the source of the funding for the lease until the total amount transferred equals the amount that has been required to be transferred to the capitol complex renovation fund from annual depreciation-lease equivalent payments that otherwise would be credited to state agency capital reserve accounts. The act repeals the requirements that a state agency calculate its cost reduction and that the general assembly make the annual transfers to the capital construction fund. (Note: This summary applies to this bill as enacted.)

Related Legislation

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