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HB21-1316

Conform The Term Lease Purchase To Accounting Standards

Concerning changes to the term "lease-purchase" as it relates to state or local public agreements to clarify that such agreements are to be accounted for by the state controller as financed purchases of assets, and, in connection therewith, conforming the Colorado Revised Statutes with the current accounting standards set by the governmental accounting standards board.
Session:
2021 Regular Session
Subject:
Fiscal Policy & Taxes
Bill Summary

Statutory Revision Committee. The state controller is required to prescribe a unified system of accounts and prepare financial statements based on systems set forth by the governmental accounting standards board (GASB). Statement number 87 by GASB, which affects state and local government fiscal years after June 15, 2021, requires that a contract that transfers ownership of an asset be accounted for and reported as a financed purchase or sale of an asset, regardless of whether the contract is labeled by the parties as a lease.

Effective July 1, 2021, the bill replaces the term "lease-purchase agreement", and, as necessary to effectuate the purpose of the bill, substantially similar terms, with "financed purchase of an asset or certificate of participation agreement", and, as necessary to effectuate the intent of the bill, substantially similar terms, throughout the Colorado Revised Statutes to clarify that, in accordance with GASB requirements, any such state or local public contract is to be accounted for and reported by the state controller as a financed purchase or sale of the underlying asset rather than as a lease.


(Note: This summary applies to this bill as introduced.)

Status

Introduced
Passed
Became Law

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Bill Text

  • All Versions (7 )
    Date Bill Type Documents
    06/24/2021 Signed Act PDF
    06/21/2021 Final Act PDF
    06/04/2021 Rerevised PDF
    06/03/2021 Revised PDF
    06/02/2021 Reengrossed PDF
    06/01/2021 Engrossed PDF
    05/14/2021 Introduced PDF
COVID-19 Resources
School Finance Poverty Study RFP 2021 (submit by 10 a.m. 8/6/2021)
Solicitation for Members for the Legislative Task Force Concerning Tax Policy (submit by July 27 12:00 p.m.)
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