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HB26-1017 • 2026

Criminal Restitution Prohibited for Insurers

For the purpose of criminal restitution, the act excludes from the definition of 'restitution' losses for which a victim may be compensated through a private insurance policy, except for worker's comp

Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. C. Espenoza, Rep. Y. Zokaie, Sen. M. Weissman, Rep. J. Bacon, Rep. A. Boesenecker, Rep. M. Lindsay, Rep. J. Mabrey, Rep. M. Martinez, Rep. J. McCluskie, Rep. K. Nguyen, Rep. A. Paschal, Rep. E. Sirota, Rep. S. Woodrow, Sen. J. Coleman, Sen. J. Gonzales, Sen. I. Jodeh, Sen. C. Kipp, Sen. K. Wallace
Last action
2026-04-02
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on what happens when insurance doesn't fully cover all losses or how civil cases are affected beyond criminal restitution.

Criminal Restitution for Insurance Victims

This law says that when someone is hurt and has insurance, they don't have to get extra money from the person who caused the harm if their insurance already covers it. But workers' compensation is different.

What This Bill Does

  • Changes what 'restitution' means in criminal cases so it doesn't include losses covered by private insurance.
  • Allows courts to give victims extra money for deductibles they have to pay out-of-pocket.

Who It Names or Affects

  • Victims who have private insurance and suffer losses covered by that insurance.
  • Courts deciding on criminal restitution cases.

Terms To Know

restitution
Money a person has to pay when they do something wrong and hurt someone else.
deductible
The amount of money you have to pay before your insurance starts covering costs.

Limits and Unknowns

  • Does not cover losses for which a victim can get worker's compensation.
  • Doesn't say what happens if the insurance doesn't fully cover all the losses.
  • Doesn't change how civil cases work, only criminal restitution.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.005

Second Reading

Passed [**]

Plain English: The amendment excludes losses covered by private insurance from criminal restitution, except for worker's compensation.

  • Adds a new section to the Colorado Revised Statutes that clarifies an insurance company compensates victims based on contractual agreements and prioritizes direct victim restitution over insurer recovery through criminal restitution orders.
  • Modifies definitions of 'restitution' in the statutes to exclude losses for which a victim may be compensated by private insurance, except for worker's compensation cases.
  • Updates the definition of 'victim' to include an insurance company only when it is directly affected by fraud or property damage/stolen items due to criminal acts.
  • Amends provisions related to court-ordered restitution to limit awards to losses not covered by insurance policies.
  • The amendment text does not provide specific details on how insurers will recover their losses if they are excluded from criminal restitution orders.

Bill History

  1. 2026-04-02 Governor

    Governor Signed

  2. 2026-03-26 Governor

    Sent to the Governor

  3. 2026-03-26 Senate

    Signed by the President of the Senate

  4. 2026-03-25 House

    Signed by the Speaker of the House

  5. 2026-03-17 Senate

    Senate Third Reading Passed - No Amendments

  6. 2026-03-16 Senate

    Senate Second Reading Passed - No Amendments

  7. 2026-03-13 Senate

    Senate Second Reading Laid Over to 03/16/2026 - No Amendments

  8. 2026-03-12 Senate

    Senate Second Reading Laid Over to 03/13/2026 - No Amendments

  9. 2026-03-09 Senate

    Senate Committee on Judiciary Refer Unamended to Senate Committee of the Whole

  10. 2026-03-02 Senate

    Introduced In Senate - Assigned to Judiciary

  11. 2026-02-25 House

    House Third Reading Passed - No Amendments

  12. 2026-02-24 House

    House Second Reading Special Order - Passed with Amendments - Floor

  13. 2026-02-06 House

    House Second Reading Laid Over Daily - No Amendments

  14. 2026-02-03 House

    House Committee on Judiciary Refer Unamended to House Committee of the Whole

  15. 2026-01-14 House

    Introduced In House - Assigned to Judiciary

Official Summary Text

For the purpose of criminal restitution, the act excludes from the definition of 'restitution' losses for which a victim may be compensated through a private insurance policy, except for worker's compensation insurance. Current law defines a 'victim' as any person who has suffered losses because of a contractual relationship, including an insurance company. The act excludes a person from the definition of 'victim' because of a contractual relationship but clarifies that an insurance company is a 'victim' if the insurance company is a victim of a scheme to defraud the insurance company or when the insurance company's property is damaged or stolen through a criminal act. The act authorizes the court to award a victim restitution for a deductible amount under the victim's insurance policy. The act does not prohibit an insurance company from filing a civil action or pursuing any other civil action against a defendant to recover losses the insurance company has suffered.
(Note: This summary applies to this bill as enacted.)