HB26-1245 • 2026

Theft by Contractor

The bill specifies that a person commits theft when the person knowingly uses an advance payment for a construction project for an unrelated purpose that results in the delay, end, abandonment, or mat

Crime

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. R. English, Rep. R. Keltie, Sen. R. Pelton
Last action: 2026-04-21
Official status: House Third Reading Lost - No Amendments
Effective date: Not listed

Plain English Breakdown

The bill summary notes it applies as introduced; however, the provided text is an engrossed version with amendments adopted on second reading. The final status shows 'House Third Reading Lost', which may indicate procedural confusion in metadata versus actual passage to governor.

HB26-1245: Rules for Contractor Advance Payments and Theft

This bill makes it a crime to misuse advance payments over $300 for construction projects if the money is used for unrelated purposes that cause delays or stop work, and requires contractors to give customers written details about how they will use that money.

What This Bill Does

Defines theft as using an advance payment for a purpose unrelated to the specific construction project if this causes unreasonable delay, stopping work (cessation), abandonment, or material nonperformance of the job.
Requires contractors to provide a written disclosure before accepting any advance payment over $300.
Mandates that the written disclosure lists how the money will be used, when expenses are expected, and the projected start date for the project.
States that using funds differently than described in the disclosure can serve as evidence of theft intent or use/diversion in court.

Who It Names or Affects

Contractors who receive advance payments over $300 for construction work
Customers paying contractors before the project begins
Courts handling theft cases involving construction funds

Terms To Know

Advance payment: Money given to a contractor before they start or finish work on a specific job.
Specific construction project: Construction, repair, renovation, or improvement of real property identified in a written contract with an advance payment involved.

Limits and Unknowns

The bill only applies to advance payments exceeding $300.
The law does not take effect until August 15, 2026, unless voters approve or reject it via a referendum petition filed within ninety days of the legislative session ending.

Amendments

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

H.001

Committee of the Whole

Lost

Plain English: This amendment would have stopped a bill about contractor theft from passing.

It reverses the decision made by the Committee of the Whole to approve HB26-1245.

The official text only describes reversing a vote and does not explain any specific changes to the rules about theft or construction payments.
Because this amendment was lost, it did not change the bill's status in reality.

L.001

Second Reading

Passed [**]

Plain English: This amendment changes the legal standard for contractor theft from requiring intentional action to allowing punishment for careless mistakes, while also narrowing which project failures count as a crime.

It replaces the requirement that a person must 'knowingly' misuse funds with a lower standard of acting with 'criminal negligence'.
It adds the word 'unreasonable' before describing delays or other problems caused by misusing money.
It removes 'material nonperformance' from the list of project failures that can lead to theft charges, keeping only delay and abandonment.

The amendment text does not define what specific actions count as 'criminal negligence'.
The exact meaning of an 'unreasonable' delay is not explained in the provided text.
Removing 'material nonperformance' may change how courts decide if a project failure was serious enough to be theft, but the full impact depends on legal interpretation.

Bill History

2026-04-21 House
House Third Reading Lost - No Amendments
2026-04-20 House
House Third Reading Laid Over Daily - No Amendments
2026-04-17 House
House Second Reading Special Order - Passed with Amendments - Floor
2026-04-15 House
House Second Reading Special Order - Laid Over Daily - No Amendments
2026-03-06 House
House Second Reading Laid Over Daily - No Amendments
2026-03-04 House
House Committee on Business Affairs & Labor Refer Unamended to House Committee of the Whole
2026-02-18 House
Introduced In House - Assigned to Business Affairs & Labor

Official Summary Text

The bill specifies that a person commits theft when the person knowingly uses an advance payment for a construction project for an unrelated purpose that results in the delay, end, abandonment, or material nonperformance of the construction project.
The bill requires that before a contractor can take an advance payment from a customer, a contractor shall provide the customer with a written disclosure identifying the intended use of the advance payment, the anticipated timing of expenses identified in the disclosure, and the project's anticipated start date.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 26-0776.01 Lindy Schaible x4215 HOUSE BILL 26-1245
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
CONCERNING THEFT BY CONTRACTORS.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill specifies that a person commits theft when the person
knowingly uses an advance payment for a construction project for an
unrelated purpose that results in the delay, end, abandonment, or material
nonperformance of the construction project.
The bill requires that before a contractor can take an advance
payment from a customer, a contractor shall provide the customer with a
written disclosure identifying the intended use of the advance payment,
the anticipated timing of expenses identified in the disclosure, and the
HOUSE
Amended 2nd Reading
April 17, 2026
HOUSE SPONSORSHIP
Keltie and English,
SENATE SPONSORSHIP
Pelton R.,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
project's anticipated start date.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 18-4-401, amend (1)2
introductory portion, (1)(e), and (1)(f); and add (1)(g) as follows:3
18-4-401. Theft.4
(1) A person commits theft when he or she THE PERSON knowingly5
obtains, retains, or exercises control over anything of value of another6
without authorization or by threat or deception; receives, loans money by7
pawn or pledge on, or disposes of anything of value or belonging to8
another that he or she THE PERSON knows or believes to have been stolen,9
and:10
(e) Knowingly retains the thing of value more than seventy-two11
hours after the agreed-upon time of return in any lease or hire agreement;12
or13
(f) Intentionally misrepresents or withholds a material fact for14
determining eligibility for a public benefit and does so for the purpose of15
obtaining or retaining public benefits for which the person is not eligible;16
OR17
(g) WITH CRIMINAL NEGLIGENCE USES, TRANSFERS, OR DIVERTS18
MONEY PROVIDED AS AN ADVANCE PAYMENT FOR A SPECIFIC19
CONSTRUCTION PROJECT , AS DEFINED IN SECTION 38-46-101 (4.5), AND20
THE USE, TRANSFER, OR DIVERSION:21
(I) IS FOR A PURPOSE UNRELATED TO THE SPECIFIC CONSTRUCTION22
PROJECT FOR WHICH THE MONEY WAS PROVIDED; AND23
(II) R ESULTS IN UNREASONABLE DELAY , CESSATION , OR24
ABANDONMENT OF THE SPECIFIC CONSTRUCTION PROJECT.25
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SECTION 2. In Colorado Revised Statutes, 38-46-101, add (4.5)1
as follows:2
38-46-101. Definitions.3
As used in this article 46, unless the context otherwise requires:4
(4.5) "S PECIFIC CONSTRUCTION PROJECT " MEANS THE5
CONSTRUCTION, REPAIR , RENOVATION , OR IMPROVEMENT OF REAL6
PROPERTY THAT IS IDENTIFIED IN A WRITTEN CONTRACT , ESTIMATE ,7
PROPOSAL, OR SCOPE OF WORK ACCEPTED BY THE CUSTOMER, INCLUDING8
THE LOCATION OF THE PROPERTY AND THE WORK TO BE PERFORMED, FOR9
WHICH AN ADVANCE PAYMENT IS PROVIDED.10
SECTION 3. In Colorado Revised Statutes, add part 2 to article11
46 of title 38 as follows:12
PART 213
ADVANCE PAYMENT USAGE DISCLOSURE14
38-46-201. Advance payment usage disclosure by contractors.15
(1) BEFORE ACCEPTING AN ADVANCE PAYMENT EXCEEDING THREE16
HUNDRED DOLLARS FOR A SPECIFIC CONSTRUCTION PROJECT , A17
CONTRACTOR SHALL PROVIDE THE CUSTOMER WITH A WRITTEN18
DISCLOSURE THAT STATES:19
(a) T HE INTENDED USE OF THE ADVANCE PAYMENT , INCLUDING20
MATERIALS, LABOR, PERMITS, OVERHEAD, OR OTHER PROJECT -RELATED21
EXPENSES;22
(b) THE ANTICIPATED TIMING OF THE IDENTIFIED EXPENSES;23
(c) THE PROJECTED DATE ON WHICH THE WORK ON THE SPECIFIC24
CONSTRUCTION PROJECT WILL BEGIN; AND25
(d) THAT THE CONTRACTOR USING ADVANCE PAYMENT FUNDS IN26
A MANNER THAT IS MATERIALLY INCONSISTENT WITH THE WRITTEN27
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DISCLOSURE AND THAT RESULTS IN DELAY, CESSATION, OR ABANDONMENT1
OF THE CONSTRUCTION PROJECT MAY CONSTITUTE THEFT PURSUANT TO2
SECTION 18-4-401 (1)(g).3
(2) E VIDENCE THAT A CONTRACTOR KNOWINGLY USED ,4
TRANSFERRED, OR DIVERTED ADVANCE PAYMENT MONEY FOR PURPOSES5
UNRELATED TO THE WRITTEN DISCLOSURE MAY BE CONSIDERED EVIDENCE6
OF THE INTENT REQUIRED FOR THEFT PURSUANT TO SECTION 18-4-401.7
(3) FAILURE OF A CONTRACTOR TO PROVIDE OR TO ADHERE TO THE8
ADVANCE PAYMENT USAGE DISCLOSURE REQUIRED PURSUANT TO THIS9
SECTION MAY BE CONSIDERED EVIDENCE OF USE, TRANSFER, OR DIVERSION10
OF MONEY IN ANY CIVIL OR CRIMINAL PROCEEDING.11
SECTION 4. In Colorado Revised Statutes, 38-46-102, amend12
(1) introductory portion and (2) introductory portion as follows:13
38-46-102. Applicability of part.14
(1) Except as provided in subsection (2) of this section, this article15
46 PART 1 applies to:16
(2) This article 46 PART 1 does not apply to:17
SECTION 5. In Colorado Revised Statutes, 38-46-103, amend18
(2) introductory portion as follows:19
38-46-103. Private construction contracts - retainage -20
conditions precedent.21
(2) This article 46 PART 1 addresses only the amount of retainage22
that may be withheld by a property owner, contractor, or subcontractor23
and does not change, override, or invalidate any other provision in a24
contract, subcontract, or supply agreement. Such a provision includes, but25
is not limited to:26
SECTION 6. In Colorado Revised Statutes, amend 38-46-104 as27
1245-4-
follows:1
38-46-104. Lien waivers.2
To receive payment under this article 46 PART 1, the recipient of3
the payment must provide an executed lien waiver for amounts actually4
paid if required by the contract, subcontract, or supply agreement.5
SECTION 7. Act subject to petition - effective date -6
applicability. (1) This act takes effect August 15, 2026; except that, if7
a referendum petition is filed pursuant to section 1 (3) of article V of the8
state constitution against this act or an item, section, or part of this act9
within the ninety-day period after final adjournment of the general10
assembly, then the act, item, section, or part will not take effect unless11
approved by the people at the general election to be held in November12
2026 and, in such case, will take effect on the date of the official13
declaration of the vote thereon by the governor.14
(2) This act applies to offenses committed on or after the15
applicable effective date of this act.16
1245-5-