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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
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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
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