SB26-093 • 2026

Workers' Compensation Insurance Coverage Verification

The bill prohibits the state, a county, a municipality, a city and county, a district, or other political subdivision of the state (governmental entity) from issuing or renewing a building permit, con

Healthcare Labor

Passed Legislature

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

Sponsor: Sen. T. Sullivan, Rep. T. Mauro
Last action: 2026-03-05
Official status: Senate Committee on Business, Labor, & Technology Refer Amended to Appropriations
Effective date: Not listed

Plain English Breakdown

The candidate explanation included recommendations and implications that were speculative or not directly stated in the bill summary.

Workers' Compensation Insurance Verification

This bill requires construction permit applicants to provide proof that they, their general contractors, and all subcontractors have valid workers' compensation insurance or have rejected it before permits or licenses can be issued.

What This Bill Does

Requires government entities not to issue or renew building permits, construction permits, or contractor's licenses unless the applicant has filed a signed declaration verifying that they, their general contractors, and every subcontractor maintain valid workers' compensation insurance coverage or have rejected such coverage.
Necessitates proof of workers' compensation insurance or rejection through specific documents before permit issuance or renewal.
Requires general contractors to ensure that all subcontractors and persons performing work under the permit provide proof of coverage or rejection prior to starting work.
Allows licensing authorities or permitting agencies to revoke or suspend licenses if they find violations of the bill's requirements.
Authorizes the director of the division of workers' compensation to create rules for implementing the bill, including electronic verification procedures.

Who It Names or Affects

Construction permit applicants and their contractors
Government entities issuing permits and licenses

Terms To Know

Workers' Compensation Insurance: Insurance that provides medical care, disability benefits, and death benefits to employees who are injured or killed on the job.
Subcontractor: A company hired by a general contractor to perform part of a construction project.

Limits and Unknowns

The bill does not specify what happens if an applicant fails to provide proof after the permit is issued.
It's unclear how this will affect small businesses or individuals who may struggle to obtain workers' compensation insurance.

Amendments

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

L.002

SEN Business, Labor, & Technology

Passed [*]

Plain English: The amendment changes the requirement for a building permit to include verification of workers' compensation insurance only for projects with construction costs over one million dollars.

Modifies the bill so that governmental entities must verify workers' compensation insurance coverage when issuing or renewing a building permit, but only for projects where the total construction cost exceeds one million dollars.

The amendment text does not specify what happens if a project's costs are exactly one million dollars; it is unclear whether permits would require verification in such cases.
It is also unknown how this change will be enforced or monitored by governmental entities.

L.003

SEN Business, Labor, & Technology

Passed [*]

Plain English: The amendment changes the requirement for governmental entities to allow them an option instead of a mandate when it comes to issuing or renewing building permits based on workers' compensation insurance verification.

Changes 'SHALL' to 'MAY' in the bill, giving governmental entities the choice rather than forcing them to issue or renew building permits.

The amendment text does not provide further details about how this change will be implemented or what specific circumstances it applies to.

Bill History

2026-03-05 Senate
Senate Committee on Business, Labor, & Technology Refer Amended to Appropriations
2026-02-10 Senate
Introduced In Senate - Assigned to Business, Labor, & Technology

Official Summary Text

The bill prohibits the state, a county, a municipality, a city and county, a district, or other political subdivision of the state (governmental entity) from issuing or renewing a building permit, construction permit, or contractor's license unless the applicant has first filed with the governmental entity's licensing authority or permitting agency a signed declaration verifying that the applicant, the general contractor, and every subcontractor at any tier either maintains valid workers' compensation insurance coverage or has rejected such coverage. An applicant shall provide proof of the workers' compensation insurance coverage or proof of rejection of coverage through filing specified documents.
Prior to commencing any work under a building or construction permit, a general contractor or permit holder shall ensure that every subcontractor at any tier and any person performing work under the permit has provided proof of workers' compensation insurance coverage or proof of rejection of coverage.
If at any time the governmental entity's licensing authority or permitting agency finds that a violation of the bill has occurred, the governmental entity's licensing authority or permitting agency shall revoke or suspend any building permit, construction permit, or contractor's license issued to that contractor.
The director of the division of workers' compensation is authorized to adopt rules to implement the bill, including procedures for electronic verification of coverage, reporting requirements, and coordination with licensing authorities and permitting agencies.
(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
INTRODUCED

LLS NO. 26-0738.01 Josh Schultz x5486 SENATE BILL 26-093
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
CONCERNING ENSURING COMPLIANCE WITH WORKERS '101
COMPENSATION INSURANCE COVERAGE REQUIREMENTS.102
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 prohibits the state, a county, a municipality, a city and
county, a district, or other political subdivision of the state (governmental
entity) from issuing or renewing a building permit, construction permit,
or contractor's license unless the applicant has first filed with the
governmental entity's licensing authority or permitting agency a signed
declaration verifying that the applicant, the general contractor, and every
SENATE SPONSORSHIP
Sullivan,
HOUSE SPONSORSHIP
Mauro,
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.
subcontractor at any tier either maintains valid workers' compensation
insurance coverage or has rejected such coverage. An applicant shall
provide proof of the workers' compensation insurance coverage or proof
of rejection of coverage through filing specified documents.
Prior to commencing any work under a building or construction
permit, a general contractor or permit holder shall ensure that every
subcontractor at any tier and any person performing work under the
permit has provided proof of workers' compensation insurance coverage
or proof of rejection of coverage.
If at any time the governmental entity's licensing authority or
permitting agency finds that a violation of the bill has occurred, the
governmental entity's licensing authority or permitting agency shall
revoke or suspend any building permit, construction permit, or
contractor's license issued to that contractor.
The director of the division of workers' compensation is authorized
to adopt rules to implement the bill, including procedures for electronic
verification of coverage, reporting requirements, and coordination with
licensing authorities and permitting agencies.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 8-41-213 as2
follows:3
8-41-213. Declaration of workers' compensation required -4
building permit - construction permit - contractor's license - rules -5
definitions.6
(1) AS USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE7
REQUIRES:8
(a) "A PPLICANT" MEANS A PERSON APPLYING FOR A PERMIT OR9
LICENSE WITH THE LICENSING AUTHORITY OR PERMITTING AGENCY OF A10
GOVERNMENTAL ENTITY THAT IS AN EMPLOYER.11
(b) "GOVERNMENTAL ENTITY" MEANS THE STATE , A COUNTY, A12
MUNICIPALITY, A CITY AND COUNTY , A DISTRICT , OR OTHER POLITICAL13
SUBDIVISION OF THE STATE.14
(c) "LICENSE" MEANS A CONTRACTOR'S LICENSE.15
SB26-093-2-
(d) "P ERMIT" MEANS A BUILDING PERMIT OR CONSTRUCTION1
PERMIT.2
(2) A GOVERNMENTAL ENTITY SHALL NOT ISSUE OR RENEW A3
PERMIT OR LICENSE UNLESS THE APPLICANT HAS FIRST FILED WITH THE4
GOVERNMENTAL ENTITY'S LICENSING AUTHORITY OR PERMITTING AGENCY5
A SIGNED DECLARATION, UNDER PENALTY OF PERJURY, VERIFYING THAT6
THE APPLICANT , THE GENERAL CONTRACTOR , AND EVERY7
SUBCONTRACTOR AT ANY TIER PERFORMING WORK UNDER A PERMIT8
EITHER MAINTAINS VALID WORKERS ' COMPENSATION INSURANCE9
COVERAGE OR HAS REJECTED SUCH COVERAGE.10
(3) ALONG WITH THE DECLARATION REQUIRED UNDER SUBSECTION11
(2) OF THIS SECTION, AN APPLICANT SHALL PROVIDE PROOF OF WORKERS'12
COMPENSATION INSURANCE COVERAGE OR REJECTION OF WORKERS '13
COMPENSATION INSURANCE COVERAGE BY SUBMITTING ONE OF THE14
FOLLOWING TO THE LICENSING AUTHORITY OR PERMITTING AGENCY PRIOR15
TO THE ISSUANCE OR RENEWAL OF ANY PERMIT OR LICENSE:16
(a) A VALID CERTIFICATE OF WORKERS ' COMPENSATION17
INSURANCE;18
(b) A SELF -INSURANCE PERMIT ISSUED BY THE EXECUTIVE19
DIRECTOR AS PROVIDED IN SECTION 8-44-201 OR A SELF -INSURANCE20
CERTIFICATE OF AUTHORITY FROM THE COMMISSIONER OF INSURANCE AS21
PROVIDED IN SECTION 8-44-205; OR22
(c) AN APPROVED REJECTION OF COVERAGE FORM ISSUED BY THE23
DIVISION PURSUANT TO SECTION 8-41-202 (1) CERTIFYING THAT THE24
APPLICANT DOES NOT HAVE EMPLOYEES SUBJECT TO THIS SECTION.25
(4) T HIS SECTION APPLIES REGARDLESS OF WHETHER THE26
GOVERNMENTAL ENTITY REQUIRES A LICENSE. AT THE TIME OF LICENSE OR27
SB26-093-3-
PERMIT ISSUANCE OR RENEWAL, A LICENSING AUTHORITY OR PERMITTING1
AGENCY SHALL CONFIRM PROOF OF COVERAGE OR REJECTION OF2
COVERAGE, EITHER THROUGH THE DOCUMENTS PROVIDED UNDER3
SUBSECTION (3) OF THIS SECTION OR BY VERIFYING COVERAGE THROUGH4
ELECTRONIC MEANS.5
(5) P RIOR TO COMMENCING ANY WORK UNDER A PERMIT , A6
GENERAL CONTRACTOR OR PERMIT HOLDER SHALL ENSURE THAT EVERY7
PERSON PERFORMING WORK UNDER THE PERMIT HAS PROVIDED TO THE8
GENERAL CONTRACTOR OR PERMIT HOLDER PROOF OF WORKERS '9
COMPENSATION INSURANCE COVERAGE OR PROOF OF REJECTION OF10
COVERAGE AS DESCRIBED IN SUBSECTION (3) OF THIS SECTION . THE11
GENERAL CONTRACTOR OR PERMIT HOLDER SHALL RETAIN COPIES OF THE12
PROOF OF COVERAGE OR PROOF OF REJECTION OF COVERAGE FOR THE13
DURATION OF THE PROJECT AND MAKE THE COPIES AVAILABLE FOR14
INSPECTION BY THE LICENSING AUTHORITY , PERMITTING AGENCY , OR15
DIVISION UPON REQUEST.16
(6) (a) I F A PERSON FILES A COMPLAINT WITH A LICENSING17
AUTHORITY OR PERMITTING AGENCY ALLEGING A CONTRACTOR 'S18
WORKERS' COMPENSATION INSURANCE COVERAGE IS NOT IN COMPLIANCE19
WITH REQUIREMENTS OF ARTICLES 40 TO 47 OF THIS TITLE 8, THE20
LICENSING AUTHORITY OR PERMITTING AGENCY SHALL INVESTIGATE THE21
ALLEGED VIOLATION.22
(b) I F AT ANY TIME A LICENSING AUTHORITY OR PERMITTING23
AGENCY, UPON INVESTIGATION OF A COMPLAINT OR UPON INDEPENDENT24
INVESTIGATION, FINDS THAT A VIOLATION OF THIS SECTION HAS25
OCCURRED, THE LICENSING AUTHORITY OR PERMITTING AGENCY SHALL26
REVOKE OR SUSPEND ANY PERMIT OR LICENSE ISSUED TO THAT27
SB26-093-4-
CONTRACTOR.1
(c) SUSPENSION OR REVOCATION PURSUANT TO SUBSECTION (6)(b)2
OF THIS SECTION REMAINS IN EFFECT UNTIL THE CONTRACTOR PROVIDES3
PROOF OF VALID COVERAGE OR REJECTION OF COVERAGE AND RESOLVES4
ANY PENALTIES ISSUED PURSUANT TO SECTION 8-43-409.5
(d) (I) A LICENSING AUTHORITY OR PERMITTING AGENCY THAT6
SUSPENDS OR REVOKES A PERMIT OR LICENSE UNDER THIS SECTION SHALL7
NOTIFY THE DIVISION WITHIN TEN BUSINESS DAYS AFTER THE SUSPENSION8
OR REVOCATION.9
(II) I F A LICENSING AUTHORITY OR PERMITTING AGENCY10
REINSTATES A PERMIT OR LICENSE THAT WAS SUSPENDED OR REVOKED11
PURSUANT TO SUBSECTION (6)(d)(I) OF THIS SECTION , THE LICENSING12
AUTHORITY OR PERMITTING AGENCY SHALL NOTIFY THE DIVISION WITHIN13
TEN BUSINESS DAYS AFTER REINSTATEMENT.14
(7) T HE DIRECTOR MAY ADOPT RULES TO IMPLEMENT THIS15
SECTION, INCLUDING PROCEDURES FOR ELECTRONIC VERIFICATION OF16
COVERAGE, REPORTING REQUIREMENTS , AND COORDINATION WITH17
LICENSING AUTHORITIES AND PERMITTING AGENCIES.18
SECTION 2. Applicability. This act applies to conduct occurring19
on or after the effective date of this act, including determinations of20
permit or license applications pending on the effective date.21
SECTION 3. Safety clause. The general assembly finds,22
determines, and declares that this act is necessary for the immediate23
preservation of the public peace, health, or safety or for appropriations for24
the support and maintenance of the departments of the state and state25
institutions.26
SB26-093-5-