Colorado Bill: Theft by Contractor Using Advance Payments

Detected March 7th, 2026

Summary

Colorado Bill HB26-1245, introduced for the 2026 Regular Session, proposes new regulations concerning theft by contractors. The bill specifies that using advance payments for unrelated purposes, leading to project delay or abandonment, constitutes theft. It also mandates written disclosures to customers regarding the intended use of advance payments.

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What changed

Colorado Bill HB26-1245, introduced for the 2026 Regular Session, aims to redefine theft by contractors. The proposed legislation specifies that a contractor commits theft if they knowingly use an advance payment for a construction project for an unrelated purpose, resulting in the delay, end, abandonment, or material nonperformance of the project. Furthermore, the bill mandates that prior to accepting an advance payment, contractors must provide customers with a written disclosure detailing the intended use of the funds, the anticipated timing of expenses, and the project's anticipated start date.

This bill, if enacted, will impose new disclosure and usage requirements on contractors operating in Colorado. Construction firms will need to update their contract procedures to include the mandatory written disclosures and ensure that advance payments are used strictly for their stated purpose on the project. Failure to comply could result in criminal charges for theft. The bill is currently under consideration, with its next scheduled activity being a House General Orders reading on March 9, 2026.

What to do next

Review Colorado Bill HB26-1245 for potential impact on contracting practices.
Update contract templates to include mandatory written disclosures for advance payments if the bill is enacted.
Ensure internal policies align with the bill's requirements regarding the use of advance payments.

Penalties

The bill specifies that knowingly using an advance payment for an unrelated purpose that results in project delay, end, abandonment, or material nonperformance constitutes theft, implying potential criminal penalties.

Source document (simplified)

HB26-1245

Theft by Contractor

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Crimes, Corrections, & Enforcement |
Concerning theft by contractors.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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.)