House Committee of Reference Report
Committee on Business Affairs & Labor
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All text that will be removed from the bill will be indicated by strikethrough as follows:
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This is text that is removed from law. -
Text that is added to a bill will be indicated by either all capitals or bold & italic as follows:
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- This all capitals text would be added to law.
- This is bold & italic text that would be added to law.
May 6, 2026
After consideration on the merits, the Committee recommends the following:
SB26-133 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend reengrossed bill, page 5, line 3, strike "conversion," and
Page 1, Line 2substitute "election to become an artist company,".
Page 1, Line 3Page 5, line 20, strike "Conversion to" and substitute "Election to
Page 1, Line 4become an".
Page 1, Line 5Page 5, line 22, strike "convert to" and substitute "elect to become".
Page 1, Line 6Page 5, line 23, strike "convert to" and substitute "elect to become".
Page 1, Line 7Page 6, line 5, strike "conversion," and substitute "election,".
Page 1, Line 8Page 6, line 8, strike "conversion" and substitute "election".
Page 1, Line 9Page 6, line 18, strike "conversion;" and substitute "election;".
Page 1, Line 10Page 7, line 2, strike "conversion" and substitute "election".
Page 1, Line 11Page 7, line 4, strike "A conversion" and substitute "An election".
Page 1, Line 12Page 7, line 7, strike "The conversion of a limited liability company
Page 1, Line 13to" and substitute "The election to become".
Page 1, Line 14Page 7, line 10, strike "conversion" and substitute "election".
Page 1, Line 15Page 7, line 12, strike "conversion to" and substitute "election to
Page 1, Line 16become".
Page 1, Line 17
Page 2, Line 1Page 9, lines 9 and 10, strike "company as provided in section
Page 2, Line 27-80-1219;" and substitute "company;".
Page 2, Line 3Page 9, line 21, after "section," insert "the articles of organization
Page 2, Line 4must also include".
Page 2, Line 5Page 9, line 23, strike "license;" and substitute "license.".
Page 2, Line 6Page 12, line 22, after "company;" insert "and".
Page 2, Line 7Page 12, strike lines 23 through 25.
Page 2, Line 8Renumber succeeding subparagraph accordingly.
Page 2, Line 9Page 13, strike lines 13 and 14 and substitute:
Page 2, Line 10"(IV) Ceasing to be an artist company, including an action
Page 2, Line 11that causes the entity to no longer meet the requirements set
Page 2, Line 12forth in section 7-80-1203 (1);".
Page 2, Line 13Page 20, lines 17 and 18, strike "at the time of conversion" and
Page 2, Line 14substitute "by amending its articles of organization in accordance
Page 2, Line 15with this part 12".
Page 2, Line 16Page 26, strike lines 25 through 27.
Page 2, Line 17Page 27, strike lines 1 and 2.
Page 2, Line 18Renumber succeeding C.R.S. sections accordingly.
Page 2, Line 19Page 27, line 23, strike "Upon" and substitute "Except as is necessary
Page 2, Line 20to comply with applicable federal income tax law, including
Page 2, Line 21section 704 and other applicable provisions of subchapter K of
Page 2, Line 22the internal revenue code of 1986, as amended, upon".
Page 2, Line 23Page 28, line 3, after "terminates." insert "The operating agreement
Page 2, Line 24of any artist company treated as a partnership for federal
Page 2, Line 25income tax purposes must include allocation, distribution,
Page 2, Line 26valuation, capital account, and other economic provisions
Page 2, Line 27reasonably designed, to the extent permitted by applicable
Page 2, Line 28federal income tax law, to facilitate the reversion of artistic
Page 2, Line 29work to the artist-members under this subsection (2)(a)(I),
Page 2, Line 30including provisions governing the distribution of cash and
Page 3, Line 1other property other than artistic work; the allocation of
Page 3, Line 2items of income, gain, loss, deduction, and credit; and the
Page 3, Line 3preservation or satisfaction of continuing economic rights with
Page 3, Line 4respect to reverted artistic work.".
Page 3, Line 5Page 28, line 17, strike "The" and substitute "Except as is necessary
Page 3, Line 6to comply with applicable federal income tax law, including
Page 3, Line 7section 704 and other applicable provisions of subchapter K of
Page 3, Line 8the internal revenue code of 1986, as amended, the".
Page 3, Line 9Page 29, strike lines 2 through 4 and substitute:
Page 3, Line 10"(III) Continuing royalty sharing, revenue participation
Page 3, Line 11obligations, recoupment provisions, return of capital, or other
Page 3, Line 12economic obligations specified in the articles of organization or
Page 3, Line 13operating agreement of the artist company.".
Page 3, Line 14Page 30, strike lines 11 through 13 and substitute "form a limited
Page 3, Line 15liability company as an artist company pursuant to this part 12
Page 3, Line 16or cause an existing limited liability company to become an
Page 3, Line 17artist company by amending its articles of organization in
Page 3, Line 18accordance with this part 12.".
Page 3, Line 19Page 30, after line 21 insert:
Page 3, Line 20"7-80-1224. Timeline for implementation - repeal.
Page 3, Line 21(1) No later than July 1, 2027, the secretary of state
Page 3, Line 22shall make any changes necessary to implement this part 12,
Page 3, Line 23including accepting articles of organization and amended
Page 3, Line 24articles of organization filed pursuant to this part 12.
Page 3, Line 25(2) This section is repealed, effective July 1, 2028.".
Page 3, Line 26Strike "7-80-1222" and substitute "7-80-1221" on: Page 17, lines 9 and
Page 3, Line 2723; Page 18, line 26; Page 19, lines 7 and 27; and Page 26, lines 11 and
Page 3, Line 2820.