House Committee of Reference Report
Committee on Judiciary
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March 10, 2026
After consideration on the merits, the Committee recommends the following:
SB26-074 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend reengrossed bill, page 2, after line 1 insert:
Page 1, Line 2"SECTION 1. In Colorado Revised Statutes, 38-22-101, amend
Page 1, Line 3(1); and add (7) as follows:
Page 1, Line 438-22-101. Liens in favor of whom - when filed.
Page 1, Line 5(1) Every person who furnishes or supplies laborers, machinery,
Page 1, Line 6tools, or equipment in the prosecution of the work, and mechanics,
Page 1, Line 7materialmen, contractors, subcontractors, builders, and all persons of
Page 1, Line 8every class performing labor upon or furnishing directly to the owner or
Page 1, Line 9persons furnishing labor, laborers, or materials to be used in construction,
Page 1, Line 10alteration, improvement, addition to, or repair, either in whole or in part,
Page 1, Line 11of any building, mill, bridge, ditch, flume, aqueduct, reservoir, tunnel,
Page 1, Line 12fence, railroad, wagon road, tramway, or any other structure or
Page 1, Line 13improvement upon land, including adjacent curb, gutter, and sidewalk,
Page 1, Line 14and also architects, engineers, draftsmen, and artisans who have furnished
Page 1, Line 15designs, plans, plats, maps, specifications, drawings, estimates of cost,
Page 1, Line 16surveys, or superintendence, or who have rendered other professional or
Page 1, Line 17skilled service, or bestowed labor in whole or in part, describing or
Page 1, Line 18illustrating, or superintending such structure, or work done or to be done,
Page 1, Line 19or any part connected therewith, shall have a lien upon the property upon
Page 1, Line 20which they have furnished laborers or supplied machinery, tools, or
Page 1, Line 21equipment or rendered service or bestowed labor or for which they have
Page 1, Line 22furnished materials or mining or milling machinery or other fixtures, for
Page 1, Line 23the value, whether disputed or undisputed, of such laborers,
Page 1, Line 24machinery, tools, or equipment supplied, or services rendered or labor
Page 1, Line 25done or laborers or materials furnished, whether at the instance of the
Page 1, Line 26owner, or of any other person acting by the owner's authority or under the
Page 1, Line 27owner, as agent, contractor, or otherwise for the laborers, machinery,
Page 2, Line 1tools, or equipment supplied, or work or labor done or services rendered
Page 2, Line 2or laborers or materials furnished by each, respectively, whether supplied
Page 2, Line 3or done or furnished or rendered at the instance of the owner of the
Page 2, Line 4building or other improvement, or the owner's agent; and every
Page 2, Line 5contractor, architect, engineer, subcontractor, builder, agent, or other
Page 2, Line 6person having charge of the construction, alteration, addition to, or repair,
Page 2, Line 7either in whole or in part, of said building or other improvement shall be
Page 2, Line 8held to be the agent of the owner for the purposes of this article.
Page 2, Line 9(7) Nothing in this article 22 prohibits the inclusion of
Page 2, Line 10costs otherwise allowed under a contract in a lien, including
Page 2, Line 11costs incurred as a result of delay, lost productivity, or other
Page 2, Line 12disruption to the work.
Page 2, Line 13SECTION 2. In Colorado Revised Statutes, 38-22-128, add (2)
Page 2, Line 14and (3) as follows:
Page 2, Line 1538-22-128. Excessive amounts claimed.
Page 2, Line 16(2) An award by a court having jurisdiction of an amount
Page 2, Line 17that is less than the amount for which a person's lien was filed
Page 2, Line 18does not render the amount excessive for purposes of
Page 2, Line 19subsection (1) of this section if the person had a good faith basis
Page 2, Line 20to believe the lien amount was due at time of filing.
Page 2, Line 21(3) For purposes of this section, an amount is "due" if a
Page 2, Line 22person reasonably believes, in good faith, that the amount
Page 2, Line 23represents the value of the labor, services, equipment, or other
Page 2, Line 24materials or persons furnished or supplied to a contractor, as
Page 2, Line 25described in section 38-22-101 (1), whether or not the amount is
Page 2, Line 26unliquidated or disputed.
Page 2, Line 27SECTION 3. In Colorado Revised Statutes, 38-26-107, amend (1)
Page 2, Line 28as follows:
Page 2, Line 2938-26-107. Supplier may file statement - notice - withholding
Page 2, Line 30funds.
Page 2, Line 31(1) Any person, as defined in section 2-4-401 (8), C.R.S., that has
Page 2, Line 32furnished labor, materials, equipment, services, sustenance, or other
Page 2, Line 33supplies used or consumed by a contractor or his or her their
Page 2, Line 34subcontractor in or about the performance of the work contracted to be
Page 2, Line 35done or that supplies laborers, rental machinery, tools, or equipment to
Page 2, Line 36the extent used in the prosecution of the work whose claim therefor has
Page 2, Line 37not been paid by the contractor or the subcontractor may, at any time up
Page 2, Line 38to and including the time of final settlement for the work contracted to be
Page 2, Line 39done, file with the board, officer, person, or other contracting body by
Page 2, Line 40whom the contract was awarded a verified statement of the amount due
Page 2, Line 41and unpaid on account of the claim, whether the amount is disputed
Page 3, Line 1or undisputed. Nothing in this article 26 prohibits the inclusion
Page 3, Line 2of costs otherwise allowed under a contract in a verified
Page 3, Line 3statement of claim, including costs incurred as a result of
Page 3, Line 4delay, lost productivity, or other disruption to the work. If the
Page 3, Line 5amount of the contract awarded to the contractor exceeds one hundred
Page 3, Line 6fifty thousand dollars, the board, officer, person, or other contracting
Page 3, Line 7body by whom the contract was awarded shall, no later than ten days
Page 3, Line 8before the final settlement is made, publish a notice of the final settlement
Page 3, Line 9at least twice in a newspaper of general circulation in any county where
Page 3, Line 10the work was contracted for or performed or in an electronic medium
Page 3, Line 11approved by the executive director of the department of personnel. It is
Page 3, Line 12unlawful for any person to divide a public works contract into two or
Page 3, Line 13more separate contracts for the sole purpose of evading or attempting to
Page 3, Line 14evade the requirements of this subsection (1).".
Page 3, Line 15Renumber succeeding sections accordingly.
Page 3, Line 16Page 2, line 3, strike "portion" and substitute "portion; and add (2) and
Page 3, Line 17(3)".
Page 3, Line 18Page 2, line 11, strike "created pursuant to this article 26" and
Page 3, Line 19strike "recover".
Page 3, Line 20Page 2, line 12, strike "amount claimed" and substitute "amount claimed
Page 3, Line 21verified statement of claim".
Page 3, Line 22Page 2, after line 15, insert:
Page 3, Line 23"(2) An award by a court having jurisdiction of an amount
Page 3, Line 24that is less than the amount in a person's verified statement of
Page 3, Line 25claim does not render that amount excessive for purposes of
Page 3, Line 26subsection (1) of this section if the person had a good faith basis
Page 3, Line 27to believe the amount in the verified statement of claim was due
Page 3, Line 28at the time of filing.
Page 3, Line 29(3) For purposes of this section, "amount due" means the
Page 3, Line 30amount of money a person reasonably believes, in good faith,
Page 3, Line 31represents the value of the labor, materials, sustenance, other
Page 3, Line 32supplies, laborers, rental machinery, tools, or equipment,
Page 3, Line 33furnished or supplied to a contractor, as defined in section
Page 3, Line 3438-26-101, or their subcontractor, whether or not the amount is
Page 3, Line 35unliquidated or disputed, as set forth in section 38-26-107 (1).".