By StartBusinessByStatePublisher: Robert SmithResearch process
Colorado SB 26-093, 2026 Regular Session · Signed May 29, 2026 · Took effect on signing · Updated October 19, 2026
For building or construction permits on projects costing more than $1 million, Colorado now requires the applicant to file a signed declaration, under penalty of perjury, before work starts. It says everyone working under the permit, subcontractors included, has the workers’ comp coverage state law requires. Anyone can file a complaint with the state about missing coverage.
What the law says
- Which permits. Building or construction permits issued by the state, a county or a city for projects with a total construction cost over $1 million. Special districts and permits from the Division of Professions and Occupations aren’t covered.
- The declaration. Before work starts, the applicant files a declaration with the permitting agency, signed under penalty of perjury. It states that everyone working under the permit, including subcontractors, has the workers’ comp coverage state law requires.
- Coverage period. Coverage has to stay in place for all work under the permit.
- The form. The Division of Workers’ Compensation posts the form on its website.
- Complaints. Anyone can file a complaint with the division about noncompliance.
The coverage rules behind the declaration
Colorado already requires coverage. According to the state labor department, employers with one or more employees must carry workers’ comp, including part-time workers and family members. Fines for going without can reach $500 a day, and the state can shut down the business. An uninsured employer pays injured workers’ claims plus 25%. Under state law, the fine is up to $250 a day for a first violation and $250 to $500 a day after that.
Why it passed and what it fixes
The final fiscal note from Legislative Council Staff shows $0 in state revenue and spending. It notes that coverage is already required, so the bill “may increase compliance proactively.” Local governments will collect the forms, which the fiscal note doesn’t expect to be a significant workload.
Old rules vs. new rules
| Before | After | |
|---|---|---|
| Proof of coverage at permit stage | Not required by this law | Signed declaration before work starts |
| Projects covered | None | Total construction cost over $1 million |
| Who can complain | The usual channels | Anyone, directly to the division |
Source: the bill text and official documents listed below.
Who it affects
- General contractors and others who apply for permits on projects over $1 million
- Subcontractors on those jobs, including electricians, plumbers and HVAC companies
- Permitting offices in cities, counties and the state
Who it doesn’t affect
- Projects of $1 million or less
- Permits from special districts or the Division of Professions and Occupations
- Sole owners with no employees, who aren’t required to carry coverage for themselves
What it looks like for a small business
A general contractor pulls a permit for a $3 million restaurant build-out in Denver. Before work starts, he signs the declaration and files it with the city. He collects coverage certificates from every sub first.
A five-person electrical sub on that job. The general contractor asks for its workers’ comp certificate before it can start. If the policy lapses partway through, the sub is breaking the law, and anyone can complain to the division.
A $600,000 home remodel. It’s under the threshold, so no declaration is needed. Coverage is still required if the contractor has employees.
Costs
- The declaration itself: no fee in the law
- Going without coverage: fines up to $500 a day, possible shutdown, and claims plus 25%
- Making a false declaration: it’s signed under penalty of perjury
When it takes effect
The bill has a safety clause, so it took effect when the governor signed it on May 29, 2026. It also applies to permit applications still pending on that date.
What to do now, step by step
- If you pull permits on big jobs, download the declaration form from the Division of Workers’ Compensation.
- Collect a current coverage certificate from every subcontractor before you sign.
- File the declaration with the permitting agency before any work starts.
- Track policy end dates so coverage doesn’t lapse mid-project.
- Subcontractors: keep your certificate ready and current.
- If you see uninsured crews on a covered job, you can file a complaint with the division.
Frequently asked questions
Does this create a new insurance requirement?
No. Coverage was already required. The law adds a signed declaration on big permits.
What counts toward $1 million?
The law uses the project’s total construction cost.
Is a declaration needed for permits issued before May 29, 2026?
The law applies to permit applications still pending on May 29, 2026, and to later ones.
What if I lie on the form?
It’s signed under penalty of perjury.
Who keeps the paperwork?
The permitting agency collects it. The fiscal note says the Department of Personnel and Administration keeps the documents for state projects.
Related guides
Sources
- Colorado SB 26-093 bill page (LegiScan)
- Signed act text of SB 26-093 (Colorado General Assembly)
- Final fiscal note for SB 26-093 (Legislative Council Staff)
- Employer insurance coverage requirements (Colorado Division of Workers’ Compensation)
This page summarizes the bill text and official sources. It is not legal advice. Check with your state agency for current rules.