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ColoradoHB26-14212026 Regular SessionHouse

Fee Sharing with Nonlawyers in Legal Practice

Sponsored By: Jarvis Caldwell (Republican), Javier Mabrey (Democratic), Lindsey Daugherty (Democratic), Lisa Frizell (Republican)

Signed by Governor

Courts & Judicial

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Clients can sue over fee violations

Beginning August 12, 2026, clients receiving legal services that violate these rules can sue to enforce them. They can seek damages equal to legal fees paid, court orders to stop violations, and other appropriate relief. Winning plaintiffs can recover reasonable attorney fees and enforcement costs. A competing law firm can sue if it loses or risks losing revenue and earns more than 10% of annual revenue from Colorado clients. It must notify the attorney general and wait 60 days without the attorney general starting a lawsuit. That firm can seek court orders and repayment of improper funds, but not economic damages. Damages awarded to a plaintiff reduce the improper funds a court orders repaid. The rules cover conduct and contracts entered into or renewed from August 12, 2026, and end September 1, 2030.

New limits on lawyers sharing fees

Beginning August 12, 2026, Colorado lawyers and firms face new limits that protect independent legal judgment. They cannot share legal fees or service revenues with nonlawyers or allow prohibited nonlawyer ownership or control. Covered fees include hourly, flat, success, and contingent fees, retainers, and lawyers’ shares of settlements. Firms can hire outside groups for administrative support, but cannot base their pay on fees, revenue, profits, or case results. Flat or hourly payments remain allowed when not tied to those measures. The law preserves ordinary employee pay, certain non-contingent, non-referral fixed-dollar service contracts, limited nonrecourse funding for specific cases, and specified nonprofit payments. Future fees or recoveries can still serve as loan collateral. Legal work solely concerning federal administrative matters is excluded, and the Colorado Supreme Court keeps its authority over legal practice. Contracts that violate the law are void. These rules cover conduct and contracts entered into or renewed from August 12, 2026, and end September 1, 2030.

Violation payments fund courts, then offset budgets

Beginning August 12, 2026, courts must order money paid or received through proven violations into the Judicial Stabilization Cash Fund. Damages awarded to plaintiffs reduce the amount sent to the fund. The money supplements the Judicial Department’s budget that fiscal year, but serves as a basis for a later budget reduction. Fund money supports trial-court expenses through annual appropriations; the State Treasurer can invest it, and unused balances remain in the fund. The rules cover conduct and contracts entered into or renewed from August 12, 2026, and end September 1, 2030.

Sponsors & Cosponsors

Sponsors

  • Jarvis Caldwell

    Republican • House

  • Javier Mabrey

    Democratic • House

  • Lindsey Daugherty

    Democratic • Senate

  • Lisa Frizell

    Republican • Senate

Cosponsors

  • Brianna Titone

    Democratic • House

  • Eliza Hamrick

    Democratic • House

  • Emily Sirota

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Jamie Jackson

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jenny Willford

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Karen McCormick

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Lorena Garcia

    Democratic • House

  • Michael Carter

    Democratic • House

  • Monica Duran

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Sheila Lieder

    Democratic • House

  • Yara Zokaie

    Democratic • House

  • Sen. A. Benavidez

    Affiliation unavailable

  • Cathy Kipp

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 266 • No: 42

House vote • 5/12/2026

Senate amendments: Concur

Yes: 59 • No: 5

House vote • 5/12/2026

Senate amendments: Repass

Yes: 53 • No: 11

Senate vote • 5/11/2026

Third reading: Bill

Yes: 33 • No: 2

Senate vote • 5/6/2026

Refer House Bill 26-1421, as amended, to the Committee of the Whole.

Yes: 6 • No: 1

House vote • 5/1/2026

Third reading: Bill

Yes: 51 • No: 10

House vote • 4/29/2026

Adopt amendment L.005 (Attachment I).

Yes: 9 • No: 2

House vote • 4/29/2026

Adopt amendment L.003 (Attachment G).

Yes: 9 • No: 2

House vote • 4/29/2026

Adopt amendment L.001 (Attachment E).

Yes: 10 • No: 1

House vote • 4/29/2026

Adopt amendment L.002 (Attachment F).

Yes: 9 • No: 2

House vote • 4/29/2026

Adopt amendment L.006 (Attachment J).

Yes: 10 • No: 1

House vote • 4/29/2026

Refer House Bill 26-1421, as amended, to the Committee of the Whole.

Yes: 8 • No: 3

House vote • 4/29/2026

Adopt amendment L.004 (Attachment H).

Yes: 9 • No: 2

Actions Timeline

  1. Governor Signed

    6/4/2026House

  2. Signed by the Speaker of the House

    6/3/2026House

  3. Signed by the President of the Senate

    6/3/2026Senate

  4. Sent to the Governor

    6/3/2026House

  5. House Considered Senate Amendments - Result was to Concur - Repass

    5/12/2026House

  6. Senate Third Reading Passed - No Amendments

    5/11/2026Senate

  7. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/8/2026Senate

  8. Senate Committee on Judiciary Refer Amended to Senate Committee of the Whole

    5/6/2026Senate

  9. Introduced In Senate - Assigned to Judiciary

    5/4/2026Senate

  10. House Third Reading Passed - No Amendments

    5/1/2026House

  11. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/30/2026House

  12. House Committee on Judiciary Refer Amended to House Committee of the Whole

    4/29/2026House

  13. Introduced In House - Assigned to Judiciary

    4/21/2026House

Bill Text

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