ColoradoSB26-1332026 Regular SessionSenate

Colorado Artist Companies

Sponsored By: Jeff Bridges (Democratic), Marc Catlin (Republican), Matthew Martinez (Democratic), Rick Taggart (Republican)

Signed by Governor

Business & Economic Development

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

10 provisions identified: 1 benefits, 0 costs, 9 mixed.

New artist companies require artist control

The law creates an artist-controlled company form with a stated artistic mission and choices about artistic and financial priorities. Artists must own at least 51% of voting interests at formation or conversion and at all times afterward. Founders file articles with the Secretary of State; existing Colorado limited liability companies convert by filing amended articles. Conversion needs approval under the operating agreement, or unanimous member consent when it sets no approval rule, and preserves assets, debts, creditor rights, liens, and pending cases. People outside Colorado can also use this form; companies formed under this law are Colorado companies, while applicable foreign-company requirements remain in place.

Artist companies can state tax choices

Artist companies can state a corporate tax election or confirm pass-through tax treatment in their articles. Federal tax law still controls the election and resulting tax treatment. The law does not create a tax credit, deduction, or guaranteed tax savings.

Artist companies gain flexible funding options

Artist companies can base ownership on units, member counts, capital contributions, or fixed percentages. Payments follow ownership percentages unless the operating agreement sets revenue shares, royalties, repayment priorities, or another method. Companies can receive donations, grants, refundable grants, loans, investments, royalty-sharing funds, and artistic work; nonartist investors can receive financial returns without control, which stays with artists. Donors required to oversee grant spending are entitled to statements prepared for members. Donors seeking tax-deductible gifts can give through a separate tax-exempt organization unless and until the IRS grants artist companies tax-exempt status.

Artist company duties carry lawsuit limits

Public benefit artist company leaders must balance members’ finances, materially affected people’s interests, stated public benefits, and the artistic mission. An informed decision without personal conflicts meets their duties when a person of ordinary, sound judgment would approve it. The law limits monetary liability unless the operating agreement says otherwise, and limits duties owed solely because of public benefit interests. People cannot bring private lawsuits against artist companies, governing bodies, managers, or members for failing to pursue public benefits, fulfill the mission, or meet the specified balancing duties. Other legal rights and remedies remain available.

Artists face new creative work rules

Members can contribute artistic work or related rights by transferring ownership or granting an exclusive license. If value is disputed before transfer, members can refuse or choose a mutually agreed independent valuator; the company pays, and the valuation is binding. Company documents can require transfers or exclusive licenses of mission-related work made during membership, but must describe the covered work. Artists can keep specified work by written notice when joining or within 30 days after creation; company use requires a nonexclusive, perpetual license that cannot be revoked. Covered company work must belong to artists or the company, not nonartists, but ordinary commercial licenses and contracts with unaffiliated parties remain allowed.

Artists gain votes on major decisions

Artist companies can choose member, manager, board, or more complex management structures, with default meeting and voting rules. Artist approval protections cover changes to company documents, mergers, conversions, dissolution, control, public benefit status, and artist voting ownership. Decisions affecting artistic-work rights, public benefit definitions, governance, company form, or the annual budget require a majority of all artist-member voting interests—not just those present. Company documents can add duties to protect the artistic mission, balance it with finances, or consult artists, within legal limits. Skipping certain customary formalities alone does not establish bad governance or justify holding owners personally liable for company obligations.

Artists regain work when companies close

When an artist company dissolves, covered artistic-work rights return to the artists, and related transfers or exclusive licenses end automatically. Those returning rights are not company assets for creditors or nonartist investors; other intellectual property does not return under this rule. Perfected liens or security interests with the artists’ express written consent, existing ordinary-business licenses, and specified continuing royalty or revenue obligations still apply. Joint work follows company documents or artist agreement; without agreement, federal law governs joint ownership. After returning covered work and paying or providing for debts, remaining assets follow company payment priorities, or ownership percentages if no terms exist.

Leaving artists need clear payment agreements

Artist company documents can set departure rules for creative work, royalties, revenue, buyouts, economic rights, and disputes. Membership changes must preserve the required 51% artist voting ownership. Without departure terms, work transferred or exclusively licensed generally stays with the company, subject to rights returning it to artists. Work created during membership follows applicable transfer terms or federal intellectual-property law. Without departure terms, departing members have no continuing distributions, royalties, or revenue rights unless otherwise provided by law.

Public benefit artist companies must report

Artist companies can choose public benefit status at formation or conversion and name specific public benefits in their articles and any operating agreement. The articles’ heading and issued ownership certificates or other securities must identify the company as a public benefit artist company. Existing companies need approval from a majority of all member voting interests and all artist-member voting interests to adopt or end status. Ending public benefit status does not end artist company status. Members and donors must receive a statement at least annually covering goals, measurement standards, factual progress, and success on public benefits, the artistic mission, and affected people’s interests.

Colorado funds artist company filing tools

For fiscal year 2026–27, Colorado provides $93,878 from the Department of State cash fund for implementation—not direct business or household payments. This includes $5,478 for business and licensing staff, assuming 0.1 added full-time position, and $88,400 for information technology staff. The Secretary of State must provide a long-form formation form with election fields by July 1, 2027. The law starts at 12:01 a.m. the day after the 90th day following final adjournment—August 12, 2026, if adjournment is May 13, 2026. A referendum petition makes effectiveness depend on voter approval in November 2026 and the governor’s certification.

Sponsors & Cosponsors

Cosponsors

Andrew Boesenecker
Democratic • House
Amy Paschal
Democratic • House
Brianna Titone
Democratic • House
Eliza Hamrick
Democratic • House
Emily Sirota
Democratic • House
Gretchen Rydin
Democratic • House
Jennifer Bacon
Democratic • House
Jamie Jackson
Democratic • House
Junie Joseph
Democratic • House
Julie McCluskie
Democratic • House
Kyle Brown
Democratic • House
Karen McCormick
Democratic • House
Kenny Nguyen
Democratic • House
Katie Stewart
Democratic • House
Lesley Smith
Democratic • House
Monica Duran
Democratic • House
Meg Froelich
Democratic • House
Mandy Lindsay
Democratic • House
Manny Rutinel
Democratic • House
Matt Soper
Republican • House
Ryan Gonzalez
Republican • House
Steven Woodrow
Democratic • House
Tisha Mauro
Democratic • House
Sen. A. Benavidez
Affiliation unavailable
Barbara Kirkmeyer
Republican • Senate
Cathy Kipp
Democratic • Senate
Cleave Simpson
Republican • Senate
Judy Amabile
Democratic • Senate
James Coleman
Democratic • Senate
Jessie Danielson
Democratic • Senate
Julie Gonzales
Democratic • Senate
Janice Marchman
Democratic • Senate
Katie Wallace
Democratic • Senate
Lisa Cutter
Democratic • Senate
Lisa Frizell
Republican • Senate
Marc Snyder
Democratic • Senate
Scott Bright
Republican • Senate
William Lindstedt
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 180 • No: 24

Senate vote • 5/13/2026

House amendments: Repass

Yes: 33 • No: 2

Senate vote • 5/13/2026

House amendments: Concur

Yes: 35 • No: 0

House vote • 5/11/2026

Third reading: Bill

Yes: 49 • No: 15

House vote • 5/8/2026

Refer Senate Bill 26-133 to the Committee of the Whole.

Yes: 10 • No: 1

House vote • 5/6/2026

Refer Senate Bill 26-133, as amended, to the Committee on Appropriations.

Yes: 10 • No: 3

Senate vote • 4/22/2026

Third reading: Bill

Yes: 31 • No: 3

Senate vote • 4/21/2026

Refer Senate Bill 26-133, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

Senate vote • 4/9/2026

Refer Senate Bill 26-133 to the Committee on Appropriations.

Yes: 5 • No: 0

Actions Timeline

Governor Signed
6/2/2026House
Signed by the President of the Senate
5/21/2026Senate
Signed by the Speaker of the House
5/21/2026House
Sent to the Governor
5/21/2026House
Senate Considered House Amendments - Result was to Concur - Repass
5/13/2026Senate
House Third Reading Passed - No Amendments
5/11/2026House
House Third Reading Laid Over Daily - No Amendments
5/9/2026House
House Committee on Appropriations Refer Unamended to House Committee of the Whole
5/8/2026House
House Second Reading Special Order - Passed with Amendments - Committee
5/8/2026House
House Committee on Business Affairs & Labor Refer Amended to Appropriations
5/6/2026House
Senate Third Reading Passed - No Amendments
4/22/2026Senate
Introduced In House - Assigned to Business Affairs & Labor
4/22/2026House
Senate Committee on Appropriations Refer Amended - Consent Calendar to Senate Committee of the Whole
4/21/2026Senate
Senate Second Reading Special Order - Passed with Amendments - Committee
4/21/2026Senate
Senate Second Reading Special Order - Passed with Amendments - No Amendments
4/21/2026Senate
Senate Second Reading Special Order - Passed - No Amendments
4/21/2026Senate
Senate Committee on Business, Labor, & Technology Refer Unamended to Appropriations
4/9/2026Senate
Introduced In Senate - Assigned to Business, Labor, & Technology
3/4/2026Senate

Bill Text

Engrossed
PDF
Final Act
PDF
House Business Affairs & Labor Preamend
PDF
Introduced
PDF
Reengrossed
PDF
Rerevised
PDF
Revised
PDF
Senate Appropriations Preamend
PDF
Signed Act
PDF

Related Bills

Back to State Legislation