Concerning ensuring compliance with workers' compensation insurance coverage requirements.
Summary
SB26-093 creates a new requirement for certain Colorado building and construction permits and contractor licenses: before a permit or license is issued or renewed, the applicant must file a signed declaration, under penalty of perjury, stating that the applicant, the general contractor, and every subcontractor at any tier either maintain valid workers’ compensation insurance or have lawfully rejected coverage. The applicant must also submit proof of coverage or proof of rejection, such as a workers’ compensation insurance certificate, a self-insurance authorization, or an approved rejection-of-coverage form.
The bill also requires general contractors or permit holders to verify, before work begins, that every person performing work under the permit has provided the required proof and to retain those records for the duration of the project. If a licensing authority or permitting agency determines that a violation occurred, it must suspend or revoke the affected permit or contractor’s license until the contractor provides proper proof and resolves any penalties. The director of the Division of Workers’ Compensation is authorized to adopt rules for electronic verification, reporting, and coordination with local licensing and permitting agencies.
Impact
The bill adds a new section to Title 8 of the Colorado Revised Statutes governing workers’ compensation compliance in the construction permitting and licensing process. It affects the state, counties, municipalities, city and counties, and other political subdivisions, but excludes special districts and excludes licenses issued by the Division of Professions and Occupations in the Department of Regulatory Agencies. It applies to building or construction permits for projects over $1 million and to contractor licenses issued by covered governmental entities, and it authorizes enforcement through permit or license suspension or revocation.
Sentiment
The available context suggests the bill moved forward without recorded opposition in the provided materials and was ultimately signed by the Governor. The bill’s structure indicates a compliance- and enforcement-oriented approach, which is generally consistent with support for ensuring workers’ compensation coverage in construction. No committee transcripts or recorded votes were provided, so there is no evidence in the record supplied here of divided sentiment or formal debate points beyond the bill’s regulatory purpose.
Contention
The main potential points of contention are the added administrative burden on permit applicants, general contractors, and subcontractors, as well as the enforcement mechanism that allows suspension or revocation of permits and contractor licenses for noncompliance. Another likely issue is the bill’s scope: it applies only to certain permits, specifically projects with total construction costs over $1 million, and excludes special districts and certain state-issued licenses, which may raise questions about consistency and coverage. The bill also relies on local licensing and permitting agencies to verify compliance and coordinate with the Division of Workers’ Compensation, which could be seen as either a practical enforcement tool or an added bureaucratic requirement.