Fee Sharing with Nonlawyers in Legal Practice

Added precise definitions for 'alternative business structure,' 'economically participates in,' 'law firm,' 'lawyer,' and 'legal fee' to close loopholes and clarify prohibited activities.

Established a private right of action allowing clients and affected law firms to sue for economic damages, injunctive relief, and disgorgement of illegal funds.

Clarified that the ban does not apply to creditors or assignees enforcing debt claims, distinguishing debt collection from fee-sharing for legal services.

Explicitly prohibited contractual arrangements with out-of-state entities designed to circumvent Colorado's legal practice restrictions.

Included a sunset provision requiring a review of the bill by the Department of Regulatory Agencies on September 1, 2032.

Converted draft formatting and committee notes into official statutory language with section numbers and legislative declarations.

Removed a paragraph explaining the state's interest in regulating legal services regardless of the lawyer's location.

Deleted the start of a list detailing the purposes of the bill, likely due to renumbering or formatting updates.

Added three new Senate sponsors (Amabile, Benavidez, Coleman, Kipp, Snyder) to the bill's sponsorship list.

Updated the document title from 'REVISED' to 'REREVISED' and adjusted the amendment status description.

Removed the introductory section listing four specific legislative purposes regarding nonlawyer ownership and fee-sharing prohibitions.

Added a 'REVISED' header and a specific date stamp (May 8, 2026) indicating the bill's status after second reading in the second house.

Deleted a clause stating the bill does not intend to prohibit creditors or their lawyers from enforcing claims or to alter established debt collection practices.

Added multiple new co-sponsors to the House sponsorship list.

Updated the bill summary header to indicate the bill is now in its third reading unamended version.

The definition of 'Alternative Business Structure' was split into two separate definitions to more clearly distinguish between entities that provide legal services and those that share in profits or fees.

The definition of 'Economically Participates In' was removed and replaced with a new definition for 'Nonlawyer Ownership' to clarify control and economic participation.

The legislative declaration was reordered to prioritize the Colorado Supreme Court rules and the threat to professional independence at the beginning of the findings.

The purpose of the bill was updated to explicitly state that it aims to provide 'additional' enforcement mechanisms.

The short title of the act was updated to include the word 'Integrity'.