Bill
HB 1250
Requires criminal conviction for most civil asset forfeitures, guarantees right to counsel with a dedicated fund, and changes how proceeds are distributed.
HB 1250 (2026A) — Procedures Related to Civil Asset Forfeiture (Colorado)
Overview
- Purpose: Reforms Colorado’s civil asset forfeiture processes to require criminal conviction as a prerequisite for certain forfeitures, establish a right to counsel for forfeiture defendants, create a dedicated Forfeiture Defense Counsel Fund to pay for defense counsel, and adjust how forfeiture proceeds are distributed. The bill also adds procedural safeguards and clarifications to nuisance abatement and forfeiture actions, and sets up administrative and reporting requirements.
Key Provisions and Changes
1) Forfeiture standard and conviction requirement
- Repeals a current exception allowing forfeiture without a criminal conviction if the plaintiff proves the case by clear and convincing evidence (for certain scenarios).
- Reinstates a requirement that a court may enter judgment of forfeiture only after the property owner is convicted of a listed offense (or a lesser included offense via negotiated guilty plea), with several nuanced stay and resolution provisions for concurrent criminal forfeiture actions.
- Allows for forfeiture against an owner without a criminal conviction only in narrowly defined circumstances (e.g., lack of standing), but with tighter constraints and explicit procedural protections.
2) Forfeiture defense counsel and funding
- Establishes a constitutional right for a forfeiture defendant to be represented by counsel in a forfeiture proceeding upon request.
- Creates the Forfeiture Defense Counsel Fund to pay appointed forfeiture defense counsel (up to $3,500 per case initially, with potential higher amounts for good cause).
- Requires the State Court Administrator to administer grants and contract with a private attorney or private contractor to provide defense services, including rotating qualified attorneys and reporting on expenditures.
- Provides reimbursement requirements to the fund or to private counsel if the defendant prevails.
3) Forfeiture defense fund mechanics and transfers
- Creates the Forfeiture Defense Counsel Fund in the State Treasury, financed by transfers (notably a contemplated $1.0 million transfer from the Law Enforcement Community Services Grant Program, with an assumed lower actual balance in practice) and gifts/grants/donations.
- Requires funds to be used to support defense counsel and related administration of the program.
- Requires the State Treasurer to credit interest to the fund and authorizes annual appropriations for administration.
4) Disposition of forfeiture proceeds and property
- Recasts the distribution of proceeds after a seizure. Instead of the previous split (restitution, cost recovery, local government, behavioral health service organization, and the law enforcement community services grant program fund), the bill directs:
- 50% to the local governmental body with authority over the seizing agency
- 25% to the Forfeiture Defense Counsel Fund
- 25% to the Law Enforcement Community Services Grant Program Fund
- Adds cost-sharing procedures among seizing agencies when multiple agencies are involved, and requires equitable distribution if agencies cannot reach agreement.
- Maintains provisions for title transfer and disposition of forfeited vehicles and real property.
5) Administrative and reporting enhancements
- Requires biannual reporting forms and public, searchable database to track forfeiture activity, uses of proceeds, and related data.
- Establishes annual statewide seizure/forfeiture activity reports to the governor and legislative judiciary committees.
- Adds disclosure requirements to the civil process, including notices about the right to forfeiture counsel.
6) Effective date and applicability
- Effective July 1, 2026.
- Applies to forfeiture actions commenced on or after that date.
Fiscal and Administrative Impacts (as noted in the fiscal note)
- Estimated net state expenditures of roughly $828k in FY 2026-27 and $678k in FY 2027-28 to administer the new Forfeiture Defense Counsel Fund and related duties (0.8 FTE ongoing).
- Estimated state revenue increase (cash funds) of about $209k per year beginning FY 2026-27, subject to TABOR.
- Transfers: planned $1.0 million transfer from the Law Enforcement Community Services Grant Program to the Forfeiture Defense Counsel Fund (note: the grant’s current unencumbered balance suggests actual transfer may be about $330k).
- Local government impact: reduced routine funding from the law enforcement community services grant program; potential workflow changes due to new reporting and defense costs.
Notes
- The bill includes several house and senate committee amendments addressing procedural details, funding mechanisms, and definitions (e.g., delineating “forfeiture defense counsel,” “private contractor,” and related processes).
- If you need a section-by-section map or a comparison to current law, I can provide a side-by-side outline.
Compiled from official sources — confirm details with the bill’s official record.
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