C.R.S. § 13-93-402: Legislative declaration.

(1) The general assembly finds that:

(a) The rules of the Colorado supreme court governing the practice of law underscore that the independent professional judgment of lawyers is essential to the fair administration of justice and restrict the sharing of legal fees with nonlawyers and nonlawyer ownership or control of a law firm;

(b) Financial arrangements that provide nonlawyers with an economic interest in law firms and their fees, revenues, or case outcomes, however structured, threaten a lawyer's duties of loyalty to their client, confidentiality, and professional independence;

(c) Even minimal nonlawyer ownership or profit participation in law firms compromises public trust in the legal profession;

(d) Alternative business structures have increasingly been used to circumvent longstanding prohibitions on nonlawyer ownership of law firms and the concomitant sharing of attorney fees; and

(e) Colorado has a compelling interest in regulating the provision of legal services affecting Colorado clients, regardless of where a lawyer or law firm is located.

(2) The general assembly therefore declares that the purposes of this part 4 are to:

(a) Prohibit nonlawyer ownership and fee sharing in the provision of legal services to third parties;

(b) Prevent contractual formalities or out-of-state entities from circumventing this prohibition;

(c) Protect clients and the integrity of the legal profession in Colorado; and

(d) Provide effective additional enforcement mechanisms for professionals and clients in Colorado.

(3) It is not the intent of the general assembly to:

(a) Prohibit or restrict the ability of creditors or lawful assignees of claims to enforce the claims, including through the use of lawyers; or

(b) Alter longstanding practices related to debt collection if legal services are rendered in compliance with applicable rules of professional conduct.