HB 1188 — Sunset Process Securities Regulation
Last action — Governor Signed
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced February 09, 2026. Enacted.
Signed by Governor Jared Polis (Democratic) on May 29, 2026.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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15 sponsors
4 primary, 11 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (8 D).
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Cleared a recorded vote
Passed 6 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
In plain language
The bill extends the division of securities and updates the process for issuing cease-and-desist orders.
This bill continues the division of securities and the securities board until 2037. It changes how cease-and-desist orders and license suspensions are issued, allowing the commissioner more authority and adjusting the timeline for hearings.
What this means for you
- Workers: This may impact workers in the financial sector by maintaining regulatory oversight of investment advisers.
- Consumers: Consumers may benefit from clearer regulations surrounding investment advisories and stronger enforcement against non-compliance.
- Small Business: Small businesses involved in investment may need to ensure compliance with updated licensing requirements.
Summary
The act implements the recommendations of the department of regulatory agencies (department) in its 2025 sunset review and report by continuing the division of securities and the securities board until 2037. In connection with continuing these entities, the act:Clarifies that deficiency letters and communications concerning a deficiency letter are not public documents that may be inspected under the 'Colorado Open Records Act';Requires that an investment adviser or an investment adviser representative doing business in Colorado must be licensed by the securities commissioner (commissioner) unless otherwise exempt;Specifies that the executive director of the department must consult with the securities board when appointing the commissioner; andUpdates statutory language to be gender neutral. The act revises the process by which a cease-and-desist order is issued or a license is summarily suspended. Under the previous law, the commissioner issued a cease-and-desist order or conducted a summary license suspension by issuing an order to show cause as to why a cease-and-desist order or license suspension should not be issued. After appropriate notices were given, a hearing was scheduled with the securities board or an administrative law judge. At the hearing, it was determined whether to issue a cease-and-desist order or suspend the license and what form the order or suspension would take. The act changes this process to authorize the commissioner to issue a preliminary cease-and-desist order or a summary license-suspension order. If the person that is the subject of the order disagrees with the order, the person may request a hearing to resolve the issue. The hearing must take place within 45 days after issuance of the order unless both parties request an extension. The deadline for a hearing, with an exception, is changed from 35 days to 60 days. If a hearing is not requested within 15 days after issuance of the order, the order becomes final. The person that is the subject of the order must obey the order until a hearing is requested.(Note: This summary applies to this bill as enacted.)
Bill Text
What changed in the latest version
430 added · 491 removedPlain-language change summary
The amendment changes the repeal date of the Colorado Revised Statutes, specifically 11-51-803, from September 1, 2026, to September 1, 2037. This extension means that the regulations concerning securities will remain in effect for an additional eleven years, allowing for continued oversight and regulation by the division of securities during that period.
SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.
26-0356.01This Jerybill Paynehas x2157been HOUSEprepared BILLfor 26-1188the HOUSEsignatures SPONSORSHIPof Camachothe andappropriate Titone,legislative Stewartofficers R.,and Brown,the Duran,Governor. Marshall, Nguyen, Woodrow SENATE SPONSORSHIP Kolker, Coleman, Cutter, Kipp, Marchman, Sullivan, Weissman e n e 6 E a 0 A U , N g 2 S d r House Committees Senate Committees e A Finance Finance R Appropriations Appropriations r e A BILL FOR AN ACT n m 2 C ONCERNINGTHECONTINUATIONOFTHEREGULATIONOFSECURITIES , T n 2 N U 1 AND , IN CONNECTION THEREWITH , IMPLEMENTING THE E i r S a A RECOMMENDATIONS OF THE DEPARTMENT OF REGULATORY R n AGENCIES IN THE DEPARTMENT 'S 2025 SUNSET REPORT .
2To Billdetermine Summarywhether ethe nGovernor 6has msigned 0the (Note:bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.
ThisHOUSE summaryBILL applies26-1188 toBY thisREPRESENTATIVE(S) billCamacho as introduced and doesTitone, EStewart nR., ,Brown, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillDuran, UMarshall, UNguyen, 2Woodrow; O i h passes third reading in the house of introduction, a bill summary that H a r applies to the reengrossed version of this bill will be available at R M r http://leg.colorado.gov/.) 3 SunsetProcess-HouseFinanceCommittee.Thebillimplements therecommendationsofthedepartmentofregulatoryagenciesinits2025 g d 62 sunset review and report by continuing the division of securities and the E e 2 S R 4 U d 2 H 2 r Shading denotes HOUSE amendment.
Doublealso underliningSENATOR(S) denotesKolker, SENATECutter,Kipp, amendment.Marchman, Sullivan, Weissman, Coleman.
eC aONCERNINGTHECONTINUATIONOFTHEREGULATIONOFSECURITIES Capital,AND letters, orINCONNECTIONTHEREWITH bold,IMPLEMENTINGTHERECOMMENDATIONS &OF italicTHE numbersDEPARTMENT indicateOF newREGULATORY materialAGENCIES toIN beTHE addedDEPARTMENT to'S2025 existingSUNSET law.nREPORT M. Dashes through the words or numbers indicate deletions from existing law.
e A securities board until 2037.
In connection with continuing these entities, the bill:
! Clarifies that deficiency letters and communications concerningadeficiencyletterarenotpublicdocumentsthat maybeinspectedunderthe"ColoradoOpenRecordsAct";
! Requires that an investment adviser or an investment adviser representative doing business in Colorado must be licensed by the securities commissioner (commissioner) unless otherwise exempt;
! Specifies that the executive director of the department of regulatory agencies must consult with the securities board when appointing the commissioner;
and ! Updates statutory language to be gender neutral.
The bill revises the process by which a cease-and-desist order is issued or a license is summarily suspended.
Under current law, the commissioner issues a cease-and-desist order or conducts a summary license suspension by issuing an order to show cause as to why a cease-and-desist order or license suspension should not be issued.
After appropriate notices are given, a hearing is scheduled with the securities board or an administrative law judge.
At the hearing, it is determined whethertoissueacease-and-desistorderorsuspendthelicenseandwhat form the order or suspension will take.
The bill changes this process to authorizethecommissionertoissueapreliminarycease-and-desistorder orasummarylicense-suspensionorder.Ifthepersonthatisthesubjectof the order disagrees with the order, the person may request a hearing to resolve the issue.
The hearing must take place within 30 days after issuance of the order.
If a hearing is not requested within 15 days after issuance of the order, the order becomes final.
The person that is the subject of the order must obey the order until a hearing is requested.
SECTION1.SECTION 1.
InColoradoRevisedStatutes,amend11-51-803asIn Colorado Revised Statutes, amend 11-51-803 as follows:
(1)(1)ThisarticleARTICLE This51isrepealed,effectiveSeptember1,2026 articleARTICLE 51 is repealed, effective September 1, 2026 2037.
(2) Prior to suchsuchEFORE BEFORE THE repeal, the division of securities shall be reviewed as provided for iniIS IS SCHEDULED FOR REVIEWREVIEWIN INACCORDANCE -2-________ 1188Capital ACCORDANCEletters WITHor sectionbold 24-34-104.& italic numbers indicate new material added to existing law;
dashes through words or numbers indicate deletions from existing law and such material is not part of the act.
WITH section 24-34-104.
SECTION2.SECTION 2.
InColoradoRevisedStatutes,11-51-702.5,amendIn Colorado Revised Statutes, 11-51-702.5, amend (7) as follows:
SecuritiesSecuritiesboard-creation-duties-repeal-subject board - creation - duties - repeal - subject to review.
(7)(a)Thissectionisrepealed,effectiveSeptember1,20262037.(7) (a)This section is repealed, effective September 1, 2026 2037.
(b) Prior to suchBsuchBEFORE EFORE THE repeal, the functions of the securities board shall be reviewed as providedISprovided for in IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH section 24-34-104.
In Colorado Revised Statutes, 24-34-104, repeal (27)(a)(II)and(27)(a)(III);andadd(38)(a)(II)and(38)(a)(III)asfollows:(27)(a)(II) and (27)(a)(III);
and add (38)(a)(V) and (38)(a)(VI) as follows:
GeneralGeneralassembly assembly review ofofregulatory regulatoryagenciesand agenciesfunctions andfunctionsforrepeal,continuation,orreestablishment-legislativefor repeal, continuation, or reestablishment - legislative declaration - repeal.
(27)(a)(27) Thefollowingagencies,functions,orboth,arescheduled(a) The following agencies, functions, or both, are scheduled for repeal on September 1, 2026:
(38)(a)(38) Thefollowingagencies,functions,orboth,arescheduled(a) The following agencies, functions, or both, are scheduled for repeal on September 1, 2037:
(II)(V) TET DIVISIONOFSECURITIESCREATEDINSECTIONHE DIVISION OF SECURITIES CREATED IN SECTION 11-51-701;
(III)(VI) TET HE SECURITIES BOARD CREATED IN SECTION11-51-702.5.SECTION 11-51-702.5.
PAGE 2-HOUSE BILL 26-1188 (5) (d) ADEFICIENCY LETTER OR COMMUNICATION CONCERNING -3- 1188 A DEFICIENCYDEFICIENCYLETTERRESULTINGFROMANEXAMINATIONCONDUCTEDUNDER LETTER RESULTING FROM AN EXAMINATION CONDUCTED UNDER SECTION 11-51-409IS11-51-409 IS DEEMED TO BE INFORMATION HELD OR OBTAINED IN CONNECTION WITH A PRIVATE INVESTIGATION WITHIN THE MEANING OF SUBSECTION (5)(aOF(5)(a)OFTHISSECTIONAND THIS,THEREFORE SECTION,ISCONFIDENTIALAND AND,THEREFORE,NOTSUBJECTTODISCLOSUREUNDERTHE IS"C CONFIDENTIALANDNOTSUBJECTTODISCLOSUREUNDERTHEOLORADO "COLORADOOPEN ORECORDS PENRACT ECORDS", ACT",PARTPART 2OF2 OF ARTICLE72 OF TITL24.TITLE24.
(1.5)(a)(I)(1.5) Wheneveritappearstothesecuritiescommissioner(a) (I) Whenever it appears Fthe securities commissioner DETERMINES ,baseduponsufficientevidenceaspresentedinapetitionby, based upon sufficient evidence as presented in a petition by an officer or employee of the division of securities, that a person has committed or maymaycommit commitanyof any of the acts or practicespracticesACT ACT OR PRACTICE listed ininparagraph(b)of paragraphthissubsection(1.SUBSECTION (b)(1.5)(b)OFTHIS ofSECTION this, subsectioSUBSECTIONthen, (1.5)(b)FTHISSECTION,then,inadditiontoanyspecificpowersgrantedin addition to anyspecific powers granted under this articleICLEarticle ARTICLE 51, the securities commissioner in his or her discretion,maydiscretion, issuemayissue to suchsuchTHE THE person an A PRELIMINARY CEASE-ANDCEASE DESISTorder.toshowcausewhythesecuritiescommissioner-AND-DESIST shouldorder. not enter a final order directing such person to cease and desist from the unlawful act or practice, or impose such other sanctions as provided in subparagraph (IV) of paragraph (d) of this subsection (1.5).
Show all 125 changed lines (85 more)
Theto securitiesshow commissionercause shall,why within two calendar days, notify the chairpersonsecurities ofcommissioner thesecuritiesboardshould ornot anenter administrativea lawfinal judgeorder thatdirecting ansuch orderperson to showcease cause has been issued, and (II)desist Afrom PERSONthe THATunlawful ISact THEor SUBJECTpractice, OFor Aimpose PRELIMINARYsuch -4-other 1188sanctions CEASEas -AND-DESISTprovided ORDERin ISSUEDsubparagraph PURSUANT(IV) TOof SUBSECTION(1.5)(a)(I)paragraph OF(d) THISof SECTIONthis MAYsubsection REQUEST(1.5). A HEARING WITHIN FIFTEEN DAYS AFTER THE ISSUANCE OF THE PRELIMINARY CEASE AND -DESIST ORDER TO DETERMINE IF THE ORDER SHOULD BE MADE FINAL.
FThe THEsecurities commissioner shall, within two calendar days, notify the chairperson of the securities board or an administrative law judge that an order to show cause has been issued, and (II) A PERSON THAT ISTHESUBJECTOFTHEPRELIMINARYCEASEIS THE SUBJECT OF A PRELIMINARY CEASE AND -DESISTORDERDOESNOT-DESISTORDERISSUEDPURSUANTTOSUBSECTION (1.5)(a)(IOF THIS SECTION MAY REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE ISSUANCE OF THE PRELIMINARY CEASE -AND -DESIST ORDER TO DETERMINE IF THE ORDER SHOULD BE MADE FINAL.IFTHE PERSON THAT IS THE SUBJECT OF THE PRELIMINARY CEASE -AND -DESIST ORDER DOES NOT REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE DATE THE PRELIMINARY CEASE -AND-DESIST-AND DESIST ORDER WAS ISSUED,THEISSUED , THE PRELIMINARY CEASE -AND-DESISTAND -DESIST ORDER BECOMES AAFINALCEASE FINALAND CEAS-AND-DESIST ORDER.IF PAGE 3-HOUSE BILL 26-1188 THE PERSON THAT IS THE SUBJECT OFTHE PRELIMINARY CEASE -AND -DESIST ORDER.ORDERTIMELYREQUESTSAHEARING ,THECOMMISSIONERSHALLNOTIFY the chairpersonOFTHESECURITIESBOARD orAN administrativelawjudge, WHO shall set a datWITHIN FORTY -FIVE DAYS AFTER THE ISSUANCE OF THE PRELIMINARY CEASE -AND -DESIST ORDER for THE hearing on such THE PRELIMINARY CEASE -AND -DESIST order before the securities board or administrative law judge as provided in paragraph (d) of this subsection (1.5)SUBSECTION (1.5)(d)OF THIS SECTION.
IF(III) THEA PERSON THAT IS THE SUBJECT OF THEA PRELIMINARY CEASE -AND-DESIST-AND ORDERDESISTORDERISSUEDPURSUANTTOSUBSECTION TIMELY(1.5)(a)(IOF REQUESTSTHIS ASECTION HEARING,SHALL THEOBEY COMMISSIONERSHALLNOTIFY the chairpersoOFTHESECURITIESBOARD or AN administrative law judWHO shall set a dWITHIN FORTY FIVE DAYS AFTER THE ISSUANCEORDER OFUNTIL THE PRELIMINARY CEASE -AND DESIST ORDER forTHEEITHER hearingBECOMES onFINALINACCORDANCEWITHSUBSECTION suchTHE(1.5)(a)(IOFTHISSECTIONORIS PRELIMINARYVACATED CEASE.THEPERSONTHATISTHESUBJECTOFAFINALCEASE -AND DESIST-DESIST orderORDER beforeSHALL theOBEY securitiesTHE boardORDER or administrative law judge as provided in paragraph (d) of this subsection (1.5)ECTION (1.5)(d)OF THIS SECTION .
(III)(c) Any A PERSONperson THATagainst ISTO THEwhom SUBJECTan OForder to show cause A PRELIMINARY CEASE -AND-DESIST-AND -DESIST ORDER ISSUEDhas PURSUANTbeen TOentered SUBSECTION(1.5)(a)(I)pursuant OFto THISparagraph(a)of SECTIONthissubsection(1.5)SUBSECTION SHALL(1.5)(aOFTHISSECTION OBEYshall THEbe ORDERpromptly UNTILnotified by the securities diviOF SECURITIES of the entryof theorder,alongwithacopyoftheorder,thefactualandlegalbasis for the order, and the date set by the chairperson of the securities board or anadministrativelawjudgeforhearingonsuchorder.Such ANOTICETHAT THE ORDER EITHERWILL BECOMESBECOME FINAL INIF ACCORDANCETHE WITHPERSON SUBSECTIONDOES (1.5)(a)(IOFNOT THISREQUEST SECTIONA ORHEARINGWITHINFIFTEENDAYSAFTERTHEORDERISISSUED IS.THESECURITIES VACATED.COMMISSIONERMAYSERVETHE notice maybe served TOTHE PERSONTHAT ISTHESUBJECTOFTHEORDER byUnitedStatesmail,postageprepaid,tothe last-known address of suchTHE person, by personal service;
THEby PERSONfacsimile THATtransmission;orasmaybepracticable.uponanypersonagainstwhomsuch ISorder THEis SUBJECTentered. OF A FINAL CEASE -AND-DESIST ORDER SHALL OBEY THE ORDER.
(c)Mailing Anyor Afacsimile persontransmission againsTOof whom an order toor showother causedocuments Aunder PRELIMINARY CEASE -AND DESIST ORDER has been entered pursuant to paragraph (a) of this subsection (1.5)BSECTION(1.5), (1.5)(aOFor THISpersonal SECTIONservice shall be promptly notified by the securities divisiOF -5- 1188 SECURITIESof the entry of thesuch order,orders alongTHEORDER withor aASSOCIATED copydocuments,shallconstituteCONSTITUTES ofnotice thethereofOF order, the factual and legal basis for the order, and the date set by the chairperson of thesecuritiesboardoranadministrativelawjudgeforhearingonsuch order.SuchANOTICETHATTHEORDERWILLBECOMEFINALIFTHEPERSON DOES NOT REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE ORDERPRELIMINARY ISISSUED.THESECURITIESCOMMISSIONERMAYSERVETHECEASE noticemaybe-AND servedTODESIST THE PERSON THAT IS THE SUBJECT OF THE ORDER by United States mail, postage prepaid, to the last-knownperson. address of sTHE person, by personal service;
(d) (I) The IF TIMELY REQUESTED , A hearing on an order to show cause A PRELIMINARY CEASE AND -DESIST ORDER shall be commenced no soonerthantennorlaterthantwenty-one WITHINFORTY -FIVE calendardays following the date of transmission or service of the notification by facsimilethe transmission;securities division as providedinparagraph(c)of thissubsection (THE) PRELIMINARYCEASE AND -DESISTORDER .Thehearingmaybecontinuedby PAGE 4-HOUSE BILL 26-1188 agreement of all of the parties based upon the complexity of the matter, numberofpartiestothematter,andlegalissuespresentedinthematter,but in no event shall the hearing MUST commence NO later than thirty-five SIXTY calendar days following the date of transmission or service of the notificationREQUEST FOR A HEARING .
(II) If a person against whom an order to show cause entered A PRELIMINARY CEASE -AND -DESIST ORDER HAS BEEN ISSUED pursuant to paragraph(a)of thissubsection(1.5) SUBSECTION (1.5)(a)OFTHISSECTION does not appear at the A hearing, the securities division may present evidence that notification was properly sent or served upon such person pursuant to paragraph (c) of this subsection (1.5) and such other evidence related to the matter as maythe besecurities practicable.uponanypersonagainstwhomsuchorderisentered.board or administrative law judge deems appropriate.
MailingIn orthe facsimilecase transmissionwhere ofsuch person does not appear, the securities commissioner maynot issue an order orunless otherthere documentsis undera thisfinding subsectionby (1.5),the securities board or personaladministrative servicelaw ofjudge that there is a reasonable basis to believe such ordeTHEnotification ORDERwas actually received or ASSOCIATEDserved, documents,or, shallafter constituCONSTITUTESreasonable noticesearch thereoOFby THEthe PRELIMINARYsecurities CEASEdivision, ANDthe -DESISTperson ORDERagainst towhom the person.order was entered cannot be located.
(d)The (I)securities TheFcommissioner TIMELYshall REQUESTEDenter ,Ahearingsuch on an order towithin showten causeAPRELIMINARYCEASEdays ANDafter -DESISThis ORDERor shallbecommencednoher soonerdetermination thanrelated tento norreasonable laterattempts thanof twenty-oneINnotification FORTYof -FIVEthe calendarrespondent, daysand following the dateorder ofshall transmissionbecome orfinal serviceas ofto thethat notificationperson by thesecuritiesdivisionasprovidedinparagraph(c)ofthissubsection(1.5)operation THEof law PRELIMINARY CEASE -AND DESIST-DESISTORDERBECOMESFINALWITHOUTENTERINGFINDINGSOF ORDERFACT OR MAKING CONCLUSIONS OF LAW .
The(III) At any A hearing mayHELD bepursuant continuedbyagreementofallofthepartiesbaseduponthecomplexityofto this paragraph (d) SUBSECTION (1.5)(d), the matter,securities numberboard ofAN partiesadministrative tolaw judge shall, PURSUANT TO THE RULES AND PROCEDURES ADOPTED BY THE SECURITIES COMMISSIONER , take evidence and hear arguments from the matter,securities division OF SECURITIES and legalthe issuesperson presentedagainst inwhom the matter,PRELIMINARY butCEASE in-AND no-DESIST eventorder shallhearingMUSTto commenceshow NOcause laterhas thanthirty-fiSIXTYbeen calendardaysfollowingthedateoftransmissionorentered, servicepursuant ofto such rules and procedures as may be adopted by the notificationESTsecurities FORcommissioner AHAS HEARINGBEEN ISSUED .
(II)Based Ifon athe personevidence againstentered whomand anarguments orderheard toat showthe causehearing, enteredthe PRELIMINARYsecurities CEASEboard -AND-DESISTor ORDERadministrative HASlaw BEENjudgeshallenterfindingsoffact,conclusionsoflaw,andaninitialdecision ISSUEDrecommending pursuant to -6- 1188 paragraph (a) of this subsection (1.SUBSECTION (1.5)(a)OF THIS SECTION does not appear at thA hearing, the securities divisioncommissioner may present evidence that notificationa wasfinal properlysentorder orbe servedentered uponaffirming, suchdenying, personvacating, pursuantor tootherwise paragraphmodifying (c)the oforder thisto subsectionshow (1.5)cause andPRELIMINARY suchCEASE other-AND evidencerelatedtothematterasthesecuritiesboardoradministrativelaw-DESIST judgeORDER deems. appropriate.
InThe theinitial casedecision whereshall suchMUST personbeissuedwithintendaysaftertheconclusionofthehearingprovided doespursuant notto appear,this theparagraph securities(d) commissionerSUBSECTION may(1.5)(d) notand issueshall anMUST orderbe unlessPAGE there5-HOUSE isBILL a26-1188 findingpromptly bythedelivered securities board or administrative law judge that there is a reasonable basis to believe such notification was actually received or served, or, after reasonable search by the securities division,commissioner. the person against whom the order was entered cannot be located.
The(IV) securitiesIf commissionerthesecuritiescommissioner shallreasonablyfinds enterthattheperson suchagainstwhomtheorderto ordershowcausewasenteredhasengaged,orisabout withinto tenengage, daysin afteracts his or herpractices determinationconstituting relatedviolations toas reasonableset attemptsforth ofin notificationparagraph (b) of thethis respondent,subsection (1.5) and makes the orderfindings shallrequired becomeby section 11-51-704 (2), he or she may issue a final ascease-and-desist toorder thatimposing personone byor operationoflawPRELIMINARYCEASEmore -ANDof DESISTORDERBECOMESFINALthe WITHOUTENTERINGFINDINGSOFFACTORMAKINGCONCLUSIONSOFLAWfollowing .sanctions:
(III)(A) AtDirectingsuchpersontoceaseanddesistfromfurtherunlawful anyacts Aor hearingpractices; HELD pursuant to this paragraph (d) SUBSECTION (1.5)(d),thesecuritiesboardAN administrativelawjudge shallPURSUANT TO THE RULES AND PROCEDURES ADOPTED BY THE SECURITIES COMMISSIONER , take evidence and hear arguments from the securitiesivisionOF SECURITIES and the person against whom the PRELIMINARY CEASE AND -DESIST order to show cause has been entered, pursuanttosuchrulesandproceduresasmaybeadoptedbythesecurities commissioner HAS BEEN ISSUED .
Based(B) onCensuring the evidenceperson, enteredif and argumentsheardatthehearing,thesecuritiesboardoradministrativelaw judge shall enter findings of fact, conclusions of law, and an initial decision recommending to the securitiesperson commissioneris that a finallicensed orderbroker-dealer, -7-sales 1188representative, beenteredaffirming,denying,vacating,orotherwisemodifyingtheorderinvestment toadviser, showor causeinvestment PRELIMINARYadviser CEASErepresentative; -AND DESIST ORDER .
Theor initial(C) decisionRequiring shallUSTsuch beperson issuedto withinundertake tenor dayscomply afterwith conditions or limitations placed upon the conclusionactivities, functions, or operations of thesuch hearingperson, providedwithin pursuantsuch tothisparagraph(d)BSECTIONreasonable (1.5)(d)time andperiod shallMUSTas may be promptlyimposed deliveredby to the securities commissioner.
(IV)(V) IfThe the securities commissioner reasonablyshall findsprovide thatnotice of the personA againstfinal whom the order towithin showten causecalendar wasdays enteredafter hasreceiving engaged,the orinitial isdecision, about to engage, in actsthe ormanner practices constituting violations as set forth in paragraph (b)(c) of this subsection (1.5) andSUBSECTION makes(1.5)(c)OF theTHIS findingsSECTION required, byto sectioneach 11-51-704person (2),against hewhom orsuch sheTHE may issue a final cease-and-desist order imposinghas onebeen orentered. more of the following sanctions:
(A)The Directingfinal suchorder personentered pursuant to ceasesubparagraph (IV) of this paragraph (d) shall be THIS SUBSECTION (1.5)(d)IS effective when issued and desistshall frombe furtherISa unlawfulfinal actsorder orfor practices;purposes of judicial review pursuant to section 11-51-607.
(B)(4) Censuringtheperson,ifthepersonisalicensedbroker-dealer,(a) sales(I) representative,If investmentit adviser,appears tohe securities commissioner based upon sufficient evidence as presented in a petition by an officer or investmentemployee adviserof representative;the division of securitiesDETERMINES that anyof the grounds specified in section 11-51-410 (1) exist as to any A licensed person or, in the case of a licensed broker-dealer, a partner, officer, director, person occupying a similar status or performing similar functions, or a person directly or indirectlycontrollingabroker-dealer,thesecuritiescommissionermayissue to such person PURSUANT TO SECTION 24-4-104(4) an order to show cause whythesecuritiescommissionershouldnotsummarilysuspendthelicense of that person or limit or impose conditions on the securities activities of PAGE 6-HOUSE BILL 26-1188 that person.
or (C) Requiringsuchpersontoundertakeorcomplywithconditions or limitations placed upon the activities, functions, or operations of such person, within such reasonable time period as may be imposed by the securities commissioner.
(V) Thesecuritiescommissionershallprovidenoticeofthe Afinal order within ten calendar days after receiving the initial decision, in the manner set forth in paragraph (c) of this subsection (1.5)CTION (1.5)(c)F THIS SECTION, to each person against whom suchTHE order has been entered.
The final order entered pursuant to subparagraph (IV) of this paragraph (d) shallbeSSUBSECTION (1.5)(dISeffective when issued and shall beIS a final order for purposes of judicial review -8- 1188 pursuant to section 11-51-607.
(4) (a) (I) If it appears tocurities commissioner based upon sufficientevidenceaspresentedinapetitionbyanofficeroremployeeof the division of securities,RMINES that any of the grounds specified in section 11-51-410 (1) exist as to anynsed person or, in the case of alicensedbroker-dealer,a partner, officer, director,personoccupying a similar status or performing similar functions, or a person directly or indirectly controlling a broker-dealer, the securities commissioner may issuetosuchperson PURSUANTTOSECTION 24-4-104(4)anordertoshow causewhythesecuritiescommissionershouldnot summarilysuspendthe license of that person or limit or impose conditions on the securities activities of that person.
(II) APERSONPERSONTHATISTHESUBJECTOFASUMMARYSUSPENSIONMAY REQUEST A HEARING TO DETERMINE IF THE SUSPENSIONSHOULDBE MADE A FINALORDEROFSUSPENSIONIFTHEREQUESTISMADEWITHINFIFTEENDAYS AFTERTHE DATE THE LICENSE WAS SUMMARILYSUSPENDED .IFTHE PERSON THAT IS THE SUBJECT OF ATHE SUMMARY SUSPENSION MAYDOES NOT REQUEST A HEARING TOWITHIN DETERMINEFIFTEEN IFDAYS AFTER THE SUSPENSIONDATE SHOULDTHE BELICENSE MADEWAS ASUMMARILY FINALSUSPENDED ORDER, OFTHE SUMMARY SUSPENSION IFBECOMES THEA REQUESTFINAL ISORDER MADEOF WITHINSUSPENSION FIFTEENDAYSAFTERTHEDATETHELICENSEWASSUMMARILYSUSPENDED .
IFTHEIF THE PERSON THAT IS THE SUBJECT OF THE SUMMARY SUSPENSION DOESTIMELY NOTREQUESTS REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE DATE THE LICENSE WAS SUMMARILY SUSPENDED , THEthe SUMMARY SUSPENSION BECOMES A FINAL ORDER OF SUSPENSION .F THE PERSON THAT IS THE SUBJECTOFTHESUMMARYSUSPENSIONTIMELYREQUESTSAHEARING ,the securities commissioner shall promptlypromptlynotifythe notify the chairperson of the securities board that an order to show cause has been issuedSEissued HASBEENSUMMARILYSUSPENDEDANDAHEARINGHASBEENREQUESTEDA LICENSE HAS BEEN SUMMARILY SUSPENDED AND A HEARING HAS BEEN REQUESTED , and the chairperson shall set a date foraringfor hearing on suchTHEsuch THE order before the securities board.
-9- 1188 (III) HETE PERSON THAT IS THE SUBJECT OF AN ORDER SUMMARILY SUSPENDINGALICENSESHALLOBEYTHEORDERUNTILTHEORDEREITHERSUSPENDING A LICENSE SHALL OBEY THE ORDER UNTIL THE ORDER EITHER BECOMES FINAL IN ACCORDANCE WITH SUBSECTION (4)(a)(IIOF(4)(a)(II)OF THIS SECTION OR IS VACATED .
(b) AnyAAny A person against whom an order to show cause has been entered WHOSE LICENSE HAS BEEN SUMMARILY SUSPENDED shall be promptlynotifiedpromptly bythenotified securitidivisioOFSECURITIESby the securitiesivisionOF SECURITIES of the entryofentry suchorderof such order SUSPENSION andthebasistherefor.SuchFORTHESUSPENSIONand .the basis therefor.
TSuFOR HE noticeshalMUST includeacopyofthe SUMMARYSUSPENSION order andshallincludethedatesetbythechairpersonofthesecuritiesboardfor hearingonsuchorder ASTATEMENTTHATTHEORDERWILLBECOMEFINAL IF THE PERSONSUSPENSION THAT. IS THE SUBJECT OF THE ORDER DOES NOT REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE ORDER IS ISSUED.
InTHE thenotice caseshalMUST ofabroker-dealer,thenotificationshallbesentbothtothebroker-dealer'sinclude last-knowna mailingcopy addressof and,theSUMMARY ifSUSPENSION different,order and shall include the mostdate currentset mailingby addressthe chairperson of the broker-dealersecurities hasboard for hearing on filesuch withorderA theSTATEMENT securitiesTHAT commissionerTHE asORDER requiredWILL inBECOME sectionFINAL 11-51-407IF (3).THE PERSON THAT IS THE SUBJECT OF THE ORDER DOES NOT REQUEST A HEARING WITHIN FIFTEEN DAYS AFTER THE ORDER IS ISSUED .
In the case of a salesbroker-dealer, representative,the THE notification shalMUSTshall be sent both to the salesbroker-dealer's representative's last-known mailing address,address and, if different, the most current mailing address the salesbroker-dealer representative has on file with thesecuritiescommissionerasthe securities commissioner as required in section 11-51-407 (3),(3). and the last-known mailing address of the broker-dealer or issuer for which the sales representative is licensed to act.
(c)In (I)the TheFcase REQUESTED,of Ahearinga onsales therepresentative, ordernotification shalMUST be sent to showthe causesales shallrepresentative's Alast-known SUMMARYmailing SUSPENSIONaddress, SHALLthe bemost commencedcurrent nomailing sooneraddress thanthe seven,norlaterthantwenty,WITHINFORTYsales FIVErepresentative calendardaysfollowinghas -10-on 1188file with the datesecurities ofcommissioner transmissionas ofrequired notificationin ofsection thePAGE respondent7-HOUSE bytheBILL division26-1188 of11-51-407 securities(3), asand providedthe inlast-known paragraphmailing (b)address of thisthe subsectionbroker-dealer (4)or ORDERissuer WASfor ISSUEDwhich .the sales representative is licensed to act.
(II)(c)(I) The securitiesIFREQUESTED boardA shallhearingontheordertoshowcauseshall takeA evidenceSUMMARY andSUSPENSION hearSHALL argumentsbe fromcommenced no sooner than seven, nor later than twenty,WITHIN FORTY -FIVE calendar days following the securitiesivisionOFdate SECURITIESandof transmission of notification of the respondent.respondent by the division of securities as provided in paragraph (b) of this subsection (THE ORDER WAS ISSUED .
If(II) theThe respondentdoesnotappear,thesecuritiesdivisionmayprovideevidencesecurities thatboard notificationshall wastake promptlyevidence sentand byhear arguments from the securities division toOF theSECURITIES respondentand pursuantthe torespondent. paragraph (b) of this subsection (4).
InIf the caserespondent wheredoes not appear, the respondentsecurities PERSONdivision WHOSEmay LICENSEprovide HASevidence BEENthat SUMMARILYnotification SUSPENDEDwas PURSUANTpromptly TOsent SUBSECTIONby (4)(a)OFthe THISsecurities SECTION.division to the respondent pursuant to paragraph (b) of this subsection (4).
FIn THE PERSONTHATISTHESUBJECTOFASUMMARYSUSPENSIONORDER doesnot appearthesecuritiescommissionermaynotissue an order unlessthereis a finding by the securitiescase boardwhere that there is reasonable basis to believe the respondent eitherPERSON receivedWHOSE actualLICENSE notice,HAS or,BEEN afterSUMMARILY reasonableSUSPENDED searchPURSUANT byTO theSUBSECTION securities(4)(a)OF division,THIS cannotSECTION be locatedAT THE SUMMARY SUSPENSION HEARING ,THE ORDER BECOMES FINAL WITHOUT ENTERING FINDINGS OF FACT OR MAKING CONCLUSIONS OF LAW .
(III)IF BasedTHE onPERSON theTHAT evidenceIS enteredTHE andSUBJECT argumentsOF heardA atSUMMARY theSUSPENSION hearingORDER HELDdoes PURSUANTnot TOappear SUBSECTION (4)(a)OF THIS SECTION, the securities boardcommissioner shallmaynot enterissue findingsan oforder fact,unless conclusionsthere ofis law,a andfinding itsby initial decision recommending to the securities commissionerboard that anthere FINALis orderreasonable bebasis enteredto eitherbelieve denying the petitionrespondent ofeither thereceived securitiesactual divisionnotice, foror, summaryafter orderreasonable orsearch suspendingby the licensesecurities ofdivision, thatcannot personbe VACATINGlocated AT THE SUMMARY SUSPENSION ,HEARING CONVERTING,THEORDERBECOMESFINALWITHOUTENTERINGFINDINGSOFFACT ITOR TOMAKING ACONCLUSIONS FINALOF SUSPENSIONLAW ,. or otherwise limiting or imposing conditions on the securities activities of that person.
pending(III) finalBased determinationon ofthe aevidence proceedingentered underand sectionsarguments 24-4-104heard at the hearing HELD PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION , the securities board shall enter findings of fact, conclusions of law, and 24-4-105,its C.R.S.ptionsinitial decision recommending to -11-the 1188securities theinitialdecisionofthesecuritiesboardmustbefiledwiththesecuritiescommissioner commissionerwithintencalendardaysofthat AFTERan thedateofentryofsuchA FINAL order be entered either denying the petition of the securities division for summaryorder or suspending the license of that person VACATING THE SECURITIESSUMMARY BOARDSUSPENSION 'S, INITIALCONVERTING DECISION.IT TO A FINAL SUSPENSION , or otherwiselimitingorimposingconditionsonthesecuritiesactivitiesofthat person.
Thepending securitiesfinal commissionershallthenissueanorder,whichshallbedetermination ISaof finalorderfora purposesproceeding ofunder judicialsections review24-4-104 pursuantand to24-4-105, sectionC.R.S. 11-51-607.
(d)Exceptions Anyto Athe FINALinitial orderdecision entered under paragraph (c)(III) of thisthe subsectionsecurities (4)UBSECTIONboard (4)(c)(IIIOFmust THISbe SECTIONfiled suspendingwith a license or otherwise limiting or imposing conditions on the securities activitiescommissioner ofwithin Alicensedten personcalendar shalldays remaREMAINSof inAFTER effect during the pendencydate of aentry proceedingof undersuch sections 24-4-104 and 24-4-105, C.R.S.,nlessvacatedormodifiedonjudicialreviewpursuanttosection 11-51-607 or by subsequent order ofTHE theSECURITIES securitiesBOARD commissionerSINITIALDECISION after. notice and opportunity for hearing.
(5)The Nosecurities ordercommissioner undershallthenissue subsectionan (3)(b),order, (3)(c),which orshall (4)(a) of this section may be enteredIS by the securities commissioner unless a proceedingundersections24-4-104and24-4-105,C.R.S.,eitherhasbeenfinal commenced,oriscommencedpromptlyfollowingorcontemporaneouslyorder withfor thepurposes entry of suchjudicial anreview orderEpursuant SECURITIESto COMMISSIONERsection SHALL11-51-607. COMMENCE A PROCEEDING UNDER SECTIONS 24-4-104 AND 24-4-105 PROMPTLY FOLLOWING THE ENTRY OF AN ORDER UNDER SUBSECTION (3)(b)R (3)(cOF THIS SECTION OR OF A FINAL SUMMARY SUSPENSION ORDER UNDER SUBSECTION (4)(a)OF THIS SECTIO.
SECTIONPAGE 6.8-HOUSE BILL 26-1188 (d) Any A FINAL order entered under paragraph (c)(III) of this subsection(4) SUBSECTION (4)(c)(IIIOFTHISSECTION suspendingalicense or otherwise limiting or imposing conditions on the securities activities of the A licensed person shall remaiREMAINS in effect during the pendency of a proceeding under sections 24-4-104 and 24-4-105, C.R.S., unless vacated or modified onjudicialreviewpursuanttosection 11-51-607 or by subsequent order of the securities commissioner after notice and opportunity for hearing.
In(5) ColoradoNoorderundersubsection(3)(b),(3)(c),or(4)(a)of Revisedthissection Statutes,may 11-51-201,be amendentered by the introductorysecurities portioncommissioner unless a proceeding under sections 24-4-104 and (9.6)(b)24-4-105, asC.R.S., follows:either has been commenced, or is commenced promptly following or contemporaneously with the entry of such an order T HE SECURITIES COMMISSIONER SHALL COMMENCE A PROCEEDING UNDER SECTIONS 24-4-104 AND 24-4-105 PROMPTLY FOLLOWING THE ENTRY OF AN ORDER UNDER SUBSECTION (3)(b)OR (3)(c) OF THIS SECTION OR OF A FINAL SUMMARY SUSPENSION ORDER UNDER SUBSECTION (4)(a)OF THIS SECTION .
SECTION6.
InColoradoRevisedStatutes,11-51-201,amendthe introductory portion and (9.6)(b) as follows:
As used in this articleICLEarticleARTICLE 51, unless the context otherwise requires:
-12-(9.6) 1188(b) (9.6)(b)"Investment "Investmentadviserrepresentative"forafederalcovered adviser meansrepresentative" anyindividualfor with a placefederal ofcovered businessadvisermeansanyindividualwithaplaceofbusinessinthisstate inwhoisan this state an "investment adviser representative" as defined by the securities and exchange commission in rule 203A-3 promulgated under the federal "Investment Advisers Act of 1940", 15.S.C.15 U.S.C.
80b-1ET80b-1 SEQET .SEQ.
(1.5) AApersonwithaplaceofbusinessinthisstate personshallnottransact with a place of business in this statehall not transact business in this state as an investment adviser or investment adviser PAGE 9-HOUSE BILL 26-1188 representative unless suchHEsuchTHE person is licensed as such or exempt from licensing under section 11-51-402.
(1.6) AAfederalcoveredadvisereitherwithaplaceofbusinessinthis federalstate coveredor adviserwho eitheremploys or otherwise engages an individual with a place of businessbusinessinthisstatetoactasaninvestmentadviserrepresentativeshallnot intransact thisstateorwhoemploysorotherwiseengagesanindividualwithaplace of business in this state to act as ana investmentfederal covered adviser representativeunless shallnottransactbusinessinthisstateasafederalcoveredadviserunless such THE adviser:
OR (b) INOTREQUIREDTOFILEPURSUANTTOSECTIONIS NOT REQUIRED TO FILE PURSUANT TO SECTION 11-51-402(5).
(2.5) Aninvestmentadviser ORFEDERALCOVEREDADVISER shallshallnot notemployor employ or otherwise engage anyanyindividual individual with a place of business in this state to act as an investment adviser representative in this state unless such THE individual is licensed in accordance with section 11-51-403 or is exempt from licensing under section 11-51-402.
SECTIONSECTION8. 8.
InInColoradoRevisedStatutes,11-51-402,amend(5) Colorado Revised Statutes, 11-51-402, amend (5) introductory portion, (5)(a) introductory portion, and (6) as follows:
-13- 1188 11-51-402.
Exempt broker-dealers, sales representatives - sanctions-exemptinvestmentadvisers,federalcoveredadvisers,andsanctions - exempt investment advisers, federal covered advisers, and investment adviser representatives.
(5) The following investment advisersDadvisers AND FEDERAL COVERED ADVISERS withwithnoplaceofbusinessinthisstateareexemptfromthelicense no place of business in this state are exempt from the license requirement of section 11-51-401 (1.5)THE(1.5) AND THE NOTICE FILING REQUIREMENTS OF SECTION 11-51-401 (1.6):
(a) An investment advisORAFEDERALCOVEREDADVISERadviser OR A FEDERAL COVERED ADVISER who:
(6) Investment adviser representatives employed byorby or otherwise associated with an investment adviserEDERALCOVEREDADVISERadviser OR FEDERAL COVERED ADVISER ,IF EITHER ISexemptIS exempt under subsection (5) of this section, are exempt from thelicenserequirementofsection11-51-401(1.5ANDTHENOTICEFILINGthe license requirement of section 11-51-401 (1.5) AND THE NOTICE FILING REQUIREMENTS OF SECTION 11-51-401 (1.6).
PAGE 10-HOUSE BILL 26-1188 SECTION 9.
Applicationforlicense-noticefilingrequirements.Application for license - notice filing requirements.
(3) (a) A federal covered adviser who during any calendar year, either has a place of business in this state or employs or engages an investment adviser representative with a place of business inIShisin statethis REQUIREDTOFILEANOTICEBYSECTIONstateIS 11-51-401(1.6)shallfilewiththeREQUIRED securitiescommissionerannuallyaconsenttoserviceofprocessandsuchTO FILE A NOTICE BY SECTION 11-51-401(1.6) shall file with the securities commissioner annually a consent to service of process and such OTHER documentsasarefiledbysuchdocuments as are filed by such THE adviserwiththesecuritiesandadviser exchangecommissionthatthecommissionermayrequirebyruleororder.with the securities and exchange commission that the commissioner may require by rule or order.
(b) Thenoticefilingrequirementdescribedinparagraph(a)ofthisThe notice filing requirement described in paragraph (a) of this subsection (3) does not applytoapply anyfederalto any federal covered adviser who, during such calendar year, neither has a place of business in thisthisstate statenor employs nor employsnorengagesaninvestmentadviserrepresentativewithaplaceofengages -14-an 1188investment adviser representative with a place of business in this state.
Divisionofsecurities-creation-powersandduties.Division of securities - creation - powers and duties.
There is createdhecreated The division of securitieISsecurities IS CREATED in the departmentofregulatoryagencies.Theheadofwhich THEDIVISION isthe commissionerof securitieCOMMISSIONER ,whoshallbeappointedbythe executive director of the department of regulatory agencies,agencies. pursuant to section 13 of article XII of the state constitutIN CONSULTATION WITH the securities board.
The divisionhead of securitieswhich andTHE theDIVISION officeis ofthe commissioner of THEsecurities securitiesCOMMISSIONERCOMMISSIONER are, typewho 1shall entities,be asappointed definedinsection24-1-105.ThedivisionOFSECURITIESby isresponsiblefor the administrationexecutive director of the provisionsdepartment ofles 51, 53, and 59 of thisregulatory titleagencies, 11pursuant andto partsection 713 of article 75XII of titlethe 24state andconstitution, shallandIN performCONSULTATION suchWITH otherthe dutiessecurities asboard. are imposed upon it by law.
The division of securities and the office of commissioner of THE securitiesCOMMISSIONER are type 1 entities, as defined in section 24-1-105.
The division OF SECURITIES is responsible for theadministrationof theprovisionsof articles51,53,and59ofthistitle11 and part 7 of article 75 of title 24 and shall performsuch other duties as are imposed upon it by law.
InInColoradoRevisedStatutes,11-51-304,amend(2) Colorado RevisedStatutes,11-51-304,amend (2) introductory portion and (2)(o) as follows:
PAGE 11-HOUSE BILL 26-1188 (2) A registration statementEstatement MADE under this section shMUSTshallMUST contain full and fair disclosure of all material facts respecting the investmentoffered,includingthefollowinginformation,shallSTinvestment offered, including the following information, shall MUST state the title of the securityandsecurity and the number or amount being registered under this articleTICLEarticleRTICLE 51, and shaMUSTshall MUST be accompanied bytheby the following documents in addition to the consent to service of process required by section 11-51-706:
(o) Thewrittenconsentofanyaccountant,engineer,appraiser,orThe otherpersonwhoseprofessiongivesauthoritytoastatementmadebyhimwritten -15-consent 1188of any accountant, engineer, appraiser, or other person whose profession gives authority to a statement made by him THEM ,ifanysuchpersonisnamedashavingpreparedorcertifiedareport, orvaluationotherthanapublicandofficialdocumentorstatementwhichif any such person is named as having prepared or certified a report or valuation other than a public and official document or statement which THAT is used in connection with the registration statement;
SECTION12.SECTION 12.
InColoradoRevisedStatutes,11-51-1002,amendIn Colorado Revised Statutes, 11-51-1002, amend (2)(b) as follows:
(b) An individual eighteen years of ageDage OLD or older who is susceptiblesusceptibletomistreatmentorself-neglectbecausetheindividualisunable to mistreatmentperform or self-neglectobtain becauseservices thenecessary individualfor ishis unabletoperformorobtainservicesnecessaryforhisorherHEIRor herHEIR health, safety, or welfare or lacks sufficient understanding or capacity to make orcommunicateresponsibledecisionsconcerninghisorheTHEIRor communicate responsible decisions concerning his or her THEIR person or affairs.
SECTION13.SECTION 13.
InColoradoRevisedStatutes,amend11-51-1006In Colorado Revised Statutes, amend 11-51-1006 as follows:
A qualified individual who, in good faith and exercising reasonable care, fails to report pursuant to this part 10 is immune from any administrative, criminal, or civil liability for his or herherEIR failure to report.
PAGE 12-HOUSE BILL 26-1188 SECTION 14.
Act subject to petition - effective date - applicability.(1)applicability. Thisacttakeseffectat12:01a.m.onthedayfollowing the expiration of the ninety-day period after final adjournment of the generalassembly(August12,2026,ifadjournmentsinedieisonMay13, 2026);
except(1) that,This if a referendum petition is filed pursuant to section 1 (3)ofarticleVofthestateconstitutionagainstthisactoranitem,section, -16- 1188 or part of this act withintakes such period, then the act, item, section, or part will not take effect unless approved bythe people at the12:01 generala.m. election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
(2)on Thisthe actday appliesfollowing tothe cease-and-desistexpiration ordersof andthe summaryninety-day suspensionperiod ordersafter issuedfinal adjournment of the general assembly (August 12, 2026, if adjournment sine die is on orMay after13, 2026);exceptthat,if areferendumpetitionisfiledpursuanttosection1(3) of article V of the applicablestate effectiveconstitution dateagainst this act or an item, section, or part of this act.act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, insuchcase,willtakeeffectonthedate of the official declaration of the vote thereon by the governor.
-17-(2) 1188This act applies to cease-and-desist orders and summary PAGE 13-HOUSE BILL 26-1188 suspensionordersissuedonoraftertheapplicableeffectivedateofthisact.
____________________________ ____________________________ Julie McCluskie James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.
Polis GOVERNOR OF THE STATE OF COLORADO PAGE 14-HOUSE BILL 26-1188
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Action History
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Governor Signed
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Signed by the Speaker of the House
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Signed by the President of the Senate
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Sent to the Governor
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Senate Third Reading Passed - No Amendments
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Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole
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Senate Second Reading Special Order - Passed - No Amendments
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Senate Committee on Finance Refer Unamended to Appropriations
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Introduced In Senate - Assigned to Finance
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House Third Reading Passed - No Amendments
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House Second Reading Special Order - Passed with Amendments - Committee
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House Committee on Appropriations Refer Unamended to House Committee of the Whole
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House Committee on Finance Refer Amended to Appropriations
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Introduced In House - Assigned to Finance
Sponsors
- M. Weissman · Cosponsor
- T. Sullivan · Cosponsor
- J. Marchman · Cosponsor
- C. Kipp · Cosponsor
- L. Cutter · Cosponsor
- J. Coleman · Cosponsor
- C. Kolker · Primary
- Sean Camacho · Primary
- Brianna Titone · Primary
- Rebekah Stewart · Primary
- Monica Duran · Cosponsor
- Bob Marshall · Cosponsor
- Kenny Nguyen · Cosponsor
- Kyle Brown · Cosponsor
- Steven Woodrow · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →4 sponsors · 11 co-sponsors · 86 not signed on · 13 voted No
Sponsors (4)
- C. Kolker
- Sean Camacho Democrat
- Brianna Titone Democrat
- Rebekah Stewart Democrat
Co-sponsors (11)
- M. Weissman
- T. Sullivan
- J. Marchman
- C. Kipp
- L. Cutter
- J. Coleman
- Monica Duran Democrat
- Bob Marshall Democrat
- Kenny Nguyen Democrat
- Kyle Brown Democrat
- Steven Woodrow Democrat
Not signed on (86)
86 members have not signed on to this bill.
Show all 86 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democrat | 21 | 0 | 0 | 0 |
| Republican | 3 | 6 | 0 | 1 |
| Unaffiliated | 3 | 2 | 0 | 0 |
| Total | 27 | 8 | 0 | 1 |
| % of votes cast | 75% | 22% | 0% | 3% |
How each member voted (36)
| Member | Party | Vote |
|---|---|---|
| Gonzales J. | — | Yea |
| Pelton B. | — | Nay |
| Pelton R. | — | Nay |
| President | — | Yea |
| Adrienne Benavidez | — | Yea |
| Cathy Kipp | Democrat | Yea |
| Chris Kolker | Democrat | Yea |
| Dylan Roberts | Democrat | Yea |
| Iman Jodeh | Democrat | Yea |
| James Coleman | Democrat | Yea |
| Janice Marchman | Democrat | Yea |
| Jeff Bridges | Democrat | Yea |
| Jessie Danielson | Democrat | Yea |
| Judy Amabile | Democrat | Yea |
| Katie Wallace | Democrat | Yea |
| Kyle Mullica | Democrat | Yea |
| Lindsey Daugherty | Democrat | Yea |
| Lisa Cutter | Democrat | Yea |
| Marc Snyder | Democrat | Yea |
| Matt Ball | Democrat | Yea |
| Mike Weissman | Democrat | Yea |
| Nick Hinrichsen | Democrat | Yea |
| Robert Rodriguez | Democrat | Yea |
| Tom Sullivan | Democrat | Yea |
| Tony Exum | Democrat | Yea |
| William Lindstedt | Democrat | Yea |
| Barbara Kirkmeyer | Republican | Nay |
| Cleave Simpson | Republican | Yea |
| Janice Rich | Republican | Nay |
| John Carson | Republican | Nay |
| Larry Liston | Republican | Yea |
| Lisa Frizell | Republican | Nay |
| Lynda Zamora Wilson | Republican | Nay |
| Marc Catlin | Republican | Not Voting |
| Mark Baisley | Republican | Nay |
| Scott Bright | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 1 | 2 | 0 | 0 |
| Democrat | 4 | 0 | 0 | 0 |
| Total | 5 | 2 | 0 | 0 |
| % of votes cast | 71% | 29% | 0% | 0% |
How each member voted (7)
| Member | Party | Vote |
|---|---|---|
| Chris Kolker | Democrat | Yea |
| Jeff Bridges | Democrat | Yea |
| Judy Amabile | Democrat | Yea |
| Julie Gonzales | Democrat | Yea |
| Barbara Kirkmeyer | Republican | Nay |
| Larry Liston | Republican | Yea |
| Scott Bright | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 1 | 0 | 0 | 0 |
| Republican | 2 | 1 | 0 | 0 |
| Democrat | 5 | 0 | 0 | 0 |
| Total | 8 | 1 | 0 | 0 |
| % of votes cast | 89% | 11% | 0% | 0% |
How each member voted (9)
| Member | Party | Vote |
|---|---|---|
| Adrienne Benavidez | — | Yea |
| Cathy Kipp | Democrat | Yea |
| Chris Kolker | Democrat | Yea |
| Janice Marchman | Democrat | Yea |
| Kyle Mullica | Democrat | Yea |
| Marc Snyder | Democrat | Yea |
| Cleave Simpson | Republican | Yea |
| Lisa Frizell | Republican | Yea |
| Scott Bright | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democrat | 8 | 0 | 0 | 0 |
| Republican | 1 | 2 | 0 | 0 |
| Total | 9 | 2 | 0 | 0 |
| % of votes cast | 82% | 18% | 0% | 0% |
How each member voted (11)
| Member | Party | Vote |
|---|---|---|
| Andrew Boesenecker | Democrat | Yea |
| Brianna Titone | Democrat | Yea |
| Elizabeth Velasco | Democrat | Yea |
| Emily Sirota | Democrat | Yea |
| Junie Joseph | Democrat | Yea |
| Karen McCormick | Democrat | Yea |
| Kyle Brown | Democrat | Yea |
| Yara Zokaie | Democrat | Yea |
| Matt Soper | Republican | Nay |
| Rick Taggart | Republican | Yea |
| Scott Bottoms | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democrat | 6 | 0 | 0 | 1 |
| Republican | 0 | 4 | 0 | 0 |
| Total | 6 | 4 | 0 | 1 |
| % of votes cast | 55% | 36% | 0% | 9% |
How each member voted (11)
| Member | Party | Vote |
|---|---|---|
| Bob Marshall | Democrat | Yea |
| Brianna Titone | Democrat | Not Voting |
| Lorena Garcia | Democrat | Yea |
| Rebekah Stewart | Democrat | Yea |
| Sean Camacho | Democrat | Yea |
| Steven Woodrow | Democrat | Yea |
| Yara Zokaie | Democrat | Yea |
| Anthony Hartsook | Republican | Nay |
| Dan Woog | Republican | Nay |
| Ron Weinberg | Republican | Nay |
| Ryan Gonzalez | Republican | Nay |
Roll call published as PDF — view source.
Subjects
Frequently asked questions
- What does HB 1188 do?
- The act implements the recommendations of the department of regulatory agencies (department) in its 2025 sunset review and report by continuing the division of securities and the securities board until 2037. In connection with continuing these entities, the act:Clarifies that deficiency letters and communications concerning a deficiency letter are not public documents that may be inspected under the 'Colorado Open Records Act';Requires that an investment adviser or an investment adviser representative doing business in Colorado must be licensed by the securities commissioner (commissioner) unless otherwise exempt;Specifies that the executive director of the department must consult with the securities board when appointing the commissioner; andUpdates statutory language to be gender neutral. The act revises the process by which a cease-and-desist order is issued or a license is summarily suspended. Under the previous law, the commissioner issued a cease-and-desist order or conducted a summary license suspension by issuing an order to show cause as to why a cease-and-desist order or license suspension should not be issued. After appropriate notices were given, a hearing was scheduled with the securities board or an administrative law judge. At the hearing, it was determined whether to issue a cease-and-desist order or suspend the license and what form the order or suspension would take. The act changes this process to authorize the commissioner to issue a preliminary cease-and-desist order or a summary license-suspension order. If the person that is the subject of the order disagrees with the order, the person may request a hearing to resolve the issue. The hearing must take place within 45 days after issuance of the order unless both parties request an extension. The deadline for a hearing, with an exception, is changed from 35 days to 60 days. If a hearing is not requested within 15 days after issuance of the order, the order becomes final. The person that is the subject of the order must obey the order until a hearing is requested.(Note: This summary applies to this bill as enacted.)
- Who sponsors HB 1188?
- HB 1188 is sponsored by M. Weissman, T. Sullivan, J. Marchman, C. Kipp, L. Cutter, J. Coleman, C. Kolker, Sean Camacho (Democrat), Brianna Titone (Democrat), Rebekah Stewart (Democrat), Monica Duran (Democrat), Bob Marshall (Democrat), Kenny Nguyen (Democrat), Kyle Brown (Democrat), and Steven Woodrow (Democrat).
- What is the current status of HB 1188?
- This bill has been enacted into law. Introduced February 09, 2026. Enacted.
- Where can I track HB 1188?
- Track HB 1188 free on One Click Politics — get push/email alerts when it moves.
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