HB 1025 — Exempt Auctioneers Charitable Solicitation Requirements

SecondHOUSE RegularBILL Session26-1025 Seventy-fifthBY GeneralREPRESENTATIVE(S) AssemblyCaldwell STATEand OFMartinez, COLORADOBarron, REREVISEDDuran, ThisGoldstein, VersionGonzalez IncludesR., AllKeltie, AmendmentsLindsay, AdoptedLukens, inMarshall, theMauro, SecondNguyen,Richardson,Rutinel,Smith,StewartK.,Story,Suckla,Weinberg, HouseWinter LLST., NO.McCluskie;

26-0560.01alsoSENATOR(S)RobertsandPeltonR.,Amabile,Bright,Carson,Catlin, EdenFrizell, RollandKirkmeyer, x2373Liston, HOUSEPelton BILLB., 26-1025Rich, HOUSESnyder, SPONSORSHIPZamora CaldwellandMartinez,Wilson, Barron,Duran,Goldstein,GonzalezR.,Keltie,Lindsay,Lukens,Coleman Marshall,Mauro,McCluskie,Nguyen,Richardson,Rutinel,Smith,StewartK.,Story,Suckla,. Weinberg, Winter T.

SENATECONCERNING SPONSORSHIP Roberts and Pelton R., Amabile, Bright, Carson, Catlin, Coleman, Frizell, Kirkmeyer, Liston, Pelton B., Rich, Snyder, Zamora Wilson e n e 2 E a 2 A U 0, N g 1 S d hr House Committees Senate Committees e a Agriculture, Water & Natural Resources Business, Labor, & Technology R M r e A BILL FOR AN ACT n m 2 C ONCERNING AN EXEMPTION FOR AUCTIONEERS FROM CERTAIN T n 2 N U 9 REQUIREMENTS OF THE "C OLORADO CCHARITABLE HARITABLE E i r S a a SOLICITATIONS A CTCT". ".

R M n Bill Summary e (Note:

This summary applies to this bill as introduced and does n 2 notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill m 2 E n 8 passes third reading in the house of introduction, a bill summary that U U 1 applies to the reengrossed version of this bill will be available at O i a H a r http://leg.colorado.gov.) R e r F The "Colorado Charitable Solicitations Act" (act) defines a "paid solicitor"asapersonthat,formonetarycompensation,performsaservice in which contributions are solicited in Colorado for a charitable purpose g 6 or for the benefit of a charitable organization.

Before soliciting d 0 E e , contributions or otherwise acting as a paid solicitor, a person that wants S R 1 U d r H 2 u Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

e b Capital letters or bold & italic numbers indicate new material to be added to existing law.n F Dashes through the words or numbers indicate deletions from existing law.

e A to act as a paid solicitor must first do the following:

! Register with the secretary of state by submitting an application or annual renewal form, together with certain required information and disclosures about the applicant;

! Filewiththesecretaryofstateevidenceofhavingprocured a bond in the amount of $15,000 issued by a licensed corporatesuretyoranalternativeformoffinancialsecurity such as a savings account, deposit, or certificate of deposit available in Colorado;

and ! Pay the required registration filing fee, as established by the secretary of state.

Additionally, after registering, a paid solicitor is responsible for doing the following:

! Filing solicitation notices with the secretary of state in advance of commencing a solicitation campaign;

! If the paid solicitor has custodyof monetarycontributions, depositing the monetary contributions at a bank or other federally insured financial institution within 2 business days after receipt;

and ! Attheconclusionof a solicitation campaign,orannuallyif the campaign is ongoing, providing to the charitable organization and filing with the secretary of state a financial report of the solicitation campaign.

The bill excludes from the definition of "paid solicitor" an auctioneerwhoprovidesauctioneerservicestoacharitableorganization.

As a result, the auctioneer is exempted from the act's registration, bond, and other requirements of paid solicitors.

The exemption applies regardlessofwhethertheauctioneeriscontractedorpaidtoprovidetheir auctioneer services to the charitable organization or is volunteering their auctioneer services to the charitable organization without compensation.

To be exempted from the act's requirements of paid solicitors, an auctioneer who provides auctioneer services to a charitable organization may not directly receive or handle monetary donations or charitable funding on behalf of the organization with which the auctioneer is contracted or volunteering.

SECTION1.SECTION 1.

InColoradoRevisedStatutes,6-16-103,amendtheIn introductoryportion,(7)introductoryportion,(7)(g),and(7)(h);andaddColorado (7)(i)Revised asStatutes, follows:6-16-103, amend the introductory portion, (7) introductory portion, (7)(g), and (7)(h);

and add (7)(i) as follows:

-2-ARTICLE 1025 As used in this artARTICLE 16, unless the context otherwise As used in this article requires:

(7)________ "PaidCapital solicitor"letters meansor abold person& whoATitalic ,numbers forindicate monetarynew compensation,material performsadded any service in which contributions will be solicitedinthisstatebysuchcompensatedpersonorbynyPERSONTHAT THE compensated person he or she employs, procures, or engages to solicitexisting forlaw; contributions.

dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

(7) "Paid solicitor" means a person who THAT , for monetary compensation, performs any A service in which contributions will be solicited in this state by such compensated person or by PERSON THAT THE compensated person he or she employs, procures, or engages to solicit for contributions.

(g) AApersonwho person who THAT preparespreparesagrantapplicationfora a grant application for a charitable organization or purpose, unless the person's compensation is computedonthebasisofcomputed fundsFUNDINGon toberaisedoractuallyraisedasthe basis of fundsUNDING to be raised or actually raised as a result of the grant application;

or (h) A person whoTHATwho THAT provides anAany A service or product to a charitable organization who does not directly solicit for a charitable contribution;Rcontribution;OR (i) ANN INDIVIDUAL WHO PROVIDES SERVICES AS AN AUCTIONEER TO A CHARITABLE ORGANIZATION IF THE INDIVIDU:L (I)(A) ICONTRACTEDORPAIDTOPROVIDETHEIRSERVICESASAN AUCTIONEER TO A CHARITABLE ORGANIZATION;OR (B) IS VOLUNTEERING THEIR SERVICES AS AN AUCTIONEER TO A CHARITABLE ORGANIZATION WITHOUT COMPENSATION ;AND (II) DESNOT DIRECTLYRECEIVE ORHANDLE CONTRIBUTIONSOR CHARITABLEFUNDINGONBEHALFOFTHECHARITABLEORGANIZATIONFOR WHICH THE INDIVIDUAL PROVIDES: AUCTIONEER SERVICE.

(I) (A) I CONTRACTED OR PAID TO PROVIDE THEIR SERVICES AS AN AUCTIONEER TO A CHARITABLE ORGANIZATION ;OR (B) IS VOLUNTEERING THEIR SERVICES AS AN AUCTIONEER TO A CHARITABLE ORGANIZATION WITHOUT COMPENSATION ;AND (II) DOES NOT DIRECTLY RECEIVE OR HANDLE CONTRIBUTIONS OR CHARITABLE FUNDING ON BEHALF OF THE CHARITABLE ORGANIZATION FOR WHICH THE INDIVIDUAL PROVIDES AUCTIONEER SERVICES .

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(Augustninety-dayperiod after final adjournment of the general assembly(August 12, 2026, if adjournment sine die is on May 13, 2026);

except that, if a -3-referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate 1025 referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approvedPAGE by2-HOUSE theBILL people26-1025 atapprovedbythepeopleatthegeneralelectiontobeheldinNovember2026 the general 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.

-4-____________________________ 1025____________________________ 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 3-HOUSE BILL 26-1025