House Bill 26-1025 Introduced

A Bill for an Act

• Page 1, Line 101Concerning an exemption for auctioneers from certain

• Page 1, Line 102requirements of the "Colorado Charitable

• Page 1, Line 103Solicitations Act".

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The "Colorado Charitable Solicitations Act" (act) defines a "paid solicitor" as a person that, for monetary compensation, performs a service in which contributions are solicited in Colorado for a charitable purpose or for the benefit of a charitable organization. Before soliciting contributions or otherwise acting as a paid solicitor, a person that wants 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;
• File with the secretary of state evidence of having procured a bond in the amount of $15,000 issued by a licensed corporate surety or an alternative form of financial security 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.
• Filing solicitation notices with the secretary of state in advance of commencing a solicitation campaign;
• If the paid solicitor has custody of monetary contributions, depositing the monetary contributions at a bank or other federally insured financial institution within 2 business days after receipt; and
• At the conclusion of a solicitation campaign, or annually if the campaign is ongoing, providing to the charitable organization and filing with the secretary of state a financial report of the solicitation campaign.

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

The bill excludes from the definition of "paid solicitor" an auctioneer who provides auctioneer services to a charitable organization. As a result, the auctioneer is exempted from the act's registration, bond, and other requirements of paid solicitors. The exemption applies regardless of whether the auctioneer is contracted or paid to provide their 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.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 6-16-103, amend the

• Page 2, Line 3introductory portion, (7) introductory portion, (7)(g), and (7)(h); and add

• Page 2, Line 4(7)(i) as follows:

• Page 2, Line 56-16-103.  Definitions.

• Page 3, Line 1As used in this article article 16, unless the context otherwise

• Page 3, Line 2requires:

• Page 3, Line 3(7)  "Paid solicitor" means a person who that, for monetary

• Page 3, Line 4compensation, performs any a service in which contributions will be

• Page 3, Line 5solicited in this state by such compensated person or by any person that

• Page 3, Line 6the compensated person he or she employs, procures, or engages to

• Page 3, Line 7solicit for contributions. The following persons are not "paid solicitors":

• Page 3, Line 8(g)  A person who that prepares a grant application for a

• Page 3, Line 9charitable organization or purpose, unless the person's compensation is

• Page 3, Line 10computed on the basis of funds funding to be raised or actually raised as

• Page 3, Line 11a result of the grant application; or

• Page 3, Line 12(h)  A person who that provides any a service or product to a

• Page 3, Line 13charitable organization who does not directly solicit for a charitable

• Page 3, Line 14contribution; or

• Page 3, Line 15(i)  An individual who provides services as an auctioneer

• Page 3, Line 16to a charitable organization if the individual:

• Page 3, Line 17(I) (A)  Is contracted or paid to provide their services as an

• Page 3, Line 18auctioneer to a charitable organization; or

• Page 3, Line 19(B)  Is volunteering their services as an auctioneer to a

• Page 3, Line 20charitable organization without compensation; and

• Page 3, Line 21(II)  Does not directly receive or handle monetary

• Page 3, Line 22donations or charitable funding on behalf of the charitable

• Page 3, Line 23organization for which the individual provides auctioneer

• Page 3, Line 24services.

• Page 3, Line 25SECTION 2.  Act subject to petition - effective date. This act

• Page 3, Line 26takes effect at 12:01 a.m. on the day following the expiration of the

• Page 3, Line 27ninety-day period after final adjournment of the general assembly (August

• Page 4, Line 112, 2026, if adjournment sine die is on May 13, 2026); except that, if a

• Page 4, Line 2referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 4, Line 3state constitution against this act or an item, section, or part of this act

• Page 4, Line 4within such period, then the act, item, section, or part will not take effect

• Page 4, Line 5unless approved by the people at the general election to be held in

• Page 4, Line 6November 2026 and, in such case, will take effect on the date of the

• Page 4, Line 7official declaration of the vote thereon by the governor.