summary
Introduced
02/09/2026
02/09/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Sunset Process - House Finance Committee. The bill implements the recommendations of the department of regulatory agencies 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 bill: ! 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 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 whether to issue a cease-and-desist order or suspend the license and what form the order or suspension will take. The bill 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 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.
AI Summary
This bill extends the existence of the Division of Securities and the Securities Board in Colorado until September 1, 2037, aligning with recommendations from a state review. It clarifies that deficiency letters, which are communications about potential issues found during an examination, are not public records under the Colorado Open Records Act. The bill also mandates that investment advisers and their representatives doing business in Colorado must be licensed by the Securities Commissioner, unless they qualify for an exemption. Additionally, it requires the Executive Director of the Department of Regulatory Agencies to consult with the Securities Board when appointing the Securities Commissioner and updates the language in various statutes to be gender-neutral. A significant change involves the process for issuing cease-and-desist orders or suspending licenses; instead of the current "order to show cause" process, the Commissioner can now issue a preliminary cease-and-desist order or a summary suspension order, which the affected party must obey until a hearing is requested within 15 days, with the hearing itself needing to occur within 30 days of the order's issuance. If no hearing is requested, the order becomes final.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Introduced In House - Assigned to Finance (on 02/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1188 |
| BillText | https://leg.colorado.gov/bill_files/111534/download |
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