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Charitable Fraud Enhanced Enforcement Measures

Concerning measures for enhanced enforcement against acts of charitable fraud.

HB16-1129 2016 Regular Session Not stated Business & Economic Development Courts & Judicial Crimes, Corrections, & Enforcement State Government

Cost estimates

At the first note read
$18,952
FACT February 2, 2016
At the last note read
$18,952
FACT July 19, 2016
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill requires money it does not carry — the note says an appropriation is required and does not say the bill includes one.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: $18,952 - Department of State (FY 2016-17).

Bill summary

Section 1 of the act creates enhanced penalties under the 'Colorado Consumer Protection Act' for committing acts of charitable fraud involving knowledge or intent under the 'Colorado Charitable Solicitations Act'. The penalty for each violation is up to $10,000, with a cap of $3,000,000 for a related series of violations. The act includes a mechanism to adjust the $3,000,000 limitations cap for inflation. Penalties collected are paid to the attorney general and held as custodial money to be granted within 2 years after receipt to a charity in accordance with the cy pres doctrine.Sections 2, 3, and 5 of the act require:

  • A statement on each application for registration by a paid solicitor to the secretary of state, indicating whether the paid solicitor or any officer, director, or employee serves on the board of directors of a charitable organization, directs the operations of a charitable organization, or otherwise has a financial interest in a charitable organization for which the applicant solicits contributions. If this relationship exists, the application must include a statement that the relationship meets the standards set forth for conflicting-interest transactions for directors of business entities in Colorado.
  • Paid solicitors to either have a bond or a savings account, deposit, or certificate of deposit in a financial institution payable to the state of Colorado in the amount of $15,000, conditioned upon the performance of the paid solicitor in good faith without fraud or fraudulent representation and without violating the 'Colorado Charitable Solicitations Act'.

Section 4 defines charitable fraud to include any misrepresentation that a charitable organization for which a paid solicitor solicits has a significant membership of a certain type, such as active police, sheriff, patrol, firefighters, first responders, or veterans. A charitable organization is also liable to the same extent as a paid solicitor if the charitable organization knew or should have known that the paid solicitor was engaged in charitable fraud on behalf of the charitable organization. Section 4 also clarifies that this provision does not extend personal liability to board members of a charitable organization beyond the personal liability allowed by law prior to enactment of the act.(Note: This summary applies to this bill as enacted.)

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)