HB 1188

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 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: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)