Committee reauthorizes Division of Securities, approves longer hearing timelines

The House Finance Committee voted to reauthorize the Colorado Division of Securities and the Securities Board and to adopt an amendment that lengthens some administrative hearing timelines for enforcement actions.

Representative Camacho, presenting House Bill 11 88, told the committee the bill continues the Division of Securities and implements recommendations from the Department of Regulatory Agencies' 2025 sunset review. The bill would extend the statutory repeal date for the division and board to Sept. 1, 2037, retain consumer-protection functions and modernize administrative enforcement procedures.

Neil Marks, testifying for NEFA Colorado and speaking as co-owner of Prime Financial Strategies, said the Division of Securities fosters consumer protection and a balanced regulatory environment; he urged the committee to support reauthorization. A Division commissioner explained that deficiency letters are kept private so firms have a chance to come into compliance without private parties using the letters as leverage, and described a drafting cleanup to clarify that advisers who target Colorado clients must be licensed even if they live out of state.

The sponsor offered amendment L001, which extends certain due-process timelines in the cease-and-desist and summary-suspension processes (changing some deadlines from 30 days to 45 days and, in a few instances, to 60 days) so respondents have more time to prepare. The committee adopted L001 by unanimous consent. Representative Camacho then moved the amended bill to the Committee on Appropriations; the committee polled and the motion passed 6 to 4 with one member excused.

The bill, as amended, will proceed to the Appropriations Committee for additional review.