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Senate Finance backs continuation of Colorado Securities Act, clarifies enforcement privacy
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Summary
Senate Finance endorsed HB 11‑188 to reauthorize the Colorado Division of Securities and the Colorado Securities Act through 2037 and to treat deficiency letters as non‑public for CORA requests; the committee sent the bill to Appropriations after testimony from industry and the securities commissioner.
Senate Finance on Monday voted to advance HB 11‑188, a sunset reauthorization for the Colorado Securities Act and the Division of Securities, after bipartisan testimony and technical discussion about enforcement practice.
Senator Kolker, the bill sponsor, told the committee the measure would continue the act and the securities board through 2037 and would clarify that deficiency letters issued by the securities commissioner are not public records under the Colorado Open Records Act. He said the change aims to protect individuals who receive preliminary enforcement correspondence "until there's the due process has been done."
Neil Marks, speaking for NAFA Colorado, urged reauthorization and defended the Division’s approach to consumer protection and stakeholder engagement. Marks said the Division’s processes "help resolve misunderstandings quickly and collaboratively, often preventing escalated action while still protecting the public." The committee also heard from the Division’s director.
Commissioner Chan, who testified as Colorado’s securities commissioner, described the Division’s enforcement toolkit and the rationale behind preliminary orders. He told the committee that the Division uses three primary tracks — criminal referral, civil (court) actions and administrative enforcement — and that preliminary cease‑and‑desist orders are used where urgent action is needed to prevent the dissipation of investor funds. "Summary suspensions are only for licensees," he said, distinguishing license suspensions from anti‑fraud cease‑and‑desist authority.
Brian Tobias of the Colorado Office of Policy Research and Regulatory Reform (COPPER) explained the office’s recommendation to lengthen the sunset period to 11 years, noting the Division’s duties are closely tied to federal securities activity and that continuity reduces regulatory uncertainty.
There were no amendments adopted in committee. Senator Kolker moved the bill with a favorable recommendation to the committee on Appropriations; the motion carried and the bill was sent forward.
What happens next: HB 11‑188 will be considered by the Appropriations Committee, which will review fiscal impacts and any implementation language before the bill can reach the floor.
