HB 16-1129 Summary

• Establishes civil penalties of up to $10,000 per violation (capped at $3 million for related violations) for charitable fraud violations, with penalties adjusted annually for inflation based on Denver-Boulder-Greeley consumer price index.

• Recovered civil penalties are paid to the Attorney General as custodial money and distributed to charities within two years using the cy pres doctrine.

• Requires paid solicitors to obtain and file a $15,000 bond or savings account deposit before registration, with corporate surety not liable for payment until final fraud determination by Secretary of State or court.

• Expands charitable fraud definition to include misrepresentation about law enforcement benefits from contributions and false claims about membership composition of police, firefighter, first responder, or veteran organizations (defining "significant membership" as 10% or one hundred members, whichever is less).

• Makes charitable organizations liable for remedies and penalties if they knew or should have known their paid solicitor was committing fraud, without extending personal liability to board members beyond existing law.