CO HB1428

Creates a new Class 2 misdemeanor crime for any person who, with intent to depress stock value, knowingly makes, aids, abets, encourages, or induces another person to make materially false or defamatory statements about a publicly traded direct selling company.

Applies to statements that are written, printed, or spoken and calculated to injure the company's reputation or business.

Sentences for violation follow Section 18-1.3-501, C.R.S. sentencing guidelines for Class 2 misdemeanors.

Does not restrict the authority of state agencies, the Department of Law, or district attorneys to investigate and prosecute other violations of law affecting direct selling companies.

Takes effect 90 days after final adjournment of the general assembly (August 10, 2016), unless a referendum petition is filed requiring voter approval at the November 2016 general election.