- A statement on each application for registration by a paid solicitor to the secretary of state, indicating whether the paid solicitor or any officer, director, or employee serves on the board of directors of a charitable organization, directs the operations of a charitable organization, or otherwise has a financial interest in a charitable organization for which the applicant solicits contributions. If this relationship exists, the application must include a statement that the relationship meets the standards set forth for conflicting-interest transactions for directors of business entities in Colorado.
- Paid solicitors to either have a bond or a savings account, deposit, or certificate of deposit in a financial institution payable to the state of Colorado in the amount of $15,000, conditioned upon the performance of the paid solicitor in good faith without fraud or fraudulent representation and without violating the 'Colorado Charitable Solicitations Act'.
Section 4 defines charitable fraud to include any misrepresentation that a charitable organization for which a paid solicitor solicits has a significant membership of a certain type, such as active police, sheriff, patrol, firefighters, first responders, or veterans. A charitable organization is also liable to the same extent as a paid solicitor if the charitable organization knew or should have known that the paid solicitor was engaged in charitable fraud on behalf of the charitable organization. Section 4 also clarifies that this provision does not extend personal liability to board members of a charitable organization beyond the personal liability allowed by law prior to enactment of the act.(Note: This summary applies to this bill as enacted.)