(1) As used in this section:
(a) Candidate has the same meaning as set forth in section 2 (2) of article XXVIII of the state constitution.
(b) Candidate committee has the same meaning as set forth in section 2 (3) of article XXVIII of the state constitution.
(c) Petition entity means any person or committee that directly or indirectly provides payment to a circulator to circulate a petition to nominate a candidate, to recall an elected officer in accordance with article 12 of this title 1, or to create a minor party in accordance with part 13 of this article 4.
(d) Recall committee means the committee of signers described in section 1-12-108 (2)(b).
(2) (a) It is unlawful for any petition entity to provide payment to a circulator to circulate a petition to nominate a candidate, to recall an elected officer, or to create a minor party without first obtaining a license from the secretary of state.
(b) (I) The secretary of state may deny a license if the secretary finds that the petition entity or any of its principals have been found, in a judicial or administrative proceeding, to have violated the petition laws of Colorado or any other state, that the petition entity or any of its principals have been convicted in Colorado or any other state of election fraud, any other election offense, or an offense with an element of fraud, or that the petition entity knowingly contracted with a petition entity or a principal of a petition entity that has been found, in a judicial or administrative proceeding, to have authorized or knowingly permitted any of the acts set forth in subsection (2)(c) of this section.
(II) The secretary of state shall deny a license if no current representative of the petition entity has completed the training related to potential fraudulent activities in petition circulation as established by the secretary of state in accordance with section 1-4-905 (7).
(c) The secretary of state shall revoke a petition entity's license if, at any time after receiving a license, the petition entity is determined to no longer be in compliance with the requirements set forth in subsection (2)(b) of this section or if the petition entity authorized or knowingly permitted:
(I) Forgery of a registered elector's signature;
(II) Circulation of a petition section, in whole or part, by anyone other than the circulator who signs the affidavit attached to the petition section;
(III) Use of a false circulator name or address in the affidavit;
(IV) Payment of money or other things of value to any person for the purpose of inducing the person to sign or withdraw his or her name from a petition; or
(V) A notary public's notarization of a circulator affidavit outside of the physical presence of the circulator or without the production of the required identification for notarization of a petition section.
(3) (a) Whenever the secretary of state believes that a violation of this section has occurred, the secretary of state may investigate the violation. The secretary of state may also investigate possible violations of this section upon a signed complaint from any person.
(b) If the secretary of state denies, revokes, suspends, or imposes a condition on a license, the applicant or licensee is entitled to timely notice and hearing in accordance with article 4 of title 24.
(c) If, after a hearing, the secretary of state finds that an unlicensed petition entity circulated a petition in violation of this section, the secretary of state shall fine the petition entity in an amount not to exceed one hundred dollars per circulator for each day that the individual or individuals circulated petition sections on behalf of the unlicensed petition entity.
(d) If, after a hearing, the secretary of state finds that a petition entity violated a provision of subsection (2)(c) of this section or contracted with a petition entity that violated a provision of subsection (2)(c) of this section, the secretary may fine the petition entity in an amount not to exceed five thousand dollars and shall revoke the entity's license for not less than one year or more than two years. Upon finding any subsequent violation of a provision of subsection (2)(c) of this section, the secretary may fine the petition entity in an amount not to exceed five thousand dollars and shall revoke the petition entity's license for not less than two years or more than three years. The secretary shall consider all circumstances surrounding the violations in fixing the length of the revocations.
(e) If, after a hearing, the secretary of state finds that a petition entity violated the requirements of subsection (5) of this section, the secretary shall fine the petition entity in an amount not to exceed five thousand dollars.
(f) A petition entity whose license has been revoked may apply for reinstatement to be effective upon expiration of the term of revocation.
(g) In determining whether to reinstate a license, the secretary of state may consider:
(I) The entity's ownership by, employment of, or contract with any person who served as a director, officer, owner, or principal of a petition entity whose license was revoked under this section or section 1-40-135, the role of such individual in the facts underlying the prior license revocation, and the role of such individual in a petition entity's post-revocation activities; and
(II) Any other facts the entity chooses to present to the secretary, including but not limited to remedial steps, if any, that have been implemented to avoid future acts that would violate this article 4 or article 40 of this title 1.
(4) (a) The secretary of state shall issue a decision on any application for a new or reinstated license within ten business days after a petition entity files an application. The application must be on a form prescribed by the secretary and must include, at a minimum:
(I) The name of any candidate, candidate committee, or recall committee for which a petition will be circulated by circulators coordinated or paid by the petition entity;
(II) The current name, address, telephone number, and electronic-mail address of the petition entity; and
(III) The name and signature of the designated agent of the petition entity for the candidate, candidate committee, or recall committee.
(b) A petition entity shall notify the secretary of state within twenty days of any change in the information submitted pursuant to subsection (4)(a) of this section.
(c) The secretary of state shall charge a nonrefundable license fee for each application in accordance with section 24-21-104 (3).
(5) A petition entity shall ensure that a petition circulated by the entity is delivered to the candidate, candidate committee, or recall committee no later than three days before the deadline for the candidate to file the petition.
(6) The secretary of state may create a single application and license, and charge a single fee, for entities subject to this section and section 1-40-135.
Source: L. 2019: Entire section added, (HB 19-1278), ch. 326, p. 3015, � 22, effective August 2. L. 2021: (1)(c), (2)(a), (2)(b)(I), (3)(d), (4)(a)(I), (4)(a)(III), and (5) amended and (1)(d) added, (SB 21-250), ch. 282, p. 1642, � 22, effective June 21. L. 2023: (1)(c), (2)(a), (2)(b)(I), and (3)(d) amended, (SB 23-276), ch. 399, p. 2377, � 12, effective June 6.
Cross references: For the short title (Colorado Votes Act) in HB 19-1278, see section 1 of chapter 326, Session Laws of Colorado 2019.
1-4-905.7. Expenditures related to petition circulation - report - penalty - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Expenditure means a payment to a circulator.
(b) False address means a street address, post office box, city, state, or any other designation of place used in a circulator's affidavit that does not represent the circulator's correct address of permanent domicile at the time the circulator circulated petitions. False address does not include an address that merely omits the designation of street, avenue, boulevard, or any comparable term but does include the omission of the apartment or unit number, where applicable, of the place of residence.
(c) Report means the report required to be filed pursuant to subsection (2) of this section.
(2) No later than ten days after the date that a candidate, recall, or minor party petition is filed with the secretary of state, the candidate or candidate committee, recall committee, or representatives of the minor party petition must submit to the secretary of state a report that states the dates of circulation by all circulators who were paid to circulate a section of the petition, the total hours for which each circulator was paid to circulate a section of the petition, the gross amount of wages paid for such hours, and any addresses used by circulators on their affidavits that the candidate or candidate committee, recall committee, or representatives of the minor party petition, or their agents, have determined, prior to petition filing, to be false addresses.
(3) (a) Within ten days after the date the report is filed, a registered elector may file a complaint alleging a violation of the requirements for the report set forth in subsection (2) of this section. The candidate or candidate committee, recall committee, or representatives of the minor party petition committee may cure the alleged violation by additionally filing a report or an addendum to the original report within ten days after the date the complaint is filed. If the violation is not cured, a hearing officer shall conduct a hearing on the complaint within fourteen days after the date of the additional filing or the deadline for the additional filing, whichever is sooner.
(b) (I) After a hearing is held, if the hearing officer determines that the candidate or candidate committee, recall committee, or representatives of the minor party petition intentionally violated the reporting requirements of this section, the candidate or candidate committee, recall committee, or representatives of the minor party petition shall be subject to a penalty that is equal to three times the amount of any expenditures that were omitted from or erroneously included in the report.
(II) If the hearing officer determines that the candidate or candidate committee, recall committee, or representatives of the minor party petition intentionally misstated a material fact in the report or omitted a material fact from the report, or if the candidate or candidate committee, recall committee, or representatives of the minor party petition never filed a report, the registered elector who instituted the proceedings may commence a civil action to recover reasonable attorney fees and costs from the candidate or candidate committee, recall committee, or representatives of the minor party petition.
(c) Except as otherwise provided in this section, any procedures related to a complaint shall be governed by the State Administrative Procedure Act, article 4 of title 24.
Source: L. 2024: Entire section added, (SB 24-210), ch. 468, p. 3244, � 11, effective January 1, 2025.