Second Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 16-0727.03 Bart Miller x2173    HOUSE BILL 16-1428
                    HOUSE SPONSORSHIP
 Moreno,
 
                   SENATE SPONSORSHIP
 (None),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Business Affairs and Labor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a prohibition against knowingly making
            materially false statements to depress the stock
            value of publicly traded direct selling companies, and,
            in connection therewith, making it a misdemeanor
            crime to knowingly engage in this conduct.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill makes it a misdemeanor crime for a person to knowingly
       make or induce another person to make a materially false or defamatory
       statement to depress the stock value of a publicly traded direct selling
       company.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add article 39 to title
       11 as follows:
                            ARTICLE 39
       Material False or Defamatory Statements Depress Stock Value -
                      Direct Selling Company
            11-39-101.  Material false statements - depress stock value -
       direct selling company - penalty. Any person who, with the intent
       to depress the stock value of a publicly traded direct selling
       company, directly or otherwise aids, abets, encourages, or
       induces another person to make, circulate, or transmit a
       materially false or defamatory statement, whether written,
       printed, or spoken, that is calculated to injure the company in
       its reputation or business, commits a class 2 misdemeanor and
       shall be sentenced in accordance with section 18-1.3-501, C.R.S.
       Nothing in this section affects the authority of any state
       agency including the department of law or of any district
       attorney to investigate and prosecute the violation of any
       other law that impacts a direct selling company.
            SECTION 2.  Act subject to petition - effective date -
       applicability. (1)  This act takes effect at 12:01 a.m. on the day following
       the expiration of the ninety-day period after final adjournment of the
       general assembly (August 10, 2016, if adjournment sine die is on May 11,
       2016); except that, if a referendum petition is filed pursuant to section 1
       (3) of article V of the state constitution against this act or an item, section,
       or part of this act within such period, then the act, item, section, or part
       will not take effect unless approved by the people at the general election
       to be held in November 2016 and, in such case, will take effect on the
       date of the official declaration of the vote thereon by the governor.
            (2)  This act applies to materially false statements with the intent
       to depress the stock value of publicly traded direct selling companies
       made on or after the applicable effective date of this act.