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Can I collect financial information from participants in Colorado? What are the requirements?

Based on the provided context documents, you can collect financial information from participants in Colorado subject to certain requirements.

Requirements for collecting financial information in Colorado

According to [1.1]" >CORS 7-136-106, a nonprofit corporation shall mail to its members its most recent annual financial statements, if any, and its most recently published financial statements, if any, showing in reasonable detail its assets and liabilities and results of its operations upon the written request of any member.

For collecting nonpublic personal financial information, the Colorado Code of Regulations (3 COCR 702-6 Regulation 6-4-1) provides the following requirements:

  • A licensee must provide initial, annual, and revised privacy notices that include specific information, including the categories of nonpublic personal financial information that the licensee collects, discloses, and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under Sections 16 and 17. The licensee must also provide an explanation of the consumer’s right to opt-out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise that right at that time. [2.4]" >(3 COCR 702-6 Regulation 6-4-1 Section 7)
  • If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under Section 15, the licensee must provide a separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted. [2.4]" >(3 COCR 702-6 Regulation 6-4-1 Section 7)
  • A licensee must enter into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception in Sections 16 or 17 in the ordinary course of business to carry out those purposes. [2.2]" >(3 COCR 702-6 Regulation 6-4-1 Section 15.A.1.b)
  • If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under an exception in Sections 16 or 17 of this regulation, the third party may disclose and use that information only as follows: 1. The third party may disclose the information to the licensee’s affiliates; 2. The third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the third party may disclose and use the information; and 3. The third party may disclose and use the information pursuant to an exception in Sections 16 or 17 in the ordinary course of business to carry out the activity covered by the exception under which it received the information. [2.3]" >(3 COCR 702-6 Regulation 6-4-1 Section 13.C)
  • If a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than under an exception in Sections 16 or 17 of this regulation, the third party may disclose the information only to the licensee’s affiliates; to the third party’s affiliates, but the third party’s affiliates, in turn, may disclose the information only to the extent the third party can disclose the information; and to any other person, if the disclosure would be lawful if the licensee made it directly to that person. [2.3]" >(3 COCR 702-6 Regulation 6-4-1 Section 13.D)

Other Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information

There are other exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information. These exceptions include, but are not limited to, disclosure with the consent or at the direction of the consumer, disclosure for licensee and consumer protection, disclosure to provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’s attorneys, accountants and auditors, disclosure to comply with federal, state or local laws, rules and other applicable legal requirements, and disclosure for purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan or a workers’ compensation plan. [2.1]" >(3 COCR 702-6 Regulation 6-4-1 Section 17)

Charitable Organizations

If you are a charitable organization intending to solicit contributions in Colorado, you must file a registration statement with the Secretary of State upon a form prescribed by the Secretary of State. The registration statement must contain certain information, including the name of the charitable organization, the purpose for which it is organized, and the name or names under which it intends to solicit contributions, the address and telephone number of the principal place of business of the charitable organization and the address and telephone number of any offices in this state, or, if the charitable organization does not maintain an office in this state, the name, address, and telephone number of the person that has custody of its financial records, and a financial report for the most recent fiscal year. [3.1]" >(CORS 6-16-104)

Conclusion

Based on the provided context documents, you can collect financial information from participants in Colorado subject to the requirements outlined above. Additionally, if you are a charitable organization intending to solicit contributions in Colorado, you must file a registration statement with the Secretary of State.

Source(s):
Jurisdiction

Colorado