REDLINE
Proposed New Regulation 12-6-504(1)(a)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, and 12-6-505.

Basis and Purpose:  To delegate authority to the executive secretary with respect to the board’s rule-making activities under the State Administrative Procedure Act.

PROPOSED NEW REGULATION:

Regulation 12-6-504(1)(a)

The board delegates to the board’s executive secretary and his or her agents the authority to assist the board in rule-making under the State Administrative Procedure Act, part 1 of article 4 of title 24, by performing all administrative acts.

REDLINE
Proposed New Regulation 12-6-504(1)(d)(II)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-508.5, 12-6-509, 12-6-510, and 12-6-511,

Basis and Purpose:  In recognition of statutory changes in 2017, to set out clearly those persons whom the board authorizes to issue licensure documents for licenses approved by the board.

PROPOSED NEW REGULATION:

Regulation 12-6-504(1)(d)(II)

The board authorizes the director, the executive director, and the agents of the director or executive director, to issue, according to the board’s rules, any license within the board’s authority.

REDLINE
Proposed New Regulation 12-6-504(1)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-518, 12-6-520, and 12-6-521.

Basis and Purpose:  To clarify the board’s process to determine the appropriate sanctions to assess against a licensee that the board has determined violated provisions of law and regulation under the board’s jurisdiction.

PROPOSED NEW REGULATION:

Regulation 12-6-504(1)

The board shall use the following criteria to determine the appropriate sanctions for a licensee in a disciplinary case:

(a)	Whenever a provision of part 5 of article 6 of title 12 mandates a specific sanction for either (1) a specific type of violation or (2) a specific circumstance related to a specific violation, the board shall apply the mandatory sanction when the findings of fact and conclusions of law establish the legal basis.

(b)	Whenever the legal basis for a mandatory sanction does not exist, the board shall exercise its discretion to determine the appropriate sanctions based not only upon the findings of fact and conclusions of law in the case but also upon a standardized approach that takes the following factors into account:

(1)	    the nature of the violation;
(2)	    the severity of the violation;
(3)	    the characteristics of the harm that the violation produced;
(4)	    the monetary harm that the violation produced;
(5)	    the licensee’s history of violations;
(6)	    the licensee’s compliance with prior board orders; 
(7)	    any additional aggravating information; and,
(8)	any additional mitigating information, including, but not limited to the  licensee’s voluntary, monetary remuneration to a victim.

(c)	Whenever the board considers a fine to be an appropriate sanction, it shall follow these restrictions:

(1)	     the fine must be punitive, not compensatory; and,
(2)	     the fine must not exceed any relevant limitations on the
                     amount of a fine as set out in part 5 of article 6 of title 12.

REDLINE
Proposed New Regulation 12-6-504(1)(f)(V)
                          Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-507, 12-6-508, 12-6-517, 12-6-518, 12-6-519, 12-6-520, and 12-6-521.

Basis and Purpose:  To clarify the board’s process when the division presents an affidavit of probable cause for disciplinary action to the board concerning a licensee’s activities that the division had investigated. 

PROPOSED NEW REGULATION:

Regulation 12-6-504(1)(f)(V)

Whenever the division refers evidence of a licensee’s alleged violations to the board in the form of an affidavit of probable cause, the board shall respond to the affidavit in the following manner:

(a)	If the board does not find probable cause based upon its examination of the affidavit, the board shall do one of the following:

(1)	suspend its consideration of the matter with a request to the division to bring the matter back to the board with additional information; or,
(2)	inform the division that the board declines to prosecute the case.

(b)	 If the board does find probable cause based upon its examination of the affidavit, it may:

(1)	decline to prosecute the case; or,
(2)	prosecute the case in the appropriate venue as follows:
(i) if the license class of the respondent is a salesperson, the board  shall assign the executive director or his or her appointee to hear the case; or,
(ii) if the license class of the respondent is other than a salesperson, the board shall assign the case for hearing either to the board, itself, or to the Office of Administrative Courts.

(c)	Whenever the board has decided to prosecute the case, it shall do the following:

(1)	turn the case over to the attorney general to begin prosecuting the case; or,
(2)	authorize the executive secretary to (i) attempt to negotiate a settlement of the case without a hearing and, (ii) if the settlement process is unsuccessful, turn the case over to the attorney general to begin prosecuting the case.

(d)	Whether the board does or does not find probable cause based upon its examination of the affidavit, it may, if appropriate, refer the matter to another agency.