1 Colo. Code Regs. § 207-3-7

Current through Register Vol. 47, No. 24, December 25, 2024

Rule 1 CCR 207-3-7 - DISCIPLINARY ACTION

BASIS AND PURPOSE FOR RULE 7

The purpose of Rule 7 is to establish procedures for disciplinary actions and the informal resolution of allegations of violations of the provisions of article 30 of title 44 C.R.S., or any Rules and Regulations promulgated thereunder, to provide procedures to impose sanctions for violations, and to provide for certain conditions to be met for reissuance of licenses to persons who formerly held a license. The statutory basis for Rule 7 is found in sections 24-4-104, C.R.S., 24-4-105, C.R.S., 44-30-203, C.R.S., 44-30-204, C.R.S., 44-30-1604, C.R.S., 44-30-1605, C.R.S., 44-30-1606, C.R.S., 44-30-1610, C.R.S., 44-30-1613, C.R.S., and Part 16 of Article 30 of Title 44.

7.1Grounds for disciplinary action.

For the purposes of this Rule 7, the term "license" shall mean both a fantasy contest operator license and small fantasy contest operator registration.

The Director may fine, suspend, revoke, or otherwise modify any fantasy contest provider license issued or reissued by the Division for any violations by the fantasy contest provider, or the provider's employees or agents, of any of the provisions of Part 16, Article 30, of Title 44, C.R.S., or any of the Rules and Regulations promulgated thereunder except as limited in section 44-30-1605(2)(b)(II), C.R.S. Acceptance of a fantasy contest provider license or renewal thereof constitutes an agreement on the part of the fantasy contest provider to be bound by all the Rules and Regulations as the same now are or may hereafter be amended or promulgated. It is the responsibility of the fantasy contest provider to keep self-informed of all such Rule and Regulations, and ignorance thereof will not excuse violations.

7.2Initiation of disciplinary proceedings.

After an investigation by the Director, the Director determines that there is probable cause to believe that a fantasy contest provider violated any of the provisions of Part 16, Article 30, of Title 44, C.R.S., or the Rules and Regulations thereunder, or that violations by the fantasy contest provider of laws other than the fantasy contest laws make the provider no longer suitable for a license, the Director may order that an administrative hearing before the Hearings Division be held.

7.3Informal consultation.

If the Director considers a citizen complaint, or any other allegations, to be grounds for disciplinary action, the Director may consult with the fantasy contest provider and the parties affected in an effort to resolve the matter satisfactorily without a formal hearing. The Director must notify the complainant, the fantasy contest provider, and affected parties of the results of the informal consultation. The informal consultation does not prevent the Director from conducting a formal hearing or administering disciplinary action against the provider.

7.4Assurance of voluntary compliance.

The Director may accept an assurance of voluntary compliance regarding any act or practice alleged to violate Part 16, Article 30, of Title 44, C.R.S., or the Rules and Regulations thereunder, from a person who has engaged in, is engaging in, or is about to engage in such acts or practices. The assurance must be in writing and may include a stipulation for the voluntary payment of the costs of the investigation and an amount necessary to restore to a person money or property which may have been acquired by the alleged violator because of the acts or practices. An assurance of voluntary compliance may not be considered an admission of a violation for any purpose; however, proof of failure to comply with the assurance of voluntary compliance is prima facie evidence of a violation of Article 30 of Title 44, C.R.S., or the Rules and Regulation thereunder.

7.5Criminal convictions as grounds for revocation or suspension.

The Director may revoke or suspend the fantasy contest provider license of any person who is convicted of a crime, even though the convicted person's post-conviction rights and remedies have not been exhausted, if the crime or conviction involves a felony.

7.6Facts of criminal charge.

The charge in any jurisdiction of a fantasy contest provider with a felony is grounds for disciplinary action. The Director may find the provider guilty of a violation of this article based on the facts of the criminal charge even though the fantasy contest provider, or the provider's employee or agent, has been acquitted on the criminal charge.

7.7Summary suspension.

(1) Where the Director has objective and reasonable grounds to believe and finds that a fantasy contest provider has been guilty of a deliberate and willful violation of any of the provisions of Article 30 of Title 44, C.R.S., or the Rules and Regulations thereunder, or that due to other violations of law by the fantasy contest provider or its patrons, the public health, safety, or welfare imperatively requires emergency action, and where the Director incorporates such findings in its order, the Director may summarily suspend the fantasy contest provider's license pending disciplinary proceedings for suspension or revocation. Any such disciplinary proceedings shall be promptly instituted and determined.

(2) The summary suspension of a license without notice pending a hearing shall be for a period not to exceed thirty (30) days except that a fantasy contest provider may waive the thirty (30) day hearing requirement by requesting a continuance in writing no later than five (5) business days prior to the scheduled hearing. In no event, however, shall the requested continuance be granted unless the fantasy contest provider requesting the continuance has complied with the order of summary suspension by surrendering such provider's license to the Division.

7.8Conditions imposed for reissuance of license.

The Director may require a fantasy contest provider who formerly held a license to meet certain conditions before reissuing a license to that provider, including but not limited to the following:

(1) Restitution of money;

(2) Restitution of property; and

(3) Making periodic reports to the Director as required.

7.9Costs.

(1) In addition to the sanction or denial of any license by the Director, the Director may direct the payment by the applicant or fantasy contest provider of any reasonable costs incurred by the Division, party, or witness.

(a) The Director may enter any such order of its own initiative, or upon timely application and showing by the Division or any other party or witness in the action prior to the expiration of any time for appealing the underlying order.

(b) The filing of such an application does not stay the effectiveness of the underlying order.

(2) Reimbursable costs shall include, but are not limited to: witness fees and per diem; expert witness fees; duplication costs; court reporter, transcription, and other costs incurred in administering or preserving any record; extraordinary staffing costs of the Division; legal fees; expenses incurred in commencing, accommodating, or conducting the hearing; investigative costs; exhibit costs; and any other judicially or statutorily recognized cost, whether incurred prior or subsequent to the conclusion of the investigation of the matter.

(3) The Director reserves the discretion to deny, in whole or in part, any request for reimbursement of costs.

(4) Unless otherwise ordered, costs must be paid to the ordered recipient on or before the thirtieth day from the date of the order awarding the costs, unless stayed by the Director or other court of competent jurisdiction. Failure to pay and tender costs as ordered shall constitute grounds for sanction, including fine and revocation of any license or other affirmative approval.

1 CCR 207-3-7

46 CR 24, December 25, 2023, effective 1/14/2024