Colorado § 25-3.5-1306 - License denial - suspension - revocation - definition - penalty.

§ 25-3.5-1306. License denial - suspension - revocation - definition - penalty.

(1) Upon denial of an application for an initial license, the department shall notify the applicant in writing of the denial by mailing a notice to the applicant at the address shown on the application. If an applicant, within sixty days after receiving the notice of denial, petitions the department to set a date and place for a hearing, the department shall grant the applicant a hearing to review the denial in accordance with article 4 of title 24, C.R.S.

(2) The department may suspend, revoke, or refuse to renew the license of a community integrated health-care service agency that is out of compliance with the requirements of this part 13 or rules promulgated pursuant to this part 13. Before taking final action to suspend, revoke, or refuse to renew a license, the department shall conduct a hearing on the matter in accordance with article 4 of title 24, C.R.S. The department may implement a summary suspension before a hearing in accordance with section 24-4-104 (4)(a), C.R.S.

(3) (a) After conducting a hearing on the matter in accordance with article 4 of title 24, the department may revoke or refuse to renew an agency license if the owner, manager, or administrator of the agency has been convicted of a felony or misdemeanor involving conduct that the department determines could pose a risk to the health, safety, or welfare of the agency's patients or clients.

(b) As used in this subsection (3), "convicted" includes an entry of a plea of guilty or nolo contendere.

(4) The department may impose intermediate restrictions or conditions on an agency that may require the agency to:

(a) Retain a consultant to address corrective measures;

(b) Be monitored by the department for a specific period;

(c) Provide additional training to its employees, owners, managers, or administrators;

(d) Comply with a directed written plan to correct the violation, in accordance with the procedures established under section 25-27.5-108 (2)(b); or

(e) Pay a civil penalty of up to ten thousand dollars per violation. The department, after providing the agency with the opportunity for a hearing in accordance with section 24-4-105, C.R.S., on any penalties assessed, shall transmit all penalties collected pursuant to this paragraph (e) to the state treasurer, who shall credit the money to the general fund. The agency may request, and the department shall grant, a stay in payment of a civil penalty until final disposition of the restriction or condition.

Source: L. 2016: Entire part added, (SB 16-069), ch. 260, p. 1070, § 4, effective June 8. L. 2025: (3) amended, (SB 25-192), ch. 324, p. 1701, § 6, effective August 6.