8 CCR 1504-1-XI - DISCIPLINARY ACTIONS

A. The Board may issue a cease and desist order, deny, suspend, revoke or place on probation a school's Certificate of Approval or agent's permit if the applicant or holder:

1. Violates any provision of the Act or the Rules and Regulations established pursuant to the Act.

2. Fails to meet the requirements of the Act or the Rules and Regulations established pursuant to the Act; or uses fraud, misrepresentation, or deceit in applying for or attempting to apply for approval.

3. Is convicted of or has entered a plea of nolo contendere or guilty to, or has received a deferred sentence or a deferred prosecution for a felony.

4. Violates probation.

5. Uses deceptive advertising.

6. Fails to notify the Division in writing within seven (7) days of any action which changes the school's status with the United States Department of Education, any other state or federal regulatory body, accrediting body, trade or membership association, or any national association or organization. This includes any adverse or disciplinary action, including but not limited to, probationary status.

B. The Board may use an administrative law judge employed by the Office of Administrative Courts in the Department of Personnel and Administration to conduct hearings or hold the hearings itself if time is determined to be a factor.

C. The Board may enter into a voluntary agreement with any school or agent to suspend, revoke, or place on probation the school's certificate of approval or the agent's permit. Such agreements shall have the force and effect of an order of the Board and violation of the terms of such agreement by a school or agent shall be grounds for disciplinary action up to and including revocation of the school's certificate or the agent's permit.

D. Administrative Fines or Fees. In addition to or in lieu of seeking a temporary restraining order or an injunction pursuant to § 23-64-131(1), C.R.S., the Board may impose an administrative fine on a school or agent which violates the Act, the Rules, or an order of the Board. In pursuing a school or agent which violates the Act, the Rules, or an order of the Board, the Board may also assess fees incurred by the Board for the direct and indirect costs of the administration of the Act pursuant to § 23-64-122(1), C.R.S. Fines or fees for violations shall be determined by the Board pursuant to the Act and the Rules. There is no statutory minimum or maximum fine or fee amount prescribed by the Act. Fines or fees may be imposed by the Board, unless otherwise provided by the Act or the Rules.

1. Procedure.

a. Notice of Non-Compliance. Based upon a reasonable belief that a violation occurred, the Board shall issue a Notice of Non-Compliance to the school or agent requesting a response. After receiving the response, the Board shall deliberate and make a decision on the issuance of a fine or fee and the fine or fee amount.

b. Notice of Fine or Fee. If the Board decides to fine a school or agent, the Board shall issue a Notice of Fine or Fee, which shall:

(i) Identify the school or agent;

(ii) Provide a concise statement of the facts and/or conduct constituting the violation and the specific statutory provision or rule violated;

(iii) The fine or fee assessed in accordance to this Rule;

(iv) A statement that the school or agent has a right to request a hearing of the Board's decision; and

(v) A statement of how and when the fine or fee must be paid.

2. Factors Used to Determine Fine or Fee Amount. In determining whether to impose a fine or fee and the amount of the fine or fee, the Board shall consider and take into account the following aggravating and mitigating factors in establishing the degree of seriousness of the violation(s) for which to impose a fine or fee on a school or agent:

(a) Aggravating Factors.

- The school or agent has failed to correct the violation or continues or repeats the violation;

- The violation involved intentional, misleading, and false representation, reporting and disclosure;

- The actual and potential damages suffered, and actual or potential costs incurred, by the Board, or by any other person as a result of the violation;

- The violation resulted in intentional and reckless willful and negligent conduct;

- The violation resulted in significant negative impact, threat, or harm to the public; and

- The school or agent has engaged in a pattern of noncompliance with Board laws, rules, and orders.

(b) Mitigating Factors:

- The school or agent self-reported the violation;

- The school or agent demonstrated prompt, effective and prudent response to the violation, to remedy and mitigate whatever harm might have been done as result of the violation;

- The school or agent cooperated with the Board, or other agencies and impacted parties with respect to addressing the violation; and

- The violation was outside of the entity's reasonable control and responsibility.

3. Schedule of Fines or Fees. Unless otherwise provided by the Act, the Board may utilize the following classification table in determining and imposing administrative fines or fees on a school or agent:

Violation	Fine or Fee
Deceptive Trade or Sales Practice §§ 23-64-112(1)(k) and 23-64-123, C.R.S., and/or Board Rule VII.	$1000 minimum for each violation.
Operating after expiration date of certificate of approval, § 23-64-113(1)(a), C.R.S., and/or Board Rule IV.F.	$1000 minimum for violation and $50 each day in violation.
Operating without adequate Surety Coverage, § 23-64-121, C.R.S., and/or Board Rule IV.E.	$1000 minimum for violation and $50 each day in violation.
Offering Program/Courses without Board approval § 23-64-112(1)(c), C.R.S., and/or Rule III.B.1.	$500 minimum fine for each violation.
Unauthorized agent, § 23-64-111, C.R.S and/or Board Rule VI.	$500 minimum for violation and $50 per day in violation.
Failure to adhere to state refund policy upon student withdraw or termination, § 23-64-120, C.R.S., and/or Board Rule VIII.	1st violation: minimum $100; 2nd minimum $300; 3rd minimum $500, and each violation thereafter.
Unqualified instructional staff, § 23-64-112(1)(e), C.R.S., and/or Board Rule III.E.2.	1st violation: minimum $200; 2nd violation minimum $300; 3rd violation minimum $500 and each violation thereafter.
Failure to timely and adequately correct an on-site inspection deficiency and/or application/record review § 23-64-112, C.R.S.	1st Offense minimum $100 per violation; 2nd Offense minimum $300 per violation; 3rd Offense minimum $500 per violation, and each violation thereafter.
False statement about material fact in application, § 23-64-112, C.R.S., and/or Board Rule XI.	$500 minimum per violation
Failure to properly execute student enrollment agreement, § 23-64-126, C.R.S., and/or Board Rule III.H.	$200 minimum per violation
Any other violation of the Act, Rule or order of the Board.	$100 to $5000 per violation

4. Administrative Hearing. In lieu of paying the imposed fine or fee, the school or agent may request a hearing before an administrative law judge in accordance to the State Administrative Procedures Act. All final decisions of the Board regarding the issuance of fines or fees and any other form of disciplinary action as set forth in the Act, including administrative fines or fees, shall be in accordance to the State Administrative Procedures Act.

5. Payment of fines or fees. Unless the school or agent requests a hearing pursuant to the State Administrative Procedures Act, any fine or fee imposed pursuant to § 23-64-131, C.R.S., and this Rule shall be paid within 30 days of the date of the Notice of Fine or Fee. Any fine or fee imposed subsequent to an administrative hearing and final Board order shall be paid within 30 days of a final Board order. All fines or fees shall be paid electronically. All fines collected pursuant to this Rule shall be transferred to the State Treasurer, who shall credit the same to the State General Fund.

6. Failure to Pay a Fine or fee. Failure to pay an administrative fine or fee by its due date may result in the suspension or revocation of the school's certificate of approval or the agent's permit in accordance with the Act, the Rules and the State Administrative Procedures Act.

Notes

8 CCR 1504-1-XI

40 CR 01, January 10, 2017, effective 1/31/2017 41 CR 10, May 25, 2018, effective 6/14/2018 44 CR 05, March 10, 2021, effective 4/1/2021 45 CR 04, February 25, 2022, effective 4/1/2022 46 CR 04, February 25, 2023, effective 4/1/2023 47 CR 04, February 25, 2024, effective 4/1/2024