C.R.S. § 27-50-1005: Denial, suspension, or revocation of license - restrictions - fines.

(1) (a) When the BHA denies an application for an initial license to operate a recovery residence pursuant to section 27-50-1003, the BHA shall notify the applicant in writing by mailing a notice to the address shown on the application. An applicant aggrieved by a denial may pursue a review as provided in article 4 of title 24 and the BHA shall follow the procedures specified in article 4 of title 24.

(b) The BHA may deny an application if the applicant, an affiliate of the applicant, a person employed by the applicant, or a person who resides with the applicant is the subject of, or has previously been the subject of, a negative licensing action or certification withdrawal or termination.

(2) (a) The BHA may suspend, revoke, or refuse to renew the license of a recovery residence that is out of compliance with the requirements of, or rules adopted pursuant to, this part 10. Suspension, revocation, or refusal must not occur until after a hearing and in compliance with the provisions and procedures specified in article 4 of title 24; except that the BHA may summarily suspend a recovery residence's license before a hearing in accordance with section 24-4-104 (4)(a).

(b) After conducting a hearing in accordance with article 4 of title 24, the BHA may revoke or refuse to renew a recovery residence's license if the owner or administrator of the recovery residence has been convicted of a felony or misdemeanor involving conduct that the BHA determines could pose a risk to the health, safety, or welfare of the recovery residents.

(3) The BHA may impose intermediate restrictions or conditions on a recovery residence that may include at least one of the following:

(a) Retaining a consultant to address corrective measures;

(b) Monitoring by the BHA for a specific period;

(c) Providing additional training to employees, owners, or operators of the recovery residence;

(d) Complying with a directed written plan to correct the violation; or

(e) Paying a civil fine in lieu of suspension, revocation, refusal, or any other adverse licensing action, which fine must not exceed two thousand dollars in a calendar year. The BHA shall transmit money received pursuant to this subsection (3)(e) to the state treasurer, who shall credit the money to the general fund.