(1) As used in this section, unless the context otherwise requires, "responsible party" means a member of the governing body or an executive officer of a cooperative.
(2) (a) After notice and the opportunity for a hearing pursuant to article 4 of title 24, C.R.S., the commissioner may enforce the provisions of this part 10 by issuing orders directed to any responsible party, including but not limited to cease-and-desist orders, as are deemed necessary if the commissioner finds that:
Such person has violated this part 10 or any lawful rule promulgated pursuant to thispart 10, engaged in any unsafe or unsound practice in connection with a cooperative, engaged in an act, omission, or practice that constitutes a breach of fiduciary duty to a cooperative, or has been found liable for or guilty of a civil or criminal offense affecting such person's qualification to serve in such capacity; or
(A) The cooperative has suffered or appears likely to suffer substantial financial lossor that the interests of its members and eligible employees could be seriously prejudiced by reason of such violation, practice, breach of fiduciary duty, or offense;
Such person has received financial gain from such violation, practice, breach of fiduciary duty, or offense; or
Such violation involves serious dishonesty or demonstrates a willful or continuingdisregard for the safety or soundness of the cooperative.
In addition to the actions authorized in paragraph (a) of this subsection (2), the commissioner may impose a civil penalty of up to twenty-five thousand dollars for each violation.
In addition to the penalty provided in paragraph (b) of this subsection (2), if thecommissioner determines that any person is in violation of the provisions of section 10-16-1004 (2)(c) or 10-16-1008 (3), the commissioner may order the responsible party suspended or removed from office.
If the commissioner finds that extraordinary circumstances exist that require immediate action, such action may be taken immediately pursuant to section 24-4-105 (12), C.R.S., but a subsequent hearing shall promptly be afforded upon application to rescind the action taken.
The commissioner may initiate informal actions to enforce this part 10 under thissection. Such informal actions may include written agreements with, informal commitment letters from, or the forwarding of a letter of reprimand to, a cooperative or responsible party.
(3) Any person adversely affected by an order issued pursuant to this section may, within twenty days after the date of the order, request judicial review under section 24-4-106 (11). An action for judicial review shall not operate to stay or vacate a decision or order; except that the court may issue a stay pending review.
Source: L. 2004: Entire part added, p. 1007, § 14, effective August 4. L. 2019: (3) amended, (SB 19-004), ch. 205, p. 2196, § 10, effective August 2.
Cross references: For the legislative declaration in SB 19-004, see section 1 of chapter 205, Session Laws of Colorado 2019.