Stay of Agency Enforcement Application - Colorado

APPLICATION FOR STAY OF AGENCY ENFORCEMENT

STATE OF COLORADO — ADMINISTRATIVE PROCEEDING

COVER LETTER TO AGENCY

[__/__/____]

[________________________________]
[________________________________]
[________________________________]
[________________________________]

VIA: ☐ Hand Delivery ☐ Certified Mail, Return Receipt Requested ☐ Electronic Filing ☐ Facsimile

RE: Application for Stay of Enforcement Action / Application to Postpone Effective Date
Applicant: [________________________________]
Agency Case/Docket No.: [________________________________]
OAC Case No. (if applicable): [________________________________]
Agency Order/Action Dated: [__/__/____]

Dear [________________________________]:

On behalf of [________________________________] ("Applicant"), enclosed please find the Application for Stay of Agency Enforcement Action, together with supporting exhibits and a proposed order granting the stay.

The Applicant respectfully requests that the Agency postpone the effective date of the [________________________________] dated [__/__/____] pending judicial review under C.R.S. § 24-4-106(5). As set forth in the enclosed application, irreparable injury would otherwise result. The Applicant also offers facts concerning the requested terms:

1. Irreparable injury would result absent a stay;
2. The underlying judicial-review claim raises the issues described in the application;
3. The balance of equities favors the Applicant; and
4. The stay will serve the public interest.

Please contact the undersigned at [________________________________] should you require additional information or wish to schedule a hearing on this application.

Respectfully submitted,

[________________________________]
[________________________________]
[________________________________]
Attorney for Applicant
Colorado Bar No.: [________________________________]
Telephone: [________________________________]
Email: [________________________________]

FORMAL APPLICATION FOR STAY OF AGENCY ENFORCEMENT

I. CAPTION AND PARTIES

BEFORE THE [AGENCY OR REVIEWING COURT: ________________________________]
STATE OF COLORADO

[☐ Before the Office of Administrative Courts]

In the Matter of:

[________________________________],
Applicant/Respondent,

v.

[________________________________],
Agency.

Agency Case/Docket No.: [________________________________]
OAC Case No. (if applicable): [________________________________]

APPLICATION FOR STAY OF ENFORCEMENT / APPLICATION TO POSTPONE EFFECTIVE DATE OF AGENCY ACTION

II. INTRODUCTION AND PROCEDURAL HISTORY

Applicant [________________________________] ("Applicant") respectfully submits this Application for Stay of Enforcement of the [☐ Final Agency Order / ☐ Initial Decision / ☐ Notice of Violation / ☐ Compliance Order / ☐ Penalty Assessment / ☐ License Suspension / ☐ License Revocation / ☐ Summary Suspension / ☐ Order to Show Cause / ☐ Other: ________________________________] (the "Agency Action") issued by [________________________________] (the "Agency") on [__/__/____].

Type of Stay Sought:

☐ Agency postponement pending judicial review — Application to the Agency under C.R.S. § 24-4-106(5)
☐ Reviewing-court relief pending judicial review — Application to the reviewing court under C.R.S. § 24-4-106(5)

An internal agency appeal or OAC proceeding alone is not the judicial review addressed by § 24-4-106(5). For relief during an internal proceeding, identify separate agency-specific authority before using a different application.

Procedural History:

1. On [__/__/____], the Agency issued [________________________________] against the Applicant.
2. On [__/__/____], the matter was [☐ referred to the Office of Administrative Courts / ☐ heard by the Agency directly / ☐ adjudicated by the Agency's internal hearing process].
3. On [__/__/____], the [☐ ALJ issued an Initial Decision / ☐ Agency issued a Final Order].
4. On [__/__/____], the Applicant [☐ filed exceptions to the Initial Decision / ☐ sought Agency review of the ALJ decision / ☐ filed a complaint in the [____________] District Court / ☐ filed a notice of appeal in the Colorado Court of Appeals] under the applicable C.R.S. § 24-4-106 review route.
5. The Agency Action is scheduled to become effective on [__/__/____].
6. [Additional procedural history: ________________________________]

III. STATEMENT OF FACTS

[________________________________]

[________________________________]

[________________________________]

[________________________________]

[________________________________]

Nature of Applicant's Business/Activities:

[________________________________]

Nature of the Agency Action:

[________________________________]

Specific Enforcement Measures at Issue:

☐ Monetary penalties/fines in the amount of $[________________________________]
☐ Cease and desist order regarding [________________________________]
☐ License suspension: [________________________________]
☐ License revocation: [________________________________]
☐ License denial: [________________________________]
☐ Summary suspension: [________________________________]
☐ Permit denial or revocation: [________________________________]
☐ Order requiring specific action by [__/__/____]: [________________________________]
☐ Other enforcement measures: [________________________________]

IV. LEGAL STANDARD FOR STAY

A. Statutory Framework

1. C.R.S. § 24-4-106 — Stay of Enforcement / Postponement of Effective Date:
Under C.R.S. § 24-4-106(5), upon a finding that irreparable injury would otherwise result, the agency, upon application, shall postpone the effective date of the agency action pending judicial review. Alternatively, the reviewing court, upon application and regardless of whether the agency received or denied an application, shall issue all necessary and appropriate process to postpone the effective date or preserve the parties' rights pending conclusion of judicial review, upon such terms and security, if any, as the court orders.

Key aspects of C.R.S. § 24-4-106:

• Mandatory Agency Postponement Pending Judicial Review: Upon the statutory finding of irreparable injury, the agency "shall" postpone the effective date.
• Court Authority Independent of Agency Decision: The reviewing court has independent authority to grant a stay regardless of whether the agency has denied one.
• Security/Bond: The court may impose "such terms and upon such security, if any, as the court shall find necessary and order."
• Court Process: Upon the statutory finding, the reviewing court "shall issue all necessary and appropriate process" to preserve rights, subject to terms and security it orders.

2. C.R.S. § 24-4-105 — Hearings and Determinations:
Governs contested case hearings before agencies and the Office of Administrative Courts.

3. C.R.S. § 24-4-104 — Licenses:
Provides specific procedures for license denial, suspension, and revocation, including notice and hearing requirements. Where a license is at stake, additional procedural protections apply.

4. C.R.S. § 24-30-1001 et seq. — Office of Administrative Courts (OAC):
The OAC provides administrative law judges for contested cases. OAC proceedings have their own procedural rules.

B. Standard for Stay

Under C.R.S. § 24-4-106(5), the statutory finding is that irreparable injury would otherwise result. The following facts can explain the requested relief and terms; subsection (5) does not state a separate four-factor test:

1. Irreparable injury that would result absent a stay (the statutory threshold);
2. Issues in judicial review and their relationship to the requested postponement;
3. Balance of harms between the parties; and
4. Public interest considerations.

Important: The statutory language uses "shall" — the agency is required to postpone the effective date if irreparable injury is demonstrated. This is a stronger standard than the discretionary stay provisions found in many other states.

V. GROUNDS FOR STAY

A. Irreparable Injury (Statutory Threshold)

Under C.R.S. § 24-4-106, the Applicant must demonstrate that irreparable injury would otherwise result if enforcement is not stayed. The Applicant will suffer irreparable injury because:

☐ Business closure or severe disruption: [________________________________]
☐ Loss of professional license or certification: [________________________________]
☐ Inability to practice profession or trade: [________________________________]
☐ Loss of livelihood: [________________________________]
☐ Financial harm exceeding ability to recover: [________________________________]
☐ Reputational damage that cannot be remedied: [________________________________]
☐ Loss of employees, customers, or contractual relationships: [________________________________]
☐ Health or safety consequences: [________________________________]
☐ Constitutional injury (due process, equal protection): [________________________________]
☐ Loss of property rights: [________________________________]
☐ Other irreparable injury: [________________________________]

The injury is irreparable because monetary damages or other post-judgment relief cannot adequately remedy the harm: [________________________________]

Supporting Evidence of Irreparable Injury:

☐ Declaration of Applicant (attached as Exhibit [____])
☐ Financial statements demonstrating impact (attached as Exhibit [____])
☐ Letters from clients/customers/patients (attached as Exhibit [____])
☐ Expert declaration regarding industry impact (attached as Exhibit [____])
☐ Other evidence: [________________________________]

B. Likelihood of Success on the Merits

The Applicant's petition for judicial review raises the following issues relevant to the requested relief:

1. [________________________________]

2. [________________________________]

3. [________________________________]

Legal errors in the Agency Action include:

☐ The Agency exceeded its jurisdiction or authority under [________________________________]
☐ The Agency failed to follow the procedural requirements of the Colorado APA (C.R.S. § 24-4-101 et seq.)
☐ The Agency's decision is not supported by substantial evidence in the record as a whole
☐ The Agency's action is arbitrary or capricious
☐ The Agency's action is otherwise contrary to law
☐ The Agency violated the Applicant's due process rights under the Colorado Constitution, Art. II, § 25
☐ The Agency misinterpreted or misapplied the governing statute or regulation
☐ The Agency relied on an improperly adopted rule
☐ The ALJ's Initial Decision was improperly rejected by the Agency without adequate basis
☐ Other: [________________________________]

C. Balance of Equities

The balance of hardships tips decidedly in the Applicant's favor:

Harm to Applicant if stay is denied:
[________________________________]

Harm to Agency/public if stay is granted:
[________________________________]

Proposed conditions to mitigate any potential harm during the stay period:
[________________________________]

The Applicant submits that the harm it would suffer from enforcement far exceeds any harm from granting the stay with appropriate conditions.

D. Public Interest

A stay of enforcement serves the public interest for the following reasons:

☐ Permits orderly adjudication of the underlying dispute on the merits
☐ Preserves Applicant's continued provision of services: [________________________________]
☐ Avoids unnecessary economic harm to employees and the community
☐ Maintains the status quo while legal questions are resolved
☐ Protects due process values and administrative fairness
☐ Prevents disruption to ongoing operations that serve the public: [________________________________]
☐ Other: [________________________________]

VI. BOND OR SECURITY OFFER

Under C.R.S. § 24-4-106, the reviewing court may impose "such terms and upon such security, if any, as the court shall find necessary and order." The Applicant addresses bond/security as follows:

The Applicant [☐ offers / ☐ does not believe a bond is required at the agency level but will comply with court-ordered security] to post bond or security:

☐ Cash bond in the amount of $[________________________________]
☐ Surety bond in the amount of $[________________________________]
☐ Letter of credit in the amount of $[________________________________]
☐ Escrow arrangement: [________________________________]
☐ Other security: [________________________________]
☐ Waiver of bond/security requested because: [________________________________]

The proposed bond/security amount is appropriate because: [________________________________]

VII. REQUEST FOR EMERGENCY OR EXPEDITED CONSIDERATION

☐ This section applies. The Applicant requests emergency or expedited consideration of this stay application.

Basis for emergency/expedited treatment:

☐ The Agency Action becomes effective on [__/__/____], which is [____] days from the date of this application
☐ Summary suspension has been imposed and is in effect
☐ Enforcement proceedings are imminent or have commenced
☐ The threatened harm is immediate and cannot await normal processing
☐ License suspension/revocation takes effect on [__/__/____]
☐ Other exigent circumstances: [________________________________]

Efforts to confer with opposing party:

The Applicant has [☐ conferred with / ☐ attempted to confer with / ☐ been unable to confer with] the Agency regarding this application. The Agency's position is: [________________________________]

VIII. PROPOSED CONDITIONS DURING STAY

The Applicant proposes the following conditions during the pendency of the stay to address any legitimate Agency concerns:

☐ Continued compliance with all applicable regulations except the specific enforcement measure stayed
☐ Periodic reporting to the Agency every [____] days regarding [________________________________]
☐ Maintenance of insurance coverage in the amount of $[________________________________]
☐ Restriction on certain activities: [________________________________]
☐ Supervision or monitoring requirements: [________________________________]
☐ Preservation of records and documentation
☐ Posting of bond or security as described in Section VI
☐ Continuing education or remedial training: [________________________________]
☐ Interim compliance measures: [________________________________]
☐ Cooperation with Agency investigations or audits
☐ Other conditions: [________________________________]

IX. PROPOSED STAY ORDER

Applicant respectfully requests that the selected [☐ Agency / ☐ Reviewing Court] enter the following order:

IT IS HEREBY ORDERED that:

1. Upon a finding that irreparable injury would otherwise result, pursuant to C.R.S. § 24-4-106(5), the effective date of [________________________________] dated [__/__/____] is POSTPONED / appropriate process preserving the parties' rights is ORDERED, pending judicial review in [COURT AND CASE NO.: ________________________________];

2. The stay/postponement shall remain in effect until [☐ conclusion of judicial review / ☐ further order of the Agency or Court / ☐ specific date: __/__/____];

3. The stay is granted upon the following conditions: [________________________________];

4. [If authorized by the governing law and within the requested stay: Specify which enforcement measures are suspended and whether any penalty accrual is affected: ________________________________];

5. The Applicant's [☐ license / ☐ permit / ☐ registration / ☐ certification] shall remain in effect during the stay period, subject to any conditions imposed;

6. The Agency retains jurisdiction to modify or dissolve the stay upon a showing of changed circumstances, violation of stay conditions, or threat to the public health, safety, or welfare;

7. [Additional terms: ________________________________].

X. VERIFICATION

I am the [☐ Applicant / ☐ authorized representative of the Applicant] and have read this Application for Stay of Enforcement. I declare under penalty of perjury under the law of Colorado that the foregoing is true and correct.

Executed on [__/__/____] at [CITY OR OTHER LOCATION], [STATE OR COUNTRY].

Printed name: [________________________________]

Signature: _____________________________________________

XI. CERTIFICATE OF SERVICE

I hereby certify that on [__/__/____], a true and correct copy of this Application for Stay of Agency Enforcement, together with all exhibits, was served upon the following by the method indicated:

Agency:
[________________________________]
[________________________________]
[________________________________]
☐ Hand Delivery ☐ Certified Mail ☐ Electronic Service ☐ Facsimile

Agency Counsel / Attorney General's Office:
[________________________________]
[________________________________]
[________________________________]
☐ Hand Delivery ☐ Certified Mail ☐ Electronic Service ☐ Facsimile

Office of Administrative Courts (if applicable):
[________________________________]
[________________________________]
☐ Hand Delivery ☐ Certified Mail ☐ Electronic Service ☐ Facsimile

Other Parties:
[________________________________]
[________________________________]
☐ Hand Delivery ☐ Certified Mail ☐ Electronic Service ☐ Facsimile

_____________________________________________
Signature
Date: [__/__/____]

DOCUMENT CHECKLIST

Ensure the following documents are prepared and attached before filing:

☐ Cover letter to Agency (signed and dated)
☐ Formal Application for Stay of Enforcement (verified)
☐ Copy of the Agency Action being challenged (order, notice, decision)
☐ Copy of the complaint or petition for judicial review
☐ ALJ Initial Decision (if applicable)
☐ Agency Final Order (if different from ALJ decision)
☐ Declaration of Applicant regarding irreparable injury
☐ Declaration of counsel regarding procedural history
☐ Financial/operational impact evidence (financial statements, projections)
☐ Supporting legal memorandum (if filed separately)
☐ Proposed Stay Order
☐ Bond or security documentation (if applicable)
☐ Proof of service on all parties
☐ Agency-specific forms (check individual agency requirements)
☐ Administrative record excerpts (relevant portions)
☐ Prior correspondence with the Agency regarding the enforcement action
☐ Evidence of compliance efforts or remedial measures taken
☐ Evidence supporting irreparable injury finding (declarations, financial records)

PRACTICE TIPS FOR COLORADO STAY APPLICATIONS

Key Colorado Distinctions

• Mandatory Language: C.R.S. § 24-4-106 uses the word "shall" — upon a finding of irreparable injury, the agency "shall postpone" the effective date. This is a stronger mandate than the discretionary stay provisions in many other states. The focus is primarily on demonstrating irreparable injury.

• Independent Court Authority: Upon the statutory finding, the reviewing court shall issue appropriate process "regardless of whether such an application previously has been made to or denied by any agency." An agency denial does not preclude court relief.

• Discretionary Security: The statute says "such security, if any," making clear that a bond is not automatically required. The court has discretion to impose security or to waive it.

• Office of Administrative Courts: Colorado uses a centralized OAC for many administrative hearings (C.R.S. § 24-30-1001 et seq.). The ALJ issues an "Initial Decision" which the agency head may then review and modify.

Colorado Administrative Hearing Structure

• The Office of Administrative Courts (OAC) under C.R.S. § 24-30-1001 et seq. provides ALJs for contested case hearings.
• The ALJ issues an "Initial Decision" which may be subject to agency review.
• Some agencies have their own hearing processes separate from the OAC.
• Check whether the specific agency is required to use the OAC or conducts its own hearings.

Timing and Deadlines

• For district court review under C.R.S. § 24-4-106(4), commence the action within 35 days after the agency action becomes effective. If a statute directs review to the Court of Appeals, check the separate procedure and deadline in § 24-4-106(11).
• Apply for a stay before the effective date of the agency action.
• If the agency denies postponement, apply to the court with jurisdiction over the judicial review under C.R.S. § 24-4-106(5); the court may act regardless of the agency's decision.
• Under C.R.S. § 24-4-105, there may be specific deadlines for agency-level appeals — check agency-specific regulations.

Strategic Considerations

• Lead with the irreparable injury argument, as this is the statutory threshold for the mandatory stay provision.
• Emphasize the mandatory nature of the statute — "shall postpone" — when arguing before the agency.
• If the agency denies the stay despite demonstrated irreparable injury, argue to the court that the agency failed to comply with the statutory mandate.
• Offer concrete conditions to address agency concerns about public safety or welfare.
• If an ALJ's Initial Decision was favorable but the agency modified it adversely, emphasize the ALJ's findings.
• Note that the Department of Revenue has specific limitations — once judicial review is commenced, the department has no jurisdiction to enter further orders and may not stay a license revocation (per case law interpreting C.R.S. § 24-4-106).
• Consider the specific agency's regulations in the Colorado Code of Regulations (CCR) for additional stay procedures.

Forum Considerations

• C.R.S. § 24-4-106(4) provides district court review except where subsection (11) applies. Under § 12-20-408(1), most final Title 12 regulator orders go directly to the Court of Appeals; subsection (2) and the listed cease-and-desist matters have district court routes.
• Select the reviewing court under the agency's enabling statute before preparing the judicial-review filing or court stay application.
• Consider filing the stay application with both the agency and the court simultaneously if time is limited.

Common Pitfalls

• Failing to focus on the irreparable injury standard, which is the statutory threshold.
• Not recognizing the mandatory nature of the agency stay provision when irreparable injury is shown.
• Missing the 35-day deadline for filing a complaint for judicial review.
• Failing to apply for the stay before the effective date of the agency action.
• Not offering conditions to address agency concerns about public health and safety.
• Overlooking agency-specific regulations that may impose additional procedural requirements.
• Failing to document irreparable injury with declarations and supporting evidence.

SOURCES AND REFERENCES

• Colorado Administrative Procedure Act: C.R.S. § 24-4-101 et seq.
• Hearings and Determinations: C.R.S. § 24-4-105
• Judicial Review and Stay: C.R.S. § 24-4-106
• Licenses: C.R.S. § 24-4-104
• Office of Administrative Courts: C.R.S. § 24-30-1001 et seq.
• Colorado Constitution, Art. II, § 25 (Due Process)
• Colorado Rules of Civil Procedure, Rule 106(a)(4) (Review of Governmental Action)
• Colorado Code of Regulations (CCR): Agency-specific regulations
• Colorado Bar Association — Staying Enforcement Pending Appeal: https://www.cobar.org