Table of Contents

Office of the Attorney General 4

Consumer Protection 7

Criminal Justice 15

Appellate Division 21

Natural Resources 24

State Services 29

Civil Litigation and Employment Law 32

Business and Licensing 36 4 COLORADO ATTORNEY GENERAL JOHN SUTHERS Attorney General John W. Suthers

On January 4, 2005, John W. Suthers was appointed as Coloradoʼs 37th Attorney General. In November of 2006, the voters of Colorado elected Attorney General Suthers by a large margin to serve a full, four-year term. As Attorney General, Suthers is charged with representing and defend- ing the interests of the People of the State of Colorado, and serves as chief legal counsel and advisor to state gov- ernment, its statewide elected officials, and its many state agencies, boards, and commissions.

Attorney General Suthers graduated magna cum laude from the University of Notre Dame with a degree in government in 1974, and from the University of Colorado Law School in 1977. From 1977 to 1981, he served as a deputy and chief deputy district attorney in Colorado Springs. From September of 1979 to January of 1981, he headed the Economic Crime Division of the DAʼs office and co- authored a nationally published book on consumer fraud and white-collar crime.

In January of 1981, Mr. Suthers entered private practice as a litigation partner in Colorado Springs firm of Sparks Dix, P.C. He remained with the firm until Novem- ber of 1988, when he ran against and defeated the incumbent district attorney for the 4th Judicial District. He was elected to a second term as district attorney in 1992. After serving two terms in office, he returned to Sparks Dix, P.C. as senior counsel in charge of the firmʼs litigation section.

In 1999, Mr. Suthers was appointed executive director of the Colorado Department of Corrections by Governor Bill Owens. As head of the stateʼs correctional system, he oversaw an organization with almost 6,000 employees and an annual operating bud- get of approximately $500 million.

On July 30, 2001, Mr. Suthers was nominated by President George W. Bush to be the United States Attorney for the District of Colorado. He was unanimously confirmed by the U.S. Senate, and represented the United States in all criminal and civil matters within the District.

In his tenure as Attorney General, Mr. Suthers has founded a safe surfing initiative to protect Coloradoʼs children from internet predators. He also has convened a Mort- gage and Foreclosure Fraud Task Force which has led to several pieces of legislation designed to combat mortgage and foreclosure fraud. Attorney General Suthers has been a champion for Coloradoʼs environment, leading the charge to reclaim damages for the Rocky Mountain Arsenal superfund site. 2006 ANNUAL REPORT 5

He serves as co-chair of the National Association of Attorneys General Criminal Law Committee, as chair of the National Association of Attorneys General Campus Safety Committee, and as a member of the U.S. Attorney Generalʼs Executive Working Group.

Mr. Suthers has served on the board of numerous civic organizations. He served as president of the El Paso County Bar Association in 1990-91, president of the Colo- rado District Attorneyʼs Council in 1994-95, and senior vice president of the Colorado Bar Association in 1996-97. In 1992, Suthers was appointed by the Colorado legisla- ture to serve as a delegate to the National Conference on Uniform State Laws, serving as such until January of 1997. In the summer of 2000, Mr. Suthers received a Gates Foundation Fellowship to attend the Government Executives Program at Harvard Uni- versityʼs Kennedy School of Government.

John and his wife, Janet, have been married for 31 years and have two daughters, Alison, a recent graduate of Georgetown University Law School, and Kate, a Lieutenant J.G. in the United States Navy.

Cynthia Coffman CHIEF DEPUTY ATTORNEY GENERAL

Cynthia Honssinger Coffman serves as chief of staff for the Department of Lawʼs legal and administrative support team. Mrs. Coffman joined the Attorney Generalʼs Office in March of 2005 after serving as chief legal counsel to Colorado Governor Bill Owens.

Prior to her work at the State Capitol, Ms. Coffman worked with the Colorado Depart- ment of Public Health and Environment. In that position, she oversaw legal and regu- latory issues and worked extensively on the stateʼs bioterrorism preparedness efforts and emergency planning.

Coffman is a founding member of the Public Health Law Association, a national pro- fessional organization formed in conjunction with the Centers for Disease Control and Prevention. She has served for five years on the faculty of the Centersʼ annual public health law conference and remains active in the field of health law. 6 COLORADO ATTORNEY GENERAL JOHN SUTHERS

Daniel Domenico SOLICITOR GENERAL

Attorney General Suthers appointed Dan Domenico as Solicitor General of Colorado in April of 2006. Before joining the Office of the Attorney General, Domenico was special assistant to the solicitor of the United States Department of the Interior. In that role, he advised the Secretary and senior management of the Department on a wide range of matters relating to National Parks, federal land, water resources, energy produc- tion, and other issues important to Coloradans and citizens of the American West.

Prior to his work at the Interior Department, Domenico practiced for several years in the Denver and Boulder offices of the national law firm Hogan & Hartson. He also clerked for Judge Tim Tymkovich of the United States Court of Appeals for the 10th Circuit (himself a former Colorado Solicitor General), and also worked with U.S. Sena- tor John Thune.

Domenico, a Boulder native, received his undergraduate degree, magna cum laude, from Georgetown University. He attended the University of Virginia School of Law, where he served as editor for two academic journals, including the Virginia Law Re- view, and was elected to the Order of the Coif.

Jason Dunn DEPUTY ATTORNEY GENERAL FOR LEGAL POLICY AND ASSISTANT SOLICITOR GENERAL

Jason Dunn is senior policy advisor to the Attorney General and office liaison to the Governor, General Assembly, and local governments. Dunn also serves as assistant solicitor general for civil appeals, litigating matters on behalf of the State, and peri- odically representing the Attorney General on the Initiative Title Setting Review Board.

Dunn joined the Department of Law in 2005 from the private sector, having practiced in public policy and water law for Hale Friesen, LLP, in Denver. Dunn began his legal career as a law clerk to Colorado Supreme Court Justice Nathan Coats, followed by private practice with a boutique water law firm in Boulder.

Dunn received his bachelor of science, masters in public administration, and law de- grees from the University of Colorado. During law school, Dunn was class president and member of the Colorado Journal of International Environment Law and Policy.

Dunn serves on the Judicial Performance Commission for the 17th Judicial District, and has served as vice-chairman of the Broomfield Land Use Review Commission. Consumer Protection Section

The Colorado Attorney Generalʼs Office, The Business Regulation Unitʼs enforce- through its Consumer Protection Sec- ment efforts have focused on pursuing tion, protects Colorado consumers and individuals and businesses for false ad- businesses against fraud and maintains vertising and other consumer protection a competitive business environment in and antitrust violations. These enforce- the state. The Section enforces state and ment efforts have also been comple- federal consumer protection laws, state mented by the Attorney Generalʼs con- and federal antitrust laws, and state laws sumer complaint intake and education on consumer lending, predatory lending, programs. Taken together, these efforts debt collection, rent-to-own, and credit have sought to protect consumers, pro- repair. Section members work to educate vide a fair market for competitors, and consumers through outreach and educa- educate consumers about ways to pro- tional programs, and also implement and tect themselves from noncompliant busi- enforce provisions of the tobacco mas- nesses. ter settlement agreements. Finally, the Section advocates for residential, small MORTGAGE AND FORECLOSURE business, and agricultural public utility FRAUD ratepayers. Following a dramatic rise in foreclosures Business Regulation Unit that made Colorado among the hard- est-hit in the nation, Attorney General Suthers convened the Mortgage and The Business Regulation Unit enforces Foreclosure Fraud Task Force in 2005. a variety of state and federal consumer The task force included members of law protection statutes. In order to maxi- enforcement, county officials, mortgage mize limited resources, the Unit also en- lenders, mortgage brokers, real es- gages in significant consumer education tate attorneys, and others. Participants and outreach efforts. The principal stat- shared their experiences in regard to this utory authority for enforcement efforts is growing problem and discussed coordi- the Colorado Consumer Protection Act, nated solutions. which identifies and prohibits a long list of deceptive trade practices. In recent In 2006, Attorney General Suthers years, this statute has been amended to worked with the General Assembly to include Attorney General enforcement of craft legislation giving his office the the Colorado No-Call List Act, the Colo- enforcement tools necessary to com- rado Charitable Solicitations Act, the bat the most prevalent fraudulent con- Colorado law addressing unconscionable duct in mortgage and foreclosure relief. mortgage loans, and the Colorado Fore- Through the Task Force, the Attorney closure Protection Act. General has laid the groundwork for co- 8 COLORADO ATTORNEY GENERAL JOHN SUTHERS ordination of enforcement efforts among result of this advertisement review, the various law enforcement and regulatory Attorney General has issued subpoenas agencies. to a number of mortgage brokerage firms. Review continues of their docu- In addition, the Attorney General has ments and compliance with the mort- commenced numerous investigations gage brokerage laws. into mortgage and foreclosure-related fraud, including: The Attorney General has received hun- dreds of complaints through the Task • Ameriquest: Colorado participated Force pertaining to mortgage broker- with 49 other states in concluding a age firms and loan originators. The staff consumer protection investigation of the Consumer Protection Section has against Ameriquest Mortgage Com- continued to review each complaint in pany. That comprehensive investigation an attempt to identify specific patterns led to a settlement with Colorado and of fraud and deceptive practices. As a the other states, in which Ameriquest, result of this complaint intake, the Attor- the nationʼs largest sub-prime lender, ney General commenced investigations of agreed to pay $295 million in restitu- four mortgage brokerage firms and the tion to consumers, and to make sweep- brokers. The brokers are believed to have ing reforms to its lending practices. sold high risk loans featuring an inter- Consumer restitution is expected to est rate that changes monthly, negative begin in early 2007. amortization, hidden costs, and substan- tial prepayment penalties. • High Performance Real Estate: After an extensive investigation, the At- On July 1, 2006, the Foreclosure Protec- torney General reached a settlement tion Act became effective. This Act gives with a real estate broker and his bro- homeowners greater protection from kerage firm that were using high cost consultants who seek to extract prepay- installment land contracts to place low ment or, worse, title to, or a lien on, the income consumers in properties that property in foreclosure. During 2006, were beyond their means. The indi- the Attorney Generalʼs office issued nu- viduals and real estate firm will agree merous cease and desist orders to com- to an Assurance of Discontinuance that panies that failed to comply with this new prohibits them from using these in- law. struments in their home sales. The As- surance will also require the parties to NO-CALL ENFORCEMENT pay $84,000 in restitution and attorney fees. The Business Regulation Unit enforces the Colorado No-Call List. Since going • The Attorney General has also under- into effect on July 1, 2002, more than 2.7 taken a review of several widely dis- million Coloradans have added their resi- tributed advertisements that have been dential phone numbers to the List. Since used to market high risk loans. As a that time, consumers have filed nearly 2006 ANNUAL REPORT 9

47,000 complaints alleging violations of and publication of these yearbooks. the No-Call List Act. Enforcement efforts • Thermal Advantage: Reached a settle- have been continuous since enactment of ment with Thermal Advantage, a local this popular and protective law. company that falsely claimed home- owners could have their windows re- Persistent enforcement of the No-Call placed for free if they agreed to partici- List by the Attorney Generalʼs Office has pate in an energy saving study. been successful in bringing telemarket- ers into compliance and protecting the • Discount Health Plans: The Attorney privacy of Colorado homes. The daily General continued to pursue two ma- average number of complaints dropped jor investigations of companies offer- from 206 complaints per day in the first ing discount health plans to determine month of the program, to 15 per day in whether they are complying with the 2006 and 9 per day during the December disclosures required by the Consumer of that year. Protection Act.

OTHER DECEPTIVE TRADE PRACTICES • Poster Sales: The Attorney Generalʼs Office is also investigating whether an The Business Regulation Unit kept ex- out-of-state company is falsely pos- tremely busy during 2006 on a variety of ing as a government agency to con- other consumer protection enforcement vince businesses to buy official-look- matters. Some highlights include: ing posters that must be posted in a workplace or restaurant under federal • General Steel: During 2006, the Attor- or state law. ney General reached a comprehensive, $4.5 million settlement with General COLORADO CONSUMER LINE Steel. Under the settlement, $4 million will be distributed to consumers who The Consumer Protection Unit continued had been previously identified during working with Coloradoʼs Better Busi- the litigation. The remaining $500,000 ness Bureaus (BBBs) to help Coloradans will be paid as costs and civil penalties, resolve consumer complaints, improve and will be split between the Attorney consumer services, and obtain greater Generalʼs Office and the Sacramento access to information regarding busi- District Attorneyʼs Office, which also nesses. This project, known as the settled its claims against General Steel Colorado Consumer Line (CCL), includes as part of the settlement. a toll-free number for one-stop access to consumer advocates, information on • MorphCorp: Settled a lawsuit involv- filing consumer complaints, answers to ing allegedly deceptive advertising and frequently asked questions, and referrals sales of “Family Yearbooks” over the to the BBBs for complaint mediation and Internet. Under the settlement, the business reliability reports. company agreed to pay a $50,000 civil CCL/BBB system statistics for 2006: penalty and to discontinue advertising 10 COLORADO ATTORNEY GENERAL JOHN SUTHERS

• More than 847,222 BBB “business reli- AARP ELDERWATCH ability reports” were requested over the phone and through the web. AARP ElderWatch is a joint effort between the Attorney General and the AARP Foun- • Approximately 51,592 consumer calls dation to establish a statewide clearing- were made to the CCL. house to address the financial exploita- tion of Coloradoʼs senior citizens. Efforts • More than 22,405 consumer com- in 2006 continued to focus on investor plaints against businesses were re- education and financial literacy train- solved or closed. ing for older adults. The Attorney Gen- eral, AARP ElderWatch, and the Colorado • More than 4,054 callers accessed the Division of Securities worked to develop CCLʼs “frequently asked questions” as- curriculum for a series of programs for sistance feature. seniors. The Attorney General and AARP ElderWatch also embarked on a multi- city “Senior Fraud Alert Tour” to talk with seniors about elder fraud issues.

PREVENTING IDENTITY THEFT

The Unit continues to maintain and up- date a comprehensive, informational web page for Colorado consumers, busi- nesses, and law enforcement agencies to deal with identity theft. The Office has undertaken a number of initiatives de- signed primarily to educate the public on the risks and dangers of identity theft. These efforts include an active public outreach component to warm consumers of scams.

CHARITABLE SOLICITATIONS

The Consumer Protection Section filed four lawsuits against charities and vari- ous individuals who solicited funds in vi- olation of the Colorado Charitable Solici- tations Act in 2006. The Attorney General has also taken action against one of the Attorney General Suthers helps shred documents nationʼs largest paid solicitors, Xentel, in at the second annual “Fight Fraud - Shred In- stead,” an identity theft prevention effort hosted order to bring it into compliance with the by his office and AARP ElderWatch. Colorado Charitable Solicitations Act. 2006 ANNUAL REPORT 11

Investigations of other noncompliant NATIONAL CONSUMER ISSUES charities and paid solicitors continue, particularly in the realm of car dona- The office participated in national dis- tions. In addition, the Attorney General cussions on other important consumer will continue to work with the Secretary protection issues, including: of Stateʼs office to identify noncompliant charities and educate the public about • Joined with several states to urge the how to give wisely. These enforcement nationʼs largest wireless telephone efforts fulfill the goal of protecting and companies to meet and discuss security educating Colorado donors, and provid- measures to protect confidential cus- ing a level playing field for those chari- tomer information. ties that solicit donations in accordance with the Act. • Signed on to comments for the United States Department of Transportation MISCELLANEOUS INVESTIGATIONS regarding potential rule revisions re- garding airline advertising. In addition to the specific cases and investigations noted above, the Unit is • Signed on to comments urging strong engaged in a large number of other con- protections by the Federal Communica- sumer protection investigations, includ- tions Commission of consumersʼ con- ing business opportunity scams, false fidential information maintained by the health claims and money back guaran- telephone industry. tees, auto repair scams, unauthorized use of private mailboxes, and consent • Assisting the FTC in the investigation decree enforcement. of a Colorado-based, national debt management firm. WORKING WITH OTHER STATE ATTORNEYS GENERAL Antitrust Unit Attorney General Suthers works with other states to protect competition in the The Attorney Generalʼs Office enforces marketplace. The Office participates in the Colorado Antitrust Act and the fed- settlements of national advertising issues eral Sherman and Clayton Antitrust Acts. affecting Colorado consumers. One such In addition to handling local cases, the multi-state settlement was with Banco Unit also works closely with other state Popular Leasing, Inc. in connection with attorneys general in investigating and a widespread telecommunications fraud prosecuting national antitrust violations involving NorVergence, Inc., a bankrupt that have a particular impact on Colorado New Jersey-based telephone equipment consumers. and service company. This settlement will relieve 11 Colorado businesses from $340,000 of payments on their leases. 12 COLORADO ATTORNEY GENERAL JOHN SUTHERS

PRESCRIPTION DRUGS NON-PARTICIPATING MANUFACTURER ENFORCEMENT Many of the Unitʼs antitrust resources are focused on the critical issue of competi- The Attorney Generalʼs Office is respon- tion in the prescription drug industry; sible for enforcing the Tobacco Escrow specifically, agreements to delay the in- Funds Law. Failure to diligently enforce troduction of low-cost, generic alterna- this law can have a significant, detrimen- tives to brand name pharmaceuticals tal impact on the payment of settlement funds under the MSA (which have totaled COMPUTER COMPONENTS more than $544 million to date).

Colorado joined several other states in PUBLIC HEALTH INITIATIVES AND filing a national antitrust case against PROTECTING COLORADO’S YOUTH numerous manufacturers of dynamic random access memory chips in an al- The office joined with other Attorneys leged price fixing conspiracy that ar- General to enter into Assurances of Vol- tificially raised the price of this critical untary Compliance in order to address component in personal and business public health issues and curb cigarettes computers. sales to minors.

Tobacco Litigation Unit LITIGATION The Unit initiated proceeding against The Attorney Generalʼs Office is respon- Participating Manufacturers on the is- sible for enforcing the Tobacco Master sues of market share loss and diligent Settlement Agreement (MSA) and Smoke- enforcement to protect the MSA payment less Tobacco Master Settlement Agree- stream from disruption. ment (STMSA). The Office also enforces the state escrow fund statute to prevent non-signatory tobacco manufacturers Uniform Consumer Credit from taking advantage of marketing re- Code strictions imposed by the settlements. This Unit enforces five credit-related Significant activities in 2006 included: laws on the state level – the Uniform MASTER SETTLEMENT ENFORCEMENT Consumer Credit Code, the Deferred De- posit Loan Act, the Fair Debt Collection Practices Act, the Credit Services Orga- The Attorney Generalʼs Office enforces nization Act, and the Rental Purchase the Master Settlement Agreement, and Agreement Act. In addition to enforce- works with other Attorneys General to ment activities, the Unit licenses and ensure tobacco company compliance and regulates finance companies under the encourage other tobacco companies to Uniform Consumer Credit Code (“UCCC”) join the MSA. and collection agencies under the Colo- 2006 ANNUAL REPORT 13

rado Fair Debt Collection Practices Act Assurance of Discontinuance with a used (“CFDCPA”). car dealer for failure to file notification, improper repossessions and right to cure LENDING PRACTICES notices, and charging excess late fees. The auto dealer paid a $5,000 penalty. The UCCC Unit oversaw the activities of 2,523 supervised lenders and issued 834 PAYDAY LENDING new licenses. Unit members conducted 800 compliance examinations of super- In 2006, the Unit recovered $125,000 vised lenders and ordered them to refund from payday lenders for violations Colo- overcharges to Colorado consumers. The rado law. Investigations are ongoing into Attorney Generalʼs Office investigated the practices of numerous other payday 294 written consumer complaints against lenders. licensed lenders and other creditors. All told, the office obtained $762,684 in MORTGAGE LENDING consumer refunds and restitution and over $157,000 in penalties, fines, cost The Attorney Generalʼs Office continued reimbursement, and custodial funds for a review of mortgage loan advertising for credit education and enforcement pur- compliance with the UCCC and the fed- poses. eral Truth in Lending Act. Sixteen cease and desist advisory letters were issued to INTERNET LENDING brokers and lenders with deficiencies in their advertising and their ads are being The Unit spent part of 2006 investigat- monitored. This project is ongoing and ing and resolving several cases involving will continue in 2007. out-of-state lenders not licensed and whose lending terms and practices did not comply with the UCCC. The major- SMALL INSTALLMENT LENDING ity of these cases involve Internet payday lenders. These cases and investigations Conducted UCCC compliance examina- ensure compliance with Coloradoʼs laws tions of lenders licensed to make small that apply to loans made to Colorado installment loans under House Bill 04- consumers regardless of the lenderʼs 1394. Compliance examinations have location. focused on whether the borrowers had sufficient ability to repay the loans as AUTOMOBILE FINANCING written, as data collected shows frequent and continuous refinances of the original The Unit investigated related companies loan amount. Approximately $20,340 in that take assignment of, or service, sub- consumer refunds and credits were or- prime automobile loans, for potential dered. UCCC violations, including allegations of improper collection and repossession activity. Members also entered into an 14 COLORADO ATTORNEY GENERAL JOHN SUTHERS

COLLECTION AGENCIES CHILD SUPPORT COLLECTIONS

During 2006, the Unit handled 824 writ- The Unit educated collection agencies ten complaints against collection agen- about House Bill 06-1066, a new law cies and additional telephone complaints that provides protections for custodial and inquiries. Unit members oversaw parents who contract with private col- the activities of 608 licensed collection lection agencies to collect overdue child agencies engaged in the collection of support. The Unit also adopted rules, debts in Colorado. Unit members re- effective August 30, 2006, implementing solved, investigated, filed, or defended House Bill 06-1066 on consumer rights 85 enforcement actions and investiga- contractual language and accounting tions under the CFDCPA, while collecting procedures. $124,250 in fines, penalties, cost reim- bursements, and credit education and OFFICE OF CONSUMER COUNSEL enforcement funds. The OCC Unit provides legal support DEBT BUYERS and represents the Office of Consumer Counsel (“OCC”) within the Department The Unit issued 86 cease and desist no- of Regulatory Agencies. By statutory tices to unlicensed debt collectors to en- mandate, the OCC advocates on behalf sure compliance with Colorado law. Unit of residential, small business, and agri- members also executed stipulations with cultural interests before the Public Utili- companies that buy defaulted debt or ties Commission (“Commission” or “PUC”) uncollected judgments. A group of five and in other forums on issues concerning related companies dismissed a lawsuit electricity, natural gas, and telephone they filed challenging the application of issues. In 2006, the Unit appeared or Coloradoʼs collection laws to their activi- worked on behalf of the OCC in 97 mat- ties and paid $50,000 to the State. ters before the PUC, including protests, interventions, and rulemaking activities. Criminal Justice Section

The Criminal Justice Section of the Colo- may be referred by other state agencies rado Attorney Generalʼs Office assists or the governor. Unit attorneys pros- local prosecutors and law enforcement ecute cases throughout Colorado under agencies throughout the state. Sections the auspices of the Attorney General, or members assist with matters that cross as specially appointed deputy district at- jurisdictional lines, including present- torneys in the twenty-two judicial dis- ing cases to the Statewide Grand Jury and tricts. serving as special district attorneys when requested by a DA. The Section provides For example, in 2006, the unit indicted special assistance to district attorneys ten defendants in Arapahoe County for in death penalty and gang activity cases, charges relating to the fraudulent opera- and has statutory authority to prosecute tion of bingo halls. A lengthy investiga- white-collar crimes and multi-jurisdic- tion and grand jury review also resulted tional matters. in the indictment of twenty defendants in an auto theft ring in the Durango area. Additionally, the Criminal Justice Section Eleven defendants were indicted in a coordinates the prosecution of foreign widespread burglary ring involving nu- fugitives and represents the Department merous stores and artworks throughout of Public Safety. The Colorado Peace Of- five Front Range counties. A mother- ficer Standards and Training Board is also daughter team was convicted of multiple administered through this Section. felonies relating to the theft of horses in El Paso County. Special Prosecutions Protecting Coloradoʼs citizens from the fraudulent use of state funds is an im- The Attorney General has statutory au- portant function for the special pros- thority to prosecute certain types of ecutions unit. Thirteen cases of tax crime including environmental violations, fraud were conducted and resulted in tax evasion, election fraud, and other more than $154,000 in restitution to types of fraud. In addition, the Attorney the citizens of Colorado. Sixteen per- General functions as the legal advisor sons were convicted of felonies for un- to the statewide grand jury, allowing for employment insurance fraud, with more the prosecution of criminal cases occur- than $150,000 in restitution. Fourteen ring over multiple judicial districts in the cases of workersʼ compensation insur- state. The Special Prosecutions unit, ance fraud resulted in convictions with comprised of four attorneys, two investi- $227,446 ordered in restitution. One of gators, and one support staff employee, these cases involved a temporary em- handles all multi-jurisdictional matters, ployment agency forging insurance cer- as well as special investigations which tificates to avoid paying premiums. The 16 COLORADO ATTORNEY GENERAL JOHN SUTHERS

agency head was found guilty at trial by a eral is authorized to prosecute Securi- Weld County jury. ties Fraud. In doing so, the Securities Fraud Unit works closely with the Colo- The Criminal Justice Section also helps rado Division of Securities and other law protect Coloradoʼs natural resources by enforcement agencies around the state. enforcing environmental laws. The En- The staff of the unit consists of two at- vironmental Crimes Unit filed five envi- torneys, two investigators, and a para- ronmental crimes prosecutions in 2006. legal dedicated full-time to securities Among these was the case of William fraud cases. Walker, who operated a septage/grease Twenty-one investigations were opened trap waste hauling business called Root in 2006. Of these, fifteen were initi- Master in Montrose. The investiga- ated by the unitʼs investigators, and the tion showed that for at least two years, remainder was referred to the Attorney Walker had been disposing of the waste Generalʼs office by the Division of Se- he collected by dumping his septic truck curities. As a result, eight felony cases tank into a storm drain that emptied into were filed in various counties around the a flowing creek which drained into the state. Twelve felony convictions were Uncompahgre River. The Attorney Gener- obtained in 2006 and nine defendants al works closely with the U.S. Attorneyʼs were sentenced. One defendant, Ray Office and both state and federal agen- Morris, received 48 years in prison for an cies in pursuing these types of crimes. investment scam involving more than $2 million. The total restitution ordered for Securities Fraud victims of Securities Fraud cases exceed- ed $4.6 million. Under Colorado law, the Attorney Gen- Insurance Fraud

For the majority of 2006, the Insurance Fraud Unit consisted of one attorney, one investigator, and one half-time administrative assistant. In 2006, Senate Bill 38 provided funding for an additional attorney, three additional investi- gators, and one unit paralegal. As of October 2006, the three inves- tigators were hired and a parale- gal was hired in November 2006. The additional attorney has been hired and will begin with the unit in January 2007. Attorney General Suthers convenes the first meeting of the Colorado Methamphetamine Task Force. 2006 ANNUAL REPORT 17

During 2006, the insurance fraud unit and to protect it against fraud. The unit received 358 referrals of potential crimi- investigates and prosecutes complaints nal cases relating to insurance fraud. As of neglect and abuse in Medicaid funded a result, the unit opened 36 new felony long-term care facilities. Two attorneys, investigations, most of which are cur- seven investigators, one auditor and one rently ongoing. Two of the cases opened support staff employee accomplish the in 2006 have already been filed and are work of the unit. currently being litigated the state courts. The unit has fourteen additional open In 2006, the unit filed ten new cases of investigations (opened prior to 2006), fraud, including spurious home health some involving multiple potential defen- care claims, durable medical equipment dants. fraud, home health care fraud, crimes against at-risk adults, and other bill- In 2006, the Insurance Fraud Unit filed ing fraud. Nine criminal convictions and seven cases by either summons or arrest eight civil settlements were obtained, warrant. Additionally, the unit utilized with recoveries totaling more than $2.2 the statewide grand jury on a multi-ju- million. Sample convictions include: A risdictional auto theft ring which resulted mother/daughter scam to bill for home in an indictment in January 2006, leading health services that were never provided, to the arrests of fourteen individuals on a nursing home business manager ma- felony charges. The auto theft cases are nipulating the books to overbill Medicaid now being handled by the Adams County for nursing home care, and a transporta- District Attorneyʼs Office. Two of those tion provider billing for rides that were defendants have entered guilty pleas in not provided. Adams County. The unit also works closely with federal During 2006, the unit obtained six felony and other state authorities on broad- convictions, one misdemeanor convic- ranging fraud cases that cover multiple tion, and five probation revocations. jurisdictions. Eight of these cases re- As a result of the convictions, the unit sulted in regional and global settlements achieved restitution orders totaling more that included Colorado activities. than $179,000 and orders for fines and costs in excess of $22,000. Capital Crimes Unit

Medicaid Fraud This unit, consisting of two attorneys, an investigator, and one support staff More than 429,200 Colorado citizens re- member, provides assistance to local ceived Medicaid benefits during 2006. In district attorneys on homicides might total, the State contributed approximate- involve the death penalty. This type of ly $3.3 billion to persons qualifying for litigation becomes very complex and the aid. The goal of the Medicaid Fraud unit unit contributes its expertise to augment is to preserve this fund for those in need local resources. The attorneys have as- 18 COLORADO ATTORNEY GENERAL JOHN SUTHERS sisted in grand jury investigations, legal • Lazaro Rey Muro was also apprehended research, motions practice, and other in 2006 for a 1999 homicide that re- court proceedings in various jurisdictions sulted from an argument with his then in the state. During 2006, considerable roommate. The disagreement turned so efforts were also devoted to assisting violent that the victim, Joel Gonzalez- multiple district attorneys on current and Lopez, was stabbed over 150 times. cold-case investigations, including post- conviction proceedings in People v. Mon- • Manuel Enrique Muela-Luna was sen- tour, in which, the defendant pled guilty tenced in May 2006 for the 1992 to the murder of a prison guard. Larimer County homicide of 26 year old Luis Armendariz. After taking Ar- Foreign Prosecutions Unit mendariz to an area near Estes Park, Muela-Luna fatally shot the victim in the back of the head and set the body Foreign prosecutions occur when a de- on fire to destroy the evidence. The fendant who is a Mexican national has fugitive was apprehended in Mexico fled the United States and can be subject and is serving his sentence in a Mexi- to prosecution by Mexican authorities can federal prison. in Mexico under Article IV of the Mexi- can Penal Code. These proceedings are A fourth case is being investigated by the based on reports submitted by law en- Adams County Sheriffʼs Office and the forcement agencies in the United States. 17th Judicial District Attorneyʼs Office, Because there is significant migration of involving three victims who were shot, persons from Mexico to Colorado and one fatally, in unincorporated Adams back, this issue arises with some regu- County. The perpetrator is believed to larity. With the dedication of a single have fled to Mexico. investigator, the Attorney Generalʼs of- fice has developed expertise in compil- ing the necessary documentation and In addition to criminal proceedings, this has formed relationships with Mexican unit represented the Attorney General officials to facilitate these prosecutions. in numerous training sessions. These Three examples from 2006 include: include a Mexico City presentation on foreign prosecutions and the collabora- • In 2006, the Unit filed a request for tive working relationship and successful prosecution in the shooting death of case presentation efforts in Colorado, Jeffrey Garrett near Glenwood Springs. the Attorneys General Border Conference The defendant, Oscar Hoyos de la Cruz in Arizona, and the Colorado Organiza- fled after the shooting and was caught tion for Victimsʼ Assistance conference in and sentenced by the Mexican courts. Keystone, Colorado. He is serving a three year prison term in Mexico. 2006 ANNUAL REPORT 19

Victim Assistance Program and training records of Colorado peace officers, most recently through a newly acquired computer software program, This program provides information to Crown Pointe Technologies. victims of violent crimes as required by Colorado statutes. During 2006, the Vic- The POST staff is working with the State tim Assistance Program provided notifi- Archives Office in the development of a cations to 1,701 victims of violent crimes project to scan and electronically index while the convictions and sentences in all Colorado Peace Officer Certification the offendersʼ cases were on appeal. Files. This program will allow POST to Other services provided to crime victims import all hard copy files into a digitally were post-trauma counseling, referrals imaged software program. POST docu- to Victim Compensation and other com- ments will be indexed and divided into munity resources, and accompaniment several filing areas. to oral argument in the Colorado Court of Appeals and the Colorado Supreme During 2006, POST pursued and received Court. preliminary approval for a training grant from the Colorado Department of Trans- The Victim Services Coordinator is also a portation (CDOT). The grant will provide liaison for the Department of Law to the funding for the continuance of “POST/ statewide network of victim services. She ADL Anti-Bias Training for Law Enforce- represents the Office with statewide task ment Officers”. Coupled with a grant forces on human trafficking, post-sen- awarded earlier in the year by the Denver tencing victim services, District Attor- Foundation, a web-based program will ney Victim Witness Coordinators, Victim be designed and implemented to address Rights Amendment legislative working the same core competencies and student groups. The coordinator serves on grant outcomes as the in-class program. The funding boards for VALE and DAAP, and training will be available on the Internet works on other initiatives to improve ser- to any officer at his or her convenience. vices to crime victims. Funding through CDOT will improve and extend the program through June 2008. Colorado Peace Officer Stan- dards and Training Board Additionally, the grant will allow fund- ing for POST to provide a Colorado Peace Officer Identification Card to every peace The Colorado Peace Officer Standards officer certified in the state. Each POST and Training Board (POST) manages the ID Card, which is secure and verifiable, training and certification of 14,000 ac- will feature a Bar Code containing the tive peace officers and numerous reserve peace officerʼs personal information and peace officers appointed by Colorado law certification number, and will be easily enforcement agencies. The POST staff scanned at POST funded training courses. continues to improve the certification 20 COLORADO ATTORNEY GENERAL JOHN SUTHERS

POST staff and the POST Board train- • POST has approved over 236 curricu- ing sub-committee worked diligently to lums via this project. complete the second grant funding pro- cess. The sub-committeeʼs grant fund- • POST continued to partner with the ing recommendations were presented to, Anti Defamation League to offer anti- and accepted by, the POST Board on April bias training to Colorado law enforce- 21, 2006. The Board approved training ment officers. This project provides grant funding of $800,000 for Colorado the training at no cost to the stateʼs peace officer training for the period July law enforcement agencies. More 1, 2006 through June 30, 2007. than 10,000 Colorado peace officers have undergone the POST /ADL train- Four state-wide training partners and ing and the approved agency training 10 training regions, made up primarily programs. Additionally, the anti bias of judicial districts, have been estab- training curriculum is now a required lished to manage peace officer training training course topic within the POST programs. The law enforcement leaders Basic Peace Officer Training and Re- serving on each of the regional com- serve Peace Officer Training Programs. mittees have identified and facilitated training programs unique to, and needed During 2006, the Colorado Peace Officer by, the law enforcement officers serving Standards and Training Board has taken within their region. 22 revocation actions against peace of- ficers convicted of felonies and certain • Of the stateʼs 302 active law enforce- misdemeanors. The certificates revoked ment agencies, 253 have taken advan- by the Board are entered as revoked into tage of the training programs created the POST electronic database, and are by this project. also reported and entered into the Na- tional Peace Officer Decertification Data- • The POST Peace Officer Training Project base. has provided funding allowing Colora- doʼs peace officers to attend well over 250,000 hours of quality law enforce- ment training. Appellate Division

The Appellate Division of the Colorado and/or sentences in 90 percent of their Attorney Generalʼs Office is responsible cases. for defending the People of Colorado against appeals seeking to reverse felony U.S. Supreme Court Rulings convictions and sentences. Impacting Appellate Work These attorneys are directly responsible for crafting many of the arguments that In 2006, Appellate Division attorneys shape the face of Coloradoʼs criminal continued work to clarify the impact on laws. Although only a small percentage Colorado state law of two significant of appeals result in published opinions United States Supreme Court opinions: with far-reaching impacts, the Appellate Blakely v. Washington – in which the Division also fights to uphold convic- Court required a jury finding to increase tions in hundreds of other cases decided a defendantʼs sentence beyond the stat- in unpublished opinions. In addition to utory maximum – and Crawford v. Wash- these appeals, Appellate Division attor- ington, in which the Court required face- neys share their criminal law expertise to-face confrontation/cross-examination with the stateʼs district attorneys through in many new situations. weekly case law updates, informal advice, and formal presentations. BLAKELY V. WASHINGTON

Caseload Soon after Blakely was announced, ap- peals challenging the constitutionality of Coloradoʼs sentencing scheme began The Appellate Division opened 1011 new flooding in to the Attorney Generalʼs appellate cases in 2006. Many of these Office. In the first major battle of the cases involved convictions of more than Blakely war – Lopez v. People (May 2005) one crime, including: – the Colorado Supreme Court held that • 300 assaults against children Blakely did not render Coloradoʼs sen- • 242 burglaries and thefts tencing scheme unconstitutional. Since • 227 kidnappings and assaults then, Appellate attorneys have clarified • 214 homicides the Stateʼs sentencing laws in a num- • 190 drug felonies ber of cases addressing the nuances of • 137 aggravated robberies Blakely: • 88 sexual assaults on adults • 185 other felonies People v. Johnson, 142 P.3d 722 (2006) Holds that Blakely established a new rule In 2006, Appellate Division attorneys of criminal procedure that does not apply successfully upheld criminal convictions retroactively. This effectively closed the 22 COLORADO ATTORNEY GENERAL JOHN SUTHERS

door on many challenges to sentences Appellate attorneys in the Attorney Gen- that were final prior to the Blakely ruling. eralʼs Office have closely monitored this area of law and have taken a leading role Several cases further clarified the Blakely in clarifying “testimonial” statements in ruling: Colorado:

• A misdemeanor conviction counts as a People v. Vigil, 127 P.3d 916 (2006) “prior conviction” for purposes of sen- Statements made by a child victim of tence aggravation and is exempt from sexual assault are not “testimonial,” as the requirements of Blakely. a child in that position could not have known that his or her answers to a doc- • Habitual offender proceedings are torʼs questions might be used in a sub- covered under the “prior conviction” sequent criminal prosecution. exception and do not fall under the requirements of Blakely. Two other cases affect Crawford as well. The first determined that Laboratory re- • A statutory term of mandatory pa- ports regarding test results for suspected role is not included in the calculation drugs are not “testimonial.” A second of whether a defendantʼs sentence is case declared a defendant who causes “aggravated” within the meaning of a witness against him to be unavailable Blakely. at trial forfeits the right to confront and cross-examine that witness. • A prior juvenile adjudication falls un- der the “prior conviction” exception in The nuances of these cases, along with Blakely. other developments in the area of con- frontation and cross-examination, will CRAWFORD V. WASHINGTON continue to keep Appellate Division at- torneys busy in the coming years. The United States Supreme Court held that cross-examination is necessary for Other Significant Rulings any out-of-court “testimonial statement” to be admitted in a criminal trial. How- People v. Candelaria (Colo. 12-18-06) ever, the Court deliberately declined to Holds that convictions under multiple define “testimonial statement,” leaving subsections of the first degree murder lower state and federal courts to sort out statute are not inconsistent. Therefore, the types of statements considered “tes- a defendant can stand convicted of first timonial.” In 2006, the Supreme Court degree murder under multiple theories. issued opinions in two Crawford-related This can be accomplished by a single, cases, Davis v. Washington and Hammon generic conviction for first degree mur- v. Indiana. Both cases dealt with whether der, with the juryʼs specific findings statements made to police officers at to applicable theories reflected in the crime scenes fell under Crawfordʼs um- special interrogatories. (Appellate Divi- brella of “testimonial statements.” 2006 ANNUAL REPORT 23 sion attorneys have been arguing for People v. Pahl (Colo. App. 8-24-06) this result for years. Prior to the ruling, This case clarified a variety of issues a conviction under one theory might be pertaining to Colorado securities law and reversed on appeal or in a post convic- the evidence needed to support a crimi- tion proceeding. Where there is evidence nal conviction. to support multiple theories, a reversal should not undermine the entire convic- People v. Hoover (Colo. App. 11-16-06) tion.) Similar to Pahl, this case further refined certain aspects of securities law and the People v. Alengi (Colo. 11-27-06) Colorado Organized Crime Control Act. This Colorado Supreme Court opinion The Court found that a 100-year sen- concerned husband/wife co-defendants. tence was supported by the record. It clarified the trial courtʼs obligations when advising individuals who are having People v. Manzo (Colo. App. 10-2-06) difficulty affording/obtaining counsel. The Court held that leaving the scene of an accident involving serious bodily People v. Vigil, 127 P.3d 916 (Colo. injury is a strict liability offense. A driver 2006) involved in such an offense need not The Supreme Court reaffirmed that sex- know the level of injury at the accident ual assault on a child is a general intent site. crime, and that self-induced intoxication is not a defense to that crime. Natural Resources Section

The Natural Resources and Environment cial Master with legal briefs on the few Section works on behalf of Colorado citi- remaining areas of dispute. The Special zens to protect and improve the quality Master intends to file a final decree in of our natural environment, and to wisely early 2007, which will then be subject to use and develop our natural resources. review by the Supreme Court. The Attorney Generalʼs Office plays an Republican River important role in preserving Coloradoʼs environment and restoring sites that The section continues to work with the have been injured by pollution. Conservation District to ensure compact compliance. Members are also defend- The Section also provides legal counsel ing the Stateʼs groundwater management and representation to the Colorado De- rules against a challenge recently filed by partment of Natural Resources (DNR), the Colorado surface water users. Colorado Department of Public Health and Environment (CDPHE), their boards SOUTH PLATTE RIVER and commissions, and any other state agency or official with a natural resource The section worked with Colorado water or environmental issue. The Section also users to negotiate a cooperative agree- represents the State Natural Resources ment with Nebraska, Wyoming, and the Trustees to recover damages for pollu- United States for an endangered species tion injury to resources and to restore recovery plan. The plan will allow antici- those resources to their original state if pated water development in Coloradoʼs possible. South Platte basin to proceed without limitations based on the Endangered Interstate Water Species Act. COLORADO RIVER The Natural Resources and Environment Section had a number of successes in Section staff works closely with the De- 2006 that protected Coloradoʼs interests partment of Natural Resources to de- in its interstate rivers. fend and protect the Stateʼs important ARKANSAS RIVER interests in the waters of the Colorado River. As drought reduces the availabil- ity of Colorado River water, and as water The section reached settlement with uses in the basin states and in Mexico Kansas on most technical issues for grow, the possibility of conflict between determining Arkansas River Compact these claims increases. Attorney General compliance in the future, and submit- Suthers created the Defense of the Colo- ted a joint proposed decree to the Spe- rado River Compact to help protect 2006 ANNUAL REPORT 25

Coloradoʼs interests in the Colorado • Obtained favorable decisions in all of River against such claims. Supreme Court Cases appealed during 2006. Water Rights • Advised and represented the State Engineer in litigation and negotiations The Natural Resources Section includes concerning proper operation of Green the Water Rights Unit, which accom- Mountain Reservoir plished the following during 2006: . • Served as lead counsel in a six week • Participated in almost one thousand trial that successfully defended the water rights proceedings in Coloradoʼs State Engineerʼs Confined Aquifer New water courts, including several appeals Use Rules in the San Luis Valley from in the Colorado Supreme Court, and several protestors. numerous trials and court proceedings to enforce orders of the State Engineer. • Successfully resolved protests to the State Engineers Measurement Rules for • Protected water rights for the Divi- Water Division No. 3. sion of Wildlife and the Colorado Water Conservation Board (CWCB). • Assisted the State Engineer in pro- mulgating new Measurement Rules for • Successfully obtained decrees in a Water Division No. 2. dozen Instream Flow applications for the Colorado Water Conservation Board • Represented the State and Division including appropriations on South Fork Engineers in water court cases that Smith Fork and Smith Fork in the Gun- could have affected Coloradoʼs ability nison basin. to comply with its obligations under its various compacts. • Aided the CWCB in acquiring and changing water right donations to In- • Drafted rules for the Colorado Water stream Flow use. Conservation Board to amend exist- ing Instream Flow Appropriation Rules • Assisted the Department of Parks in and Recreational In-Channel Diversion acquiring new water rights and protect- Rules to implement new law. ing existing water rights. • Successfully pursued numerous en- • Assisted the State Land Board, Colo- forcement actions against well drillers rado Department of Transportation, that failed to comply with state stan- Department of Corrections, and the dards, netting in nearly $20,000 for the Colorado Historical Society in acquiring State. new water rights and protecting exist- ing water rights. 26 COLORADO ATTORNEY GENERAL JOHN SUTHERS

• Successfully negotiated several large Oil, Gas, Minerals, and and complex augmentation plan cases in the South Platte River Basin. State Lands

• Worked on cases involving ground The Natural Resources and Environment water extracted from coal bed methane Section achieved the following in 2006 gas wells used for beneficial purposes. related to oil, gas, and mineral develop- ment on state lands: • Represented the Ground Water Com- mission staff in numerous proceedings • Won eviction order and appeal thereof regarding ground water rights in des- in the Colorado Court of Appeals for ignated basins, both before the Hearing the State Board of Land Commissioners Officer and the Ground Water Commis- against a former lessee of Lowry Range sion. property.

FEDERAL RESERVED WATER RIGHTS • Participated in federal, state and local team meetings regarding regulation of During 2006, the Natural Resources and oil shale development. Environment Section cooperated with the United States, the Southern Ute Indian • Protected the Stateʼs interest in recla- and Ute Mountain Ute Tribes, and the mation of mined land by representing Southwestern Water Conservation District mining agencies in a national, multi- to file and successfully litigate actions to million dollar bankruptcy involving conform the Tribesʼ water rights under a Asarco, Inc. 1986 settlement to the smaller Animas- • Protected the authority of the Mined La Plata project, approved by Congress in Land Reclamation Board and the Divi- 2000. sion of Reclamation, Mining, and Safety regarding regulation of mining opera- The section supported, with the federal tions by filing amicus curiae briefs in government and local water users, the district court and in the Colorado Court application for rights to underground of Appeals. water for the recently created Great Sand Dunes National Park and Preserve. Mem- • Assisted the State Board of Land Com- bers also pushed for resolution of out- missioners in protecting its possessory standing federal water right cases, some interests and water rights in trust lands of which have been pending for over 20 it manages for the benefit of public years. schools. These cases including obtain- ing the dismissal of two administrative appeals against the Board and obtain- ing a quiet title decree through settle- ment concerning the Boardʼs right to a mineral estate. 2006 ANNUAL REPORT 27

NATURAL RESOURCE DAMAGES Air, Land, and Water RESTORATION AND LAND CLEANUP This Unit of the Natural Resources Sec- tion functions specifically to protect • Continued to prepare the Stateʼs claim Coloradoʼs natural resources. Accom- for natural resource damages at the plishments in 2006 include: Rocky Mountain Arsenal. The Attor- ney General successfully lobbied for a AIR QUALITY $742,000 appropriation from the Gen- eral Assembly to continue litigation. • Resolved a significant air quality en- forcement action against the Cemex • Worked on resolution of natural re- cement manufacturing plant in Lyons. source damage claims at Rocky Flats. The $1.5 million settlement constitutes the second largest settlement of its • Continued efforts to resolve the stateʼs kind in Colorado. natural resource damage claim at the California Gulch Superfund site. • Assisted CDPHE in pending litigation challenging the Departmentʼs issuance • Assisted CDPHE in completing the 18- of a construction permit for Xcel Ener- year clean-up of the Uravan uranium gyʼs Comanche 3 unit in Pueblo. mill, disposing of over 12 million cubic yards of contaminated materials. • Assisted CDPHEʼs Air Pollution Control HAZARDOUS AND SOLID WASTE Division in rulemaking to impose strict- er controls on oil and gas production facilitiesʼ emissions of volatile organic • Quickly obtained a temporary restrain- compounds (VOCs). ing order allowing US Defense Logis- tics Agency, the EPA, and Otero County • Worked with the Air Pollution Control officialsʼ access to seize and dispose Division in revising the Stateʼs regula- of extremely hazardous chemicals ac- tions concerning “upsets” at emission cumulated by a government surplus sources. buyer.

• Advised the Air Pollution Control Divi- • Obtained a preliminary injunction to sion on the cleanup of several Colorado close a metals recovery facility in Mon- sites where asbestos was disturbed in trose that had been operating in viola- buildings during renovations. tion of hazardous waste laws.

• Worked closely with the Air Division • Provided legal counsel for enforcement and industry and environmental parties of solid waste regulations that required on proposed revisions to the Stateʼs a Frederick medical waste sterilization Motor Vehicle Emissions Inspection facility to obtain a certificate of desig- Program. nation for operation. 28 COLORADO ATTORNEY GENERAL JOHN SUTHERS

• Provided legal services to CDPHE re- • Worked with EPA and the Depart- garding its regulatory authority to ment of Justice on enforcement actions oversee disposal of avian influenza-in- against nationally-known home build- fected livestock carcasses, and partici- ers and other large retailers for wide- pated in an avian influenza state-fed- spread, systematic stormwater permit eral joint task force. violations at large construction sites in Colorado. • Assisted CDPHE regarding the prop- er disposal of livestock carcasses in • Obtained a penalty of $225,000 – the southeast Colorado as a result of the largest ever awarded to CDPHE for December 2006 blizzards. water quality violations – against a Trinidad, Colorado man for dumping • Successfully negotiated resolution untreated sewage in and near the Pur- of a technical hazardous waste issue gatoire River. that will allow CDPHE greater regula- tory oversight of wastes generated by • Worked closely with CDPHE to ensure cleanup of Lowry Landfill. state air and water quality issues of concern were addressed with respect to WATER QUALITY oil shale research, design, and devel- opment leases. • Represented CDPHEʼs Water Quality Control Division in enforcement actions against municipal utilities. The State assessed $135,000 in penalties on these actions and required corrective action requiring nearly $100 million dollars in facility upgrades. State Services Section

The State Services Section of the Colo- • Successfully defended the Colorado rado Attorney Generalʼs Office repre- Commission on Higher Education in sents the Governor, other elected state Colorado Christian University v. Weaver. officials, the administrative parts of the The case challenged the constitution- judicial branch, the State Board of Educa- ality of a prohibition on state-funded tion, over 20 state-supported universi- finances to pervasively sectarian uni- ties, colleges, and community colleges, versities. and the departments of Human Services, Public Health & Environment, Health Care • Obtained dismissal of all claims in a Policy & Financing, Education, Higher major constitutional challenge to Col- Education, Labor & Employment, and oradoʼs system of financing K-12 edu- Personnel & Administration. cation.

Constitutional Cases • Successfully defended the Charter School Institute, the State Board of Education, and the State of Colorado a During 2006, the State Services unit ac- case brought by school districts, par- complished much in defending Colora- ents, and taxpayers challenging the doʼs state government: Charter School Instituteʼs constitution- ality. • Successfully defended the Governor in a lawsuit challenging whether he prop- erly vetoed headnotes that either con- Child Protection, Human tained substantive legislation or violat- Services and Health Care ed the separation of powers doctrine. On behalf of the Department of Human • Successfully defended a constitutional Services (DHS), the State Services section challenge to a law prohibiting parolees initiated actions against more than 73 from voting or registering to vote. child entities seeking fines for violations of licensing statutes and regulations, • Successfully defended the Secretary collecting more than $14,800. of Stateʼs decision to allow electronic

voting machines at the November 2006 • Represented DHS in an additional 63 general election. cases, including 13 summary suspen- sions against child-care providers that • Defended the Department of Public failed to comply with regulation or op- Health in two separate lawsuits chal- erated without a license. lenging the constitutionality of the Colorado Clean Indoor Air Act. 30 COLORADO ATTORNEY GENERAL JOHN SUTHERS

• Represented DHS in approximately 805 Education child protection cases, resolving most through mediation. Over the course of 2006, the State Ser- vices section: • Handled 17 cases for the Division of Youth Corrections regarding appropri- • Continued representing the Char- ate levels of detention or the release of ter School Institute. Section members juveniles. reviewed new applications and moni- tored seven operating Institute charter • Recovered more than $885,000 in schools serving over 2,500 students. Medicaid payments from personal in- jury settlements and from other liable • On behalf of the State Board of Educa- third parties. tion, successfully prosecuted disciplin- ary actions against 44 educator/teacher • Successfully concluded a 21-year old license holders and applicants, includ- class action suit challenging the ad- ing 18 sex offenders. equacy of mental health services pro- vided to Denver residents. • On behalf of the Auraria Higher Educa- tion Center, revised and updated the • Continued defense of DHS and the campus governance documents, in- Department of Health Care Policy and cluding the bylaws of the Auraria Board Financing in a lawsuit over the Depart- and the memorandum of agreement mentsʼ computer system that deter- among the three Auraria institutions of mines eligibility for public assistance higher education. benefits. Also reached agreement with plaintiffs on an issue which paved the • Advised the State Board of Education way for departments to recovery certain in connection with 15 charter school overpayments. appeals and seven applications for exclusive chartering authority.

• On behalf of Colorado School of Mines, received a favorable ruling on a tax assessment by the City of Golden resulting in the withdrawal of an assessment of approximately $300,000.

• Worked with the Adams State Col- lege Board of Trustees to adopt a Board policy manual and advised on legal procedures to hire a new Col- lege president. 2006 ANNUAL REPORT 31

Workers’ Compensation Other Legal Services

The State Services section opened 96 Attorneys and staff in the State Services cases to force employer compliance with section: mandatory workersʼ compensation insur- • Prosecuted Federal False Claims Act lit- ance statutes. Section members closed igation against a long-term healthcare 41 cases, either by the employerʼs fine facility, resulting in settlement recovery payment, settlement, by sending the fine of over $850,000 for the State. to collection, or by the employer obtain- ing insurance or closing the business • Provided legal guidance to the Public (under the previous statute). The section Utilities Commission on gas, electric, obtained 54 district court judgments for telephone, and transportation matters, fines ordered by the Division of Workersʼ including major rate cases. Compensation, and sent 28 judgments to Central Collection Services. • Provided legal assistance to the Gover- norʼs Expert Emergency Epidemic Re- sponse Committee, the Governor, and CDPHE regarding the use of emergency public health powers in the event of a bio-terrorist attack or pandemic. Civil Litigation and Employment Law Section The Civil Litigation and Employment Law an amicus curiae brief in a case involving section defends state employees and wrongful death damages for the Colo- state agencies in state and federal courts. rado Supreme Court. The section handled 691 new cases in 2006, as well as approximately 397 per- Additionally, members of the unit made sonnel administrative cases. These cases proactive presentations to several state involved individuals suing for personal agencies regarding the lawsuit process, injury, property damage, or employment governmental immunity, and the appro- discrimination, or claims that a personʼs priate actions to take if sued. constitutional rights were violated by state action. Tort Litigation Unit in 2006 by the num- bers: The section also represents state agen- cies in personnel matters before the 88 - Winning percentage of motions to State Personnel Board. Section attorneys dismiss tort cases (33-4) provide legal advice and representation 10 - Cases won on appeal. These deci- to the Colorado Department of Trans- sions generally upheld lower court portation (“CDOT”), the Colorado Trans- rulings in favor of the State defen- portation Commission, the Department dants of Corrections (“DOC”), the Colorado 26 - Tort cases settled favorably for the State Board of Parole, the Division of Risk State Management, and all employees thereof. 12 - Convinced plaintiffʼs attorneys in Section attorneys provide advice and cases to dismiss voluntarily under the training to all state agencies in personnel Colorado Governmental Immunity Act administration and employment issues. 9 - Cases dismissed by courts for failure to comply with procedures, failure to Tort Litigation prosecute, or other reasons 2 - Victorious motions for summary judgment The Tort Litigation Unit defended the 2 - Successfully opposed petitions for State in 81 new lawsuits alleging per- Certiorari filed in the United States sonal and property damage, as well as Supreme Court federal civil rights claims including five 10,305 - Dollars won for the State in at- cases to monitor requests for attorneysʼ torneysʼ fees during two cases fees and costs. The unit also continued 9 - Cases resolved by the Tort Litigation to handle many previously opened cases. Unit without the paying any attor- Unit attorneys also advise the Division neysʼ fees or costs of Risk Management regarding myriad issues. Notably, the Tort section wrote 2006 ANNUAL REPORT 33

8,073,215 – dollars saved for the State lawsuit arising from the Department of of Colorado through successful de- Correctionsʼ layoffs in the summer of fense of claims cumulatively seeking 2003 due to budget constraints. $9,342,669 in damages (including $5 million sought by elk ranchers whose • Attorneys aggressively sought and elk herds were culled due to Chronic obtained dismissal and summary judg- Wasting Disease). The section saved ment, saving the State over $1.5 mil- $6,715,000 by winning motions to lion in damages. The unit obtained full dismiss and summary judgment, and dismissal of all claims addressed in five $1.4 million through settlements. of the seven motions to dismiss decid- ed during 2006 (and partial dismissal EMPLOYMENT TORT LITIGATION in the other two motions decided). This included the dismissal of all claims as- The Employment Tort Unit defends law- serted in two cases related to the 2003 suits brought by State employees and DOC layoffs. These dismissals were would-be State employees against their obtained at the outset of the litigation, employers and supervisors. These em- prior to litigation which would have ployment cases are filed in state and taken extensive time and monetary federal district court and involve claims investment. arising from federal civil rights and em- ployment law, state civil rights, tort, • The employment tort unit aggressively whistleblower law, or contract law. The defended all cases, resulting in favor- attorneys and staff of the unit also pro- able settlements for the State. Four- vide advice and training to various state teen cases were settled for a total of agencies regarding employment issues. $1,242,000, saving the State more than $4.3 million. Among the accomplishments of the Em- ployment Tort Unit in 2006: Employment Personnel Unit • The unit defended 44 employment The Personnel and Employment Law Sec- cases filed in state and federal district tion of the Colorado Attorney Generalʼs courts, including 14 new cases, and Office helps state government manage its monitored ten employment cases de- workforce and defends the State and its fended by outside counsel. These 54 employees in employment and personnel cases involved more than 450 separate disputes. The attorneys and staff repre- claims for relief, including approxi- sent all agencies in personnel hearings mately 180 personal claims against and matters before the State Personnel state supervisors and managers. Board. They also handle these cases if appealed to the Colorado Court of Ap- • Five new appellate cases were filed in peals. The section provides general ad- the Colorado Court of Appeals and the vice and training to state agencies and Tenth Circuit Court of Appeals. Includ- employees regarding personnel matters. ed in these cases is one multi-plaintiff 34 COLORADO ATTORNEY GENERAL JOHN SUTHERS

Work by the Personnel and Employment Of the remaining cases handled in 2006 Law Section in 2006 included: by the Personnel and Employment Law Section, 56 cases were settled, 34 were • Providing employment advice and con- resolved in the Stateʼs favor on disposi- sultation concerning hiring, discharg- tive motions, and the remainder is await- ing, and disciplining employees. ing hearing, decision, or investigative reports by other State agencies. • Coordinating and presented statewide and agency-specific training seminars Transportation Unit for State officials and managers. The attorneys in the Transportation Unit • Defending 397 cases before the State provide general legal advice to the Colo- Personnel Board and the Colorado rado Department of Transportation and Court of Appeals. represent CDOT in a variety of cases. These often include eminent domain • Winning more than half of Court of cases as well as other types of land use Appeals decisions involving appeals cases such as billboard disputes, in- by current and former state employees verse condemnation, and access issues. against their employing agencies. Unit attorneys are becoming increasingly involved in construction contract dis- • Representing State agencies in 26 putes, and one attorney reviews all CDOT hearings before the State Personnel contracts and revises them as needed. Board. The Boardʼs Administrative Law The members of the unit also advise Judge upheld the Stateʼs action without the Transportation Commission and the modification in 19 of those cases, and Colorado Tolling Enterprise Board. CDOT allowed the State to take a modified ac- attorneys accomplished the following in tion in two others. 2006: • Successfully arguing for denial of a dis- • Represented CDOT in 47 new condem- cretionary hearing in 55 of 63 petitions nation, access, relocation, billboard, filed with the State Personnel Board inverse condemnation, eviction, and by state employees. In the remain- other cases. In addition to those 47, ing eight cases, the State won three at many others are still pending. hearing and obtained a favorable set- tlement or dismissal in two others. The • Settled or resolved through trial 13 remaining three cases are pending. condemnation cases in fiscal year 2005-06, saving the state in excess of • Representing State agencies in six ap- $1,248,000. peals to decisions by the Administrative Law Judge, and obtaining Board affir- • Reviewed 338 contracts for CDOT with mance of the State agencyʼs action in an average turnaround time of approx- two of those appeals. imately 3.5 days – much quicker than 2006 ANNUAL REPORT 35

the general turnaround time for attor- Subsequent Injury Fund (SIF) ney review of state contracts. and Civil Rights Unit • Continued to obtain generally favorable rulings in several trials concerning land The attorneys in this unit provide legal and billboard valuations. advice to the Colorado Civil Rights Divi- sion within the Department of Regulatory • Advised CDOT regarding Environmental Agencies. Unit members assist CCRDʼs Impact Statements for several high- investigations of charges of employment, way corridors. Each of the Statements housing, and public accommodations involved projects that are generating discrimination. The unit also prosecutes controversy among local governments cases that have been noticed for hear- and citizens, including the Northwest ing by the Colorado Civil Rights Division. Corridor, I-70 Mountain Corridor, I-70 Attorneys and staff additionally defend East to DIA, and US 36. the SIF and the Major Medical Insurance Fund – parts of the Special Funds Unit Corrections Unit within the Department of Labor and Em- ployment – against claims by employees injured in the course and scope of em- The Corrections Unit defended the State ployment. During 2006, the unit handled of Colorado in 466 new inmate lawsuits twenty open cases and twenty- five new during 2006. These suits involved issues Civil Rights cases. including prisoner constitutional rights, time computation, prison discipline pro- ceedings, habeas corpus petitions, reli- gious issues, parole issues, and contract issues. In addition, unit lawyers handled approximately 1300 claims filed by pos- sible plaintiffs in a class action lawsuit regarding the Americans with Disabilities Act.

The Corrections Unit also provides gen- eral legal advice to the Department of Corrections and Parole Board on a daily basis. These matters include open re- cords requests, environmental issues, sentencing issues, internal discipline and procedural matters, and administra- tive regulations. In 2006, sixty files were opened for specific legal advice. Business and Licensing Section

The Business and Licensing Section BOARD OF DENTAL EXAMINERS protects Colorado citizens by provid- ing litigation and legal counsel to state During 2006, counsel represented the professional licensing and occupational Board of Dental Examiners in various dis- regulatory boards. The Business and ciplinary matters, including revocation/ Licensing Section further represents and suspension of licensure, probation with advises the Department of Regulatory practice monitors, continuing education, Agencies and its Real Estate Commission, and Letters of Admonition for substan- the divisions of Insurance, Banking, and dard practice. In total, counsel resolved Financial Services, the Securities Com- 37 matters on behalf of the Board. mission, the Department of Agriculture, the State Fair, the Department of Rev- STATE BOARD OF ACCOUNTANCY enue, the Civil Rights Commission, the State Personnel Board, and the staff of During the past year, counsel for the the Public Utilities Commission. State Board of Accountancy resolved 20 cases referred to the Office of the At- Professional Unit torney General, including nine cases involving felony convictions, six of which The Professional Unit of the Business and resulted in relinquishment. One case Licensing Section provides representa- involved the chief financial officer for tion to a wide variety of boards, com- Qwest who was indicted for insider trad- missions, offices and advisory commit- ing for using non-public information to tees contained within the Department of sell stocks during the reign of Joseph Regulatory Agencies. The Professional Nacchio. She pled guilty to one felony Unit supports each represented entity in count of insider trading and was sen- fulfilling its statutory mandate to protect tenced to probation for two years, six the public interest through litigation and months of home detention, and pay- resolution of licensure matters, disci- ment of a $250,000 fine and $125,000 in plinary actions, cease and desist orders, restitution. This CPA voluntarily relin- and injunctive actions, as well as provid- quished her certificate to practice. ing advice and guidance with regard to BOARD OF CHIROPRACTIC rulemaking and policy issues. Examples EXAMINERS of the work performed by the Profession- al Unit are described below. Counsel for the Chiropractic Examiners Board resolved seventeen cases during the last year, including a summary sus- pension and several matters involving substandard care. 2006 ANNUAL REPORT 37

STATE ELECTRICAL BOARD the Board of Licensure for Professional Engineers and Professional Land Survey- Counsel for the State Electrical Board ors successfully resolved 18 disciplinary filed formal charges against 10 licens- matters during the previous year. ees, 8 of which are still in various stages of litigation. Counsel has represented MENTAL HEALTH LICENSING SECTION the Board in an increasing number of cases involving unlicensed practice and Counsel for the Mental Health Licensing apprentices practicing unsupervised or Section represent five separate boards outside the scope of their employment. and one program that each regulate a mental health profession including li- BOARD OF LICENSURE FOR PROFES- censed professional counselors, marriage SIONAL ENGINEERS AND PROFESSION- and family therapists, psychologists, AL LAND SURVEYORS social workers, unlicensed psychothera- pists, and certified addictions counselors. On July 1, 2006, in conjunction with the Counsel provides representation in vari- termination of the Board of Examiners ous disciplinary matters, including cease of Architects, the Board of Licensure for and desist orders, summary suspensions, Professional Engineers and Professional revocation, probation and license deni- Land Surveyors was dissolved and re- als, as well as serving as general counsel. constituted to include the regulation of the practice of architecture; the Board Among the programs the Mental Health was renamed the Board of Licensure for Licensing Section worked with in 2006 Architects, Professional Engineers, and are the Certified Addiction Counselor Professional Land Surveyors. Counsel for Program, the Grievance Board (Unli- censed Psychotherapists), the Board of Licensed Marriage and Family Therapist Examiners, the Board of Licensed Professional Counselor Examiners, the Board of Psychologist Examiners, and the Board of Social Worker Ex- aminers .

BOARD OF OPTOMETRIC EX- AMINERS

During 2006, counsel for the Board of Optometric Examin- ers represented its interests in a wide variety of disciplinary Members of the Business and Licensing division discuss of- actions, including enjoining a fice strategies defendant who was practicing 38 COLORADO ATTORNEY GENERAL JOHN SUTHERS optometry without a license; negotiating ated a stipulation on behalf of the Board probation and practice monitoring for an to include probation and practice moni- optometrist who prescribed a schedule II toring for a veterinarian who performed controlled substance; and negotiating an surgery on an animal when that surgery appeal of a letter of admonition issued was not the best course of action and by the Board to an optometrist who prac- resulted in further complications. ticed optometry with an unlicensed per- son under an agreement that provided Revenue Unit for fee splitting.

STATE PERSONNEL BOARD The Revenue team attorneys represent all of the Revenue tax client groups, the Colorado Gaming Commission, the Counsel for the State Personnel Board Dealer Board, the Racing Commission, filed four appellate briefs this year. Un- the Boxing Commission [ a DORA cli- like most other boards, the Personnel ent], the liquor licensing authority, the Boardʼs cases are at the appellate level Motor Vehicle Division and the Property and counsel typically monitors cases for Tax Administrator [a Local Affairs client]. issues of general impact on jurisdiction This team does administrative hearings or statutory authority. before the boards and commissions, and REAL ESTATE DIVISION trial and appellate work in state and fed- eral courts. The following describes the teamʼs work in 2006. Counsel for the Real Estate Division rep- resents the Board of Real Estate Apprais- REPRESENTING BOARDS ers and the Real Estate Commission in a wide variety of disciplinary matters. This team represents the Colorado Lim- Counsel for the Board of Real Estate Ap- ited Gaming Control Commission, the praisers successfully resolved 15 cases Motor Vehicle Dealer Board, the Boxing this past year, many of the cases involv- Commission and the Colorado Racing ing formal litigation. Counsel repre- Commission. Each regularly assigned sented the Real Estate Commission in 72 lawyer presents cases for the staff before separate matters, resolving 39. his/her assigned board or commission and then represents the board or com- BOARD OF VETERINARY MEDICINE mission on judicial review or appeal of its decisions to the Court of Appeals. Each Counsel for the Board of Veterinary Med- assigned attorney also helps draft board icine successfully resolved 15 cases this or commission rules and provides legal year, including negotiating stipulations advice on questions of law and policy de- on behalf of the Board in four matters in- cisions not connected with a specific case volving veterinarians who had substance pending before the board or commission. abuse violations. Counsel also negoti- 2006 ANNUAL REPORT 39

MOTOR VEHICLE DIVISION year. Unit attorneys engaged in litiga- tion in several cases, and also reduced All of the team lawyers handle legal mat- a backlog of cases. In 2005, BON cases ters for the Motor Vehicle Division as remained in the Office of the Attorney assigned. Most of the work involves rule General from referral to closing for an making, driver appeals, records requests average of 322 days. That number was and, recently, the identification law suit, reduced to 250 days in 2006. While as- Hill, et al v. M. Michael Cooke and the suming these litigation and case resolu- Colorado Department of Revenue (a law- tion responsibilities, Unit attorneys also suit seeking ID cards and driversʼ licens- assisted staff and BON members with es for new Colorado applicants without significant review and revision of BON the need to present secure and verifiable policies and procedures, and with revis- documents). ing rules to better reflect the needs of the nursing profession.

Medical Unit BOARD OF MEDICAL EXAMINERS

The Business and Licensing Sectionʼs Over the course of the calendar year, the Medical Unit provides legal guidance and Unitʼs attorneys provided general coun- representation to the state boards that sel and litigation services to the Board regulate physicians, physician assistants, of Medical Examiners (“BME”). Cases emergency medical technicians, nurses, included disciplinary actions against certified nurse aides, psychiatric tech- licensed physicians (and a few licensed nicians, pharmacists ,and podiatrists. physician assistants), agreements with The Medical Unitʼs attorneys and legal applicants for licensure, actions to sus- assistants enable the boards to fulfill tain BME decisions to deny applications their mission of public protection by for licensure, and injunctions against un- implementing, enforcing, and defending licensed individuals unlawfully engaged regulatory actions. The Unitʼs attorneys in the practice of medicine. also advise board members and staff to assure compliance with the law, respect for individualsʼ due process rights, and Financial Unit analysis of effective and efficient legal options. The Financial Unit provides legal services to a number of Boards and Commissions, BOARD OF NURSING each of which involves a specialized and distinct practice area. Details concern- Unit attorneys provided both general ing the subject matter of such advice and counsel and litigation services to the representation the Unit provides to these Board of Nursing and Nurse Aide Adviso- agencies, as well as some specific exam- ry Committee (“BON”). The Unit resolved ples, are provided below. approximately 100 cases for BON this 40 COLORADO ATTORNEY GENERAL JOHN SUTHERS

DIVISION OF INSURANCE the Alpine Bank matter by filing a Motion to Quash Subpoena in the U.S. District The Unit provides general counsel ad- Court in Colorado; represented the Divi- vice to the Insurance Commissioner and sion in obtaining judgment on Rule 106 represents the Commissioner and/or the claims against the Division and the Bank- Division in licensing and litigation mat- ing Board, and the voluntary dismissal ters. The Unit received approximately 68 of all other claims against the Division referrals during the year which included in a lawsuit brought by Commerce Bank requests for informal attorney general which alleged various violations relating opinions, district court litigation matters, to the granting of a state bank charter to and licensing matters concerning insur- Fort Collins Commerce Bank. ance producers. Of the licensing mat- ters, 27 were bail bond insurance pro- DIVISION OF FINANCIAL SERVICES ducer cases. Unit attorneys provide general counsel DIVISION OF SECURITIES advice to the Financial Services Commis- sioner and represent the Commissioner The Unit provides general counsel ad- and the Division in licensing and litiga- vice to the Securities Commissioner and tion matters. Examples of such matters represents the Commissioner and/or the included: representing the Division in Division in enforcement actions brought the contested liquidation of a Colorado in the Denver District Court and in li- credit union; representing the Division by censing actions against securities sales preparing legal documents placing New representatives, securities broker-deal- Horizons Credit Union into receivership. ers and securities investment advisers. Unit attorneys represented the Division DEPARTMENT OF AGRICULTURE of Securities in more than 12 complex securities matters including more than 5 The Unit acts as general and litigation licensing matters. counsel to the various divisions of the Department of Agriculture. As part of DIVISION OF BANKING its service, Unit attorneys consult on an ongoing basis to determine the best legal Unit attorneys provide general coun- strategy to accomplish the Departmentʼs sel advice to the Banking Commissioner objectives with respect to a wide variety and represent the Commissioner and the of subject areas including rulemaking, Division in licensing and litigation mat- chronic wasting disease, Pet Animal Care ters. During 2006, the Unit: represented Facilities Act enforcement matters, fire- the Division in negotiations with Ameri- arms policy, emergency preparedness, can International Depository and Trust, avian influenza, zoning, animal cruelty, and filed a Notice of Charges for alleged animal identification, homeland security, violations of the Stipulation by AIDT; regulation of the sale and use of pes- represented the Division in resisting a ticides, regulation of seed and nursery subpoena served upon the Division in stock, promotion and marketing of ag- 2006 ANNUAL REPORT 41 ricultural products, control of noxious tion Unit of the Attorney Generalʼs Of- weeds, certification of organic produc- fice represents the litigation staff of the ers, regulation of farm products dealers Public Utilities Commission. The unit and commodity handlers, inspection of appears in litigated matters on behalf of all commercially used weights and mea- the public interest to achieve fair utility sures in the state, administration of the rates for all types of customers. The unit livestock brand recording system, and works to ensure that adequate and reli- administration of the State Fair and its able gas, electric, telephone, water, and associated activities. motor carrier utility service is provided to all Coloradans. COLORADO STATE FAIR In 2006, the PUC Litigation Unit: Unit attorneys provide general represen- tation of the State Fair including advising • Handled 80 administrative cases before on legal issues. Examples of such mat- the PUC on behalf of staff in matters ters include the hiring of a new carnival concerning natural gas, electric, tele- provider 30 days prior to the opening of communications, and water utilities. the fair and negotiating a new manage- ment agreement for the events center. • Handled ten court and judicial review cases representing the Public Utilities MINED LAND RECLAMATION BOARD Commission and the commissioners thereof. Unit attorneys represented the MLRB in 12 administrative hearings and drafted • Handled 25 enforcement proceedings approximately 98 orders concerning on behalf of staff against motor carri- matters considered by the Board at those ers, including taxis, luxury limousines, hearings. Unit attorneys also represent- airport shuttle vans, and household ed the MLRB in assessing the regulatory good movers. impact of oil shale exploration and drill- ing in Colorado. Unit attorneys met with • Handled four matters concerning rail- representatives of federal agencies, other road crossings. state agencies and local entities to deter- mine permit requirements for companies Examples of the Litigation Unitʼs work to intending to implement experimental oil represent Commission staff includes: shale technology. • Public Service Company of Coloradoʼs Public Utilities Commission 2006 Phase I electric rate case. • Public Serviceʼs electric quality of ser- The Public Utilities Commission (“PUC”) vice plan for 2007 through 2010. regulates the rates, charges, services, and facilities of public utilities within • Public Serviceʼs application to upgrade Colorado. The Public Utilities Litiga- portions of existing transmission lines 42 COLORADO ATTORNEY GENERAL JOHN SUTHERS that run from midway between Colo- • Judicial review in the District Court for rado Springs and Denver to south of Morgan County, and then before the Highlands Ranch, as well as construct Colorado Supreme Court regarding the new transmission lines from Pueblo to City of Fort Morganʼs successful at- north of Colorado Springs. tempt to obtain a reversal of the PUC decision awarding a certificate of public • Public Serviceʼs application to imple- convenience and necessity to K N Wat- ment an interim Renewable Energy tenberg Transmission, LLC, to provide Standard Adjustment for Public Ser- natural gas service to two industrial viceʼs 2007 compliance with Amend- customers located within municipal ment 37. boundaries.

• Public Serviceʼs application for approval • Colorado Supreme Court Rule 21 pro- of its 2007 Renewable Energy Standard ceeding concerning whether memoran- Compliance Plan. da prepared by the PUCʼs advisory staff should be included in the record certi- • Public Serviceʼs application for approval fied to courts on judicial review. of a third party contract to purchase solar energy generated by the third • United States Court of Appeals for the partyʼs construction of a solar photo- Tenth Circuit and the United States Dis- voltaic generating plant. trict Court for the District of Colorado in a case involving federally certificated • Colorado Natural Gasʼ 2006 natural gas motor vehicle carriers. rate case.

• Various applications to establish water utilities in Durango, Dallas Creek and Elbert County.