3 CCR 703-3
2.1 Amendments to Bylaws.
A request for approval of amendments to the bylaws shall be submitted by the directors to the Commissioner in a form prescribed by the Commissioner. No bylaws amendment shall become effective until it has been approved by the Commissioner. C.R.S 11-30-102
3.1 Joint Tenancy Accounts.
A credit union member may establish an account in joint tenancy with any other person regardless of whether or not that person would otherwise qualify within the field of membership of the credit union. The joint tenancy account must be clearly indicated and specified in writing. C.R.S. 11-30-103(4)
3.2 Small Groups.
(a) For purposes of implementing C.R.S. 11-30-103 (2), the Commissioner shall consider that small groups consisting of at least 1 but not more than 1,000 persons having a common bond of employment or association lack the potential membership to organize their own credit union and, therefore, may be accepted into the membership of an existing state-chartered credit union, provided that the following requirements are met:
(1) The bylaws of the credit union allow such groups as members.
(2) The credit union is not receiving financial assistance from the National Credit Union Administration pursuant to 12 U.S.C. 1788, in effect as of January 10, 2003. Incorporation by reference of this federal statute does not include amendments to this federal statute made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(3) Within thirty days after the group is accepted for membership, the credit union has filed with the Commissioner, in a form prescribed by the Commissioner, the following information:
(b) In cases where the size of the group exceeds 1,000 or where other exceptions to the requirements of subsection (a) of this rule exist, the credit union must apply for and receive the Commissioner's prior approval to accept the group into membership. Said application shall be in a form prescribed by the Commissioner.
(c) Notwithstanding any other provision of this rule to the contrary, the Commissioner may, at any time, limit or prohibit a particular credit union from acceptance of small groups of any size or a particular small group into its membership if, in the opinion of the Commissioner, any of the following circumstances exist:
(1) The credit union has failed to comply with the provisions of subsection (a) of this rule.
(2) The credit union is insolvent.
(3) The credit union is operating in an unsafe or unsound manner.
(4) The credit union has willfully violated any provisions of Article 30 of Title 11, C.R.S., or the regulations duly promulgated thereunder.
(5) The credit union's acceptance of a small group may result in an unsafe and unsound condition in another credit union that serves the same group. C.R.S. 11-30-103 (2)
4.2 Investments.
(a) A credit union may invest in deposit accounts in federallyinsured financial institutions and in the shares and deposits of a central credit union, pursuant to C.R.S. 11-30-104(1)(d).
(b) A credit union may invest in United States Government obligations, United States agency insured or guaranteed securities, obligations of any state or territory of the United States, and certain obligations of a political subdivision or instrumentality of a state or territory, pursuant to C.R.S. 11- 30-104(1)(e).
(c) In accordance with C.R.S. 11-30-104 (1) (j), a credit union may make any investment authorized for a federal credit union under the Federal Credit Union Act, 12 U.S.C. 1757, and National Credit Union Administration Rules and Regulations, 12 C.F.R. parts 703 and 712, in effect as of January 10, 2003. Incorporation by reference of this federal law and these federal rules does not include amendments to this federal law and these federal rules made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(d) Pursuant to C.R.S. 11-30-104(1)(e), a credit union may make an investment in obligations or securities other than those specifically authorized in this rule 4.2, provided it complies with the following conditions:
(1) The credit union's board of directors has adopted written investment policies that authorize such an investment.
(2) The book value of the investment, when added to the book value of all other investments subject to the same limitation, does not exceed 10% of the credit union's shares, deposits and undivided earnings as of the month end preceding the date of investment.
(3) The credit union has received the Commissioner's prior written approval of the investment as prudent and sound.
(e) If the nature of an investment changes so that it is no longer in compliance with subsections (a), (b) or (c) of this rule, the credit union must promptly seek approval from the Commissioner, pursuant to subsection (d) of this rule, to maintain the investment or must divest itself of the investment.
(f) Notwithstanding any other provision of this rule to the contrary, if at any time the Commissioner determines that any investment authorized in this rule is no longer a prudent and sound investment, approval under this rule may be modified or revoked.
(g) A corporate credit union may make any investment authorized under the National Credit Union Administration Rules and Regulations, 12 C.F.R. part 704.5, in effect as of January 10, 2003. Incorporation by reference of this federal rule does not include amendments to this rule made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library. C.R.S. 11-30-104 (1) (d), (e) and (j)
4.3 Incidental Powers.
(a) In accordance with C.R.S. 11-30-104(1)(j), a credit union may engage in any activity authorized for a federal credit union as an incidental power under the National Credit Union Administration Rules and Regulations, 12 C.F.R. part 721, in effect as of January 10, 2003. Incorporation by reference of this federal rule does not include amendments to this rule made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library. (b) To engage in an activity that may be within a credit union's incidental powers, pursuant to C.R.S. 11-30-104(1)(i), but does not fall within a category of activities referenced in subsection (a) of this rule, a credit union may submit an application for the prior written approval of the Commissioner. The application shall be in such form and contain such information as prescribed by the Commissioner. In approving an application, the Commissioner may establish such terms or conditions to the approval as necessary to ensure that any approved activity does not adversely impact the credit union. C.R.S. 11-30-104(1)(i) and (j)
4.4 Sale of Loans.
In accordance with C.R.S. 11-30-104(1)(k), and without further approval by the Commissioner, a credit union may sell, in whole or in part, to any party, a loan or group of loans to its members, provided it complies with the following conditions:
(a) The credit union's board of directors has adopted written policies that authorize such loan sales.
(b) The credit union retains a written agreement and a schedule of the loans sold pursuant to the agreement. C.R.S. 11-30-104(1)(k)
6.1 Financial Reports.
Periodic financial reports shall be submitted by each credit union in a form prescribed by the Commissioner. Such reports shall be filed in the office of the Commissioner no later than the due date specified by the Commissioner. For failure to file a report when due, unless excused by the Commissioner for cause, a credit union shall pay to the Commissioner a penalty of $25.00 for each day of delinquency in filing. C.R.S. 11-30-106 (2)
6.2 Establishment and Maintenance of Credit Union Books and Records.
(a) Each credit union, credit union service organization, as that term is defined in 12 C.F.R. part 712 of the National Credit Union Administration Rules and Regulations, in effect as of January 10, 2003, or joint venture in which a credit union has an investment or loan thereto, shall establish and maintain such accounting and other records that will provide an accurate and complete record of all business it transacts. Incorporation by reference of this federal rule does not include amendments to this federal rule made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(b) Credit unions shall maintain all books, records, accounting systems, and procedures in accordance with generally accepted accounting principles, except as may otherwise be approved in writing by the Commissioner. The board of directors of a credit union may utilize the National Credit Union Administration Accounting Manual For Federal Credit Unions, in effect as of January 10, 2003, as guidance in the maintenance of its accounting records. Incorporation by reference of this federal publication does not include amendments to this federal publication made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(c) Unless otherwise approved by the Commissioner, all of the books, records, and papers of any credit union relating to its business in any fashion shall be available for inspection and examination by the Commissioner or his designee at any time between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays falling within such periods of time. Noncompliance shall be conclusively presumed whenever the Commissioner or his designee shall call upon the credit union at its place of business within the times specified in this rule or otherwise approved by the Commissioner and determine that the books, records, and papers of the credit union are not available or made available for examination. C.R.S. 11-30-106 (1) and (3)
6.3 Biographieal Report and Finaneial Statement.
When deemed appropriate by the Commissioner, credit unions shall furnish the Commissioner with a biegraphical report and financial statement of the person responsible for managing the credit union. C.R.S. 11-30-106(1) and (3)
6.4 Fixed Assets.
(a) The definitions of terms used in this regulation are as follows:
(1) “Premises” means any office, branch office, service center, parking lot, other facility, or real estate where the credit union transacts or intends to transact business.
(2) “Furniture, fixtures, and equipment” means all office furnishings, office machines, computer hardware and software, automated terminals, automated teller machines, heating and cooling equipment.
(3) “Fixed assets” means premises and furniture, fixtures, and equipment as those terms are defined above.
(4) “Investment in fixed assets” means:
(5) “Immediate family” means the same as set forth in C.R.S. 11-30-103 (2).
(6) “Net worth ratio” means the ratio of the net worth of a credit union to its total assets as defined in 12 C.F.R. part 702A of the National Credit Union Administration Rules and Regulations, in effect as of January 19, 2001. Incorporation by reference of this federal rule does not include amendments to this rule made after January 19, 2001. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(b) Limitations on investment in fixed assets.
(1) Without the prior written approval of the Commissioner, a credit union shall not make an investment in fixed assets if, after the investment, the aggregate of all such investments exceeds 5% of total assets.
(2) Notwithstanding the provisions of paragraph (1) of subsection b of this rule, a credit union shall have additional fixed assets investment authority as follows:
(3) A credit union shall submit such information and reports as the Commissioner may require in support of any investment in fixed assets in excess of the limits specified above.
(4) If the Commissioner determines that the proposed investment will not adversely affect the credit union, the Commissioner shall approve an aggregate dollar amount or percentage of assets for investment in fixed assets. The Commissioner may establish other terms or conditions to the approval.
(5) The credit union may make such investment in fixed assets, unless the Commissioner within 30 days of receipt of a request for approval from the credit union, gives written notification of his objection and the grounds for his objection to the credit union or requests additional information. If the Commissioner requests additional information, the above 30-day period shall commence upon receipt of such information.
(c) A credit union shall not acquire or lease premises or acquire or lease furniture, fixtures or equipment, without the prior written approval of the Commissioner, from any of the following parties:
(1) Elected or appointed officials of the credit union.
(2) Officers or employees of the credit union.
(3) Immediate family members of any of the foregoing individuals.
(4) A corporation, partnership, or other business in which any of the foregoing individuals have, directly or indirectly, an ownership interest of 10% or more, or are officers or directors thereof. C.R.S. 11-30-106 (1) and (3)
6.5 Appraisals.
The Commissioner is authorized to obtain or cause a credit union to obtain, at the credit union's expense, appraisals of real estate owned by the credit union or securing the credit union's assets when, in the opinion of the Commissioner, the credit union's policies or practices or operating results or trends are such as to cause supervisory concern as to the quality or value of such assets, or when it appears that real estate owned or assets secured by real estate are worth substantially less than the book value thereof, or when there are other indications of the need to evaluate appraisal practices and policies. This rule also shall apply to premises, as defined in rule 6.4 (a) (1), either acquired or to be acquired by a credit union. C.R.S. 11-30-106 (1) and (5)
6.6 Incorporation by Reference of Federal Rules, Codes and Standards.
With respect to any rules that incorporate federal rules, codes or standards by reference, the title and address of the Division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in these rules may be examined at any state publications depository library. C.R.S. 11-30-106 (3)
8.1 Report of Election or Appointment.
Within 20 days after election or appointment, the Commissioner shall be provided with a record of the names and addresses of all current members of the board of directors, supervisory committee members, credit committee members (and altemates, if any) or the credit officer, and the officers of such bodies. Such report of election or appointment shall be filed in a form prescribed by the Commissioner. In addition, the Commissioner shall be notified in writing of any appointments to such positions made between elections within 20 days after the appointment. C.R.S. 11-30-108
9.1 Directors' Policies and Business Plan.
(a) The board of directors of each credit union shall establish sufficient written policies to guide the credit union's operations. The directors shall annually review and revise, as necessary, all policies previously established. All policies of the board of directors and the current bylaws shall be made available for inspection at the office of the credit union by any member during normal business hours.
(b) In carrying out their statutory responsibility for the general management of the affairs of the credit union, the board of directors also shall adopt a written business plan that specifies the credit union's operating goals and details the strategies to achieve the credit union's goals. The content of the business plan shall be commensurate with the size and complexity of operations of the credit union. The directors' adoption of a business plan and any amendments thereto shall be recorded in the minutes of the board of directors. C.R.S. 11-30-109
9.2 Compensation of Directors and Committee Members.
Members of the board of directors, credit committee, and supervisory committee shall receive no compensation for the performance of duties for the credit union in such capacities. However, such persons may be reimbursed for reasonable and actual out-of-pocket expenses incurred by them in the normal performance of their duties. Such persons may also be reimbursed for actual wages or salary lost by virtue of the performance of duties for the credit union only if authorized by a majority of the members voting at an annual meeting or meeting specifically called for that purpose. C.R.S. 11-30-109 (3)
9.3 Officer's Duty Upon Payment of Loan.
It shall be the responsibility of the treasurer or general manager to insure that all promissory notes, evidence of indebtedness, and security instruments are promptly returned to each borrower upon repayment of the loan, except in the case of open-end credit. C.R.S. 11-30-109 (2)
10.1 Loan Applieations.
Loan applications for open end and closed end credit shall be in such forms and shall contain such information as may be directed by the credit committee or the credit officer to enable consideration of the loan requests in a proper and prudent manner. C.R.S. 11-30-110
11.1 Supervisory Committee.
The supervisory committee shall verify or cause to be verified members' share, deposit, and loan accounts at least once in each 2-year period. In order to satisfy this rule and the statute, the members' accounts must be verified under controlled conditions. Controlled conditions mean the records are controlled by the supervisory committee to prevent substitution, removal or alteration. C.R.S. 11-30-111 (1)
16.1 Loans to Non-Members.
Credit unions may not make loans to non-members or permit the assumption of existing loans by non- members if the member is no longer liable on the note. This shall not prevent a credit union from selling such items of property acquired by the credit union upon foreclosure or repossession to a non-member purchaser on an installment contract or similar document of time purchase. A non-member joint tenant may neither borrow nor enjoy any of the remaining privileges of membership except as is otherwise specified in Rule 3.1. The following shall not be deemed to be a loan to a non-member:
(a) When a non-member joint tenant acts as a comaker, cosignor or guarantor of a loan; or (b) In the case of a loan to a member with the participation of a non-member as comaker, cosignor or guarantor, when the credit union considers the non-member to receive little or no benefit from the loan for himself/herself and considers the non-member as the secondary source of repayment. C.R.S. 11-30-103 (4) and 11-30-116
17.1 Reserves.
(a) Credit unions shall establish and maintain a regular reserve account in the following manner:
(1) A credit union shall set aside 10% of gross income at the end of each accounting period until the regular reserve shall equal 3% of the total of outstanding loans and risk assets as defined in subsection (d) of this rule, then 5% of gross income until the regular reserve shall equal 4% of the total of outstanding loans and risk assets as defined in subsection
(2) Whenever the regular reserve falls below the stated percent of the total of outstanding loans and risk assets, it shall be replenished by regular transfers in such amounts as may be needed to maintain the above stated reserve levels.
(3) The calculation of transfers to the regular reserve account required in this subsection shall be in a form prescribed by the Commissioner.
(b) The regular reserve and the allowance for loan loss account shall be combined in order to determine the percentage of gross income that shall be transferred to the regular reserve account. The required transfer to the regular reserve account shall be made prior to the payment of dividends.
(c) An allowance for loan loss account shall be established and maintained in an amount that represents the estimated loss on loans. The allowance for loan loss account requirement shall be computed and adjusted, through the provision for loan loss account, prior to the payment of dividends.
(d) For purposes of establishing the reserves required by C.R.S. 11-30-117 and this rule, the term “outstanding loans and risk assets” shall be defined as the total assets of a credit union less the following:
(1) Cash on hand, (2) National Credit Union Share Insurance Fund deposit (3) Fully share secured loans, and (4) Investments, cash on deposit and cash equivalents with a remaining maturity or repricing interval of no more than one year.
(e) If a credit union is subject to the earnings transfer requirement under subparts B or C of 12 C.F.R. part 702 of the National Credit Union Administration Rules and Regulations, in effect as of January 10, 2003, the credit union shall transfer to its regular reserve account the greater of the amount required under these federal rules or the amount required under subsection (a) of this rule. Incorporation by reference of these federal rules does not include amendments to these federal rules made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library.
(f) A corporate credit union shall make transfers to the regular reserve account in accordance with 12 C.F.R. part 704.3 of the National Credit Union Administration Rules and Regulations, in effect as of January 10, 2003. Incorporation by reference of this federal rule does not include amendments to this rule made after January 10, 2003. The title and address of the division employee responsible for providing information regarding how the incorporated material may be obtained or examined is as follows: Commissioner, Division of Financial Services, 1560 Broadway, Suite 1520, Denver, Colorado 80202. Any material that has been incorporated by reference in this rule may be examined at any state publications depository library. C.R.S. 11-30-117
17.5 Confidentiality of Examinations.
the Commissioner's report of examination and report of supervision contact are the property of the Division of Financial Services and are furnished to the credit union for its confidential use. Under no circumstances shall any of a credit union's directors, officers of employees disclose or make public in any manner such a report or any portion thereof, C.R.S. 11-30-117.5 (4)
18.1 Dividends.
The amount of a dividend shall not be paid until provisions for reserves as required by law and these regulations have been properly made. No dividend may be paid by a board of directors having knowledge at the time of such payment that an asset charge-off directed by the Commissioner has not been entered and reflected on the books of the credit union. C.R.S. 11-30-118
20.1 Definition of Insolvency.
A credit union shall be considered insolvent either when the book value of its shares and liabilities exceeds the book value of its assets or when it is unable to pay withdrawals of shares or deposits at the end of the notice period allowed by C.R.S. 11-30-119 (1) or to pay other obligations as they become due, C.R.S. 11-30-120 (1)
22.1 Mergers.
The merger of two or more credit unions may take place if the requirements of C.R.S. 11-30-122 are satisfied and the merger is approved by the Financial Services Board (or the State Commissioner of Financial Services acting under authority delegated by the Financial Services Board) and other applicable regulatory authority. The Financial Services Board (or the Commissioner, as applicable) shall determine whether the Certificate of Merger and bylaws (if the continuing credit union is a Colorado chartered credit union) comply with the provisions of C.R.S. 11-30-122 and whether the merger of the credit unions involved would benefit the members and be consistent with the purposes of C.R.S. 11-30-101, et seq.
(a) When a determination has been made to effect a merger, the board of directors of each credit union shall develop the terms of the proposed merger. Some or all of the terms may be set forth in a merger or other agreement(s). The plan of merger should address the following:
(1) probable asset/share ratios of the credit unions;
(2) share adjustments to member accounts, if any;
(3) amendments to the continuing credit union's field of membership;
(4) structure of the board and committees of the continuing credit union;
(5) senior management and employees of the merging credit union;
(6) existing contracts and agreements of both credit unions; and (7) such other matters as the boards of directors of each credit union deem advisable or as required by other applicable regulatory authority.
(b) After approval of the plan of merger by the board of directors of each credit union, the plan of merger, in summary form, shall be presented to the members of the merging credit union and to the members of the continuing credit union, if the continuing credit union is a Colorado chartered credit union. The merger must be approved by at least two-thirds of the members present and voting prior to or at the meeting.
(c) The meeting notice shall contain the date, time and place of the meeting and shall contain a summary of the merger plan, either as part of the notice or as a separate attachment. The summary of the merger plan shall contain the following, as applicable:
(1) current financial reports for each credit union;
(2) a combined financial report;
(3) an analysis of share values, and proposed share adjustments, if any;
(4) an explanation of any changes relative to insurance of member accounts;
(5) the reasons for the proposed merger;
(6) the name and location, including branches, of the continuing union;
(7) an explanation of the organization of the board of directors and committees of the continuing credit union;
(8) an explanation of any new or expanded products and services that may be made available to the members;
(9) an explanation of any contracts or agreements relating to any senior management officials of merging credit union (by position only without identification of individuals);
(10) an explanation of any incentive plans or benefits offered to any employees of merging credit union (by employee class only without identification of individuals);
(11) an itemized estimate of the cost of the merger; and (12) such other information, including any special merger terms, which the boards of directors of each credit union determine should be included or as required by other applicable regulatory authority.
The notice shall inform the members that they have the right to vote on the proposed merger in person at the meeting or by written ballot prior to the meeting. A form of ballot shall be included with the meeting notice.
(d) At least 21 days prior to sending the meeting notice and a summary of the merger plan to members, the credit unions shall submit copies of said information to the Commissioner. The Commissioner shall review the information submitted and evaluate the completeness and accuracy of the disclosure to members of the material terms of the merger. The Commissioner shall advise the credit unions of his findings in this regard.
(e) If the merger is approved by the members of each credit union where required, the authorized representatives of each credit union shall take appropriate action to complete the merger pursuant to C.R.S. 11-30-122 (2) and other applicable regulatory authority. In addition to filing the Certificate of Merger and bylaws (if applicable), the authorized representatives shall file with the Division of Financial Services a copy of the agreement or other document(s) that set forth the terms of the merger, a copy of the meeting notice and ballot sent to the members, and a certification of the vote of the members of each credit union, as applicable. The authorized representatives shall also file copies of any documents or reports filed with the National Credit Union Administration in connection with the merger and copies of the most recent financial statements and reports of examination if the continuing credit union is not a Colorado chartered credit union.
(f) Within 30 days of receipt of the Certificate of Merger and other documents set forth in section (e) above, the Financial Services Board (or the Commissioner acting under delegated authority) shall determine whether the Certificate of Merger and bylaws (if applicable) comply with the provisions of C.R.S. 11-30-101, et seq., and whether the merger of the credit unions involved would benefit the members and be consistent with the purposes of C.R.S. 11-30-101, et seq. In making such determination, the Board (or the Commissioner) shall consider the financial condition of each credit union, the expanded or additional products and services that may be offered to members of the merging credit union, other benefits that may be offered to members of the merging credit union, the safety and soundness of the continuing credit union following the merger, whether the members of the credit unions received sufficient information to make an informed decision on the benefits of the merger, and whether the merger is otherwise in compliance with applicable state and federal laws and regulations.
(g) If the Board (or the Commissioner) deems the filing incomplete and requests additional information from the credit unions, the 30-day period referenced in section (f) above shall commence upon receipt of such information.
(h) Upon approval of the merger by the Board (or the Commissioner acting pursuant to delegated authority), and after receiving all requisite approvals from the National Credit Union Administration and other applicable regulatory authority, the authorized representatives shall take all appropriate action to complete the merger of the credit unions.
(i) The requirements of this rule may also be applied by the Commissioner as appropriate to circumstances where credit unions request approval of a buy/sell agreement entered into pursuant to C.R.S. 11-30-104 (1) (k).
(j) The requirements of this rule may be waived by the Board (or the Commissioner) as necessary in the case of a merger initiated for supervisory reasons. C.R.S. 11-30-104 (1) (k) and 11-30-122