Opinion ID: 2624651
Heading Depth: 2
Heading Rank: 1

Heading: Law Applicable to the State Personnel System

Text: Certified state employees have a property interest in their positions and may only be disciplined by an appointing authority for just cause. See Colo. Const. art. XII, §§ 13-15; § 24-50-125(1), C.R.S. (2010). Cause for discipline, including dismissal, by an appointing authority includes the following: (1) failure to comply with standards of efficient service or competence, (2) willful misconduct, (3) willful failure to perform the employee's duties, and (4) inability to perform the employee's duties. § 24-50-125(1). An employee in the state personnel system who has been subjected to discharge or other discipline by an appointing authority may petition the Board for a hearing to review the action of the appointing authority. § 24-50-125(3), C.R.S. (2010). A hearing officer or ALJ may conduct the hearing for the Board and render an initial decision consisting of written findings of fact and conclusions of law affirming, modifying, or reversing the appointing authority's action. §§ 24-50-125(4), -125.4(3); Dep't of Insts. v. Kinchen, 886 P.2d 700, 705 (Colo.1994). After the ALJ issues an initial decision, either party may appeal to the Board to modify the decision. § 24-50-125.4(4), C.R.S (2010); Kinchen, 886 P.2d at 706. The Board reviews the ALJ's decision under the standards set forth in section 24-4-105(15)(b), C.R.S. (2010). Under that statute, the Board may not set aside an ALJ's finding of evidentiary fact unless it is contrary to the weight of the evidence, and the Board must defer to the ALJ's assessment of the credibility of the testimony and the weight to be given to the evidence. Id.; Koinis v. Colo. Dep't of Pub. Safety, 97 P.3d 193, 195 (Colo.App.2003). However, the Board may substitute its own judgment for the ALJ's decision with respect to an ultimate conclusion of fact as long as the Board's conclusion has a reasonable basis in law. Lawley v. Dep't of Higher Educ., 36 P.3d 1239, 1245 (Colo.2001). Although the distinction between the two is not always clear, evidentiary facts generally include the detailed factual or historical findings on which a legal determination rests[,] while ultimate conclusions of fact generally involve conclusions of law, or at least mixed questions of law and fact, and often settle the rights and liabilities of the parties. Id. Also limiting the Board's ability to affirm or reverse conclusions of the ALJ is section 24-50-103(6). That statute mandates that, when rendering its decision on a case, the Board may reverse or modify an action of an appointing authority only if at least three members of the board find the [appointing authority's] action to have been arbitrary, capricious, or contrary to rule or law. § 24-50-103(6); Kinchen, 886 P.2d at 705-06. A tie vote precludes the Board from modifying or reversing the appointing authority's decision. Adkins v. Div. of Youth Servs., 720 P.2d 626, 629 (Colo.App.1986). Therefore, under this rule, the Board may uphold a conclusion of the ALJ that modifies or reverses the action of the appointing authority only if three of the Board members vote to uphold that conclusion. See § 24-50-103(6); Adkins 720 P.2d at 629. The standards set forth in section 24-4-106(7), C.R.S. (2010) govern judicial review of the Board's decision. That statute provides that an appellate court may reverse an administrative agency if it finds that the agency acted arbitrarily or capriciously, made a decision that is unsupported by the record, erroneously interpreted the law, or exceeded its authority. Id. Where the challenge is to the Board's resolution of an ultimate conclusion of fact, a reviewing court must determine whether the record contains sufficient evidence showing a reasonable basis in law for the Board's conclusion. See Lawley, 36 P.3d at 1252; Koinis, 97 P.3d at 195. If the reviewing court finds that sufficient evidence supports the Board's conclusion, then the Board's action is not an abuse of discretion, and the court may not reverse it. See Lawley, 36 P.3d at 1252. In reviewing the Board's decision, courts should give deference to the Board because it is a constitutionally created state agency with considerable expertise in personnel matters, and courts should resolve all reasonable doubts as to the correctness of the Board's decision in the Board's favor. Lawley, 36 P.3d at 1252-53.