C.R.S.
Section 44-20-404
Board
- powers and duties
- rules
(1)
In addition to the duties and powers of the board under section 44-20-104, the board may:(a)
Promulgate, amend, and repeal rules reasonably necessary to implement this part 4, including, without limitation, the administration, enforcement, issuance, and denial of licenses to wholesalers, powersports vehicle dealers, powersports vehicle salespersons, and used powersports vehicle dealers;(b)
Delegate to the board’s executive secretary, employed pursuant to section 44-20-405 (1)(b), the authority to execute all actions within the power of the board, carry out the directives of the board, and make recommendations to the board on all matters within the authority of the board;(c)
Issue through the department a temporary license to an applicant seeking a license issued by the board, which temporary license shall permit the applicant to operate for not more than one hundred twenty days, during which time the board may complete its investigation and determination of all facts relative to the qualifications of the applicant for the license;(d)
Intentionally left blank —Ed.(I)
Issue through the department and, for reasonable cause shown or upon satisfactory proof of the unfitness of the applicant under this part 4, refuse to issue to any applicant any license the board is authorized to issue by this part 4;(II)
Permit the director to issue licenses pursuant to rules adopted by the board under subsection (1)(a) of this section;(e)
Intentionally left blank —Ed.(I)
After due notice and a hearing:(A)
Review the findings of an administrative law judge or hearing officer from a hearing conducted pursuant to this part 4; or(B)
Revoke and suspend or order the director to issue or to reinstate, on such terms and conditions and for such period of time as the board deems fair and just, any license issued pursuant to this part 4;(II)
Issue a letter of admonition for a minor violation of this part 4 that does not become a part of the licensee’s record with the board;(III)
Issue a letter of reprimand and a notice of the right to request formal disciplinary proceedings, in writing within twenty days, to a licensee for a violation of this part 4, which letter is a part of the licensee’s record with the board for a period of two years after issuance and may be considered in aggravation of any subsequent violation by the licensee; except that the letter shall be vacated and a formal disciplinary proceeding shall be instituted upon a written request within twenty days after the letter is issued;(f)
Intentionally left blank —Ed.(I)
Investigate, with the assistance of the director, on its own motion or upon a written and signed complaint from any person, a suspected or alleged violation by a wholesaler, powersports vehicle dealer, used powersports vehicle dealer, or powersports vehicle salesperson of this part 4 or a rule promulgated by the board;(II)
Issue subpoenas or delegate the authority to issue subpoenas to the director;(III)
Require the director to investigate complaints transmitted by the board pursuant to section 44-20-405 (3)(b) and (3)(c);(IV)
Seek to resolve disputes before beginning an investigation or hearing through its own action or by direction of the director;(V)
If the board determines that there is probable cause to believe a violation of this article 20 has occurred after an investigation by the director, order an administrative hearing be held pursuant to section 24-4-105.(g)
Summarily issue cease-and-desist orders, followed by notice and a hearing in accordance with section 44-20-421, on such terms and conditions and for such time as the board deems fair and just to:(I)
A person who is licensed by the board pursuant to this part 4; or(II)
A person engaging in activity that requires a license under this part 4 when performed in Colorado but the person does not operate at a physical location in Colorado or employ residents of Colorado.(h)
Intentionally left blank —Ed.(I)
Prescribe the forms to be used for applications for persons licensed under this part 4;(II)
Require of an applicant, as a requisite to the issuance of a license, information concerning the applicant’s fitness to be licensed under this part 4 as the board considers necessary;(i)
Adopt a seal with the words “motor vehicle dealer board” and such other devices as the board may desire engraved thereon by which it shall authenticate the acts of its office;(j)
Require that a powersports vehicle dealer’s or used powersports vehicle dealer’s principal place of business and such other sites or locations operated by the dealer have signs or devices giving notice of the dealer’s name, the location and address of the dealer’s principal place of business, and the type and number of licenses held by the dealer, as the board considers necessary to notify any person doing business with the dealer to identify the dealer, and for this purpose to promulgate rules determining the size, shape, lettering, and location of the signs or devices;(k)
Cause to be conducted written examinations, as prescribed by the board, to test the competency of all first-time applicants for a wholesaler’s license, powersports vehicle dealer’s license, used powersports vehicle dealer’s license, or powersports vehicle salesperson’s license;(l)
Promulgate rules requiring off-highway vehicles sold by persons licensed under this part 4 to comply with ANSI/SVIA-1-2001 or a successor standard promulgated by the American national standards institute or its successor organization if the rules do not conflict with the ANSI standards or set standards more stringent than those set by ANSI;(m)
Intentionally left blank —Ed.(I)
Prescribe forms to be used as a part of a contract for the sale of a powersports vehicle by a powersports vehicle dealer or powersports vehicle salesperson, other than a retail installment sales contract subject to the provisions of the “Uniform Consumer Credit Code”, articles 1 to 9 of title 5, that shall include the following information in addition to any other disclosures or information required by state or federal law:(A)
In twelve-point, bold-faced type, or at least three points larger than the smallest type appearing in the contract, an instruction that the form is a legal instrument and that, if the purchaser of the powersports vehicle does not understand the form, the purchaser should seek legal assistance;(B)
In the type and size specified in subsection (1)(m)(I)(A) of this section, an instruction that only those terms in written form embody the contract for sale of a powersports vehicle and that any conflicting oral representations made to the purchaser are void;(C)
In the type and size specified in subsection (1)(m)(I)(A) of this section, a notice that fraud or misrepresentation in the sale of a powersports vehicle is punishable under the laws of this state;(D)
In the type and size specified in subsection (1)(m)(I)(A) of this section, if the contract for the sale of a powersports vehicle requires a single, lump sum payment of the purchase price, a clear disclosure to the purchaser of this fact or, if the contract is contingent upon the approval of credit financing for the purchaser arranged by or through the powersports vehicle dealer, a statement that the purchaser shall agree to purchase the powersports vehicle that is the subject of the sale from the powersports vehicle dealer at not greater than a certain annual percentage rate of financing that shall be agreed upon by the parties and entered in writing on the contract;(E)
Except as otherwise provided under this part 4, if the purchase price of the powersports vehicle is not paid to the powersports vehicle dealer in full at the time of consummation of the sale and the vehicle dealer delivers and the purchaser takes possession of the vehicle at such time, a statement in bold-faced type that, if financing cannot be arranged in accordance with the contract and the sale is not consummated, the purchaser shall agree to pay a daily rate for use of the vehicle until financing of the purchase price of the vehicle is arranged for the obligor by or through the authorized powersports vehicle dealer or until the purchase price is paid in full by or through the obligor, which daily rate shall be agreed upon in writing on the contract.(II)
The information required by subsection (1)(m)(I) of this section shall be read and initialed by both parties at the time of the sale of a powersports vehicle.(III)
The use of the contract form required by subsection (1)(m)(I) of this section shall be mandatory for the sale of a powersports vehicle.(n)
After final action is taken on a hearing held before an administrative law judge or a hearing officer designated by the board from within the board’s membership, review the findings of law and fact and the fairness of any fine imposed and uphold the fine, impose an administrative fine upon its own initiative that shall not exceed ten thousand dollars for each separate offense by any licensee, or vacate the fine imposed by the judge or hearing officer; except that, for powersports vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the fine for each separate offense shall not exceed one thousand dollars; and(o)
Impose a fine of up to one thousand dollars per day per violation for any person found, after notice and hearing pursuant to section 24-4-105, to have violated the provisions of section 44-20-423 (2).(2)
The board shall:(a)
Order an investigation of all written and signed complaints;(b)
Require an application for a powersports vehicle dealer’s license or used powersports vehicle dealer’s license to contain, in addition to such information as the board may require, a statement of the following facts:(I)
The name and residence address of the applicant and any trade name under which the applicant intends to conduct business;(II)
If the applicant is a partnership, the name and residence address of each member, whether a limited or general partner, and the name under which the partnership business is to be conducted;(III)
If the applicant is a corporation, the name of the corporation and the name and address of each of its principal officers and directors;(IV)
A complete description, including the municipality, street, and number, if any, of the principal place of business, and any other additional places of business as shall be operated and maintained by the applicant;(V)
If the application is for a powersports vehicle dealer’s license, the names of the new powersports vehicles that the applicant has been enfranchised to sell or exchange and the name and address of the powersports manufacturer or distributor who has enfranchised the applicant; and(VI)
The name and address of any person who will act as a salesperson under the authority of the license, if issued.(3)
The findings of the board under subsection (1) of this section shall be final.(4)
Intentionally left blank —Ed.(a)
For the purposes of subsections (1)(e) and (1)(g) of this section, the address for the notice to be given under section 24-4-105 is the last-known address for the person as indicated in the state motor vehicle records; the last-known address for the owner of the real property upon which powersports vehicles are displayed in violation of section 44-20-423 (2), as indicated in the records of the county assessor’s office; or any address for service of process in accordance with rule 4 of the Colorado rules of civil procedure.(b)
A person who fails to pay a fine ordered by the board for a violation of section 44-20-423 (2) under subsection (1)(o) of this section shall be subject to enforcement proceedings, by the board through the attorney general, in the county or district court pursuant to the Colorado rules of civil procedure. Fines collected under this subsection (4) shall be disposed of pursuant to section 44-20-430.(5)
Intentionally left blank —Ed.(a)
If a hearing is conducted by an administrative law judge, the maximum fine that may be imposed is ten thousand dollars for each separate offense by any person licensed by the board pursuant to this part 4; except that, for a powersports vehicle dealer who sells primarily vehicles that weigh under one thousand five hundred pounds, the fine for each separate offense may not exceed one thousand dollars.(b)
Intentionally left blank —Ed.(I)
If a licensing hearing is conducted by a hearing officer, the sanctions that may be recommended by the hearing officer are limited to the denial or grant of an unrestricted license or a restricted license under such terms as the hearing officer deems appropriate.(II)
If a disciplinary hearing is conducted by a hearing officer, the hearing officer may only recommend a probationary period of no more than twelve months, a fine of no more than five hundred dollars, or both such probationary period and fine for each separate violation committed by a person licensed by the board.(6)
Intentionally left blank —Ed.(a)
The board has jurisdiction over activity that:(I)
Requires a license under this part 4 when performed in Colorado; and(II)
Involves a resident of Colorado.(b)
When performing an activity described in subsection (6)(a) of this section, a person is subject to this part 4 and the rules promulgated by the board under this part 4; except that the person need not obtain a license under this part 4 if the person engages in activity that requires a license under this part 4 when performed in Colorado but the person does not operate at a physical location in Colorado or employ residents of Colorado.
Source:
Section 44-20-404 — Board - powers and duties - rules, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-44.pdf (accessed Oct. 20, 2023).
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