(1) Each member of the board, before entering on the discharge of the member's duties and within thirty days after the effective date of the member's appointment, shall subscribe an oath for the faithful performance of the member's duties before any officer authorized to administer oaths in this state and shall file the same with the secretary of state. (2) The board shall annually in the month of July elect from the membership thereof a president, a first vice-president, and a second vice-president. The board shall meet at such times as it deems necessary. A majority of the board shall constitute a quorum at any meeting or hearing. (3) The board is authorized and empowered: (a) To promulgate, amend, and repeal rules reasonably necessary to implement this part 1, including the administration, enforcement, issuance, and denial of licenses to motor vehicle dealers, motor vehicle salespersons, used motor vehicle dealers, wholesale motor vehicle auction dealers, business disposers, and wholesalers, and the laws of the state of Colorado; (b) To delegate to the board's executive secretary, employed pursuant to section 44-20- 105 (2)(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) To issue through the department a temporary license to any person applying for any license issued by the board. The temporary license shall permit the applicant to operate for a period not to exceed one hundred twenty days while the board is completing its investigation and determination of all facts relative to the qualifications of the applicant for the license. A temporary license is terminated when the applicant's license is issued or denied. (d) (I) To issue through the department and, for reasonable cause shown or upon satisfactory proof of the unfitness of the applicant under standards established and set forth in this part 1, to refuse to issue to any applicant any license the board is authorized to issue by this part 1; (II) To permit the executive director or the director to issue licenses pursuant to rules adopted by the board pursuant to subsection (3)(a) of this section; (e) (I) After due notice and a hearing, to review the findings of an administrative law judge or a hearing officer from a hearing conducted pursuant to this part 1 to revoke and suspend or to order the director to issue or to reinstate, on such terms and conditions and for such period of time as to the board appear fair and just, any license issued under this part 1. The board may direct a letter of admonition for minor violations or may issue a letter of reprimand to any licensee for a violation of this part 1. A letter of admonition does not become a part of the licensee's record with the board. A letter of reprimand 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. When a letter of reprimand is sent to a licensee of the board, the licensee shall be notified in writing regarding the right to request in writing, within twenty days after receipt of the letter, that formal disciplinary proceedings be initiated against the licensee to adjudicate the propriety of the conduct upon which the letter of reprimand is based. If a request is made within the twenty-day period, the letter of reprimand is deemed vacated and the matter shall be processed by means of formal disciplinary proceedings. (II) The findings of the board pursuant to subsection (3)(e)(I) of this section shall be final. (f) (I) To investigate through the director, on its own motion or upon the written and signed complaint of any person, any suspected or alleged violation by a motor vehicle dealer, motor vehicle salesperson, used motor vehicle dealer, wholesale motor vehicle auction dealer, business disposer, or wholesaler of any of the terms and provisions of this part 1 or of any rule promulgated by the board under the authority conferred upon it in this section. The board shall order an investigation of all written and signed complaints, may issue subpoenas, and may delegate the authority to issue subpoenas to the director, and the director shall make an investigation of all complaints transmitted by the board pursuant to section 44-20-105 (3). The board may seek to resolve disputes before beginning an investigation or hearing through its own action or by direction to the director. (II) After an investigation by the director or the director's designee, if the board determines that there is probable cause to believe a violation of this article 20 has occurred, it may order that an administrative hearing be held pursuant to section 24-4-105. (g) To summarily issue cease-and-desist orders, followed by notice and a hearing in accordance with section 44-20-122, on such terms and conditions and for such period of time as to the board appears fair and just to: (I) A person who is licensed by the board pursuant to this part 1; or (II) A person engaging in activity that requires a license under this part 1 when performed in Colorado but the person does not operate at a physical location in Colorado or employ residents of Colorado; (h) To prescribe the forms to be used for applications for motor vehicle dealers', motor vehicle salespersons', used motor vehicle dealers', wholesale motor vehicle auction dealers', business disposal, and wholesalers' licenses to be issued and to require of the applicants, as a condition precedent to the issuance of the licenses, such information concerning their fitness to be licensed under this part 1 as it may consider necessary. Every application for a motor vehicle dealer's license or used motor vehicle dealer's license must 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 the trade name, if any, under which the applicant intends to conduct the applicant's business and, if the applicant is a copartnership, the name and residence address of each member thereof, whether a limited or general partner, and the name under which the partnership business is to be conducted and, if the applicant is a corporation, the name of the corporation and the name and address of each of its principal officers and directors; (II) A complete description, including the city, town, or village; the street and number, if any, of the principal place of business; and such other and additional places of business as shall be operated and maintained by the applicant in conjunction with the principal place of business; (III) If the application is for a motor vehicle dealer's license, the names of the new motor vehicles that the applicant has been enfranchised to sell or exchange and the name and address of the manufacturer or distributor who has enfranchised the applicant; (IV) The names and addresses of the persons who shall act as salespersons under the authority of the license, if issued. (i) To 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) To require that a motor vehicle dealer's or used motor vehicle dealer's principal place of business and such other sites or locations as may be operated and maintained by the dealers in conjunction with their principal place of business have erected or posted thereon the signs or devices providing information relating to the dealer's name, the location and address of the dealer's principal place of business, the type of license held by the dealer, and the number thereof, as the board shall consider necessary to enable any person doing business with the dealer to identify the dealer properly, and for this purpose to determine the size and shape of the signs or devices, the lettering thereon, and other details thereof and to prescribe rules for the location thereof; (k) To conduct or cause to be conducted written examinations as prescribed by the board testing the competency of all first-time applicants for a motor vehicle dealer's license, motor vehicle salesperson's license, used motor vehicle dealer's license, wholesale motor vehicle auction dealer's license, or wholesaler's license; (l) (I) To prescribe a form or forms to be used as a part of a contract for the sale of a motor vehicle by any motor vehicle dealer, business disposer, or motor 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, which 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 a size 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 motor vehicle does not understand the form, the purchaser should seek legal assistance; (B) In bold-faced type, of the size specified in subsection (3)(l)(I)(A) of this section, an instruction that only those terms in written form embody the contract for sale of a motor vehicle and that any conflicting oral representations made to the purchaser are void; (C) In bold-faced type, of the size specified in subsection (3)(l)(I)(A) of this section, a notice that fraud or misrepresentation in the sale of a motor vehicle is punishable under the laws of this state; (D) In bold-faced type, of the size specified in subsection (3)(l)(I)(A) of this section, if the contract for the sale of a motor vehicle requires a single lump sum payment of the purchase price, a clear disclosure to the purchaser of that fact or, if the contract is contingent upon the approval of credit financing for the purchaser arranged by or through the motor vehicle dealer, in bold-faced type, a statement that the purchaser shall agree to purchase the motor vehicle that is the subject of the sale from the motor vehicle dealer at not greater than a certain annual percentage rate of financing, which annual percentage rate of financing shall be agreed upon by the parties and entered in writing on the contract; (E) Except as otherwise provided under part 1 of article 1 of title 6, where the purchase price of the motor vehicle is not paid to the motor vehicle dealer in full at the time of consummation of the sale and the purchaser and motor vehicle dealer elect that the motor vehicle dealer shall deliver and the purchaser shall take possession of the motor vehicle at such time, in bold-faced type, a statement that in the event financing cannot be arranged in accordance with the provisions stated in the contract, and the sale is not consummated, the purchaser shall agree to pay a daily rate and a mileage rate for use of the motor vehicle until such time as financing of the purchase price of the motor vehicle is arranged for the obligor by or through the authorized motor vehicle dealer or until the purchase price is paid to the authorized motor vehicle dealer in full by or through the obligor, which daily rate and mileage rate shall be specified and agreed upon by the parties and entered in writing on the contract. (II) The information required by subsection (3)(l)(I) of this section shall be read and initialed by both parties at the time of the consummation of the sale of a motor vehicle. (III) The use of the contract form required by subsection (3)(l)(I) of this section shall be mandatory for the sale of any motor vehicle. (IV) The board may require a licensee to include with a consumer sales contract a written notice that provides to the consumer the contact information of the board and information about the board's authority over consumer motor vehicle sales. (m) (I) (A) After final action is taken on a hearing held before an administrative law judge or a hearing officer, to review the findings of law and fact and the fairness of any fine imposed and to uphold the fine, to impose an administrative fine upon its own initiative, not to exceed ten thousand dollars for each offense by any licensee, or to vacate the fine imposed by the judge or hearing officer; except that, for motor vehicle dealers who sell primarily motor vehicles that weigh under one thousand five hundred pounds, the fine for each offense must not exceed one thousand dollars. Whenever a hearing is heard by an administrative law judge, the maximum fine that may be imposed is ten thousand dollars for each offense by any person licensed by the board under this part 1; except that, for motor vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the fine for each offense must not exceed one thousand dollars. Whenever 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. Whenever 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 a probationary period and fine for each violation committed by a person licensed by the board. (B) The board shall promulgate rules regarding circumstances in which a board member should not act as a hearing officer in a particular matter before the board because of business competition issues connected with the parties involved in the matter. (II) The findings of the board pursuant to subsection (3)(m)(I) of this section shall be final. (n) (I) To 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 44-20-124 (2). For the purposes of this subsection (3)(n), 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 motor vehicles are displayed in violation of section 44-20-124 (2) as indicated in the records of the county assessor's office; or an address for service of process in accordance with rule 4 of the Colorado rules of civil procedure. (II) Any person who fails to pay a fine ordered by the board for a violation of section 44- 20-124 (2) under this subsection (3)(n) 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. Any fines collected under the provisions of this subsection (3)(n) shall be disposed of pursuant to section 44-20-133. (4) The board shall promulgate rules by January 1, 2008, establishing enforcement and compliance standards to ensure that administrative penalties are equitably assessed and commensurate with the seriousness of the violation. (5) (a) The board has jurisdiction over activity that: (I) Requires a license under this part 1 when performed in Colorado; and (II) Involves a resident of Colorado. (b) When performing an activity described in subsection (5)(a) of this section, a person is subject to this part 1 and the rules promulgated by the board under this part 1; except that the person need not obtain a license under this part 1 if the person engages in activity that requires a license under this part 1 when performed in Colorado but the person does not operate at a physical location in Colorado or employ residents of Colorado.
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