Colorado Code § 44-20-404

Board - powers and duties - rules
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(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) (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) (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) (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) (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) (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) (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) (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) (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) (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.

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