§ 44-20-104 — Board - oath - meetings - powers and duties - rules

Colorado § 44-20-104

• Jurisdiction: Colorado
• Title 44: Revenue -
• Art.: Sale of Self-propelled Vehicles

Text

(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.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 47, � 2, effective October 1. L. 2019: (3)(a), (3)(f)(I), IP(3)(h), and IP(3)(l)(I) amended, (SB 19-249), ch. 309, p. 2801, � 1, effective August 2. L. 2023: (3)(g) amended and (5) added, (SB 23-019), ch. 2, p. 3, � 1, effective March 3.