REDLINE

Adopted Revised Regulation 44-20-108(1)(b)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, and 44-20-108. 

Basis and Purpose:  To promote increased consumer protection for a participant in a used-dealer-facilitated, purchase, exchange, or lease of a vehicle owned by another dealer by making the regulation and the associated example disclosure form more clear, explicit, and complete.   

ADOPTED REVISED REGULATION:

Regulation 44-20-108(1)(b)  COMPENSATION DISCLOSURES

1.	Whenever a used motor vehicle dealer negotiates the sale, exchange, or lease of a motor vehicle or used motor vehicle not owned by the used motor vehicle dealer, the following form will be deemed adequate to satisfy the disclosure requirements of section 44-20-108(1)(b), C.R.S., for the used motor vehicle dealer. This form is an example of adequate disclosure; nothing herein shall be construed to limit permissible disclosure to the information shown.
COMPENSATION DISCLOSURES

Pursuant to Colorado law,	___________________	hereby discloses to	___________________	
	(used m.v. dealer)		(consumer)	
	
1. My dealership will receive compensation from the consumer. (Check one)	
______ Yes	______ No			
	
2. My dealership will receive compensation from the owner of the vehicle if a sale, exchange or lease is concluded. (Check one)	
______ Yes	______ No	_________________________		
		(NAME OF OWNER)		
	
___________________________	_______	______________________	_______	
Used Motor Vehicle Vehicle Dealer	Dealer #	Authorized Dealer Signature	Date	
				
I have been provided a copy of the above disclosure prior to completion of such sale, exchange or lease of a motor vehicle not owned by the licensee	
______________________	_________________________	______________		
Signature of Consumer	Printed Name	Date		

1.	When, on behalf of a consumer, a used motor vehicle dealer negotiates the sale, exchange, or lease of a used or new motor vehicle that the negotiating dealer does not own, the negotiating dealer:

a.   shall, prior to the completion of the sale, exchange, or lease of a motor vehicle, provide to the consumer for his or her review and signature the original copy of a “Compensation Disclosures” document that must include all of the information on the example form, below, but may include additional information; and,
b.	shall retain  the original of the completed and fully-executed “Compensation Disclosures” document in its records related to the subject vehicle, and shall also provide a copy of that document to the consumer.

2.	The current owner of a vehicle covered by this regulation shall not be a wholesaler.

3.	The “Compensation Disclosures” form, below, is an example format which a negotiating dealer may use to provide the required information to satisfy the disclosure requirements.

COMPENSATION DISCLOSURES

On  _______________________________________, pursuant to Colorado Law, 
        Date the Disclosure document was prepared

_______________________________________________, ___________________, hereby discloses to 
License Name of Negotiating Used Motor Vehicle Dealer          License Number

_______________________________________ that  _________________________________will receive 
Full Printed Legal Name(s) of Consumer(s)	         Negotiating Used Motor Vehicle Dealer

compensation from:     [mark each box that applies]             □  the Consumer(s)
 
   							      □  the Current Motor Vehicle Owner

in the event that a sale, exchange, or lease is concluded for the following motor vehicle:

________,  ______________, _________________, _______________________________, owned by
  Year                   Make                      Model			VIN

__________________________________________________________________________________        .  
Printed Full Legal Name of Current Owner 

__________________________________________________________________________________              
Signature of Authorized Representative of Used Motor Vehicle Dealer 

__________________________________________________________________________________                        
Printed Name of Authorized Representative of Used Motor Vehicle Dealer

__________________________________________________________________________________
Title of Authorized Representative of Used Motor Vehicle Dealer

_________________________________________       _________________________________________       
Signature(s) of Consumer(s)                                           Printed Full Legal Name(s) of Consumer(s)

____________________________________________________
Date of the Consumer(s) Signature(s)

A completed copy of this Compensation Disclosures document must be provided to the Consumer(s).
  
NOTE:  A WHOLESALER CANNOT BE THE OWNER OF A MOTOR VEHICLE IN THIS NEGOTIATION.

REDLINE

Adopted Revised Regulation 44-20-110
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-109, 44-20-110, 44-20-111, 44-20-113, and, 44-20-121.

Basis and Purpose:  A) To consolidate into a single, more comprehensive rule the license-issuing, license-reissuing, and license-posting requirements that currently exist in other places, both in rules and in procedures; B) to clarify the responsibilities of salespersons and dealerships with regard to the handling and retention of a salesperson’s license-related documents; C) to clarify the salesperson’s on-going bonding requirement when he or she transfers his or her sales relationship from one dealership to another; and, D) to clarify the moment when a salesperson has permission to begin sales activities at a dealership, and, thereby, to reduce unlicensed sales activity.

ADOPTED REVISED REGULATION:

Regulation 44-20-110

All current and active licenses of any class issued by the board must be conspicuously displayed in an area that is in public view at the motor vehicle dealer's or used motor vehicle dealer’s place or places of business.

1.	All current and active licenses, including temporary licenses, of any class issued by the board must be conspicuously displayed in an area that is in public view at the motor vehicle dealer’s or used motor vehicle dealer’s place or places of business.
2.	When the board issues a salesperson’s license that is not a temporary license, the dealer associated with the salesperson’s license shall do the following upon receipt of the license document:  (a) take charge of the actual license portion in order to display that portion in accordance with this regulation; and, (b) hand over the “Change of Employer Notification” portion of the license document to the salesperson.
3.	Within ten calendar days of the end of a salesperson’s working relationship with a dealer, both the dealer and the salesperson shall, independently, notify the board, in writing, of the date the relationship ended, and the dealer shall also return to the board the actual license portion of the salesperson’s license.
4.	If a salesperson chooses to transfer his or her working relationship to a new dealer for the remainder of the salesperson’s license year, he or she must submit a “Change of Employer Notification” to the board, along with any other required documents and a remittance to cover the license-reissue fee.  Because the former dealer may cancel the bond associated with the remainder of the salesperson’s license year, the salesperson must take any necessary steps to ensure that a valid salesperson’s bond will be in effect.
5.	A salesperson shall not engage in sales activities until the dealer conspicuously displays the license of the salesperson in accordance with this regulation.

REDLINE

Adopted New Regulation 44-20-121
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-121, and, 44-20-122.

Basis and Purpose:  A) to replace other existing regulations with one consolidated regulation to cover all classes of licensee; B) to clarify that the reporting requirement always rests with the relevant licensee; C) to clarify those natural persons in or associated with a relevant license-related business whose criminal violations must be reported; D) to clarify how and when a criminal violation must be reported; E) to clarify what types of criminal violations and what jurisdictions apply to the reporting requirement; and, F) to clarify what documents must accompany a reported criminal violation.  

ADOPTED NEW REGULATION:

Regulation 44-20-121

1.	This regulation applies only to licenses issued by the Board under part 1 of article 20 of title 44.

2.	The reporting requirement of this regulation applies both  (a) to a natural person with a  motor vehicle salesperson’s license, and, (b) to any other natural person (1) who is associated with a licensee with any other class of license issued by the board and (2) who has an ownership, financial or equity interest in the licensee (unless the natural person is a stockholder of a licensee that is subject to the reporting requirements of the “Securities Exchange Act of 1934,” as amended, 15 U.S.C. § 78a, et seq.).

3.	With respect to a natural person specified above, a licensee is responsible to ensure that the board receives written notice of any criminal case brought in any United States court (federal, state, territorial, or the District of Columbia) that resulted in:

a.	a conviction, plea, or deferment of a felony;

b.	a conviction, plea, or deferment of either a felony or a misdemeanor pursuant to article 3, 4, or 5 of title 18, C.R.S. or a like crime pursuant to federal law or the law of any other state; or,

c.	a crime involving odometer fraud, salvage fraud, vehicle title fraud, or the defrauding of a retail consumer in a vehicle sale or lease transaction.

4.	A licensee:

a.	must ensure that the board receives the written notice no later than thirty calendar days after a conviction, plea, or deferment; and,

b.	must enclose certified copies of court documents with the licensee’s written notice, including, but not limited to the charging document (an indictment, information, or other notice of charges), a pre-sentencing investigation report (if available), and,  documents that reveal the resolution of the case (for example, a plea agreement, a conviction,  a deferment, or a sentence of the court).	

REDLINE

Adopted Revised Regulation 44-20-121(3)(a)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-109, 44-20-118, 44-20-119, 44-20-121, and, 44-20-122.

Basis and Purpose:  A) to modernize the regulation, generally; B) to reduce and simplify the regulation by going to a more accessible, elemental structure; C) to eliminate the erroneous impression of a general definition by tracking the explicit restriction in the statute, i.e., the defined term will no longer be “Material Misstatement,” but will be “Material Misstatement in an Application for a License”; D) to incorporate a more up-to-date definition of “material,” importing the reasonable person standard; and, E) to ensure consistency among the set of comparable regulations on this topic.

ADOPTED REVISED REGULATION:

Regulation 44-20-121(3)(a)

“Material misstatement” means any material false or misleading statement, omission, or misrepresentation by the applicant or a partner, officer, director or shareholder of any corporation, limited liability company, limited liability partnership or any other business entity authorized under law to hold a license, regarding personal identification information, employment history, personal or business entity financial information, prior occupational licensing history, whether regarding a license issued by the Board or any other licensing/regulatory agency, criminal background and history including arrests, criminal information filings, indictments, municipal, misdemeanor, and/or felony convictions, and deferred judgments, civil judgments, assurances of discontinuance, consent order/decree, and/or stipulation arising from the operation of a business in this state or any other engaged in the sale, lease, or distribution of motor vehicles. This Regulation does not apply to shareholders of corporations that are subject to the reporting requirements of the Securities and Exchange Act of 1934, as amended.

“Material Misstatement in an Application for a License” means (a) either a written statement, a responsive mark (for example, a mark in a checkbox), or, an omission, (b) for which the applicant is responsible, (c) that is false or misleading, and (d) that is made in support of an application either (1) by a natural person who has an ownership, financial, or equity interest in an applicant for a class of license other than a business disposer’s license or a salesperson’s license  (except for a natural person whose sole relationship to the applicant is as a stockholder of a corporation that is subject to the reporting requirements of the “Securities Exchange Act of 1934,” as amended, 15 U.S.C. § 78a, et seq.), or, (2) by a natural person who has the ability to control or to exercise significant financial or operational influence over an applicant for a class of license other than a business disposer’s or a salesperson’s license.  For purposes of this rule, “material” means reasonably significant enough to affect the outcome of the Board’s review of an application.  

REDLINE

Adopted Deletion of Regulation 44-20-121(3)(c)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-121, and, 44-20-122.

Basis and Purpose:  to delete the two regulations (i.e., Regulation 44-20-121(3)(c) and  Regulation 44-20-121(6)(h)) and consolidate their contents into one improved, new regulation (i.e., Regulation 44-20-121). 

ADOPTED DELETION OF REGULATION:

Delete Regulation 44-20-121(3)(c), which currently reads
Dealers, wholesalers, wholesale auction dealers, officers, directors or stockholders of corporations owning five per-cent or more, licensed as such, who are convicted of or pled nolo contendere or a plea in a deferred judgment and sentence to any felony or any crime pursuant to Article 3, 4, or 5 of Title 18, C.R.S., or like crime pursuant to federal law or the law of any other state, shall provide to the board written notice of such conviction within thirty days after receiving such conviction. The licensee shall provide complete information including copies of such conviction and pre-sentence reports within thirty days of the conviction.

REDLINE

Adopted Revised Regulation 44-20-121(6)(a)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-109, 44-20-118, 44-20-119, 44-20-121, and, 44-20-122.

Basis and Purpose:  A) to modernize the regulation, generally; B) to reduce and simplify the regulation by going to a more accessible, elemental structure; C) to eliminate the erroneous impression of a general definition by tracking the explicit restriction in the statute, i.e., the defined term will no longer be “Material Misstatement,” but will be “Material Misstatement in an Application for a License”; D) to incorporate a more up-to-date definition of “material,” importing the reasonable person standard; and, E) to ensure consistency among the set of comparable regulations on this topic.

ADOPTED REVISED REGULATION:

Regulation 44-20-121(6)(a)

“Material misstatement” in an application for a salesperson license means any relevant false or misleading statement, omission, or misrepresentation regarding personal identification information, employment history, prior occupational licensing history, whether regarding a license issued by the board or any other state licensing/regulatory agency, criminal background and history including arrests, criminal information filings, indictments, municipal, misdemeanor, and/or felony convictions, plea of nolo contendere or a plea in a deferred judgment and sentence.

“Material Misstatement in an Application for a License” means (a) either a written statement, a responsive mark (for example, a mark in a checkbox), or, an omission, (b) for which the applicant is responsible, (c) that is false or misleading, and, (d) that is made by the applicant in support of an application for a salesperson’s license.  For purposes of this rule, “material” means reasonably significant enough to affect the outcome of the Board’s review of an application.

REDLINE

Adopted Deletion of Regulation 44-20-121(6)(f)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-109, 44-20-110, 44-20-111, 44-20-113, and, 44-20-121.

Basis and Purpose:  To delete this regulation and consolidate its contents into a single, expanded, more comprehensive regulation (i.e., Regulation 44-20-110).

ADOPTED DELETION OF REGULATION:

Delete Regulation 44-20-121(6)(f) --- Reissue of Salesperson Licenses, which currently reads

1.	Salespersons who change employment during their license year shall notify the Auto Industry Division, on the form prescribed by the Board, of the identity of the new employer prior to commencing employment at the new dealership.
2.	Upon the submission of the notification, acknowledged by the new employing dealer, the salesperson may begin working as a salesperson at the new employing dealership.
3.	After receipt of notification, the Auto Industry Division shall issue a new license to the salesperson for the remainder of the license term.
4.	Any salesperson who fails to provide timely notification may be subject to disciplinary action.

REDLINE

Adopted Deletion of Regulation 44-20-121(6)(h)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-121, and, 44-20-122.

Basis and Purpose:  to delete the two regulations (i.e., Regulation 44-20-121(3)(c) and  Regulation 44-20-121(6)(h)) and consolidate their contents into one improved, new regulation (i.e., Regulation 44-20-121). 

ADOPTED DELETION OF REGULATION:

Delete Regulation 44-20-121(6)(h), which currently reads

A salesperson who is convicted of or pled nolo contendere or a plea in a deferred judgment and sentenced to any felony or any crime pursuant to article 3, 4, or 5 of title 18, C.R.S., or like crime pursuant to federal law or the law of any other state, must give the board written notice of such conviction within thirty days after such conviction. The licensee shall provide complete information including copies of the conviction and pre-sentence reports within thirty days of the conviction.

REDLINE

Adopted New Regulation 44-20-121(6.5)(a)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 44-20-101, 44-20-102, 44-20-103, 44-20-104, 44-20-108, 44-20-109, 44-20-118, 44-20-119, 44-20-121, and, 44-20-122.

Basis and Purpose:  A) to establish a regulation that covers the new class of license, i.e., business disposer’s license, established by the General Assembly in the 2019 Legislative Session; B) to ensure the regulation has an accessible, elemental structure; C) to prevent giving the erroneous impression of a general definition by tracking the explicit restriction in the statute, i.e., the defined term will not simply be “Material Misstatement,” but will be “Material Misstatement in an Application for a License”; D) to incorporate an up-to-date definition of “material,” importing the reasonable person standard; and, E) to ensure consistency among the set of comparable regulations on this topic.

ADOPTED NEW REGULATION:

Regulation 44-20-121(6.5)(a)

 “Material Misstatement in an Application for a License” means (a) either a written statement, a responsive mark (for example, a mark in a checkbox), or, an omission, (b) for which the applicant is responsible, (c) that is false or misleading, and (d) that is made in support of an application either (1) by a natural person who has an ownership, financial, or equity interest in an applicant for a business disposer’s license  (except for a natural person whose sole relationship to the applicant is as a stockholder of a corporation that is subject to the reporting requirements of the “Securities Exchange Act of 1934,” as amended, 15 U.S.C. § 78a, et seq.), or, (2) by a natural person who has the ability to control or to exercise significant financial or operational influence over an applicant for a business disposer’s license.  For purposes of this rule, “material” means reasonably significant enough to affect the outcome of the Board’s review of an application.