REDLINE
Proposed New Regulation 12-6-502(7)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, and 12-6-505, and, 12-6-508.

Basis and Purpose:  To clarify A) the equivalency of two terms of art in the powersports industry, and B) the unique industry meaning of another term of art in the powersports industry.

PROPOSED NEW REGULATION:

Regulation 12-6-502(7)

1.	This regulation applies solely to matters within the jurisdiction of the Motor Vehicle Dealer Board.

2.	For purposes of this regulation, the following apply:

a.	“manufacturer’s statement of origin” includes “manufacturer’s certificate of origin”; and,

b.	“transferred” includes an exchange of a powersports vehicle by means of an appropriate written assignment of the manufacturer’s statement of origin between two dealers enfranchised to sell the same make of vehicle.

REDLINE
Proposed Revised Regulation 12-6-508(1)(f)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-509, 12-6-510, 12-6-511, 12-6-519, 12-6-520, and, 12-6-521.

Basis and Purpose:  To set out restrictions, requirements, and definitions to regulate uniformly the activities of persons holding a powersports-vehicle-related “wholesaler” class of license.

PROPOSED NEW REGULATION:

Regulation 12-6-508(1)(f)

A wholesaler shall conduct business according to each of the following:

1.	A person shall not simultaneously hold a powersports vehicle salesperson license and also have an ownership interest in a licensed wholesale business.

2.	A wholesaler shall not employ a licensed powersports vehicle salesperson.

3.	A wholesaler shall have a place of business with a business office.  The wholesaler’s business books and records shall be kept at that business office.

4.	A wholesaler shall maintain written records of all business transactions involving the sale, exchange, or offer of any interest in a powersports vehicle.

5.	A wholesaler shall transact all business, including but not limited to the purchase and sale of powersports vehicles, exclusively in its licensed wholesale business name, and not in the name of another person, whether that other person is or is not associated with the wholesaler license. However, in order to prevent confusion between the wholesale business transactions of a sole proprietor and the personal transactions of the natural person of the same name, a sole proprietor wholesaler shall transact all wholesale business using the sole proprietor’s name coupled with the word, “wholesaler” (for example,   “Wholesaler Joe Smith,” “Joe Smith, Wholesaler,” or “Joe Smith --- Wholesaler”).   

6.	A wholesaler shall permit the board and its agents and representatives to inspect, with cause, including ongoing investigation, compliance audit, sworn complaint, or order of the board, the wholesaler’s books and records, excluding financial statements and tax returns, any time from Monday through Friday between 9 AM and 5 PM.  Upon receipt of a subpoena from the board or the director, the wholesaler shall provide all records, including financial records and tax returns, to the board, the director, or to the agents or representatives of the board or the director.  Upon the wholesaler’s written request, auto industry division staff shall, under their direct supervision, make available to the wholesaler, all of the records that the wholesaler provides voluntarily or under subpoena, in order for the wholesaler to test, inspect, or copy the records.

7.	See Regulation 12-6-502(11) for the definitions of “profit” and “gain of money.”

REDLINE
Proposed Revised Regulation 12-6-509(2)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-509, 12-6-510, 12-6-511, 12-6-512, 12-6-517, 12-6-520, and 12-6-521.

Basis and Purpose:  To A) define the term, “out-of-state powersports vehicle dealer,” B) set out the possible Colorado venues and parameters for an out-of-state powersports vehicle dealer’s operations under a temporary out-of-state powersports vehicle dealer’s license, and, C) detail both the application process and Board evaluation criteria for a temporary out-of-state powersports vehicle dealer’s license. 

PROPOSED REVISED REGULATION:

Regulation 12-6-509(2)

Applicants for an out-of-state temporary dealer license shall submit completed application, bond, and license fee. Specifically identified events shall include the Colorado State Fair, National Western Stock Show, and the annual Denver RV, Sports, Boat and Travel Show. Such out-of-state dealer shall provide evidence that the manufacturer has authorized the dealer to do business at such location in Colorado. No more than three out-of-state dealer licenses shall be issued to any one dealer per license year.

1.	For purposes of this regulation, an “out-of-state powersports vehicle dealer” means a powersports vehicle dealer or used powersports vehicle dealer that is not a resident of Colorado and that is not licensed in Colorado as a powersports vehicle dealer or as a used powersports vehicle dealer.

2.	An out-of-state powersports vehicle dealer may sell a powersports vehicle to a consumer only at the following specific events: A) the Colorado State Fair; B) the National Western Stock Show; and, C) the annual Colorado RV, Sports and Travel Show.

3.	If an out-of-state powersports vehicle dealer intends to sell a powersports vehicle to a consumer at a specific event other than those listed above, then the out-of-state powersports vehicle dealer must obtain the board’s permission to apply for a temporary license for that specific event.  To obtain the board’s permission, the out-of-state powersports vehicle dealer must submit a written petition to the executive secretary of the board at least ninety days prior to the specific event so that the executive secretary can docket the board’s review of the petition.  At the review, the board will consider only the written petition.

4.	An out-of-state powersports vehicle dealer temporary license is issued for thirty consecutive calendar days related to the specific event designated in the application for an out-of-state powersports vehicle temporary license.

5.	An out-of-state powersports vehicle dealer may not obtain more than three out-of-state powersports vehicle dealer temporary licenses in a calendar year.

6.	In order to sell a powersports vehicle to a consumer at a specific event, an out-of-state powersports vehicle dealer must apply for an out-of-state powersports vehicle dealer temporary license.  An out-of-state powersports vehicle dealer must not engage in any sales activity at a specific event until the board approves the out-of-state powersports vehicle dealer temporary license.

7.	By no later than fourteen calendar days prior to the specific event designated in the application, an out-of-state powersports vehicle dealer must submit a completed application form for an out-of-state powersports vehicle dealer temporary license related to the specific event.  The board shall reject for filing any application for an out-of-state powersports vehicle dealer temporary license that is not accompanied by both a remittance in the full amount of the fee for the license and by the bond required for the license.  The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions.

8.	In the event that an out-of-state powersports vehicle dealer intends to sell a new powersports vehicle to a consumer in Colorado, then an out-of-state powersports vehicle dealer shall provide written evidence that each manufacturer, whose vehicles the out-of-state powersports vehicle dealer intends to sell at the specific event, has authorized the out-of-state powersports vehicle dealer to sell the manufacturer’s vehicles at the specific event.

9.	An out-of-state powersports vehicle dealer must make an out-of-state powersports vehicle dealer temporary license readily-available for inspection by any person at the specific event during the entire time that the out-of-state powersports vehicle dealer is present at the event.

10.	An out-of-state powersports vehicle dealer operating in Colorado pursuant to an out-of-state powersports vehicle dealer temporary license has agreed to do business under applicable Colorado law and regulations.  Therefore, an out-of-state powersports vehicle dealer has both the same rights and the same responsibilities as a licensed Colorado powersports vehicle dealer.

REDLINE
Proposed New Regulation 12-6-510
                          Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-509, 12-6-510, 12-6-517, 12-6-519, 12-6-520, and 12-6-521.

Basis and Purpose:  To clarify, with regard to current and active licenses of each class of license, the visibility and access requirements for the display of each relevant license at the licensee’s business locations.

PROPOSED NEW REGULATION:

Regulation 12-6-510

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 powersports dealer's or used powersports dealer’s place or places of business.
.

REDLINE
Proposed Revised Regulation 12-6-519
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-501, 12-6-502, 12-6-503, 12-6-504, 12-6-505, 12-6-508, 12-6-518, 12-6-519, 12-6-520, and 12-6-521.

Basis and Purpose:  To clarify the initial and ongoing requirements of a powersports vehicle dealer and used powersports vehicle dealer with regard to A) sanitary facilities at business locations, B) proof of the right of occupancy of the business premises, C) proof of the licensee’s possession of the business premises, and, D)  a definition of adequate sanitary facilities required at business locations.

PROPOSED REVISED REGULATION:

Regulation 12-6-519

1. “Adequate sanitary facilities” means a permanent sewer hookup, cesspool or septic tank with leaching field, or portable chemical toilet. 

2.  A dealer’s license shall not be issued to a person located at a principal place of business or other additional locations unless such place of business or additional locations are owned or leased by and actually occupied by the applicant. A powersports vehicle dealer’s license shall be suspended or revoked if the dealer’s principal place of business or other additional locations are not owned or leased by and not actually occupied by the licensee.

1.	An applicant for a powersports vehicle dealer license or a used powersports vehicle dealer license shall document each of the following, as part of the license application submitted to the board:

a.	the existence of adequate sanitary facilities at the principal place of business;

b.	proof that the applicant either owns or has leased the principal place of business; and,

c.	proof that the applicant is in possession of the principal place of business.

2.	A licensee applying for an additional location for a licensee’s powersports vehicle business or a licensee’s used powersports vehicle business, shall document each of the following, as part of the additional location application submitted to the board:

a.	the existence of adequate sanitary facilities at the additional location, unless the additional location will be used by the licensee solely as a powersports vehicle storage site;

b.	proof that the licensee either owns or has leased the additional location; and,

c.	proof that the licensee is in possession of the additional location.
	
3.	During the entire active period of a powersports vehicle dealer’s license or a used powersports vehicle dealer’s license, the licensee shall:

a.	maintain adequate sanitary facilities at its principal place of business and at each additional location associated with the license at any given time, unless the additional location is used by the licensee solely as a motor vehicle storage site;

b.	maintain, through ownership or lease, the licensee’s right to occupy its principal place of business and each additional location approved by the board, unless the licensee has notified the board that it relinquished a previously authorized additional location; and,

c.	continue to be in possession of the principal place of business and each additional location approved by the board, unless the licensee has notified the board that it relinquished a previously authorized additional location.

4.	As used in this regulation, “adequate sanitary facilities” means a publicly-accessible, private bathroom with either 1) a functioning portable chemical toilet or, 2) a functioning permanent flush toilet with either a permanent sewer hookup, cesspool, or septic tank with leaching field.