Proposed Revised Regulation 12-6-102(16)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-103, 12-6-104, 12-6-105, 12-6-108, 12-6-109, 12-6-110 and 12-6-117.

Basis and Purpose:  To provide additional options and to clarify existing options for licensed vehicle dealers to display and sell their inventory at locations away from licensed dealers’ principal places of business.  Also to provide improved opportunities for consumers to obtain product information and purchase or lease vehicles from licensed dealerships at short-term events occurring away from licensed dealers’ principal places of business.

PROPOSED REVISED REGULATION:

Regulation 12-6-102(16)
 
1.	As used in this regulation, a “motor vehicle dealer” means either a licensed motor vehicle dealer or licensed used motor vehicle dealer.

2.	A motor vehicle dealer may sell motor vehicles at special sales events, shows, or other organized events, including, for example, at the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show.  In order to sell motor vehicles at a location away from the dealership, a motor vehicle dealer must apply for the appropriate off-premise permit.  A motor vehicle dealer must not engage in any sales activity at an off-premise location until the board approves the appropriate off-premise permit.

3.	The board recognizes two classes of off-premise permit based upon specific sales-related conditions and restrictions.  These are:
a.	Class One --- a Limited Sales Activity Off-premise Permit.  The following conditions and restrictions apply to this permit:
1)	Licensed salespersons or owners authorized to sell must be present at the off-premise location at all times when the public is present; and,
2)	Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and,
3)	The parties shall not execute sales-related documents at the off-premise location, but must return to the dealership to execute any sales-related documents.
b.	Class Two --- a Full Sales Activity Off-premise Permit.  The following conditions and restrictions apply to this permit:
1)	Licensed salespersons or owners authorized to sell must be present at the off-premise location at all times when the public is present; and,
2)	Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and,
3)	The parties may execute sales documents at the off-premise location.

4.	The board issues an off-premise permit for a restricted number of days, as follows:
a.	Up to six calendar days from start to finish is allowed for an off-premise permit, except as provided below;
b.	Up to twenty calendar days from start to finish is allowed for an off-premise permit for the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show.
c.	The board may, in its informed discretion, approve consecutive off-premise permits for a recurring special event at the same location for a limited period of time. 

5.	A motor vehicle dealer must make an off-premise permit readily-available for inspection by any person at the off-premise location during the entire period that the permit is valid.
 
6.	A motor vehicle dealer must ensure that every person it uses for sales activity at an off-premise sales event has been issued a Colorado motor vehicle salesperson’s license by no later than fourteen calendar days prior to the off-premise event.
 
7.	By no later than fourteen calendar days prior to the off-premise event, a motor vehicle dealer must submit a completed application form for an off-premise permit.  The board shall reject for filing any application for an off-premise permit that is not accompanied by a remittance in the full amount of the fee for the permit.  The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions. 

8.	A motor vehicle dealer may occasionally display vehicles without an off-premise permit at an event away from the dealership.  Sales activity is prohibited.  However, a person may be present to provide security or to distribute information about the dealership and its vehicles.

9.	The books and records of each dealer, excluding financial statements and tax returns, shall be open to inspection Monday through Friday between 9AM and 5PM by the Board and its agents and representatives with cause, including ongoing investigation, compliance audit, sworn complaint, order of the Board. All records, including financial records and tax returns shall be provided upon subpoena by the Board. However, all records provided by a Dealer to the Board or its agents or representatives, either voluntarily or pursuant to a subpoena, shall be made available to the Dealer for testing, inspection, or copying upon a request by the Dealer.

10.	Additional locations which are immediately adjacent to the principal place of business of the licensed dealer shall be considered contiguous for the purpose of this statute. “Immediately adjacent” shall mean either next to or directly or diagonally across from the dealership even if a public road or thoroughfare is between the additional location and the dealer’s principal place of business. Subject to any applicable local zoning or sign requirements, the additional location shall not have any signage which identifies the additional location as being operated under any name other than the name or tradename of the licensee’s principal place of business. The additional location may not advertise under a different name than that under which the dealership is licensed.

Proposed Revised Regulation 12-6-104(3)(g)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-103, 12-6-104, 12-6-105, 12-6-108, 12-6-108.5, 12-6-109, 12-6-110, 12-6-111, 12-6-112, 12-6-112.2, 12-6-113, 12-6-115, 12-6-116, 12-6-117, 12-6-118, and 12-6-119.

Basis and Purpose:  To improve and clarify the Board’s licensure process for licenses under the Board’s jurisdiction, including providing details related to the application process for: 1) new licenses; 2) changes of a licensee’s trade name on an existing license; 3) additional business locations for a licensee; and, 4) material change in the operating entity of a licensee.

PROPOSED REVISED REGULATION:

Regulation 12-6-104(3)(g)

1.	An applicant for a license issued by the board must complete and submit the appropriate application form.  The board shall reject for filing any application that is defective in any one or more of the following ways:  a) the application is not accompanied by a remittance in the full amount of the fee for the specific license; and, b) the application does not include a copy of the required bond in the correct amount.  The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions. 

2.	An applicant whose license application has been accepted for filing must respond to every request for additional information within the time allowed and in the manner required by the requestor.

3.	An applicant must include with an application the full name of, date of birth of, current residence address for, and other required identifying information related to each natural person who possesses one or more of the following characteristics:
a.	an ownership, financial, or equity interest in the applicant; or,
b.	an ability to control the applicant or to exercise significant financial or operational influence over the applicant.
An applicant that is subject to the reporting requirements of the “Securities Exchange Act of 1934,” as amended, 15 U.S.C. § 78a et seq., need not include the identifying information in this paragraph 3 for any stockholder.

4.	All information submitted to the board, by application for license or otherwise, shall be given fully, faithfully, truthfully and fairly. The failure of an applicant or licensee to so inform the board shall be grounds for suspension, revocation or denial of the license.

5.	The board may deny a license for any one of or any combination of the following reasons:
a.	the application is incomplete; or, 
b.	the information provided in the application does not fulfill a requirement of any one of or any combination of the following: 1) the application form; 2) the instructions for the application; 3) this regulation; or, 4) other relevant law or regulation;  or,
c.	the applicant either did not respond to a request for additional information or provided an inadequate response,  or both; or,
d.	the information contained in the application or the associated background investigation, or both, establishes a separate basis in relevant law or regulation to deny the license.

6.	 Not less than ten days prior to changing the trade name of a licensed business, the licensee must submit a written application to the board seeking approval for the change.

7.	Additional places of business are allowed in the name of the principal place of business, but they must display a sign with the same name as that required by the board for the principal location, and, if the additional place of business is more than just a storage lot, the licensee must provide adequate office and sanitary facilities.  Locations contiguous to the principal place of business are not considered additional locations. The books and records of an additional location may be maintained at the principal place of business.

8.	Prior to a licensee’s doing business under a different name at an additional place of business, the licensee must submit for the board’s approval a new, complete application, together with the appropriate fee, and the correct bond.
  
9.	Prior to a licensee’s making a material change to the operating entity under which the licensee does business, the licensee must submit for the board’s approval a new, complete application, together with the appropriate fee, and the correct bond.

10.	A licensee must conduct business solely under its licensed name.  However, if a licensee is one of several dealers with common ownership, the licensee may advertise under a name that reflects the common ownership.  Designations like the following, which clearly reflect common ownership, are acceptable solely for advertising purposes:  “John Doe Dealerships” or “Joe's Automotive Group.”

Proposed Revised Regulation 12-6-104(3)(i)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-103, 12-6-104, 12-6-105, 12-6-108 and 12-6-117.

Basis and Purpose:  To provide for appropriately positioned, visible signage for both the consumer and enforcement personnel, while concomitantly recognizing the modern variety of permitted dealership locations.

PROPOSED REVISED REGULATION:

Regulation 12-6-104(3)(i)

A licensed motor vehicle dealer must display a permanent sign or device at its principal place of business and at every other approved business location.  The sign or device must identify the dealer by its licensed name and be clearly visible to the public from outside the building that houses the dealership or from the public entry area of the building that houses the dealership.

Proposed Revised Regulation 12-6-105(1)(b)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-103, 12-6-104, 12-6-105, 12-6-107, 12-6-108, 12-6-115, 12-6-116, 12-6-118, and 12-6-119.

Basis and Purpose:  To clarify the board’s delegation of duties to the Executive Secretary.

PROPOSED REVISED REGULATION:

Regulation 12-6-105(1)(b)

In addition to any other duties delegated to the Executive Secretary of the Motor Vehicle Dealer Board contained in the board's regulations, the board delegates to the Executive Secretary the authority to perform the following ministerial acts:

(I)	The Executive Secretary may set and maintain the board's docket, grant motions for continuances and motions for enlargements of time, issue subpoenas, and issue final agency orders pursuant to the board's action. The Executive Secretary may honor, within a reasonable time, a written request from an interested person to appear before the board at a regularly scheduled board meeting.

(II)	The Executive Secretary may write, sign, and issue board orders and correspondence on behalf of the board consistent with the board's action or direction. The Executive Secretary may sign and issue notices of charges after the board has referred the matter for a hearing pursuant to section 12-6-104 (3)(f)(II), C.R.S., and after drafting and review by the office of the Attorney General.

(III)	The board delegates to the Executive Secretary the authority to conduct informal fact-finding conferences and make recommendations to the board for the granting or denying of an application.

Proposed Revised Regulation 12-6-115(6)
Statement of Authority, Basis and Purpose

Statutory Authority:  Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-103, 12-6-104, 12-6-105, 12-6-107, 12-6-108, 12-6-115, 12-6-116, 12-6-117, 12-6-118, and 12-6-119.

Basis and Purpose:  To modernize the language of the regulation and also to afford the executive secretary a more reasonable time to forward the documents to the licensee, taking into account possible weekend and holiday periods after the executive secretary is served the documents.

PROPOSED REVISED REGULATION:

Regulation 12-6-115(6)

If the executive secretary of the board is served with process for a licensee, the executive secretary shall, no later than four days after receipt of the process, mail a copy of the served documents, by certified mail with return receipt request, to the licensee at the licensee’s address last furnished to the board by the licensee and to the surety on the licensee’s bond at the surety’s address on the bond.