[Formerly12-6-102]Definitions.Asusedinthispart 1, and in part 5 of this article 64OF THIS ARTICLE 20, unless the context or section 12-6-502-20-402 otherwise requires:

(1) "Advertise" or "advertisement" means any commercial message in any newspaper, magazine, leaflet, flyer, or catalog, on radio, television, or a public address system, in direct mail literature or other printedmaterial,onanyinteriororexteriorsignordisplay,inanywindow display,onacomputerdisplay,orinanypoint-of-transactionliteratureor price tag that is delivered or made available to a customer or prospective customer in any manner;

except that the term does not include materials required to be displayed by federal or state law.

(2) "Board" means the motor vehicle dealer board.

-5- 030 (3) "Business incidental thereto" means a business owned by the motor vehicle dealer or used motor vehicle dealer related to the sale of motor vehicles, including motor vehicle part sales, motor vehicle repair, motor vehicle recycling, motor vehicle security interest assignment, and motor vehicle towing.

(4) (a) "Buyer agent" means any person required to be licensed pursuant to this part 1 who is retained or hired bya consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle.

(b) (I) "Buyer agent" does not include a person whose business includes the purchase of motor vehicles primarily for resale or lease;

except that nothing in this subsection (4) prohibits a buyer agent from assisting a consumer regarding the disposal of a trade-in motor vehicle that is incident to the purchase or lease of a vehicle if the buyer agent does not advertise the sale of, or sell, the vehicle to the general public, directs interested dealers and wholesalers to communicate their offers directlyto the consumer or to the consumer via the buyer agent, does not handleortransfertitlesorfundsbetweentheconsumerandthepurchaser, receives no compensation from a dealer or wholesaler purchasing a consumer's vehicle, and identifies himself or herself as a buyer agent to dealers and wholesalers interested in the consumer's vehicle.

(II) A "buyer agent" licensed under this part 1 shall not be employed by or receive a fee from a person whose business includes the purchase of motor vehicles primarily for resale or lease, a motor vehicle manufacturer, a motor vehicle dealer, or a used motor vehicle dealer.

(5) "Coerce" means to compel or attempt to compel by threatening, retaliating, or exerting economic force or bynot performing -6- 030 orcomplyingwithanytermsorprovisionsof thefranchiseoragreement;

exceptthatrecommendation,exposition,persuasion,urging,orargument do not constitute coercion.

(6) "Consumer" means a purchaser or lessee of a motor vehicle used for business, personal, family, or household purposes.

"Consumer" does not include a purchaser of motor vehicles primarily for resale.

(7)(a) "Customtrailer"meansanymotorvehiclethatisnotdriven or propelled by its own power and is designed to be attached to, become a part of, or be drawn by a motor vehicle and that is uniquely designed and manufactured for a specific purpose or customer.

(b) "Customtrailer"doesnotincludemanufacturedhousing,farm tractors,andothermachinesandtoolsusedintheproduction,harvest,and care of farm products.

(8) "Director" means the director of the auto industry division created in section 12-6-1054-20-105.

(9) "Distributor"meansaperson,residentornonresident,who,in whole or in part, sells or distributes new motor vehicles to motor vehicle dealers or who maintains distributor representatives.

(10) "Executive director" means the executive director of the departmentofrevenuechargedwiththeadministration,enforcement,and issuance or denial of the licensing of buyer agents, distributors, manufacturer representatives, and manufacturers.

(11) (10) "Fire truck" means a vehicle intended for use in the exterminationoffires,withfeaturesthatmayincludeafirepump,awater tank, an aerial ladder, an elevated platform, or any combination thereof.

(12) (11) "Franchise" means the authority to sell or service and repair motor vehicles of a designated line-make granted through a sales, -7- 030 service, and parts agreement with a manufacturer, distributor, or manufacturer representative.

(13) (12) "Good faith" means the duty of each party to any franchiseandallofficers,employees,oragentsthereoftoactinafairand equitable manner toward each other so as to guarantee the one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party.

Recommendation, endorsement, exposition, persuasion, urging, or argument shall not be deemed to constitute a lack of good faith.

(14)(13) "Line-make" means a group or series of motor vehicles that have the same brand identification or brand name, based upon the manufacturer's trademark, trade name, or logo.

(15)(14) "Manufacturer" means any person, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new and unused motor vehicles;

except that "manufacturer" does not include:

(a) Apersonwhoonlymanufacturesutilitytrailersthatweighless than two thousand pounds and does not manufacture any other type of motor vehicle;

and (b) Aperson,otherthanamanufactureroperatingamotorvehicle dealer in accordance with section 12-6-120.5 44-20-126, who is a licensed dealer selling motor vehicles that the person has manufactured.

(16)(15) "Manufacturer representative" means a representative employedbyapersonwhomanufacturesorassemblesmotorvehiclesfor the purpose of making or promoting the sale of its motor vehicles or for supervising or contacting its dealers or prospective dealers.

(17)(16) "Motorvehicle"meanseveryvehicleintendedprimarily -8- 030 for use on the public highways that is self-propelled and every vehicle intended primarily for operation on the public highways that is not self-propelled but is designed to be attached to, become a part of, or be drawn by a self-propelled vehicle, not including farm tractors and other machines and tools used in the production, harvesting, and care of farm products.

"Motor vehicle" includes a low-power scooter or autocycle as either is defined in section 42-1-102.

(18) (17) "Motor vehicle auctioneer" means any person, not otherwise required to be licensed pursuant to this part 1, who is engaged in the business of offering to sell, or selling, used motor vehicles owned by persons other than the auctioneer at public auction only.

Any auctioning of motor vehicles by an auctioneer must be incidental to the primary business of auctioning goods.

(19) (18) "Motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged whollyor in part in the business of selling or leasing new or new and used motor vehicles, whether or not the motor vehicles are owned by the person.

The sale or leaseofthreeormorenewornewandusedmotorvehiclesortheoffering for sale or lease of more than three new or new and used motor vehicles atthesameaddressortelephonenumberinanyonecalendaryearisprima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles.

"Motor vehicle dealer" includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on the -9- 030 propertyduring one calendar year unless sTHE property is leased toa licensed motor vehicle dealer.

"Motor vehicle dealer" does not include:

(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court;

(b) Public officers while performing their official duties;

(c) Employees of a motor vehicle dealer when engaged in the specific performance of their duties as employees;

(d) A wholesaler or anyone selling motor vehicles solely to wholesalers;

(e) Any person engaged in the selling of a fire truck;

or (f) A motor vehicle auctioneer.

(20) (19) "Motor vehicle salesperson" means a natural person who,forasalary,commission,orcompensationof anykind,isemployed either directlyor indirectly, regularlyor occasionally, bya motor vehicle dealer or used motor vehicle dealer to sell, lease, purchase, or exchange or to negotiate for the sale, lease, purchase, or exchange of motor vehicles.

(21)(20) "New motor vehicle" means a motor vehicle that has been transferred on a manufacturer's statement of origin and that has sufficiently low mileage to be considered new, as determined by the board.

(22)(21) "Person"meansanynaturalperson,estate,trust,limited liability company, partnership, association, corporation, or other legal entity, including a registered limited liability partnership.

(23)(22) "Principal place of business" means a site or location devotedexclusivelytothebusinessforwhichthemotorvehicledealeror -10- 030 used motor vehicle dealer is licensed, and businesses incidental thereto, sufficiently designated to admit of definite description, with adequate contiguous space to permit the displayof one or more new or used motor vehicles,withapermanentenclosedbuildingorstructurelargeenoughto accommodate the office of the dealer and to provide a safe place to keep the books and other records of the business of the dealer, at which site or location the principal portion of the dealer's business shall be conducted and the books and records thereof kept and maintained;

except that a dealer maykeep its books and records at an off-site location in Colorado after notifying the board in writing of the location at least thirty days in advance.

(24)(23) "Recreational vehicle" means a camping trailer, fifth wheeltrailer,motorhome,recreationalparktrailer,traveltrailer,ortruck camper, all as defined in section 24-32-902, or multipurpose trailer, as defined in section 42-1-102.

(25) (24) "Sales, service, and parts agreement" means an agreement between a manufacturer, distributor, or manufacturer representative and a motor vehicle or powersports dealer authorizing the dealertosellandservicealine-makeofmotororpowersportsvehiclesor imposing any duty on the dealer in consideration for the right to have or competitively operate a franchise, including any amendments or additionalrelatedagreementsthereto.Eachamendment,modification,or addendumthatmateriallyaffectstherights,responsibilities,orobligations of the contracting parties creates a new sales, service, and parts agreement.

(26)(25) "Sitecontrolprovision"meansanagreementthatapplies to real property owned or leased by a franchisee and that gives a motor -11- 030 vehicleorpowersportsvehiclemanufacturer,distributor,ormanufacturer representative the right to:

(a) Control the use and development of the real property;

(b) Require the franchisee to establish or maintain an exclusive dealership facility at the real property;

or (c) Restrict the franchisee from transferring, selling, leasing, developing, or changing the use of the real property.

(27) (26) "Used motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thingofvalue,sells,exchanges,leases,oroffersaninterestinusedmotor vehicles,orattemptstonegotiateasale,exchange,orleaseofusedmotor vehicles, or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not the motor vehicles are owned bythe person.

The sale of three or more used motor vehicles or the offering for sale of more than three used motor vehicles at the same address or telephone number in any one calendar year is prima facie evidence that a person is engaged in thebusinessof sellingusedmotor vehicles.

"Used motor vehicle dealer" includes an owner of real property who allows morethanthreeusedmotorvehiclestobeofferedforsaleontheproperty during one calendar year unless saidproperty is leased to a licensed usedmotorvehicledealer."Usedmotorvehicledealer"doesnotinclude:

(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court;

(b) Public officers while performing their official duties;

(c) Employeesofausedmotorvehicledealerwhenengagedinthe specific performance of their duties as employees;

-12- 030 (d) A wholesaler or anyone selling motor vehicles solely to wholesalers;

(e) Mortgageesorsecuredpartiesastosalesinanyoneyearofnot more than twelve motor vehicles constitutingcollateral on a mortgage or securityagreement,ifthemortgageesorsecuredpartiesdonotrealizefor their own account any money in excess of the outstanding balance secured by the mortgage or security agreement, plus costs of collection;

(f) Apersonwhoonlysellsorexchangesnomorethanfourmotor vehiclesthatarecollector'sitemsunderpart3or4ofarticle12oftitle42;

(g) A motor vehicle auctioneer;

or (h) An operator, as defined in section 42-4-2102 (5), who sells a motor vehicle pursuant to section 42-4-2104.

(28) (27) "Wholesale motor vehicle auction dealer" means a personorfirmthatprovidesauctionservicesinwholesaletransactionsin which the purchasers are motor vehicle dealers licensed by this state or anyotherjurisdictionorinconsumertransactionsofgovernmentvehicles at a time and place that does not conflict with a wholesale motor vehicle auction conducted by that licensee.

(29)(28) "Wholesaler" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, or offers or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles solely to motor vehicle dealers or used motor vehicle dealers.

44-20-103.

[Formerly 12-6-103] Motor vehicle dealer board - creation.

(1) There is hereby created and established the motor vehicle dealerboard,consistingofninememberswhohavebeenresidentsofthis stateforatleastfiveyears,threeof whomshallbelicensedmotorvehicle -13- 030 dealers, three of whom shall be licensed used motor vehicle dealers, and three of whom shall be members from the public at large.

The members representing the public at large shall not have a present or past financial interest in a motor vehicle dealership.

The board shall assume its duties July1, 1992, andalltermsof the board members shall commence on that date.The terms of office of the board members shall be three years.

Any vacancies shall be filled by appointment for the unexpired term.

(2) All board members shall be appointed by the governor.

(3) Each board member shall be reimbursed for actual and necessary expenses incurred while engaged in the discharge of official duties.

44-20-104.

[Formerly 12-6-104] Board - oath - meetings - powers and duties - rules.

(1) Each member of the board, before entering on the discharge of such member's duties and within thirty days after the effective date of suchmember's appointment, shall subscribe an oath for the faithful performance of suchmember'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 reasonablynecessary to implement this part 1, including the administration, enforcement, issuance, and denial of licenses to motor vehicle dealers, motor vehicle -14- 030 salespersons,usedmotorvehicledealers,wholesalemotorvehicleauction dealers, and wholesalers, and the laws of the state of Colorado;

(a.5)(b) Todelegatetotheboard'sexecutivesecretary,employed pursuant to section 12-6-105 (2)(b)4-20-105 (2)(b), the authority to execute all actions within the powerof the board, carryout the directives of the board, and make recommendations to the board on all matters within the authority of the board;

(a.7)(c) To issue through the department of revenue a temporary license to any person applying for any license issued by the board.

The temporarylicense shall permit the applicant to operate for aperiodnot 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 suchE license.

A temporary license is terminated when the applicant's license is issued or denied.

(b) and (c) (Deleted byamendment, L.

92, p.

1842, § 4, effective July 1, 1992.) (d) (I) To issue through the department of revenue and, for reasonablecauseshownoruponsatisfactoryproof of theunfitness of the applicantunderstandardsestablishedandsetforthinthispart1,torefuse 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) Afterduenoticeandahearing,to review the findings ofan 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 -15- 030 issue or to reinstate, on such terms and conditions and for such period of timeastotheboardappearfairandjust,anylicenseissuedunderthispart 1.Theboardmaydirectaletterofadmonitionforminorviolationsormay issue a letter of reprimand to anylicensee 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 anysubsequent violation bythe 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 such 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-dayperiod, 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 subparagraph(I)of this paragraph (e)UBSECTION (3)(e)(IOF THIS SECTIONshall 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, or wholesaler of anyof the terms and provisions of this part 1 or of anyrule 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,mayissuesubpoenas,andmaydelegatetheauthoritytoissue subpoenas to the director, and the director shall make an investigation of all complaints transmitted by the board pursuant to section 12-6-105 (3) -16- 030 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 6LE 20 has occurred, it mayorder that an administrative hearing be held pursuant to section 24-4-105.

(f.5)(g) Tosummarilyissuecease-and-desistordersonsuchterms and conditions and for such period of time as to the board appears fair and just to any person who is licensed by the board pursuant to this part 1 if suchTHE orders are followed by notice and a hearing pursuant to section 12-6-11944-20-122;

(g) (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', and wholesalers' licensesto be issued and to requireof such applicants,asacondition precedent to the issuance of such THE licenses, such information concerningtheirfitnesstobelicensedunderthispart1asitmayconsider necessary.

Every application for a motor vehicle dealer's license or used motor vehicle dealer's license shall contain, in addition to such information as the board mayrequire, a statement of the following facts:

(I) The name and residence address of the applicant and the trade name,ifany,underwhichsuch THE applicantintendstoconductsuch THE applicant'sbusinessand,if theapplicantisacopartnership,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 -17- 030 corporationandthenameandaddressofeachofitsprincipalofficersand 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 namesofthenewmotorvehiclesthattheapplicanthasbeenenfranchised 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.

(h)(i) Toadoptasealwiththewords"motorvehicledealerboard" and such other devices as the board may desire engraved thereon by which it shall authenticate the acts of its office;

(i)(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 suchHE dealers in conjunction with their principal place of business have erected or posted thereon suchHE signs or devices providing information relating to the dealer's name, the location and address of such dealer's principal place of business, the type of license held by the dealer, and the number thereof, as the board shall consider necessaryto enable anyperson doing business with suchHE dealer to identify sTHE dealer properly, and for this purpose to determine the size and shape of suchsigns or devices, the lettering thereon, and other details thereof and to prescribe -18- 030 rules and regulations for the location thereof;

(j) (I) (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'slicense,usedmotorvehicledealer'slicense,wholesalemotor vehicle auction dealer's license, or wholesaler's license;

(II) and (III) (Deleted byamendment, L.

98, p.

592, § 4, effective July 1, 1998.) (k) (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 or motor vehicle salesperson, other than a retail installment sales contract subjecttotheprovisionsofthe"UniformConsumerCreditCode",articles 1 to 9 of title 5, C.R.S., 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, suchHE purchaser should seek legal assistance;

(B) In bold-faced type, of the size specified in sub-subparagraph (A)of thissubparagraph(I)SUBSECTION (3)(l)(I)(AOFTHISSECTION ,an instruction that onlythose terms in written form embodythe contract for saleofamotorvehicleandthatanyconflictingoralrepresentationsmade to the purchaser are void;

(C) In bold-faced type, of the size specified in sub-subparagraph (A) of this subparagraph (I)BSECTION (3)(l)(I)(AOF THIS SECTION, a -19- 030 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 sub-subparagraph (A) of this subparagraph (I)SECTION (3)(l)(I)(AOF 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 approvalof credit financing for the purchaser arranged by or through the motor vehicle dealer, in bold-facedtype,astatementthatthepurchasershallagreetopurchasethe motor vehicle which THAT is the subject of the sale from the motor vehicle dealer at not greater than a certain annual percentage rate of financing,whichannualpercentagerateoffinancingshallbeagreedupon by the parties and entered in writing on the contract;

(E) Except as otherwise provided under part 1 of article 1 of title 6, C.R.S.,here thepurchasepriceof themotorvehicleisnotpaidtothe motor vehicle dealer in full at the time of consummation of the sale and thepurchaserandmotorvehicledealerelectthatthemotorvehicledealer shall deliver and the purchaser shall take possession of suchotor 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 asfinancingof thepurchaseprice of suchHE motor vehicle is arrangedfortheobligorbyorthroughtheauthorizedmotorvehicledealer 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 bythe parties and entered in writing on the -20- 030 contract.

(II) The information required by subparagraph (I) of this paragraph (k)SUBSECTION (3)(l)(IOF 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 bysubparagraph (I) of this paragraph (k)SUBSECTION (3)(l)(IOF THIS SECTION shall be mandatory for the sale of any motor vehicle.

(IV) Theboardmayrequirealicenseetoincludewithaconsumer sales contract a written notice that provides to the consumer the contact informationoftheboardandinformationabouttheboard'sauthorityover consumer motor vehicle sales.

(l) (Deleted by amendment, L.

98, p.

592, § 4, effective July 1, 1998.) (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, toimposeanadministrativefineuponitsowninitiative,nottoexceedten 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 primarilymotor 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, themaximumfinethat maybe imposed is ten thousand dollars for eachoffensebyanypersonlicensedbytheboardunderthispart1;except that, for motor vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the fine for each offense must -21- 030 not exceed one thousand dollars.

Whenever a licensing hearing is conducted by a hearing officer, the sanctions that may be recommended bythe 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 hundreddollars,orbothaprobationaryperiodandfineforeachviolation 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 matterbeforetheboardbecauseofbusinesscompetitionissuesconnected with the parties involved in suchE matter.

(II) The findings of theboardpursuantto subparagraph (I) of this paragraph (m) SUBSECTION (3)(m)(I)OF THIS SECTION shall be final.

(n) (Deleted by amendment, L.

2007, p.

1578, § 4, effective July 1, 2007.) (o) (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, C.R.S.,to have violated the provisions of section 12-6-120 (2) 44-20-124 (2).

For the purposes of this paragraph (o) SUBSECTION (3)(n), the address for the notice to be given under section 24-4-105 C.R.S.,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 propertyuponwhich motor vehicles are displayed in violation of section 12-6-120 (2)44-20-124 (2) as indicated in the records of the county assessor's office;

or an address for service of process in -22- 030 accordance with rule 4 of the Colorado rules of civil procedure.

(II) Anyperson who fails to paya fine ordered bythe board for a violation of section 12-6-120 (2)20-124(2) under this paragraph (o) SUBSECTION (3)(n) shall be subject to enforcement proceedings, by the boardthroughtheattorneygeneral,inthecountyordistrictcourtpursuant to the Colorado rules of civil procedure.

Any fines collected under the provisions of this paragraph (o)BSECTION (3)(n) shall be disposed of pursuant to section 12-6-1244-20-133.

(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.

44-20-105.

[Formerly 12-6-105] Auto industry division - creation - powers and duties of executive director and director.

(1) Thereisherebycreatedinthedepartmentofrevenue theautoindustry division, the head of which is the director of the division.

The director is appointed by the executive director of the department serves at the pleasure of the executive director.

The division shall exercise its powers and perform its duties and functions under the department as if the division were transferred to the department by a type 2 transfer as described in section 24-1-105.

(2) The executive director is hereby charged with the administration, enforcement, and issuance or denial of the licensing of buyer agents, distributors, manufacturer representatives, and manufacturers, and has the following powers and duties:

(a) Topromulgate, amend, andrepealreasonablerulesrelatingto those functions the executive director is mandated to carry out pursuant -23- 030 to this part 1 and the laws of the state of Colorado that the executive director deems necessary to implement this part 1;

(b) To employ, subject to the laws of the state of Colorado and after consultation with the board, an executive secretary for the board, who is accountable to the board and shall, pursuant to delegation by the board, discharge the responsibilities of the board under this part 1;

(c) Toissue and, for reasonable cause shown or uponsatisfactory proofoftheunfitnessoftheapplicantunderstandardsestablishedandset forth in this part 1, to refuse to issue to any applicant any license the executive director is authorized to issue by this part 1;

(d) To prescribe the formstobe used for applications for licenses to be issued by the executive director under this part 1 and to require of such THE applicants,asaconditionprecedentto the issuanceof THEh licenses, such information concerning the applicant's fitness to be licensed under this part 1 as the executive director considers necessary;

(e) (I) To summarily issue cease-and-desist orders on such terms and conditions and for such period of time as to the executive director appears fair and just to any person who is licensed by the executive director pursuant to this part 1 if suchers are followed by notice and a hearing pursuant to section 12-6-104 (3)(e)(I)04 (3)(e)(I);

(II) To issue cease-and-desist orders to persons acting as manufacturers without the manufacturer's license required bythis part 1;

and (III) Toimposeafine,nottoexceedonethousanddollarsperday, foreachviolationofsection12-6-120(1)44-20-124(1)afteranoticeand hearing subject to section 24-4-105.

(3) (a) The director may:

-24- 030 (I) Employ such clerks, deputies, and assistants as the director considers necessaryto discharge the duties imposed upon the director or executive director by this part 1 and to designate the duties of such clerks, deputies, and assistants;

(II) Investigate, upon the director's own initiative, upon the written andsignedcomplaintof anyperson,oruponrequestbythe board under section 12-6-104 (3)(f)(I)20-104 (3)(f)(I), any suspected or alleged violation by a person licensed under this part 1 or of any rule promulgated under this articARTICLE 20.

(b) Theinvestigatorsandtheirsupervisorsutilizedbythedirector, while actually engaged in performing their duties, have the authority as delegatedbythedirectortoissuesubpoenasinrelationtoperformanceof their duties enforcing this part 1 and the authority as delegated by the director to issue summonses for violations of sections 12-6-120 (2) 44-20-124 (2) and 42-6-142, to issue misdemeanor summonses for violations of section 12-6-119.5 (1)(a)-123 (1)(a), and to procure criminal records during an investigation.

(4) If any person fails to comply with a cease-and-desist order issuedpursuanttothissection,theexecutivedirectormaybringasuitfor injunction to prevent any further and continued violation of such order.

In any such suit, the final proceedings of the executive director, based upon evidence in record, are prima facie evidence of the facts found therein.

(5) Repealed.

44-20-106.

[Formerly 12-6-106] Records as evidence.

Copies of all records and papers in the office of the board, director, or executive director,dulyauthenticatedunderthehandandsealoftheboard,director, -25- 030 or executive director, shall be received in evidence in all cases equally and with like effect as the original thereof.

44-20-107.

[Formerly12-6-107]Attorneygeneraltoadviseand represent.(1) Theattorneygeneralofthisstateshallrepresenttheboard, director, and executive director and shall give opinions on all questions of law relating to the interpretation of this part 1 or arising out of the administration thereof and shall appear for and in behalf of the board, director, and executive director in all actions brought byor against them, whether under this part 1 or otherwise.

(2) The board may request the attorney general to make civil investigations and enforce rules and regulationse board in cases of civilviolationsandtobringanddefendcivilsuitsandproceedingsforany ofthepurposesnecessaryandproperforcarryingoutthefunctionsofthe board.

44-20-108.

[Formerly 12-6-108] Classes of licenses.

(1) The following classes of licenses are issued under this part 1:

(a) Motor vehicle dealer's license shall permit the licensee to engage in the business of selling, exchanging, leasing, or offering new and used motor vehicles, and this form of license shall permit not more than two persons named therein who shall be owners or part owners of the business of the licensee to act as motor vehicle salespersons.

(b) Used motor vehicle dealer's license shall permit the licensee toengageinthebusinessofselling,exchanging,leasing,orofferingused motor vehicles only.

Such HE license shall also permit a licensee to negotiate for a consumer the sale, exchange, or lease of used and new motor vehicles not owned by the licensee, except those vehicles defined in section 42-1-102 (55) C.R.S.,otorcycles and section 33-14.5-101 -26- 030 (3)C.R.S.,asoff-highwayvehicles;however,priortocompletionofsuch THE sale,exchange,orleaseofamotorvehiclenotownedbythelicensee, thelicenseeshalldiscloseinwritingtotheconsumerwhetherthelicensee will receive any compensation from the consumer and whether the licensee will receive any compensation from the owner of the motor vehicle as a result of suchE transaction.

If the licensee receives compensation from the owner of the motor vehicle as a result of the transaction, the licensee shall include in the written disclosure the name of suchTHE owner from whom the licensee will receive compensation.

This form of license shall permit not more than two persons named thereinwhoshallbeownersorpartownersofthebusinessofthelicensee to act as motor vehicle salespersons.

(c) A motor vehicle salesperson's license permits the licensee to engageintheactivitiesofamotorvehiclesalespersonwhileemployedby a licensed motor vehicle dealer or used motor vehicle dealer.

(c.1) (Deleted by amendment, L.

92, p.

1849, § 8, effective July 1, 1992.) (d) Manufacturer'sordistributor'slicenseshallpermitthelicensee to engage in the activities of a manufacturer, distributor, factory branch, or distributor branch and to sell fire trucks.

(e) Wholesaler's license shall permit the licensee to engage in the activities of a wholesaler.

(f) Manufacturerrepresentative'slicenseshallpermitthelicensee to engage in the activities of a manufacturer representative.

(g) Buyeragent'slicenseshallpermitthelicenseetoengageinthe activities of a buyer agent.

(h) (I) Wholesale motor vehicle auction dealer's license shall -27- 030 permit a licensee to engage in the activities of a wholesale motor vehicle auction dealer if the licensee provides auction services solely in connectionwithwholesaletransactionsinwhichthepurchasersaremotor vehicle dealers licensed by this state or any other jurisdiction or in connection with the sale of government vehicles to consumers at a time and place that does not conflict with a wholesale motor vehicle auction conducted by that licensee.

A wholesale motor vehicle auction dealer shall abide by all laws and rules of the state of Colorado.

(II) A wholesale motor vehicle auction dealer shall maintain a check and title insurance policy for the benefit of suchaler's customersor,alternatively,awholesalemotorvehicleauctiondealershall provide written guarantees of title to THEh dealer's purchasing customersandwrittenguaranteesof paymenttosuchHE dealer'sselling dealerswithcoverageandexclusionsthatarecustomaryincheckandtitle insurance policies available to wholesale motor vehicle auction dealers.

(2) Any license issued by the executive director pursuant to law in effect prior to July 1, 1992, shall be valid for the period for which issued.

(3) The licensing requirements of this part 1 do not apply to banks, savings banks, savings and loan associations, building and loan associations, or credit unions or an affiliate or subsidiary of such entities in offering to sell, or in the sale of, a motor vehicle that was subject to a lease or that has been repossessed or foreclosed upon if the repossession or foreclosure is in connection with a loan made or originated in Colorado.

(4) The licensing requirements of this part 1 shall not applyto an insurance company selling or offering to sell a motor vehicle through a -28- 030 motor vehicle dealer or used motor vehicle dealer if the vehicle is obtained by the company as a result of an insurance claim.

44-20-109.

[Formerly 12-6-108.5] Temporary motor vehicle dealer license.

(1) (a) If a licensed motor vehicle dealer hasentered into a written agreement to sell a dealership to a purchaser and the purchaser has been awarded a new dealership franchise, the board may issue a temporary motor vehicle dealer's license to the purchaser or prospective purchaser.

The director shall issue the temporary license only after the board has received the applications for both a temporary motor vehicle dealer's license and a motor vehicle dealer's license, the appropriate application fee for the motor vehicle dealer's application, evidence of a passing test score, and evidence that the franchise has been awarded to the applicant by the manufacturer.

(b) A temporary motor vehicle dealer's license authorizes the licenseetoactasamotorvehicledealer.Temporarylicenseesaresubject to this article 6TICLE 20 and to all applicable rules adopted by the executive director or the board.

A temporary motor vehicle dealer's license is effective for up to sixty days or until the board acts on the licensee's application for a motor vehicle dealer's license, whichever is sooner.

(2) For the purpose of enabling an out-of-state dealer to sell vehicles on a temporary basis during specifically identified events, the director may issue, upon direction by the board, a temporary motor vehicle dealer's license, which is effective for thirtydays.

The temporary licensee is subject to the rules adopted by the executive director or the board.

44-20-110.

[Formerly 12-6-109] Display, form, custody, and -29- 030 use of licenses.

(1) The board and the executive director shall prescribe the form of the license to be issued by the executive director and shall imprint on each license the seal of their offices.

The executive director shall mail the license to the business address where the motor vehicle salespersonislicensed.Eachmotorvehiclesalespersonshallkeepacopy of the license at the salesperson's place of employment for inspection by employers, consumers, the director, the executive director, or the board.

Each motor vehicle dealer, manufacturer, distributor, wholesaler, manufacturer representative, wholesale motor vehicle auction dealer, or used motor vehicle dealer shall display conspicuously each person's license at the place of business for which the license was issued.

(2) Each license issued under this part 1 is separate and distinct.

Itis a violation of this part 1 for a person to exercise anyof theprivileges granted under a license that the person does not hold, or for a licensee to knowingly allow such an exercise of privileges.

44-20-111.

[Formerly 12-6-110] Fees - disposition - expenses - expiration of licenses.

(1) There shall be collected with each application the fee established pursuant to subsection (5) of this section for each of the following licenses:

(a) (I) Motor vehicle dealer's or used motor vehicle dealer's license;

(II) Motor vehicle dealer's or used motor vehicle dealer's license, for each place of business in addition to the principal place of business;

(III) Renewal or reissue of motor vehicle dealer's or used motor vehicledealer'slicenseafterchangeinlocationorlapseinprincipalplace of business;

(b) Manufacturer's license;

-30- 030 (c) Distributor's license;

(d) Wholesaler's license;

(e) (Deletedbyamendment, L.

2003, p.

1302, § 5, effective April 22, 2003.) (f)(e) Manufacturer representative's license;

(g)(f) Motor vehicle salesperson's license including, but not limited to, reissuing a license;

(h) (Deleted byamendment, L.92,p.1851,§11,effectiveJuly1, 1992.) (i)g) Buyer agent's license;

(j)h) Wholesale motor vehicle auction dealer's license.

(2) Allfeesshallbepaidtothestatetreasurer,whoshallcreditthe fees to the auto dealers license fund created in section 12-6-123 44-20-133.

(2.5)(3) If an application for a buyer agent's, motor vehicle dealer's, used motor vehicle dealer's, wholesaler's, or motor vehicle salesperson'slicenseiswithdrawnbytheapplicantpriortoissuanceofthe license, the director shall refund one-half of the license fee.

(3)(4) (a) Such Licenses, if the same have not been suspended or revoked as provided in this part 1, shall be valid until one year following the month of issuance thereof and shall then expire;

except that any license issued under this part 1 shall expire upon the voluntarysurrender thereof or upon the abandonment of the licensee's place of business for a period of more than thirty days.

(b) Thirtydaysbeforetheexpirationofalicense,thedirectorshall mailtothelicensee'sbusinessaddressof recordanoticestatingwhenthe person's license is due to expire and the fee necessary to renew the -31- 030 license.Forasalespersonormanufacturerrepresentative,thenoticeshall be mailed to the address of the dealer or manufacturer where the person is licensed.

(c) Upon the expiration of suchHE license, unless suspended or revoked,thesamemaybereneweduponthepaymentofthefeesspecified in this section, which shall accompany applications, and such THE renewal shall be made from year to year as a matter of right;

except that, if a motor vehicle dealer, used motor vehicle dealer, or wholesaler voluntarily surrenders its license or abandons its place of business for a period of more than thirty days, the licensee is required to file a new application to renew its license.

(d) Repealed.

(e) (d) Notwithstanding paragraph (a) of this subsection (3) SUBSECTION (4)(a)OF THIS SECTION , a person has a thirty-day grace period after his or her license expires, and the person may renew the licensewithinsuchthirtydayspursuanttoparagraph(c)ofthissubsection (3)SUBSECTION (4)(cOFTHIS SECTION , so long as the person has a bond in full force and effect that complies with the applicable bonding requirements of section 12-6-111, 12-6-112, or 12-6-112.2-20-112, 44-20-113,OR 44-20-114 during such THE thirty-day period.

A person applyingduringthethirty-daygraceperiodshallpayalatefeeestablished pursuant to subsection (5) of this section.

(4) (Deletedbyamendment,L.92,p.1851,§ 11, effective July1, 1992.) (5) (a) The board shall propose, as part of its annual budget request, an adjustment in the amount of each fee whichT the board is authorized by law to collect.

The budget request and the adjusted fees -32- 030 for the board shall reflect direct and indirect costs.

(b) Basedupontheappropriationmadeandsubjecttotheapproval of the executive director, the board shall adjust the fees collected by the executivedirectorsothattherevenuegeneratedfromsaid feescovers the direct and indirect costs of administering this article.

Such 20.

THE fees shall remain in effect for the fiscal year for which the appropriation is made.

(c) Whenever moneys MONEY appropriated to the board for its activities for the prior fiscal year are unexpended, said moneys MONEY shall be made a part of the appropriation to the board for thenext fiscal year, and such amount shall not be raised from fees collected bythe board or the executive director.

If a supplemental appropriation is madetotheboardforitsactivities,thefeesoftheboardandtheexecutive director,whenadjustedforthefiscalyearnextfollowingthatinwhichthe supplemental appropriation was made, shall be adjusted byan additional amount which THAT is sufficient to compensate for suchTHE supplementalappropriation.Moneys ONEY appropriatedtotheboardin the annual general appropriation bill shall be from the fund provided in section 12-6-1234-20-133.

44-20-112.

[Formerly 12-6-111] Bond of licensee.

(1) Before anymotorvehicledealer's,wholesaler's,wholesalemotorvehicleauction dealer's, or used motor vehicle dealer's license shall be issued by the board through the executive director to any applicant therefor, the said applicant shall procure and file with the board evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101 C.R.S., a good and sufficient bond with corporate surety thereon duly licensed to do business within the state, approved as -33- 030 toformbytheattorneygeneralof thestate,andconditionedthatsTHE applicantshallnotpractice fraud, make anyfraudulent representation,or violateanyoftheprovisionsofthispart1thataredesignatedbytheboard by rule in the conduct of the business for which suchlicant is licensed.Amotorvehicledealerorusedmotorvehicledealershallnotbe required to furnish an additional bond, savings account, deposit, or certificate of deposit under this section if sucher furnishes a bond, savings account, deposit, or certificate of deposit under section 12-6-51244-20-412.

(2)(a) Thepurposeofthebondprocuredbytheapplicantpursuant tosubsection(1)of this section and section12-6-112.2(1)114(1) is to provide for the reimbursement for any loss or damage suffered by any retail consumer caused byviolation of this part 1 by a motor vehicle dealer,usedmotorvehicledealer,wholesalemotorvehicleauctiondealer, or wholesaler.

For a wholesale transaction, the bond is available to each partytothetransaction;exceptthat,if aretailconsumerisinvolved,such THE consumer shall have priority to recover from the bond.

The amount of the bond shall be fifty thousand dollars for a motor vehicle dealer applicant, used motor vehicle dealer applicant, wholesale motor vehicle auctiondealerapplicant,orwholesalerapplicantexcepttheamountofthe bond shall be five thousand dollars for those dealers who sell only small utility trailers that weigh less than two thousand pounds.

The aggregate liability of the surety for all transactions shall not exceed the amount of the bond, regardless of the number of claims or claimants.

(b) No corporate suretyshall be required to make anypayment to any person claiming under such bond until a final determination of fraud or fraudulent representation has been made by the board or by a -34- 030 court of competent jurisdiction.

(3) All bonds required pursuant to this section shall be renewed annually at such time as the bondholder's license is renewed.

Such renewal may be done through a continuation certificate issued by the surety.

(4) Nothing in this part 1 shall interfere with the authority of the courtstoadministerandconductaninterpleaderactionforclaimsagainst a licensee's bond.

44-20-113.

[Formerly 12-6-112] Motor vehicle salesperson's bond.(1) Beforeanymotorvehiclesalesperson'slicenseisissuedbythe board through the executive director to any applicant therefor, the applicant shall procure and file with the board evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S.,a good and sufficient bond in the amount of fifteen thousand dollars with corporatesuretythereon dulylicensed to do business within the state, approved as to form bythe attorneygeneral ofthestate,andconditionedthatsaidEapplicantshallperformingood faith as a motor vehicle salesperson without fraud or fraudulent representation and without the violation of any of the provisions of this part 1 that are designated by the board by rule.

A motor vehicle salesperson shall not be required to furnish an additional bond, savings account, deposit, or certificate of deposit under this section if such dealerfurnishesabond,savingsaccount,deposit,orcertificateofdeposit under section 12-6-513-20-413.

(2) No corporate suretyshall be required to make anypayment to any person claiming under such bond until a final determination of fraud or fraudulent representation has been made by the board or by a -35- 030 court of competent jurisdiction.

(3) All bonds required pursuant to this section shall be renewed annually at such time as the bondholder's license is renewed.

Such renewal may be done through a continuation certificate issued by the surety.

44-20-114.

[Formerly 12-6-112.2] Buyer agent bonds.

(1) A buyer agent's license shall not be issued by the executive director to any applicant therefor until saidapplicant procures and files with the executive director evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S., good and sufficient bond in the amount of five thousand dollars with a corporate surety duly licensed to do business within the state and approved as to form bythe attorney general.

The bond shall be available to ensure that said applicant shall perform in good faith as a buyer agentwithoutfraudorfraudulentrepresentationandwithoutviolatingany of the provisions of this part 1 that are designated by the executive director by rule.

(2) All bonds required pursuant to this section shall be renewed annually at such time as the bondholder's license is renewed.

Such renewal may be done through a continuation certificate issued by the surety.

(3) No corporate suretyshall be required to make anypayment to any person claiming under such bond until a final determination of fraud or fraudulent representation has been made by the executive director or by a court of competent jurisdiction.

44-20-115.

[Formerly 12-6-112.7] Notice of claims honored against bond.

(1) A corporate surety that has provided a bond to a -36- 030 licensee pursuant to section 12-6-111, 12-6-112, or 12-6-112.2 44-20-112,44-20-113,OR 44-20-114shallprovidenoticetotheboardand executive director of any claim that is honored against the bond within thirty days after the claim is honored.

(2) Anoticeprovidedbyacorporatesuretypursuanttosubsection (1) of this section must be in the form required bythe director, subject to approval by the board, and must include the name of the licensee, the name and address of the claimant, the amount of the honored claim, and the nature of the claim against the licensee.

44-20-116.

[Formerly 12-6-113] Testing licensees.

Persons applying for a motor vehicle dealer's, used motor vehicle dealer's, wholesaler's, wholesale motor vehicle auction dealer's, or motor vehicle salesperson's license under this part 1 shall be examined for their knowledge of the motor vehicle laws of the state of Colorado and the rulespromulgatedpursuanttothispart1.Iftheapplicantisacorporation, the managing officer shall take suchTHE examination, and, if the applicant is a partnership, all the general partners shall take such examination.

No license shall be issued except upon successful passing of the examination.

The board shall implement by January 1, 2008, a psychometrically valid and reliable salesperson examination that measures the minimum level of competence necessary to practice.

This section shall not applyto apowersportsvehicledealer,used powersports vehicle dealer, or powersports salesperson licensed pursuant to part 5 PART 4 of this artiARTICLE 20.

44-20-117.

[Formerly 12-6-114] Filing of written warranties.

Each licensed manufacturer shall file with the director all written warrantiesandchangesinwrittenwarrantiesthatthemanufacturermakes -37- 030 on any motor vehicle or parts thereof.

Each licensed manufacturer shall filewiththedirectoracopyofthedeliveryandpreparationobligationsof its dealers, and these warranties and obligations constitute the dealer's only responsibility for product liability as between the dealer and the manufacturer.

Any mechanical, body, or parts defects arising from any express or implied warranties of the manufacturer constitute the manufacturer's product or warranty liability, and the manufacturer shall reasonably compensate any authorized dealer who performs work to rectify the manufacturer's product or warranty defects.

44-20-118.

[Formerly 12-6-115] Application - prelicensing education - fingerprint-based background check - rules.

(1) Applicationforamotorvehicledealer's,motorvehiclesalesperson's, used motor vehicle dealer's, wholesale motor vehicle auction dealer's, or wholesaler's license shall be made to the board.

(2) Applicationfordistributor's,manufacturerrepresentative's,or manufacturer's licenses shall be made to the executive director.

(3) All fees for licenses shall be paid at the time of the filing of application for license.

(4) To be licensed as a motor vehicle dealer, a person must file with the board a certified copyof a certificate of appointment as a dealer from a manufacturer.

(5) (a) Each person applying for a manufacturer's or distributor's license must:

(I) Filewiththedirectoracertifiedcopyofatypicalsales,service, and parts agreement with all motor vehicle dealers;

and (II) Fileevidenceoftheappointmentofanagentforprocessinthe state of Colorado.

-38- 030 (b) Within sixty days after amending or modifying or adding an addendum to the sales, service, or parts agreement of more than one motor vehicle dealer, a licensed manufacturer or distributor shall file a certified copy of the new sales, service, and parts agreement, including the changes, with the director if the amendment, modification, or addendum materially alters the rights and obligations of the contracting parties.

(6) All persons applying for a motor vehicle dealer's license, a usedmotorvehicledealer'slicense,awholesaler'slicense,amotorvehicle auctioneer'slicense,oramotorvehiclesalesman'sLESPERSON 'Slicense shall file with the board a good and sufficient instrument in writing in which heTHE APPLICANT shall appoint the secretary of the board as the true and lawful agent of said applicant upon whom all process may be served in anyaction which maythereafter be commenced against said THE applicant arising out of anyclaim for damages suffered byanyfirm, person, association, or corporation byreason of the violation of said applicantofanyofthetermsandprovisionsofthispart1oranycondition of the applicant's bond.

(7)(a) Apersonapplyingforausedmotorvehicledealer'slicense, a wholesale motor vehicle auction dealer's license, or a wholesaler's license shall file with the board a certification that the applicant has met theeducationalrequirementsforlicensureunderthissubsection(7).This subsection (7) shall not apply to a person who has held a license within the last three years as a motor vehicle dealer, used motor vehicle dealer, wholesaler,wholesalemotorvehicleauctiondealer,powersportsvehicle dealer,orusedpowersportsvehicledealerunderthispart1orpart5 PART 4 of this articleICLE20.

-39- 030 (b) An applicant for a used motor vehicle dealer's license, a wholesalemotorvehicleauctiondealer'slicense,orawholesaler'slicense shall not be licensed unless one of the following persons has completed an eight-hour prelicensing education program:

(I) The managing officer if the applicant is a corporation or limited liability company;

(II) All of the general partners if the applicant is any form of partnership;

or (III) The owner or managing officer if the applicant is a sole proprietorship.

(c) The prelicensing education program shall include, without limitation,stateandfederalstatutesandrulesgoverningthesaleofmotor vehicles.

(d) A prelicensing education program shall not fulfill the requirements of this section unless approved by the board.

The board shall approve any program with a curriculum that reasonably covers the material required by this section within eight hours.

(e) The board may adopt rules establishing reasonable fees to be charged for the prelicensing education program.

(f) The board may adopt reasonable rules to implement this section, including, without limitation, rules that govern:

(I) The content and subject matter of education;

(II) The criteria, standards, and procedures for the approval of courses and course instructors;

(III) The training facility requirements;

and (IV) The methods of instruction.

(g) An approved prelicensing program provider shall issue a -40- 030 certificate to a person who successfully completes the approved prelicensingeducationprogram.Thecurrentcertificateofcompletion,or a copyof thecertificate,shallbepostedconspicuouslyatthe dealership's principal place of business.

(h) An approved prelicensing program provider shall submit a certificatetothedirectorfor eachpersonwhosuccessfullycompletesthe prelicensing education program.

The certificate may be transmitted electronically.

(8) (a) With the submission of an application for any license issued under this part 1, each applicant shall submit a complete set of fingerprints to the Colorado bureau of investigation or the auto industry divisionforthepurposeof conductingfingerprint-basedcriminalhistory record checks.

The Colorado bureau of investigation shall forward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks.

The board or the executive director shall use the information resulting from the fingerprint-based criminal history record check to investigate and determine whether an applicant is qualified to be licensed.

The board or theexecutivedirectormayverifytheinformationanapplicantisrequired to submit.

The applicant shall pay the costs associated with the fingerprint-basedcriminalhistoryrecordchecktotheColoradobureauof investigation.

(b) This subsection (8) does not apply to a publicly traded company or the company's subsidiary.

44-20-119.

[Formerly12-6-116]Noticeofchangeofaddressor status.

(1) The board, through the executive director, shall not issue a motorvehicledealer'slicenseorusedmotorvehicledealer'slicensetoany -41- 030 applicant therefor who has no principal place of business as is defined in this part 1.

Should the motor vehicle dealer or used motor vehicle dealer change the site or location of suchE dealer's principal place of business, suchHE dealer shall immediately upon making suTHE change so notify the board in writing, and thereupon a new license shall be granted for the unexpired portion of the term of suchse at a fee established pursuant to section 12-6-110111.

Should a motor vehicle dealer or used motor vehicle dealer, for any reason whatsoever, cease to possess a principal place of business, as defined in this part 1, fromandonwhichsuch THE dealerconductsthebusinessforwhichsuch THE dealer is licensed, sTHE dealer shall immediately so notify in writing the board and, upon demand therefor by the board, shall deliver to it sucTHEdealer's license, which shall be held and retained until it appears to the board that suchlicensee again possesses a principal placeofbusiness;whereupon,suchTHEdealer'slicenseshallbereissued.

Nothinginthispart1shallbeconstruedtopreventamotorvehicledealer orusedmotorvehicledealerfromconductingthebusinessforwhichsuch THE dealer is licensed at one or more sites or locations not contiguous to suchTHE dealer'sprincipalplaceofbusinessbutoperatedandmaintained in conjunction therewith.

(2) (a) If a motor vehicle dealer changes to a new line-make of motorvehicles,addsanotherfranchiseforthesaleofnewmotorvehicles, or cancels or, for anycause whatever, otherwise loses a franchise for the sale of new motor vehicles, the dealer shall immediately so notify the board.

In the case of a cancellation or loss of franchise, the board shall determinewhetherthedealerwholostthefranchiseshouldbelicensedas a used motor vehicle dealer.

-42- 030 (b) If the motor vehicle dealer no longer possesses a franchise to sell new motor vehicles, the board shall take up, and the motor vehicle dealer shall deliver to the board, the dealer's license, and the board shall directthedirectortoissuethedealerausedmotorvehicledealer'slicense.

(c) Upon the cancellation or loss of a franchise to sell new motor vehiclesandtherelicensingofadealerasausedmotorvehicledealer,the dealer may continue in the business of a motor vehicle dealer for a time, not exceeding six months after the date of the relicensing of the dealer, toenablethedealertodisposeofthestockofnewmotorvehiclesonhand at the time of relicensing, but not otherwise.

(3) If a motor vehicle salesperson is discharged, leaves an employer,orchangesa place of employment, the motor vehicledealeror used motor vehicle dealer who last employed the salesperson shall confiscate and return such salesperson's license to the board.

Upon being reemployed as a motor vehicle salesperson, the motor vehicle salespersonshallnotifytheboard.Upon receiving suchnotification, the board shall issue a new license for the unexpired portion of such returnedlicenseaftercollectingafeesetpursuanttosection12-6-110(5) 44-20-111(5).

It shall be unlawful forTHEsalesperson to act as a motor vehicle salesperson until a new license is procured.

(4) Should a wholesaler, for anyreason whatsoever, change such THE wholesaler'splaceofbusinessorbusinessaddressduringanylicense year, suchHE wholesaler shall immediately so notify the board.

(5) Any wholesale motor vehicle auction dealer who changes a place of business or business address during anylicense year shall notify the board immediately of such dealer's new business address.

(6) (a) Except as specified in subsection (6)(d) of this section:

-43- 030 (I) A person holding an ownership interest in a licensed corporation, limited liability company, limited liability partnership, or other business entity shall not sell the interest to a person who does not already own an interest in the business entity until the owner applies to the board to be approved to hold an ownership interest in the business entity and the board approves the person to hold the interest.

(II) A licensed corporation, limited liability company, limited liabilitypartnership,orotherbusinessentityshallnotifytheboardwithin ten days after a transfer, other than a sale, of any ownership that results in a new person holding an interest in the business entity.

To continue to holdownershipinthebusiness,thetransfereeshallapplytotheboardfor approvaltocontinueholdinganownershipinterestinthebusinessentity.

(b) To be approved by the board to hold an ownership interest in a licensed business entity, the new owner must demonstrate the qualifications necessary for licensing, including a fingerprint-based criminal history record check, in accordance with this part 1.

(c)(I) Iftheboarddoesnotapproveapersontoholdanownership interest in a licensed business entity, the person shall transfer the interest within six months after acquiring the ownership interest.

(II) This subsection (6)(c) does not authorize a person to hold an interestinalicensedbusinessentitywhenthepersonacquiredtheinterest as the result of a sale that violates subsection (6)(a)(I) of this section.

(d) (I) This subsection (6) does not applyto the sale or transfer of an interest in a publicly traded company.

(II) This subsection (6) does not applyto the sale of an interest to aninstitutionalinvestorofabusinessentitythatissubjecttothereporting requirements of the "Securities Exchange Act of 1934", 15 U.S.C.

sec.

-44- 030 78a et seq., as amended.

For the purposes of this subsection (6)(d)(II), "institutional investor" means an entity, such as a pension fund, endowmentfund,insurancecompany,commercialbank,ormutualfund, thatinvestsmoneyonbehalfofitsmembersorclientsandthatisrequired by the United States securities and exchange commission to file a form 13F, or its successor form, to report quarterly holdings.

44-20-120.

[Formerly 12-6-117] Principal place of business - requirements.

(1) The building or structure required to be located on a principal place of business shall have electrical service and adequate sanitary facilities.

(2) (a) In no event shall a room in a hotel, rooming house, or apartmenthousebuildingorapartofanysingleormultipleunitdwelling house be considered a "principal place of business" within the terms and provisionsof thispart 1, unless the entire ground floorof suchel, apartment house, or rooming house building or such dwelling house is devoted principally to and occupied for commercial purposes and the office of the dealer is located on the ground floor thereof.

(b) A motor vehicle dealer who operates suchE motor vehicle dealer's business from his or her primary residence and who has been a residentofColoradofortheimmediatelyprecedingtwelve-monthperiod and is a motor vehicle dealer only because suchdealer sells custom trailers for one or more manufacturers and maintains an inventory of fewer than four vehicles at all times shall be exempt from paragraph (a) of this subsection (2)BSECTION (2)(a)OF THIS SECTION.

Any motor vehicle dealer who is issued dealer plates in accordance with this paragraph (b) pursuant toIS SUBSECTION (2)(b)AND section 42-3-116 C.R.S.,shall only use suTHE plates on trailers.

-45- 030 (3) Repealed.

(4) (3) Nothing in this section shall be construed to exempt a motor vehicle dealer from local zoning ordinances.

44-20-121.

[Formerly12-6-118]Licenses-groundsfordenial, suspension, or revocation.

(1) A manufacturer's or distributor's license may be denied, suspended, or revoked on the following grounds:

(a) (Deleted byamendment, L.

92, p.

1857, § 20, effective July1, 1992.) (b) (a) Material misstatement in an application for a license;

(c) (b) Willful failure to comply with this part 1 or any rule promulgated by the executive director;

(d) (c) Engaging, in the past or present, in any illegal business practice.

(2) A manufacturer representative's license may be denied, suspended, or revoked on the following grounds:

(a) (Deleted byamendment, L.

92,p.

1857, § 20, effective July1, 1992.) (b) (a) Material misstatement in an application for a license;

(c)(b) Willful failure to comply with anyprovision of this part 1 oranyruleorregulation promulgatedbytheexecutivedirectorunderthis part 1;

(d) (c) Having indulged in any unconscionable business practice pursuant to title 4;

C.R.S.;

(e)(d) Having coerced or attempted to coerce any motor vehicle dealer to accept delivery of any motor vehicle, parts or accessories therefor,oranyothercommoditiesorserviceswhich THAT havenotbeen ordered by saidTHE dealer;

-46- 030 (f) (e) Having coerced or attempted to coerce any motor vehicle dealer to enter into anyagreement to do anyact unfair to saiddealer by threatening to cause the cancellation of the franchise of saidE dealer;

(g) (f) Having withheld, threatened to withhold, reduced, or delayed without just cause an order for motor vehicles, parts or accessories therefor, or any other commodities or services whichAT have been ordered by a motor vehicle dealer;

(h) (g) Engaging, in the past or present, in any illegal business practice.

(3) A motor vehicle dealer's, wholesale motor vehicle auction dealer's,wholesaler's,buyeragent's,orusedmotorvehicledealer'slicense may be denied, suspended, or revoked on the following grounds:

(a) (Deleted byamendment, L.

92, p.

1857, §20, effective July1, 1992.) (b) (a) Material misstatement in an application for a license;

(c)(b) Violation of any of the terms and provisions of this part 1 or any rule or regulationomulgated by the board under this part 1;

(d) (c) Having been convicted of or pled nolo contendere to any felony,oranycrimepursuanttoarticle3,4,or5oftitle18,C.R.S., orany likecrimepursuanttofederallaworthelawofanyotherstate.Acertified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of suchE conviction in any hearing held pursuant to this articleICLE 20.

(e)(d) Defraudinganybuyer,seller,motorvehiclesalesperson,or financial institution to such person's damage;

(f) (e) Intentional or negligent failure to perform any written -47- 030 agreement with any buyer or seller;

(g)(f) Failure or refusal to furnish and keep in force any bond required under this part 1;

(h)(g) Having made a fraudulent or illegal sale, transaction, or repossession;

(i)h) Willful misrepresentation, circumvention, or concealment of orfailure to disclose, through whatsoever subterfuge or device, anyof the material particulars or the nature thereof required to be stated or furnished to the buyer;

(j) Repealed.

(k)(i) To intentionallypublish or circulate anyadvertising which THAT ismisleadingorinaccurateinanymaterialparticularorwhich THAT misrepresents anyof the products sold or furnished by a licensed dealer;

(l)j) Toknowinglypurchase,sell,orotherwiseacquireordispose of a stolen motor vehicle;

(m) (k) For any licensed motor vehicle dealer or used motor vehicle dealer, to engage in the business for which suchHE dealer is licensed without at all times maintaining a principal place of business as required by this part 1 during reasonable business hours;

(n)(l) Engaging in suchTHE business through employment of an unlicensed motor vehicle salesperson;

(o)(m) To willfully violate any state or federal law respecting commerce or motor vehicles, or any lawful rule or regulationspecting commerce or motor vehicles promulgated by any licensing or regulating authoritypertaining to motor vehicles, under circumstances in which the actconstitutingtheviolationdirectlyandnecessarilyinvolvescommerce or motor vehicles;

-48- 030 (p) (Deletedbyamendment, L.

92, p.

1857, §20,effectiveJuly1, 1992.) (q) Repealed.

(r)(n) Representing or selling as a new andunusedmotorvehicle anymotor vehicle which THAT the dealer or salesperson knows has been used and operated for demonstration purposes or which the dealer or salesperson knows is otherwise a used motor vehicle;

(s)(o) Violating any state or federal statute or regulation issued thereunder dealing with odometers;

(t) (I)p) Selling to a retail customer a motor vehicle whTHAT is not equipped or in proper condition and adjustment as required bypart 2 of article 4 of title 42 C.R.unless suchTHE vehicle is sold as a tow away, not to be driven;

(II) Repealed.

(t.1) Repealed.

(u)(q) Committing a fraudulent insurance act pursuant to section 10-1-128;

C.R.S.;

(v) (r) Failure to give notice to a prospective buyer of the acceptance or rejection of a motor vehicle purchase order agreement within a reasonable time period, as determined by the board, when the licensee is working with the prospective buyer on a finance sale or a consignment sale.

(4) A wholesaler's or wholesale motor vehicle auction dealer's license may be denied, suspended, or revoked for the selling, leasing, or offering or attempting to negotiate the sale, lease, or exchange of an interest in motor vehicles by suchTHE wholesaler or wholesale motor vehicle auction dealer to persons other than motor vehicle dealers, used -49- 030 motor vehicle dealers, or other wholesalers or wholesale motor vehicle auction dealers.

(4.5) (5) The license of a motor vehicle dealer may be denied, revoked,suspended,orotherwisesubjecttodisciplineimposedunderthis part 1 if an owner is acting as a salesperson without a motor vehicle salesperson license and the owner commits any of the acts or omissions that subject a salesperson's license to denial, revocation, or suspension under subsection (5)SUBSECTION (6) of this section.

(5) (6) The license of a motor vehicle salesperson maybe denied, revoked, or suspended on the following grounds:

(a) (Deleted byamendment, L.

92, p.1857, § 20, effective July1, 1992.) (b) (a) Material misstatement in an application for a license;

(c) (b) Failure to comply with any provision of this part 1 or any rule or regulationromulgated by the board or executive director under this part 1;

(d) (c) To engage in the business for which sucTHE licensee is licensed without having in force and effect a good and sufficient bond with corporate surety as provided in this part 1;

(e)(d) Tointentionallypublishorcirculateanyadvertisingwhich THAT ismisleadingorinaccurateinanymaterialparticularorwhich THAT misrepresentsanymotor vehicle products sold or attemptedtobesoldby such THE salesperson;

(f)(e) Having indulged in any fraudulent business practice;

(g) (f) Selling, offering, or attempting to negotiate the sale, exchange,orleaseof motorvehiclesforanymotorvehicledealerorused motor vehicle dealer for which such THE salesperson is not licensed;

-50- 030 exceptthatnegotiationwithamotorvehicledealerforthesale,exchange, orleaseof newandusedmotorvehicles,exceptthosevehiclesdefinedin section42-1-102(55)C.R.S.,asmotorcyclesandsection33-14.5-101(3) C.R.S.,as off-highway vehicles, by a salesperson compensated for said THE negotiation by the used motor vehicle dealer for which suTHE salesperson is licensed shall not be grounds for denial, revocation, or suspension;

(h) (g) Representing oneself as a salesperson for any motor vehicle dealer or used motor vehicle dealer when such salesperson is not so employed and licensed;

(i) (Deleted byamendment, L.

92, p.

1857, § 20, effective July1, 1992.) (j)(h) Having been convicted of or pled nolo contendere to any felony,oranycrimepursuanttoarticle3,4,or5oftitle18,C.R.S., orany likecrimepursuanttofederallaworthelawofanyotherstate.Acertified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of such conviction in any hearing held pursuant to this articleCLE 20.

(k)(i) Having knowingly purchased, sold, or otherwise acquired or disposed of a stolen motor vehicle;

(l)(j) Employing an unlicensed motor vehicle salesperson;

(m) (k) Violating any state or federal statute or regulation issued thereunder dealing with odometers;

(n)(l) Defrauding any retail buyer to sTHE person's damage;

(o)(m) Representingorsellingasanewandunusedmotorvehicle anymotor vehicle whichTHAT the salesperson knows has been used and operated for demonstration purposes or whichTHAT the salesperson -51- 030 knows is otherwise a used motor vehicle;

(p)(I)(n) Sellingtoaretailcustomeramotorvehiclewhich THAT is not equipped or in proper condition and adjustment as required bypart 2 of article 4 of title 42 C.R.S.,ess suchTHE vehicle is sold as a tow away, not to be driven;

(II) Repealed.

(p.1) Repealed.

(q) (o) Willfully violating any state or federal law respecting commerce or motor vehicles, or any lawful rule or regulationespecting commerce or motor vehicles promulgated by anylicensing or regulating authoritypertaining to motor vehicles, under circumstances in which the actconstitutingtheviolationdirectlyandnecessarilyinvolvescommerce or motor vehicles;

(r)(p) Improperly withholding, misappropriating, or converting to suchTHE salesperson's own use anymoneybelonging to customers or other persons, received in the course of employment as a motor vehicle salesperson.

(6)(7) Any license issued pursuant to this part 1 may be denied, revoked, or suspended if unfitness of such THE licensee or licensee applicant is shown in the following:

(a) The licensing character or record of the licensee or licensee applicant;

(b) The criminal character or record of the licensee or licensee applicant;

(c) The financial character or record of the licensee or licensee applicant;

(d) Violation of any lawful order of the board.

-52- 030 (7)(8)(a) Anylicenseissuedorforwhichanapplicationhasbeen made pursuant to this part 1 shall be revoked or denied if the licensee or applicant has been convicted of or pleaded no contest to any of the following offenses in this state or any other jurisdiction during the previous ten years:

(I) A felony in violation of article 3, 4, or 5 of title 18 C.R.S., any similar crime under federal law or the law of any other state;

or (II) A crime involving odometer fraud, salvage fraud, motor vehicle title fraud, or the defrauding of a retail consumer in a motor vehicle sale or lease transaction.

(b) A certified copy of a judgment of conviction by a court of competent jurisdiction of an offense under paragraph (a) of this subsection(7)SUBSECTION (8)(a)OFTHISSECTION isconclusiveevidence of such THE conviction in any hearing held pursuant to this article ARTICLE 20.

(8)(9) In any disciplinary hearing, action, or order of the board involving a violation of section 42-6-112 or 42-6-119 (3), C.R.S.,n affirmative defense that the dealer has taken every reasonable action necessary to deliver or facilitate the delivery of the certificate of title within thirty days.

To qualifyas having taken every reasonable action to deliver or facilitate the deliveryof the certificate of title, the dealer must have, at a minimum:

(a) Processed and mailed any required loan payoffs in a reasonable amount of time;

(b) Contacted the prior lender and taken anyactions necessaryto obtain a certificate of title or duplicate certificate of title, either of which must be free of liens;

-53- 030 (c) Takenanyactionnecessarytoobtaininformationorsignatures fromthepriorownernecessarytohaveanewcertificateoftitleissuedfor the motor vehicle;

(d) Submitted all paperwork that the dealer has obtained to the authorized agent and that is necessary to have a new certificate of title issued for the motor vehicle;

and (e) Corrected any errors in any filings with the department ina reasonable amount of time.

(9)(10) A person whose license issued under this part 1 is revoked or who surrenders a license to avoid discipline is ineligible to apply for a new license under this part 1 for one year after the date of revocation or surrender of the license.

44-20-122.

[Formerly 12-6-119] Procedure for denial, suspension, or revocation of license - judicial review.

(1) The denial, suspension, or revocation of licenses issued under this part 1 shall be in accordance with the provisions of sections 24-4-104 and 24-4-105;

C.R.S.;except that the discovery available under rule 26 (b)(2) of the Colorado rules of civil procedure is available in any proceeding.

(2) (a) (I) The board shall appoint an administrative law judge pursuant to part 10 of article 30 of title 24C.R.S.,t anyhearing concerning the licensing or discipline of a motor vehicle dealer, used motor vehicle dealer, wholesaler, buyer's agent, or wholesale motor vehicleauctiondealer;exceptthattheboardmay,uponaunanimousvote ofthememberspresentwhenthevoteistaken,conductthehearinginlieu of appointing an administrative law judge.

(II) BeginningJuly1,2008,theboardshallissueanannualreport to the executive director detailing the number of hearings held pursuant -54- 030 to this paragraph (SUBSECTION (2)(a) and the number of suTHE hearingsconducted bythe board.

If the board conducts greater than forty percent of the hearings, the executive director shall analyze the hearing procedures and acts and issue a report to the general assembly, which shall include any recommendations of the executive director.

(b) The board shall assign a hearing concerning the licensing or discipline of a motor vehicle salesperson to the executive director who shall appoint an officer to conduct a hearing.

(3) Hearings conducted before an administrative law judge shall be in accordance with the rules of procedure of the office of administrativecourts.Hearingsconductedbeforeanofficerappointedby the executive director shall be in accordance with the rules of procedure established by the executive director.

(4) The board maysummarilysuspend a licensee required to post a bond under this articleICLE20 if sucTHE licensee does not have a bond in full force and effect as required bythis article The suspension shall become effective upon the earlier of the licensee receiving notice of the suspension or within three days after the notice of suspension is mailed to a licensee's last-known address on file with the board.

The notice maybe effected bycertified mail or personal delivery.

(5) Thecourtofappealsshallhaveinitialjurisdictiontoreviewall final actions and orders that are subject to judicial review of the board.

Such T HE proceedings shall be conducted in accordance with section 24-4-106 (11).

C.R.S.

44-20-123.

[Formerly 12-6-119.5] Sales activity following license denial, suspension, or revocation - unlawful act - penalty.

(1) (a) It shall be unlawful and a violation of this part 1 for any person -55- 030 whose motor vehicle dealer's, used motor vehicle dealer's, motor vehicle wholesaler's, or motor vehicle salesperson's license has been denied, suspended,orrevokedtoexerciseanyof theprivilegesof thelicensethat was denied, suspended, or revoked.

(b) Aviolationofparagraph(a)ofthissubsection(1) SUBSECTION (1)(a)OF THIS SECTION shall be punishable in accordance with section 12-6-121 44-20-128;exceptthatasecondorsubsequentviolationofsaid paragraph (a)SUBSECTION (1)(a) OF THIS SECTION shall be a class 6 felony.

(c) In any trial for a violation of paragraph (a) of this subsection (1)SUBSECTION (1)(a)OF THIS SECTION:

(I) A duly authenticated copy of the board's order of denial, suspension, or revocation shall constitute prima facie evidence of such THE denial, suspension, or revocation;

(II) A duly authenticated invoice, buyer's order, or other customary, written sales or purchase document or instrument proven to be signed by the defendant and indicating the defendant's role in the purchase or sale of a motor vehicle at any motor vehicle auction, wholesale motor vehicle sales location, or retail motor vehicle sales location, as applicable, shall constitute prima facie evidence of the defendant's exercise of a privilege of licensure;

(III) It shall be an affirmative defense that the defendant bought or sold a motor vehicle that was, at all relevant times, intended for the defendant's own use and not bought or sold for the purpose of profit or gain;

and (IV) Thefactthatthedefendanthasamotorvehicledealer's, used motor vehicle dealer's, motor vehicle wholesaler's, or motor vehicle -56- 030 salesperson's license, or anyother license to buyand sell motor vehicles, that is issued by a state or jurisdiction other than Colorado shall not constitute a defense.

(2) Uponthedefendant'sconvictionbyentryof a plea of guiltyor nolo contendere or judgment or verdict of guilt in connection with a violation of paragraph (a) of subsection (1)SECTION (1)(a) of this section or of section 12-6-120 (2)20-124(2) or 42-6-142 (1), C.R.S., the court shall immediately give the executive director written notice of suchTHE conviction.

Inaddition,thecourt shall forward to the executive director copies of documentation of any conviction on a lesser included offense and any amended charge, plea bargain, deferred prosecution, deferred sentence, or deferred judgment in connection with the original charge.

(3) Upon receiving notice of a conviction or other disposition pursuant to subsection (2) of this section, the executive director or his or her designee shall forward suchHE notice to the motor vehicle dealer board,whichshall immediatelyexamine itsfilestodeterminewhetherin factthedefendant'slicensewasdenied,suspended,orrevokedatthetime of the offense to which the conviction or other disposition relates.

If in factthedefendant'slicensewasdenied,suspended,orrevokedatthetime of suchTHE offense, the board:

(a) Shall not issue or reinstate any license to the defendant until one year after the time the defendant would otherwise have been eligible to receive a new or reinstated license;

and (b) Shall revoke or suspend any other licenses held by the defendant until at least one year after the date of the conviction or other disposition.

-57- 030 44-20-124.