2023 Colorado Revised Statutes › Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001) › AUTOMOBILES (§§ 44-20-101 — 44-20-440) › Article 20 - SALE OF SELF-PROPELLED VEHICLES (§§ 44-20-101 — 44-20-440) › Part 4 - POWERSPORTS VEHICLES (§§ 44-20-401 — 44-20-440) › Section 44-20-420 - Licenses - grounds for denial, suspension, or revocation

(1)
A powersports vehicle manufacturer's or distributor's license may be denied, suspended, or revoked on the following grounds:
(a)
Material misstatement in an application for a license;
(b)
Willful failure to comply with this part 4 or any rule promulgated by the executive director under this part 4;
(c)
Engaging, in the past or present, in any illegal business practice.
(2)
A powersports vehicle manufacturer representative's license may be denied, suspended, or revoked on the following grounds:
(a)
Material misstatement in an application for a license;
(b)
Willful failure to comply with this part 4 or any rules promulgated by the executive director under this part 4;
(c)
Committing any unconscionable business practice under title 4;
(d)
Having coerced or attempted to coerce a powersports vehicle dealer to accept delivery of any powersports vehicle, parts or accessories therefore, or any other commodities or services that have not been ordered by the dealer;
(e)
Having coerced or attempted to coerce a powersports vehicle dealer to enter into any agreement to do an act unfair to the dealer by threatening to cause the cancellation of the dealer's franchise;
(f)
Having withheld, threatened to withhold, reduced, or delayed without just cause an order for powersports vehicles, parts or accessories therefore, or any other commodities or services that have been ordered by a powersports vehicle dealer; or
(g)
Engaging, in the past or present, in any illegal business practice.
(3)
A wholesaler's license, powersports vehicle dealer's license, or a used powersports vehicle dealer's license may be denied, suspended, or revoked on the following grounds:
(a)
Material misstatement in an application for a license;
(b)
Willful failure to comply with this part 4 or any rule promulgated by the executive director under this part 4;
(c)
Having been convicted of or pleaded nolo contendere to any felony or crime pursuant to article 3, 4, or 5 of title 18 or any like crime pursuant to federal law or the law of another state. A certified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of the conviction in a hearing held pursuant to this article 20.
(d)
Defrauding any buyer, seller, powersports vehicle salesperson, or financial institution to the person's damage;
(e)
Intentionally or negligently failing to perform any written agreement with any buyer or seller;
(f)
Failing or refusing to furnish and keep in force a bond required under this part 4;
(g)
Making a fraudulent or illegal sale, transaction, or repossession;
(h)
Willfully misrepresenting, circumventing, concealing, or failing to disclose, through subterfuge or device, any of the material particulars or the nature thereof required to be stated or furnished to the buyer;
(i)
Intentionally publishing or circulating advertising that is misleading or inaccurate in any material particular or that misrepresents a product sold or furnished by a licensed dealer;
(j)
Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen powersports vehicle;
(k)
Engaging in the business for which the dealer is licensed without at all times maintaining a principal place of business as required by this part 4 during reasonable business hours; except that the license of a powersports vehicle dealer or used powersports vehicle dealer is not subject to denial, suspension, or revocation for engaging in activities at locations away from the principal place of business as described in section
44-20-419 (2)(b)
;
(l)
Engaging in the business through employment of an unlicensed powersports vehicle salesperson;
(m)
Willfully violating any state or federal law respecting commerce or powersports vehicles, or any lawful rule respecting commerce or powersports vehicles promulgated by any licensing or regulating authority pertaining to powersports vehicles, under circumstances in which the act constituting the violation directly and necessarily involves commerce or powersports vehicles;
(n)
Representing or selling as a new and unused powersports vehicle any powersports vehicle that the dealer or salesperson knows is otherwise a used powersports vehicle;
(o)
Committing a fraudulent insurance act pursuant to section
10-1-128
;
(p)
Failing to give notice to a prospective buyer of the acceptance or rejection of a powersports 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 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 to persons other than powersports vehicle dealers, used powersports vehicle dealers, or other wholesalers.
(5)
The license of a powersports vehicle salesperson may be denied, revoked, or suspended on the following grounds:
(a)
Material misstatement in an application for a license;
(b)
Failure to comply with any provision of this part 4 or any rule promulgated by the board or executive director under this part 4;
(c)
Engaging in the business for which the licensee is licensed without having in force and effect a good and sufficient bond with corporate surety as provided in this part 4;
(d)
Intentionally publishing or circulating an advertisement that is misleading or inaccurate in any material particular or that misrepresents a powersports vehicle product sold or attempted to be sold by the salesperson;
(e)
Having indulged in any fraudulent business practice;
(f)
Selling, offering, or attempting to negotiate the sale, exchange, or lease of powersports vehicles for a powersports vehicle dealer or used powersports vehicle dealer for which the salesperson is not licensed; except that negotiation with a powersports vehicle dealer or used powersports vehicle dealer for the sale, exchange, or lease of new and used powersports vehicles, by a salesperson compensated for the negotiation by a powersports vehicle dealer or used powersports vehicle dealer for which the salesperson is licensed shall not be grounds for denial, revocation, or suspension;
(g)
Representing oneself as a salesperson for a powersports vehicle dealer when the salesperson is not so employed and licensed;
(h)
Having been convicted of or pleaded nolo contendere to any felony or any crime pursuant to article 3, 4, or 5 of title 18 or any like crime pursuant to federal law or the law of another state. A certified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of the conviction in a hearing held pursuant to this article 20.
(i)
Having knowingly purchased, sold, or otherwise acquired or disposed of a stolen powersports vehicle;
(j)
Employing an unlicensed powersports vehicle salesperson;
(k)
Defrauding any retail buyer to the person's damage;
(l)
Representing or selling as a new and unused powersports vehicle a powersports vehicle that the salesperson knows is otherwise a used powersports vehicle;
(m)
Willfully violating any state or federal law respecting commerce or powersports vehicles, or any lawful rule respecting commerce or powersports vehicles promulgated by any licensing or regulating authority pertaining to powersports vehicles, under circumstances in which the act constituting the violation directly and necessarily involves commerce or powersports vehicles;
(n)
Improperly withholding, misappropriating, or converting to the salesperson's own use any money belonging to customers or other persons received in the course of employment as a powersports vehicle salesperson.
(6)
A license issued pursuant to this part 4 may be denied, revoked, or suspended if unfitness of 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)
A violation of any lawful order of the board.
(7)
The license of a powersports vehicle dealer may be denied, revoked, suspended, or otherwise subject to discipline imposed under this part 4 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 (6) of this section.
(8)
(a)
A license issued or applied for pursuant to this part 4 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 another jurisdiction during the previous ten years:
(I)
A felony in violation of article 3, 4, or 5 of title 18 or any similar crime under federal law or the law of another state; or
(II)
A crime involving salvage fraud or the defrauding of a retail consumer in a powersports vehicle sale or lease transaction.
(b)
A certified copy of a judgment of conviction by a court of competent jurisdiction of an offense under subsection (8)(a)(I) of this section is conclusive evidence of the conviction in any hearing held pursuant to this article 20.
(9)
A person whose license issued under this part 4 is revoked or who surrenders a license to avoid discipline is ineligible to apply for a new license under this part 4 for one year after the date of revocation or surrender of the license.
Amended by 2023 Ch. 44, § 2, eff. 8/7/2023.
Renumbered from C.R.S. § 12-6-520 and amended by 2018 Ch. 7, § 2, eff. 10/1/2018.
Amended by 2017 Ch. 395, § 41, eff. 7/1/2017.
L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 114, § 2, effective October 1.
This section is similar to former § 12-6-520 as it existed prior to 2018.
2023 Ch. 44, was passed without a safety clause. See Colo. Const. art. V, § 1(3).