(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 three 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.
(a.5) In consideration of a revocation or denial of a license pursuant to subsection (8)(a) of this section, a criminal conviction may only be considered for a three-year period beginning on the date of conviction or the end of incarceration, whichever date is later, if the applicant or licensee has not been convicted of any other criminal offense during the three-year period. After the three-year period, only the individual's application or license shall be considered and only in the same manner as that of an individual who does not possess a prior criminal record; except that a conviction for a crime that is directly related to the auto industry may be considered at any time.
(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.
Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 114, � 2, effective October 1. L. 2023: (3)(k) amended, (HB 23-1140), ch. 44, p. 169, � 2, effective August 7. L. 2025: IP(8)(a) amended and (8)(a.5) added, (SB 25-075), ch. 418, p. 2364, � 2, effective August 6.
Editor's note: (1) This section is similar to former � 12-6-520 as it existed prior to 2018.
(2) Section 3(2) of chapter 418 (SB 25-075), Session Laws of Colorado 2025, provides that the act changing this section applies to license or renewal applications made on or after August 6, 2025.
44-20-421. Procedure for denial, suspension, or revocation of license - judicial review. (1) The denial, suspension, or revocation of licenses issued under this part 4 shall be in accordance with the provisions of sections 24-4-104 and 24-4-105; except that the discovery available under rule 26 (b)(2) of the Colorado rules of civil procedure is available in any proceeding.
(2) The board shall appoint an administrative law judge pursuant to part 10 of article 30 of title 24 to conduct any hearing concerning the licensing or discipline of a wholesaler, powersports vehicle dealer, used powersports vehicle dealer, powersports vehicle manufacturer, powersports vehicle manufacturer representative, or powersports vehicle distributor; except that the board may, upon a unanimous vote of the members present when the vote is taken, conduct the hearing in lieu of appointing an administrative law judge.
(3) (a) The board shall assign a hearing concerning the licensing or discipline of a powersports vehicle salesperson to the executive director, who shall appoint an officer to conduct a hearing.
(b) Hearings conducted before an administrative law judge shall be in accordance with the rules of procedure of the office of administrative courts. Hearings conducted before an officer appointed by the executive director shall be in accordance with the rules of procedure established by the executive director.
(4) The board may summarily suspend a licensee required to post a bond under this article 20 if the licensee does not have a bond in full force and effect as required by this article 20. 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 may be effected by certified mail or personal delivery.
(5) The court of appeals shall have initial jurisdiction to review all final actions and orders that are subject to judicial review of the board. The proceedings shall be conducted in accordance with section 24-4-106 (11).
Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 118, � 2, effective October 1.
Editor's note: This section is similar to former � 12-6-521 as it existed prior to 2018.
44-20-422. Sales activity following license denial, suspension, or revocation - unlawful act - penalty. (1) (a) It shall be unlawful and a violation of this part 4 for any person whose wholesaler's, powersports vehicle dealer's, used powersports vehicle dealer's, or powersports vehicle salesperson's license has been denied, suspended, or revoked to exercise the privileges of the license that was denied, suspended, or revoked.
(b) A violation of subsection (1)(a) of this section is punishable in accordance with section 44-20-429.
(c) In any trial for a violation of 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 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 powersports vehicle at a retail or wholesale powersports vehicle sales location 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 powersports 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) The fact that the defendant has a powersports vehicle dealer's, used powersports vehicle dealer's, or powersports vehicle salesperson's license, or another license to buy and sell powersports vehicles, that is issued by a state or jurisdiction other than Colorado, shall not constitute a defense.
(2) Upon the defendant's conviction by entry of a plea of guilty or nolo contendere or judgment or verdict of guilt in connection with a violation of subsection (1)(a) of this section or of section 44-20-423 (2) or 42-6-142 (1), the court shall immediately give the executive director written notice of the conviction. In addition, the court 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 the notice to the board, which shall immediately examine its files to determine whether the defendant's license was denied, suspended, or revoked at the time of the offense. If in fact the defendant's license was denied, suspended, or revoked at the time of the offense, the board shall:
(a) 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) Revoke or suspend any other licenses held by the defendant until at least one year after the date of the conviction or other disposition.
Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 119, � 2, effective October 1. L. 2023: (1)(b) amended, (HB 23-1293), ch. 298, p. 1798, � 69, effective October 1.
Editor's note: This section is similar to former � 12-6-522 as it existed prior to 2018.