Off-Premise Permit Regulations - Effective January 30, 2018
The Dealer Board adopted the following rules in their 2017 Rulemaking. Major changes to the Off-Premise Permits include:
Powersports dealers and Motor Vehicle dealers are now required to obtain off-premise permits.
Two classes of permits: one for offering and negotiating the terms of a sale, and a full sales activity permit where sales documents can be executed at the sale.
The Greeley Stampede has been added to the events where off-premise permits can be issued for up to 20 days. (These events also include the National Western Stock Show, the Colorado State Fair, and the Denver Auto Show.)
All permit applications must be submitted 14 days in advance.
All salespersons working the event must be licensed to that dealership 14 days prior to the event.
Regulation 12-6-102(16) for Motor Vehicle Dealers is listed below. Regulation 12-6-502(16) for Powersports Dealers mirrors the one for Motor Vehicle Dealers so it is not listed.
Permanent Rules Adopted Department Agency CCR number Rule title Effective date Department of Revenue Motor Vehicle Dealer Board 1 CCR 205-1 1 CCR 205-1 DEALING IN MOTOR VEHICLES 1 - eff 01/30/2018 01/30/2018 Colorado Register, Vol. 41, No. 1, January 10, 2018 Adopted Revised Regulation 12-6-102(16) Statement of Authority, Basis and Purpose Statutory Authority: Colorado Revised Statutes, Sections 12-6-101, 12-6-102, 12-6-102 (23), 12-6-103, 12-6-104, 12-6-105, 12-6-108, 12-6-109, 12-6-110 and 12-6-117. Basis and Purpose: To provide additional options and to clarify existing options for licensed vehicle dealers to display and sell their inventory at locations away from licensed dealers’ principal places of business. Also to provide improved opportunities for consumers to obtain product information and purchase or lease vehicles from licensed dealerships at short-term events occurring away from licensed dealers’ principal places of business.
1. As used in this regulation, a “motor vehicle dealer” means either a licensed motor vehicle dealer or licensed used motor vehicle dealer.
2. A motor vehicle dealer may sell motor vehicles at special sales events, shows, or other organized events, including, for example, at the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a location away from the dealership, a motor vehicle dealer must apply for the appropriate off-premise permit. A motor vehicle dealer must not engage in any sales activity at an off-premise location until the board approves the appropriate offpremise permit.
3. The board recognizes two classes of off-premise permit based upon specific sales-related conditions and restrictions. These are:
a. Class One --- a Limited Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: 1)Licensed salespersons or owners authorized to sell must be present at the off-premise location at all times when the public is present; and, 2)Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and, 3)The parties shall not execute sales-related documents at the off-premise location, but must return to the dealership to execute any sales-related documents.
b. Class Two --- a Full Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: 1)Licensed salespersons or owners authorized to sell must be present at the off-premise location at all times when the public is present; and, 2)Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and, 3)The parties may execute sales documents at the off-premise location.
4. The board issues an off-premise permit for a restricted number of days, as follows: a. Up to six calendar days from start to finish is allowed for an off-premise permit, except as provided below; b. Up to twenty calendar days from start to finish is allowed for an off-premise permit for the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show. c. The board may, in its informed discretion, approve consecutive off-premise permits for a recurring special event at the same location for a limited period of time.
5. A motor vehicle dealer must make an off-premise permit readily-available for inspection by any person at the off-premise location during the entire period that the permit is valid.
6. A motor vehicle dealer must ensure that every person it uses for sales activity at an offpremise sales event has been issued a Colorado motor vehicle salesperson’s license by no later than fourteen calendar days prior to the off-premise event.
7. By no later than fourteen calendar days prior to the off-premise event, a motor vehicle dealer must submit a completed application form for an off-premise permit. The board shall reject for filing any application for an off-premise permit that is not accompanied by a remittance in the full amount of the fee for the permit. The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions.
8. A motor vehicle dealer may occasionally display vehicles without an off-premise permit at an event or location away from the dealership. Sales activity is prohibited. However, a person may be present to provide security or to distribute information about the dealership and its vehicles.
9. The books and records of each dealer, excluding financial statements and tax returns, shall be open to inspection Monday through Friday between 9AM and 5PM by the Board and its agents and representatives with cause, including ongoing investigation, compliance audit, sworn complaint, order of the Board. All records, including financial records and tax returns shall be provided upon subpoena by the Board. However, all records provided by a Dealer to the Board or its agents or representatives, either voluntarily or pursuant to a subpoena, shall be made available to the Dealer for testing, inspection, or copying, under direct supervision by the Auto Industry Division staff, upon a request by the Dealer.
10. Additional locations which are immediately adjacent to the principal place of business of the licensed dealer shall be considered contiguous for the purpose of this statute. “Immediately adjacent” shall mean either next to or directly or diagonally across from the dealership even if a public road or thoroughfare is between the additional location and the dealer’s principal place of business. Subject to any applicable local zoning or sign requirements, the additional location shall not have any signage which identifies the additional location as being operated under any name other than the name or tradename of the licensee’s principal place of business. The additional location may not advertise under a different name than that under which the dealership is licensed.
