Is your dealership compliant with State regulations pertaining to location requirements, required sales documents, odometer disclosure and title documents?  Learn about CAPSS compliance audits.

Consumer Complaint?  Learn the basics for a consumer to file a complaint and the steps the Auto Industry Division takes to resolve the complaint.

New Salesperson?  CAPSS on-demand webinar guides the student through the confusing rules and regulations they must know to pass the exam.  The seminar offers two practice exams which test the student's knowledge and refines their test taking skills in preparation for the State's Mastery Exam.

• Go to: www.capsscolorado.com (that's CAPSS - with two SS!)
• Select Mastery Exam
• Select New Student Registration
• Register and pay with a credit card
• Start the seminar!

The student has access to the seminar for two days from their registration.  After learning the material, the student may take the state's exam on-line at:

• Colorado Mastery Exam

The exam must be administered by a licensed dealer or an approved third party provider (CAPSS). 

Call us for questions or examination appointments.

Is your dealership compliant with state regulations pertaining to location requirements, required sales documents, odometer disclosure and title documents?

• Western Slope - Connie Hatch - 970.209.7499
• Front Range - Mary Marvin - 303.478.238

RULEMAKING HEARING INFORMATION

October 17, 2014

Dear Interested Persons:

The Motor Vehicle Dealer Board will hold a Rulemaking Hearing on Thursday, November 18, 2014 at 1:00 P.M. in the Boards and Commissions Meeting Room, reached through Entrance B on the West side of the Department of Revenue building at 1881 Pierce Street, Lakewood, CO 80214. You may review the proposed regulatory changes in the Addenda, below. The Division will also post the proposed regulatory changes on its website: www.colorado.gov/enforcement/aid.

In the Rulemaking Hearing, the Board will consider proposed regulatory changes to both 1 CCR 205-1 (Dealing in Motor Vehicles) [Addendum A] and 1 CCR 205-2 (Dealing in Powersports Vehicles) [Addendum B], regarding the following topic:

Changes to Advertising Rules. The basis and purpose for adoption of the proposed changes to the advertising rules is consumer protection, better compliance, and improved enforcement through: 1) simplifying and clarifying prohibited uses of the term, "used"; 2) adding "prior rental vehicle" to the list of other known vehicle history statuses that an advertiser must disclose in an advertisement; 3) prohibiting the combination of rebates, incentives, and other offers, and prohibiting the impression that rebates, incentives, and other offers are attainable, if they are not; 4) adding a requirement that if an advertisement relates to a lease agreement, the advertisement must clearly and conspicuously disclose that the terms of the advertisement relate to a lease, not a purchase; 5) prohibiting misleading statements that may falsely assure a prospective credit purchaser of credit financing; and, 6) defining the term, "bait advertising," and prohibiting bait advertising; and, 7) defining the term, "computer display"

.

If you wish to submit written comments on any of the proposed rule changes, please either mail or email your comments:

If by US Mail, to:       Attn: Rules Manager

Colorado Motor Vehicle Dealer Board

                                    c/o Auto Industry Division --- Rm 112

                                    P.O. Box 173350

                                    Denver, CO. 80217-3350                  

If by Email, to:            dor_mvdb@state.co.us  

Special Note on submission of written comments: The Department and the Board encourage you to use Form DR 2477 if you should decide to submit written comments. The Department developed Form DR 2477 expressly to assist in the rule-making process. Form DR 2477 is available by means of a link on the following web-page: http://www.colorado.gov/cs/Satellite/Revenue-Main/XRM/1213867974594.

To be certain that your written comments arrive in time to be compiled for the hearing, please ensure that the Board receives the comments no later than November 11, 2014.

You are welcome to attend the November 18, 2014, 1:00 P.M. Rulemaking Hearing, and, if you choose, you may make verbal comments on the record in the course of the Hearing.

Yours truly,

Leland W. BeBee

Legal Assistant  

P 303.205.5696  | F 303.205.5649  

Mailing Address:  PO Box 173350|Denver, CO 80217-3350

Physical Address: 1881 Pierce St|Suite  #112|Lakewood, CO 80214

leland.bebee@state.co.us  |  www.colorado.gov/revenue/AID

ADDENDUM A

Proposed Regulations Regarding Motor Vehicles

       [Taken from the Colorado Register

         October 10, 2014 - Volume 37, No. 19

       Notices of Proposed Rulemaking,

Tracking Number 2014-00989]

Proposed New Regulation 12-6-102 (1.5)

Statement of Authority, Basis and Purpose

The Statutory Authority for the adoption of this new Regulation 12-6-102 (1.5) is Section 12-6-101, C.R.S., Section 12-6-102, C.R.S., Section 12-6-102 (1.5), Section 12-6-103, C.R.S., Section 12-6-104, C.R.S., Section 12-6-118, C.R.S., and, Section 12-6-118 (3)(k), C.R.S.

The Basis and Purpose for adoption of this new regulation in the Motor Vehicle Dealer Board Regulations is to define the term, "computer display."

PROPOSED NEW REGULATION:

regulation 12-6-102 (1.5)

The term, "Computer Display," means any electronic device capable of presenting a commercial message.

Proposed Revised Regulation 12-6-118(3)(k)

Statement of Authority, Basis and Purpose

The Statutory Authority for the adoption of this revised Regulation 12-6-118(3)(k) is Section 12-6-101, C.R.S., Section 12-6-102, C.R.S., Section 12-6-102 (1.5), Section 12-6-103, C.R.S., Section 12-6-104, C.R.S., Section 12-6-118, C.R.S., and, Section 12-6-118(3)(k), C.R.S.

The Basis and Purpose for adoption of this revised regulation in the Motor Vehicle Dealer Board Regulations is consumer protection, better compliance, and improved enforcement through: 1) simplifying and clarifying prohibited uses of the term, "used"; 2) adding "prior rental vehicle" to the list of other known vehicle history statuses that an advertiser must disclose in an advertisement; 3) prohibiting the combination of rebates, incentives, and other offers, and prohibiting the impression that rebates, incentives, and other offers are attainable, if they are not; 4) adding a requirement that if an advertisement relates to a lease agreement, the advertisement must clearly and conspicuously disclose that the terms of the advertisement relate to a lease, not a purchase; 5) prohibiting misleading statements that may falsely assure a prospective credit purchaser of credit financing; and, 6) defining the term, "bait advertising," and prohibiting bait advertising.

PROPOSED REVISED REGULATION:

regulation 12-6-118(3)(k)

Advertising shall be construed to be misleading or inaccurate in the following particulars:

Rule 6. Advertising used motor vehicles to create the impression that they are new or using the word "new" when advertising used vehicles, such as "new, used cars". Any vehicle of the current model or the previous model year which is a used vehicle shall be so identified in any advertisement for said vehicle. A used vehicle shall not be advertised in any manner that creates the impression that it is new.

Rule 7. Advertising motor vehicles which are known by the dealer to be salvage or rebuilt from salvage, taxi cabs, prior rental vehicles, flooded vehicles or police vehicles, which are not so identified in the advertisement.

Rule 14. Advertising any specific discount or rebate on new motor vehicles without the manufacturer's suggested retail price conspicuously stated in the ad. When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are attainable, when in fact they are not.

Rule 17. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.

Rule 18. Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.

Rule 19. Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.

ADDENDUM B

Proposed Regulations Regarding Powersports Vehicles

       [Taken from the Colorado Register

         October 10, 2014 - Volume 37, No. 19

       Notices of Proposed Rulemaking,

Tracking Number 2014-00990]

Proposed Revised Regulation 12-6-520(3)(i)

Statement of Authority, Basis and Purpose

The Statutory Authority for the adoption of this revised Regulation 12-6-520(3)(i) is Section12-6-102, C.R.S., Section 12-6-102 (1.5), C.R.S., Section 12-6-103, C.R.S., Section 12-6-104, C.R.S., Section 12-6-501, C.R.S., Section12-6-502, C.R.S., Section 12-6-503, C.R.S., Section 12-6-504, C.R.S., Section 12-6-520, C.R.S., and Section 12-6-520(3)(i), C.R.S.

The Basis and Purpose for adoption of this revised regulation in the Motor Vehicle Dealer Board Regulations is consumer protection, better compliance, and improved enforcement through: 1) simplifying and clarifying prohibited uses of the term, "used"; 2) prohibiting the combination of rebates, incentives, and other offers, and prohibiting the impression that rebates, incentives, and other offers are attainable, if they are not; 3) adding a requirement that if an advertisement relates to a lease agreement the advertisement must clearly and conspicuously disclose that the terms of the advertisement relate to a lease, not a purchase; 4) prohibiting misleading statements that may falsely assure a prospective credit purchaser of credit financing; 5) defining the term, "advertising," and the term, "computer display," and, 6) defining the term, "bait advertising," and prohibiting bait advertising.

PROPOSED REVISED REGULATION 12-6-520(3)(i)

Advertising shall be construed to be misleading or inaccurate in the following particulars:

Rule 6. Advertising used powersports vehicles to create the impression that they are new or using the word "new" when advertising used powersports vehicles, such as "new, used powersports vehicles" . Any powersports vehicle of the current model or the previous model year which is a used powersports vehicle shall be so identified in any advertisement for said powersports vehicle.   A used powersports vehicle shall not be advertised in any manner that creates the impression that it is new.

Rule 13. Advertising any specific discount or rebate on new powersports vehicles without the manufacturer's suggested retail price conspicuously stated in the ad. When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are attainable, when in fact they are not.

Rule 16. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a powersports vehicle.

Rule 17. Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.

Rule 18. The term, "advertisement," shall have the same meaning as set forth in § 12-6-102 (1.5), C.R.S., and the term, "computer display," means any electronic device capable of presenting a commercial message.

Rule 19. Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.

The following information was received from Bruce Zulauf, Executive Secretary, Motor Vehicle Dealer Board:

Cancelled Event - Rulemaking Hearings - October 23, 2014

Proposed changes to Colorado Motor Vehicle Dealer Board Regulations concerning the following topics:  1) Required Disclosures, and 2) Hearing Procedures

The Motor Vehicle Dealer Board rulemaking hearings set for October 23, 2014 have been cancelled. 

This was due to an overwhelming response from interested persons on all sides of the issues, many of whom raised significant concerns about the proposed changes to the required disclosure rules.  Additionally, there are concerns that the hearing procedure issues have not been fully evaluated by interested persons.

It has been determined that the best course of action will be to expand the collaborative efforts of rule-making through the formation of new working groups in the next few weeks to re-evaluate the regulations covered in these topics.  These groups will include consumers, consumer attorneys, consumer advocates, industry members, industry associations, industry attorneys, and Auto Industry Division staff members.

Should you have any questions, please email or call me.

Respectfully,

Bruce Zulauf, Executive Secretary

Motor Vehicle Dealer Board

1881 Pierce Street, Suite 112

Lakewood, CO  80214

303.205.5743

bruce.zulauf@state.co.us

www.colorado.gov/revenue/AID

Mastery Exam Seminar:

• In-person seminars.  This seminar is an 8-hour class.  The Mastery Exam is administered after the class at no extra charge.  Register at www.capsscolorado.com
• On-demand webinars.  This Mastery Exam on-line, on-demand seminar can be accessed from your laptop, PC, or tablet at your convenience.  It is available is available on-line 24 hours a day. Register at  www.capsscolorado.com  

NOTE:  If you are a dealer or wholesaler applicant, you may need the Pre-Licensing Certification course which is an 8-hour course.  Click here for more info:  Pre-Licensing Seminar