9. Joint Effort of CADA and MDSSCADA/McGloin, Davenport, Severson & Snow, P.C.
10. OVERVIEW OF GUIDE CONTENTS Topical by compliance area (can easily update) Expect annual updates July/August after legislative sessions Each section has: Summary List of relevant statutes and regulations Attachments (forms, state publications, etc) Additional Resources (web site, third party, etc) About this Guide How to look up statutes/regulations for more detail (or call us!) Appendix – file legal alerts from CADA Suggestions for improvements Table of Contents – Key Terms & Main Topics CADA/McGloin, Davenport, Severson & Snow, P.C.
11. SOURCES OF REGULATION Statute Regulations Case Law CADA/McGloin, Davenport, Severson & Snow, P.C.
12. OVERVIEW OF STATE REGULATIONS Licenses Two Government Agencies Motor Vehicle Dealer Board (Create Rules, Oversight of Disciplinary Actions) Nine members: 3 new dealers; 3 used dealers; 3 public members Auto Industry Division (Enforcement, Licensing, Regulation) Manufacturer/Distributors Executive Director of Department of Revenue Powersports Industry Other State Agencies CADA/McGloin, Davenport, Severson & Snow, P.C.
13. CLASS ACTION LAWSUITS Lawsuit by Group of People in Same Situation Plaintiff’s Goal is Settlement The Class Request to Certify Four Elements Expensive Early Process Class Action Waivers in Contracts Add-on fees Frequent Target of Class Actions Include in Price of Car Disclose to Customer Justifiable Include in Repair Estimate CADA/McGloin, Davenport, Severson & Snow, P.C.
14. ARBITRATION Private Dispute Resolution Stay Out of Court Requires a Contractual Agreement Private Judge Negotiation Mediation CADA/McGloin, Davenport, Severson & Snow, P.C.
15. ARBITRATION (cont.) PROS CONS Less Expensive Faster and More Efficient Use in Conjunction with Class Waiver Less Adversarial – Minimize Hostility No Punitive Damages Can be Done Without Attorneys No Appeal Rights – If Lose, That’s It! Arbitrators Split Baby Same Arbitration Forums Expensive - $500 Per Hour Arbiters Dealer Should Pay Most of Cost of Arbitration CADA/McGloin, Davenport, Severson & Snow, P.C.
16. ARBITRATION (cont.) Key Terms Arbitrators (who and how many) Where What Types of Disputes How Appeal Rights Consistency with RISC and Purchase Agreement Do You Sell if Customer Refuses Sample agreement in materials CADA/McGloin, Davenport, Severson & Snow, P.C.
17. DELIVERY & HANDLING FEES Permissible, But Not in Statute or Regulation Must Charge Uniformly Cash and Credit Customers Risk of Class Actions Must Disclose as Additional Dealer Costs and Profits Disclose in All Purchase Contracts Post Signs (Sample in Guide) Must Be in Advertised Prices “Advertisement” is Defined Broadly Manufacturer Programs CADA/McGloin, Davenport, Severson & Snow, P.C.
18. ADVERTISING Very Broad Definition Any commercial message Any window display or computer display EXCEPT: materials required by state or federal law Colorado Requirements State Dealer’s Name Cannot Advertise Any Payment or Waiver of Sales Tax Cannot be “Inaccurate” or “Misleading” Price Include all costs to customer Requirements if a specific vehicle is advertised Savings must be documented Trade-in amount with MSRP CADA/McGloin, Davenport, Severson & Snow, P.C.
19. ADVERTISING (cont.) Colorado Requirements (cont.) Condition of Advertised Vehicle Not operable Photo of similar vehicle State if used State if salvage Miscellaneous Going out of business Do not try to hide terms Do not falsely imply terms Do not use terms “dealer cost”, “invoice”, or “wholesale” Restriction on prize or gift ads Out of State Advertising Jurisdictional issues CADA/McGloin, Davenport, Severson & Snow, P.C.
20. PRIZE PROMOTIONS GIVEAWAYS / RAFFLES Disclose Value of Prize in Advertisement (CCPA) “No Purchase or Payment Necessary” Language in Contests (Dealer Board Rule 16) “Free” Item in Connection with Purchase Cannot use the word “Free” if Conditioned on Purchase (Dealer Board Rule 9) Cannot Raise the Price of the Required Purchase (Federal Law) Sweepstakes Cannot Require a Purchase (Federal Law) CADA/McGloin, Davenport, Severson & Snow, P.C.
21. BANKRUPTCY / LIEN PERFECTION Three Types Chapter 7 Chapter 13 Chapter 11 Federal Law Generally State Law for Lien Perfection Lien Perfection Is Essential Protect Your Claim Prevent Lender Buy-Back CADA/McGloin, Davenport, Severson & Snow, P.C.
22. BK / LIEN PERFECTION (cont.) Bankruptcy Basics Begins with Debtor Filing a “Petition” Automatic Stay Prohibits any Collection Activities Including Repossession Important Dates Creditor’s Meeting Proof of Claim Deadline Contact Legal Counsel CADA/McGloin, Davenport, Severson & Snow, P.C.
23. BK / LIEN PERFECTION (cont.) Automatic Stay What Do You Do When You Get A Bankruptcy Notice CADA/McGloin, Davenport, Severson & Snow, P.C.
24. BK / LIEN PERFECTION (cont.) 30 Days! 30 Days! 30 Days! 30 Days! Procedure Must File with County: Signed RISC Name and address of debtor Name and address of lienholder Make, VIN and year Date and amount of loan Certificate of Title Application State Filing Fee Time: Date-Stamped Receipt of Filing CADA/McGloin, Davenport, Severson & Snow, P.C.
25. TITLE PROCESSING & REGISTRATION Upon Sale – Registered and New Title Issued Dealer's Obligations Upon Sale Deliver Certificate of Title Within 30 days To customer on cash sale To correct DMV on financed sale To county of residence or primary use Failure could lead to loss of lien or liability to customer Contents of Application Application for Title and Registration (DR 2395) Sales Tax Receipt, Bill of Sale, Odometer Disclosure, Power of Attorney, Emissions Dealers Must Maintain Proof of Ownership CADA/McGloin, Davenport, Severson & Snow, P.C.
26. REPOSSESSION Before Repossession Dealer Must have Valid Security Interest Buyer Must Be in Default If Using a 3rd Party, Must Use Bonded Repossession Service Consumer Credit Sales - Default Default: 10-Day Failure to Make Payment Send Notice of Right to Cure 20-day right to Cure Co-Signer CADA/McGloin, Davenport, Severson & Snow, P.C.
27. REPOSSESSION (cont.) Notice of Intent to Repossess to Law Enforcement Notice to Intent to Sell Do Not Breach Peace CADA/McGloin, Davenport, Severson & Snow, P.C.
28. CONSUMER PROTECTION ACT CCPA – Deceptive Trade Practices False Representation Regarding Vehicles (New vs. Used, Advertising) Failure to Deliver Written Contract Failure to Disclose Failure to Have Licenses Specific to Motor Vehicles Cannot Guarantee Financing Selling Trade-in Before Financing is Final on Purchase Fail to Return Down Payment Fail to Disclose salvage, lemon, material damage CADA/McGloin, Davenport, Severson & Snow, P.C.
30. DAMAGE DISCLOSURE Dealers Must Make Written Disclosure Salvage, Lemon, Known Material Damage Salvage Cost of Repair Exceeds Value Failure to Disclose Salvage Requires Full and Immediate Refund Material “Those Details Concerning a Vehicle for Sale that are Essential or Necessary for a Reasonable Prospective Buyer to Know” Question of Fact = Jury Trial Best Practice – Disclose Might Have a Claim Against Seller Upstream CADA/McGloin, Davenport, Severson & Snow, P.C.
31. DISCLOSURES Disclosures All Transactions Terms Legal Documents Only Written Terms are Enforceable Notice that Fraud is Punishable by Law CASH SALE – Notice That a Lump Sum is Due CONTINGENT FINANCING - Customer Will Agree to Maximum APR Best Practice – use interest rate close to RISC Daily and Mileage Rate if No Financing MVDB Contact Sign New Documents on Refinancing If two purchasers on contract; have both sign (best practice) CADA/McGloin, Davenport, Severson & Snow, P.C.
32. LEMON LAWS Primarily Manufacturer Obligation Only New Vehicles Still Within Manufacturers Original Written Warranty No Commercial Vehicle Coverage Excludes Motor Homes, Motorcycles, Vehicles Capable of Carrying 10+ CADA/McGloin, Davenport, Severson & Snow, P.C.
33. LEMON LAWS (cont.) Must Conform to Warranty Within 1 Year of Delivery “If cannot be repaired after a reasonable number of attempts and defect substantially impairs use and market value…” Manufacturer Must Replace or Refund Purchase Price CADA/McGloin, Davenport, Severson & Snow, P.C.
34. LEMON LAWS (cont.) Written Notice to Manufacturer Required Written Disclosure to Subsequent Purchaser CADA/McGloin, Davenport, Severson & Snow, P.C.
35. SALVAGE VEHICLES Salvage – Cost of Repair Exceeds Value Excludes Vehicles 6 years or Older (At Time of Damage) Salvage Status Must be Disclosed to Buyer Buyer is Entitled to a Full Refund if Not Knowledge not Relevant Salvage Status Must be Noted on Title Branded on Door Also States vary See NMVTIS Map For status of all states CADA/McGloin, Davenport, Severson & Snow, P.C.
36. NEW vs. USED Defined by Law New: Transferred from Manufacturer to Dealer for the First Time Demo < 1,500 mi (must be demo use only) Used: Not New Illegal to Represent Used Vehicle as New Includes Advertisements Best practice – a Failed Spot Delivery Converts a “New” Vehicle to “Used” Check the Correct Box in RISC CADA/McGloin, Davenport, Severson & Snow, P.C.
37. SPOT DELIVERY Legally Allowed, But: CANNOT Sell Trade-In Before Approval Deceptive Trade Practice NEVER “Guarantee” Financing IN ANY WAY “With your credit score, financing will be no problem at all" 10-Day Notification if Financing Not Approved Not Business Days Best Practice – In Writing Best Practice – Notify Customer if the Lender Has not Funded for Any Reason CADA/McGloin, Davenport, Severson & Snow, P.C.
38. SPOT DELIVERY (cont.) Required Disclosure Bailment Charges Take steps to minimize Must Negotiate Alternatives Re-Contracting: DO NOT PRE-DATE THE CONTRACT Best practice is to re-sign ALL documents, disclosures, etc. Retain Deposits to Cover Charges Must be in Disclosure Only if no “Guarantee” of Financing Follow the Same Practices for Leases CADA/McGloin, Davenport, Severson & Snow, P.C.
39. SPOT DELIVERY (cont.) DR 2434 Disclosure Form RISC Seller can Cancel No Guarantee of Financing Bailment 10-Day Notice Requirement DO NOT SELL TRADE! CADA/McGloin, Davenport, Severson & Snow, P.C.
40. TEMPORARY PERMITS Purchased from County Monitored by State and Law Enforcement Key Requirements Dealer Completes Errors void the permit; Dealers Can Correct Re-Issue Mistakes 60-day Duration (see specific guidance on end-dates) Dealer Stubs to State, Customer and Dealer Placed in Rear of Vehicle in Readable Location May Only be Used for Operable Vehicles Report Lost or Stolen Permits If Lost, Stolen or Damaged After Issued, Customer Must Go to the County for Re-Issue CADA/McGloin, Davenport, Severson & Snow, P.C.
41. FRANCHISE LAW Transfer of Franchise Ownership or Change of Management No Unreasonable Denial 20 Days to Confirm Receipt of Notice/Ask for Information 60 Days to Decide Cannot Condition on Site Control, Renovation Protection from Exclusivity Requirement Manufacturer Must Make All Models Available to All Dealers Equal Treatment on Incentives, Bonuses and Rebates CADA/McGloin, Davenport, Severson & Snow, P.C.
42. FRANCHISE LAW (cont.) Protection from Required Facility Upgrades Protection for Relocation Requests Manufacturers Are Prohibited from Owning Franchises Reimbursement for Right of First Refusal Protection from Unreasonable Export Charge Backs Termination of a Franchise – “Just Cause” CADA/McGloin, Davenport, Severson & Snow, P.C.
43. FINANCE – ANTI-MONOPOLOY LAW Goal – To Protect Competition in Financing No Single Source Financing Agreement No Side-Deals that Reduce Competition Dealers Must be Free to Offer Financing from Multiple Sources For a Violation Possible Crime Double Damages Void Contract CADA/McGloin, Davenport, Severson & Snow, P.C.
44. INSURANCE (SELLING) “Insurance” – One Party Takes Risk For Payment Must be Licensed to Sell Insurance With Vehicle Individual License Pre-license education and continuing education Agency License Nominate responsible person Responsible person must be licensed CADA/McGloin, Davenport, Severson & Snow, P.C.
45. SERVICE CONTRACTS / VSC / EXTENDED WARRANTIES Must Be Insured Service Contract Must State Insurer Will Pay if “Provider” Does Not Contact Information for Insurer Manufacturer Warranties Excluded Penalties Attorney Fees Triple Damages MVDB Enforcement CADA/McGloin, Davenport, Severson & Snow, P.C.
46. VEHICLE PROTECTION PRODUCTS Prevents Loss from a Specific Cause Etch, Theft Registration, Tire Protection Programs Colorado Vehicle Protection Products Act Contract Requirements Identity of all Parties Guaranteed by Insurance Policy Customer may Claim against Insurer Disclosure that Product is not Insurance Not Insurance – Exempt from Insurance Laws and Regulations Consumer Suits Possible if Products Are Not Disclosed CADA/McGloin, Davenport, Severson & Snow, P.C.
47. ID CHECKING / ID THEFT Dealer’s Obligation Secure and Verifiable ID (SVID) Required for Title Dealers Must Provide ID Verification Only Certain Forms of ID Acceptable Temporary Permits Obtain Proof Vehicle Sold to Person on Permit Vehicles Going out of State Excepted Third-Party Lender Agreements Require Verification Different than “Evidence of Lawful Presence” (licensing) Federal issues: Red Flags Rule / OFAC CADA/McGloin, Davenport, Severson & Snow, P.C.
48. Licensing (Salesperson and Dealers) License Required Dealer License Three or More Vehicles Background Check Financial Condition Bond - $50,000 Principal Place of Business Used Dealer License is Similar Additional Place of Business Name/Ownership Change – Notice required Change of Entity – New license required CADA/McGloin, Davenport, Severson & Snow, P.C.
49. Licensing (Salesperson and Dealers) Salesperson License Employed by Dealer Background Check Mastery Examination Bond - $15,000 Dealers as Brokers Wholesale Dealer Powersports Dealer Buyer’s Agent CADA/McGloin, Davenport, Severson & Snow, P.C.
50. OFF PREMISE PERMITS Permit to Sell Away from Dealership Not for “Display” only Events Key Requirements Request Permit in Writing before Event Post Permit at Sale 6-Day Maximum No Consecutive Permits CADA/McGloin, Davenport, Severson & Snow, P.C.
51. INVESTIGATIONS / DISCIPLINARY ACTIONS Violations of Law by Dealers or Salespersons Auto Industry Division – primary enforcement agency Motor Vehicle Dealer Board – final decision maker Procedure Complaint (consumer, another dealer, salesperson, audit) AID conducts an initial investigation and findings AID can settle the matter MVDB can review any case (pattern of violations, willful violations, danger to public) Final decision Penalties and fines (punitive, increase for successive violations) Appeal Latest Compliance Inspection Checklist in Guide CADA/McGloin, Davenport, Severson & Snow, P.C.
52. INVESTIGATIONS / DISCIPLINARY ACTIONS (cont.) License Denial, Suspension or Revocation Material Misstatement in Application Fraud Failure to Maintain Bond Misleading Advertising Selling Unsafe Vehicle Violations that Apply to Dealer Licensees Only Failure to Perform Agreements Misrepresenting Material Facts to Customer No Principal Place of Business No Notice of Rejection of Purchase Violations that Apply to Salesperson Licensees Only Selling Without a License Improperly Using or Withholding a Customer’s Money CADA/McGloin, Davenport, Severson & Snow, P.C.
53. REFERRAL FEES Generally Allowed No Specific law, Regulation or Guideline Gray Area for Licensing Licensed “Buyers Agents” Cannot be Paid Referral Fees CADA/McGloin, Davenport, Severson & Snow, P.C.
54. SUNDAY SALES No Selling on Sundays Applies to Motor Vehicles Applies to Every Person Applies to Selling, Negotiating and Offering to Sell Excludes Boats, Snowmobiles, and Agricultural Equipment Excludes Repair or Towing Services CADA/McGloin, Davenport, Severson & Snow, P.C.
55. REPAIRS / SERVICE (MVRA) Motor Vehicle Repair Act Ensure Customers Informed and Consent Before Repair Work Customer Authorization for Repairs / Work Order Total Cost of Repair Completion Date SIGNED Exceptions Waiver Language CADA/McGloin, Davenport, Severson & Snow, P.C.
56. REPAIRS / SERVICE (MVRA) (cont.) Oral Consent 1. Date Given 2. Time 3. Manner of Consent (Telephone or Otherwise) 4. Name of Service Advisor 5. Total Amount of Estimate 6. Expected Completion Date 7. Name of Person Giving Consent CADA/McGloin, Davenport, Severson & Snow, P.C.
57. REPAIRS / SERVICE (MVRA) (cont.) Disassembly Completion Dates Storage – Requires a Separate Written Contract – Storage Limitation CADA/McGloin, Davenport, Severson & Snow, P.C.
58. REPAIRS / SERVICE (MVRA) (cont.) Invoice 1. Customer’s Name and Address Year, Make, Model, Odometer, Start Date and License Number Date Brought In Itemization of All Parts All Labor Charges – Including Name of Mechanic Stages – Separate Mechanics Itemized Statement of Charges Identification of Sublet Repairs Initials of Person Completing CADA/McGloin, Davenport, Severson & Snow, P.C.
59. ODOMETER Disclosure Required on Sale and Service Disclose Discrepancy Tampering/Fraud Is a Serious Offense Dealer and Salesperson Cannot Renew License Legitimate Repair Set to Zero Written Notice Attached to Vehicle CADA/McGloin, Davenport, Severson & Snow, P.C.
60. MECHANICS AND STORAGE LIEN Repair Shops Have a Lien But Must Keep Vehicle Twelve-Day Repossession for Non-Payment Sample Letters in Guide Foreclosure Must have Possession 30 Days After Bill was Due File Lawsuit 90-Day Limit Recommended Notices Best Practices Get Customer’s Address Have Owner’s Information Accurate Description of Vehicle Repossess Vehicle Peacefully or not at All CADA/McGloin, Davenport, Severson & Snow, P.C.
61. ABANDONED VEHICLES Abandonment of a Vehicle is a Crime Vehicle Presumed Abandoned Left Unattended or Unmoved 7 or More Days or License Plate/VIN Removed Vehicle Damage Exceeds Value (Salvage) Owner Contacted by Law Enforcement to Remove and Fails to Do So Within 3 Days CADA/McGloin, Davenport, Severson & Snow, P.C.
62. ABANDONED VEHICLES (cont.) Repair Shop Abandonment Vehicle Left at Repair by Owner and Repair Shop Offered to Repair and Offered an Estimate and Owner Refused to Allow Repair, Refused to Remove the Vehicle Or Refused to Pay for Authorized Repairs and Vehicle Not Subject to Sale Agreement Must Meet all 4 CADA/McGloin, Davenport, Severson & Snow, P.C.
63. ABANDONED VEHICLES (cont.) To Satisfy 3rd Requirement Send Certified Letter to Owner, Include Copy of Repair Order If No Response Within 10 Working Days of Postmark Date, Vehicle is Considered Abandoned CADA/McGloin, Davenport, Severson & Snow, P.C.
64. ABANDONED VEHICLES (cont.) Current Regulation Includes a $2,000 Limit HOWEVER, state confirmed no basis in statute; will remove If Value Less Than $200 – Scrap ProceduresDR 2542 Checklist Establish Value – 15-30 days Certify VIN Request Title Search Notify Owner and Lienholders Bond 2x Wait 30 Days – File Statement with DMV Records Must Be Kept 3 Years! CADA/McGloin, Davenport, Severson & Snow, P.C.
65. CONSUMER CREDIT CODE Generally Regulates Transactions with Consumers Limits Finance Charges / Sets Maximums Applies to Products Used for Personal or Household Purposes Annual Notice Filing - Jan. 31st Penalty is $5/day after March 1st Allowable “Additional Charges” Not included in Finance Charge Fees, Taxes, Insurance Charges, Etc. CADA/McGloin, Davenport, Severson & Snow, P.C.
66. CONSUMER CREDIT CODE (cont.) Written Contract Required Even if Deal Re-Done Disclose Information About Financing (APR, Financing Charge, Etc.) Insurance Disclosure Buyer’s Right to Cancel “Home Solicitation Sale” Notice of Default and Right to Cure Required No “Unconscionable” Conduct Taking Advantage CADA/McGloin, Davenport, Severson & Snow, P.C.
67. CONSUMER CREDIT CODE (cont.) Required disclosure: THIS CONTRACT DOES NOT PROVIDE FOR AUTOMOBILE LIABILITY INSURANCE, AND SAID BUYER ALSO STATES THAT HE OR SHE HAS / DOES NOT HAVE (strike the words not applicable) IN EFFECT AN AUTOMOBILE LIABILITY POLICY AS DEFINED IN SECTION 42-7-103(2), COLORADO REVISED STATUES, ON THE MOTOR VEHICLE SOLD BY THIS CONTRACT. IMPORTANT! Make sure that the appropriate inapplicable words are stricken from the statement provided above. CADA/McGloin, Davenport, Severson & Snow, P.C.
68. INSURANCE VERIFICATION Dealers not Legally Required to Confirm Customer has Insurance Consumer Credit Transaction Disclose that Dealer is not Providing Insurance Have Customer Indicate Whether they have Insurance Best practice - Verify Insurance Failure may Be a Breach of Lender Agreements Prevent Third-Party Claims Against Dealer if Customer Causes Accident CADA/McGloin, Davenport, Severson & Snow, P.C.
69. GUARANTEED AUTOMOBILE PROTECTION (GAP) Debt Cancellation or Insurance? Typically a Debt-Cancellation Contract (Lender Waives Amount Due after Loss) Insurance (Insurer Pays-Off Amount Due After Loss) Maximum Charges GAP Fee may not Exceed $300 or 2% of the Amount Financed, Whichever is Higher (UCCC Rules) CADA/McGloin, Davenport, Severson & Snow, P.C.
70. GUARANTEED AUTOMOBILE PROTECTION (GAP) (cont.) Requirements Leases are Excluded Allows GAP to Be Sold for an “Additional Fee” Disclosure GAP not Required, may Cancel, Fee Contract Provision Separate Cancellation Agreement Provide Customer with Policy and Terms Refunds – if Loan is Prepaid or on Repossession CADA/McGloin, Davenport, Severson & Snow, P.C.
71. CREDIT CARDS TRUNCATION!!! Federal and state laws Know your lender restrictions No surcharges (UCCC) CADA/McGloin, Davenport, Severson & Snow, P.C.
72. CONSIGNMENT Sale of Vehicle on Behalf of Owner Need a Written Agreement Owner May Be Required to Deliver Title Even if Not Paid ISSUES TO CONSIDER CADA/McGloin, Davenport, Severson & Snow, P.C.
73. EQUIPMENT Dealers have a Statutory Obligation to Sell Vehicles with Certain Equipment Proper Condition and Adjustment Safety Inspection Tow Away, Not to Be Driven CADA/McGloin, Davenport, Severson & Snow, P.C.
75. RECORD RETENTION State and Federal Laws Statute of Limitations for Potential Lawsuits Record Retention Guidance from Heider, Tanner and Dirks CADA/McGloin, Davenport, Severson & Snow, P.C.
76. TAXES – SALES AND USE Dealers Collect Sales/ Use Tax State and Local Taxes Tax Rate Depends on Place of Registration / Statute Residence for Private Customer Where “Principally Operated” for Business Except: Where “permanently maintained” in some cases Self-Collected Home Rule Cities (DR 1002) Set Their Own Rules and Can Change Any Time Collect Sales Tax Where Dealer and Customer Share Location Tax Discrepancies Do Not Change the Lien Perfection Date No Title Issued Until ALL Taxes Collected CADA/McGloin, Davenport, Severson & Snow, P.C.
77. TAXES – SALES AND USE (cont.) Resources for Tax Rates – State and Private Co’s IDS from State, not certified (also has license databases) Hold Harmless Provisions - Document Database lookup One Applies to Certified Databases / Rates and Jurisdictions One Applies to Address Provided by Consumer No Sales Tax if Vehicle Removed from Colorado Within 30 Days (State Affidavit Form DR 0780) CADA/McGloin, Davenport, Severson & Snow, P.C.
78. PLATES Full-Use Dealer Plates Many Purposes, “Legitimate business interest” Owners or Employees of the Dealership Inventory and Sales Requirements Not on vehicles with large dealership advertisements (rule) Dealer Demo Plates Only for Prospective Buyer Demonstration orBy Dealership Employee During Normal Business Hours Overnight Allowed: 7-day Maximum / Authorization Letter Depot Plates Moving Vehicle for Repair In-Transit Plates From Purchase to Storage or Storage to Point-of-Sale CADA/McGloin, Davenport, Severson & Snow, P.C.
79. Environmental, Health & Safety Limited topics covered in Guide Specialized and technical area of compliance Complex Mix Federal (EPA) and State Laws Two Areas Covered in Guide After Recent State Changes Oil – Aboveground Storage Tanks Tires – Waste KPA – CADA’s Endorsed Provider for assistance www.kpaonline.com CADA/McGloin, Davenport, Severson & Snow, P.C.
80. Oil- Aboveground Storage Tanks CO Division of Oil & Public Safety Key requirements: Registration of all ASTs of 660 gallons or more Ullage Logs (to prevent over-filling) New Exception if Tank Has Audible Alarm or Device to Prevent Overfilling (as of April 14, 2011) Monthly Inspections KPA Guidance More Details on AST requirements in Guide CADA/McGloin, Davenport, Severson & Snow, P.C.
81. TIRES - WASTE Not Suitable for Use on a Vehicle Includes Motorcycles Dealers Must Register as a Retailer that Generates Waste Tires Display a Decal / Certificate Only Use a Registered Hauler to Transport Waste Tires Waste Tire Recycling Fee Collection On Sales of NEW Tires Disclose Fee on Invoice (Specific Language) CADA/McGloin, Davenport, Severson & Snow, P.C.
82. EMISSIONS Program Areas – Two Distinct program areas Gasoline Testing Area (Boulder, Broomfield, Denver, Douglas, Jefferson (All); Adams, Arapahoe, Larimer, Weld (parts) Diesel Testing Area (Above plus El Paso; boundaries may vary) Emission Exempt Stickers (4-year) New vehicles Replacement allowed – with record-Keeping Requirements Resale: Emission Testing Voucher or Test Must Be Provided If less than 12 months remaining on 4-year exemption; from Jan. 1st of original model year Cost Can Be Passed to Customers Retain Proof of Test or Voucher Vehicles that FAIL Emissions Timing; Repair or Unwind CADA/McGloin, Davenport, Severson & Snow, P.C.
83. Employment / Labor CADA Members Have Membership in MSEC: Mountain States Employers Council (MSEC) Call to obtain ID/password to web site DOL / KPA – Colorado Labor Laws Guide 2011 KPA / HotlinkHR – Online HR Compliance Software and Services Wells Fargo Insurance Services Workers compensation Program / Pinnacol Assurance CADA/McGloin, Davenport, Severson & Snow, P.C.
84. Employment / Labor Employment-At-Will Wages (Colorado Wage Act) “Show-up” Time – Not Required Colorado Minimum Wage - $7.36 (Only Certain Jobs) Overtime (40 Hour Week, 12 Hour Day) Exemptions Pay Periods – 30 Days or Less Pay Statements Required Deductions from Pay Vacation/Leave Pay – No State Requirements Termination – Wages Due Immediately Employment Verification Law CADA/McGloin, Davenport, Severson & Snow, P.C.
85. UNCLAIMED PROPERTY Objective Is the Return of Unclaimed Property Office of the State Treasurer, Unclaimed Property Unclaimed Property Held in Trust Not Motor Vehicles Dealers Must Attempt to Identify, Reach Owners Turn Unclaimed Property over to State Report Unclaimed Property to State Any Money Due is Covered Credit Balances, Refunds, Referral Fees The State May Audit Retain Records for 5 Years CADA/McGloin, Davenport, Severson & Snow, P.C.
