 OFF PREMISE PERMITS
2017 Rulemaking resulted in changes to Motor Vehicle Regulation 12-6-102(16) and Powersport Vehicle Regulation 12-6-502(16), with major changes to the Off-Premise Permit rules. Off-Premise permits are now required by both Powersport Dealers and Motor Vehicle Dealers when offering and selling vehicles away from their licensed location.
Although these changes are effective January 30, 2018; the Two-Classes of permits will require both form and fee changes. Therefore, it may be July 1, 2018, before the two levels are available. The current fee for an off-premise permit is $342.
Off-Premise Permit Application
The following is the new Regulation 12-6-102(16) for motor vehicles. Regulation 12-6-502(16) for powersports mirrors the motor vehicle regulation, so it is not listed.
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 off-premise 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 off-premise 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 trade name 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.
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