(c) OTS means the Office of Transportation Safety in the Colorado Department of Transportation.

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1 I. Authority and Purpose The Rules are adopted pursuant to the authority contained in sections through 505, Colorado Revised Statutes ( The Statute ), specifically Section (1) (d). The purpose of The Rules is to adopt necessary provisions and procedures to establish, implement, and administer the Motorcycle Operator Safety Training (MOST) Program intended and required by the Statute. The intent of the Statute was that the Office of Transportation Safety (OTS) use Motorcycle Operator Safety Training Funds to establish, administer, promote, provide motorist awareness programs, and participate in the costs of the Program, so that Motorcycle Safety training would be more accessible to a greater percentage of Colorado consumers and would be less costly to consumers, thereby enabling more persons to enroll in and complete such safety training. The Statement of Basis, Specific Statutory Authority, and Purpose, for the initial Rules adopted and for the amended Rules adopted are hereby incorporated by this reference and made part of The Rules. A copy of these Statements can be obtained from the OTS. Motorcycle Operator Safety Training Courses are open to any person who has a valid Colorado driver's license or permit, and who pays the applicable tuition fee. A motorcycle operator's license endorsement is not required for the Basic Course, but is required for the Advanced Course. II. Definitions As used in these Rules, unless the context otherwise requires: (a) Director means the director of the OTS. (b) Instructor training specialist means a chief instructor certified by the Motorcycle Safety Foundation (MSF) and by the OTS for the training and evaluation of program instructors. (c) OTS means the Office of Transportation Safety in the Colorado Department of Transportation. (d) Range Aide means a person providing assistance to the Program Instructor throughout the courses. Range Aides have no instructional duties or responsibilities. (e) Motorcycle means for the purposes of the rules, a motor vehicle designed to travel on not more than two wheels in contact with the ground, but does not include a motorized bicycle as defined in Section (55), C.R.S. (f) Motorcycle Operator Safety Training Course means a particular course of instruction under the Program to develop the knowledge, attitude, habits and skills necessary for the safe operation of a motorcycle, including instruction on the use or protective clothing and equipment and the effects of alcohol and drugs on the operation of motorcycles, as authorized by Section , C.R.S. (g) Motorcycle Operator Safety Training Funds or Funds means those moneys appropriated and budgeted for the implementation and administration of the motorcycle operator safety training program, in accordance with Section , C.R.S. (h) Motorist Awareness means promoting activities that contribute to inform, and educate motorists how to safely share the road with motorcyclists. (i) Program means the motorcycle operator safety training program established pursuant to section , C.R.S. The Program includes administration, sponsors, instructors, courses, participating students, and funds expenditure. (j) Program Coordinator means the individual in the OTS who is responsible for the implementation, management, and maintenance of the program.

2 (k) Program Instructor means an individual who meets the requirements of The Rules and who is certified by the OTS to instruct or offer program course instruction to the public in the safe operation of a motorcycle. (l) Program Instructor Training means a course of instruction under the Program to train instructors, to develop the knowledge, attitude, habits and skills necessary to conduct a motorcycle operator safety training course. (m) Program Sponsor means any individual, association, partnership, corporation, educational or governmental agency certified by the OTS to sponsor, operate, and offer the motorcycle operator safety training course to the public. (n) Promotion means to further the growth of the MOST program by various means including advertising and publicity. (o) Reinstatement means the recertification of a program sponsor or instructor after any denial, suspension, or revocation of their initial certification under the rules to act in that capacity. (p) Research Based means thoroughly investigated, tested, and documented findings regarding separate tasks needed to be mastered in order to safely operate a motorcycle. III. Program Sponsor Application Requirements No person may sponsor, operate, or offer the Motorcycle Operator Safety Training Course to the public for compensation and be eligible to receive Funds from the OTS, without first obtaining, and continuing to maintain, a Program Sponsor Certification from the OTS. The OTS may issue a Program Sponsor Certification if the OTS determines that the applicant satisfies all the requirements of the Rules. To obtain Program Sponsor certification the applicant must: (a) submit a complete, written application to the OTS, on a form provided by the OTS; (b) hold a current MSF Rider Education Recognition Program number (RERP) and provide the number on the application if the Program Sponsor will offer MSF safety training courses; (c) demonstrate the ability and capacity to register students, to collect and account for tuition, and to comply with all other necessary administrative requirements of the program; (d) have the right to use an area for training in motorcycle operation which meets or exceeds MSF minimum standards and include an approved diagram of the area; (e) have the right to use a secure storage facility to protect training motorcycles, other course equipment, and supplies from the weather and theft; (f) have the right to use a classroom that is large enough to seat all students and instructors comfortably and which contains at least one adequate seating and writing surface for each student, and at least one instructor's desk, table, or podium; (g) agree to sponsor, operate, and offer the Motorcycle Operator Safety Training courses in accordance with the Rules and the approved curricula; (h) provide audio-visual presentation equipment for the classroom, including a chalkboard or equivalent, VHS tape player and monitor, or equivalent and slide projector or overhead projector; (i) provide a fully equipped first aid kit and at least one five pound ABC fire extinguisher for the riding

3 area; (j) provide evidence of personal injury and property damage liability insurance and naming the State of Colorado as an additional insured, covering all instructors, students, and motorcycles used in the Motorcycle Training Area, including both the range and classroom, in the specified in the contract; (k) designate an authorized representative to sign all necessary contracts with the OTS, Program Instructors, or students, to sign all forms required by the OTS concerning the program, and to be the custodian of all records of the program which the program sponsor must keep for a period of at least three years from the date of the document. IV. Program Sponsor Certification Requirements To maintain certification, a Program Sponsor must: 1. provide the program training and facilities as required by The Rules, and by the Sponsor's contract with the OTS; 2. arrange for advance public notice of courses, as required in the contract with the OTS. If the Sponsor uses the MOST logo on public notices, advertising, or other use of the media to provide notice of or otherwise advertise the MOST program, all such notices and advertising must be approved by the OTS prior to use. 3. hire, schedule, and compensate Program Instructors as required to provide the Program; 4. prominently display its state Sponsor Certification in the Program Sponsor's place of business; 5. maintain all Program records, submit such records, as requested, to the OTS, make available such records for audit, and maintain a student record for each student who enrolls in the Motorcycle Operator Safety Training Course, on the form required by the OTS. Program Sponsors shall not alter the OTS forms. This record shall be open and available for inspection by the OTS during regular business hours. The Sponsor shall retain records for a period of three years after the date the student enrolls. The record shall contain, at a minimum, the following: (a) the full name of the student, as it appears on the student's driver's license or permit; (b) the student driver's license or permit number, and date of expiration; (c) the student's date of birth; (d) the student's mailing address, phone, and name and phone number of person to contact in the event of an emergency; (e) the results of the student's classroom and on-cycle training, including both written test scores and skill test scores, indicating whether or not the student successfully completed the training; (f) whether a certificate for waiver of the motorcycle skill examination for motorcycle operation endorsement of the driver's license was issued to the student and the date of issuance; (g) the Program Sponsor's name, address, telephone number, and RERP number, if the Sponsor will offer MSF safety training courses; (h) the Program Instructor(s) name and certification number(s);

4 6. permit an inspection by the OTS of the facilities used for training, both the classroom and riding area, and all records and other materials used for the Motorcycle Operator Safety Training Program at any time; 7. certification shall be for a term not to exceed one year, shall expire on the December 31st after it is granted, and shall be subject to annual renewal 30 days prior to expiration. V. Program Instructor Application Requirements No person may instruct or offer the Program Course(s) under the employment or authority of or in affiliation with a Program Sponsor, without first obtaining, and continuing to maintain, an Instructor Certification from the OTS. The OTS may issue an Instructor Certification if the OTS determines that the applicant satisfies all of the requirements of The Rules. To be eligible to obtain certification, the applicant shall: (a) agree to instruct the motorcycle operator safety training courses in accordance with the Rules, and the approved curricula; (b) hold a current (MSF) certification if the Program Sponsor will offer MSF safety training courses; (c) possess a current, valid Colorado driver's license, endorsed for operation of a motorcycle; (d) be at least 21 years of age; (e) submit a copy of his/her driving record to the OTS. (f) be proficient in riding skills so as to be able to demonstrate all course exercises. VI. Program Instructor Certification Requirements To maintain certification the instructor shall meet the following requirements: (a) Certification shall be for a term not to exceed one year, shall expire on the December 31st after it is granted, and shall be subject to annual renewal 30 days prior to expiration. (b) Instructors who do not renew their certifications according to the OTS procedures will be required to apply for recertification. For recertification the OTS may require successful completion of one or more of the following: 1. The Riding Skills Test from the Instructor Preparation Workshop. 2. The Knowledge Test from the Instructor Preparation Workshop. 3. A one-day Instructor Update Workshop. 4. A three-day Instructor Update Workshop. 5. An assigned portion of an Instructor Preparation Workshop. 6. An entire Instructor Update Workshop. An Instructor Training Specialist shall conduct the recertification requirements and notify the OTS in writing of the results.

5 (c ) Evidence of certification as a Program Instructor shall be provided upon request from any representative of the OTS, Program Sponsor, or a student. (d) Instructors shall teach at a minimum two MOST rider courses within each one year certification period, not less than one of which must be Basic Course. (e) Program Instructors shall attend one scheduled Instructor Update Workshop per year, when provided by the OTS. The OTS will offer several scheduled Update Workshops around the state. If an instructor shows good cause, in advance and in writing, OTS may, in its discretion, excuse an instructor from the requirement. (f) Program Instructors must report changes in their personal address and/or phone number to the OTS within 30 days of such changes. (g) Program Instructors shall exhibit professional conduct when instructing. Professional conduct includes, but is not limited to, wearing appropriate riding gear when demonstrating exercises and not using profane, hostile, or obscene language. VII. Program Instructor Training (a) The Program Instructor training must be conducted by an Instructor Training Specialist (Chief Instructor) in accordance with standards and guidelines of the MSF, or with standards and guidelines which the Director determines are substantially equivalent to MSF. (b) The curricula for Instructor Training may consist of the MSF Instructor Preparation Course, or any other research based course which the Director determines meets the standards of or is substantially equivalent to such MSF course. (c) The Instructor Training Specialist must coordinate with the Sponsor and the OTS, to establish the date, location, student enrollment, and tuition. (d) The OTS may conduct Instructor Update Workshops (IUW) in order to maintain up-to-date technical knowledge among all Instructors. VIII. Approved Motorcycle Operator Safety Training Courses (a) All Motorcycle Operator Safety Training Courses for students and instructors must be certified by the OTS before such courses may be used in the Program. To be eligible for the OTS certification, Motorcycle Operator Safety Training Courses must meet the certain standards and criteria described below in paragraph (e) and incorporated below in paragraph (b) of the rules. (b) The OTS has determined and certifies that certain Motorcycle Safety Foundation ( MSF ) motorcycle safety courses contain the standards, criteria, and techniques needed to develop the knowledge, attitudes, habits and skills necessary for the safe operation of a motorcycle, including instruction relating to the effects of alcohol and drugs on the operation of motorcycles, as required by the Statute. The content, organization, and chronology of presentation of the MSF courses are based upon documented research, have been shown to be effective in providing safety training, and are recognized as meeting the national standard for motorcycle safety training. The OTS hereby incorporates by this reference into the Rules the following MSF courses for use in the Program: 1. The Motorcycle Rider Course: Riding and Street Skills (MRC:RSS), which shall be the basic training course for the Program. This course shall include actual motorcycle operation on a controlled off-street range and classroom instruction. In addition, the classroom instruction portion of this course only may be used in the

6 Program or a separate course, ( the Classroom Only Course ), for those students who can not or choose not to comply with requirements applicable to the oncycle portion of the instruction. 2. The Experienced Rider Course (ERC), which shall be the advanced training course for the Program. This course shall include actual motorcycle operation on a controlled off-street range and classroom instruction; 3. The Instructor Preparation Workshop (IPW), which shall be for training and certification of all Program Instructors. (c) The MSF courses that are incorporated are those current on the date the Rules are adopted. The OTS will maintain a certified copy of the complete text of the incorporated materials, which shall be available for inspection during regular business hours. Any person may obtain information concerning how the incorporated material may be examined or copied by contacting: Motorcycle Operator Safety Training Program Coordinator CDOT, Office of Transportation Safety Department of Transportation Headquarters Building Denver, Colorado (d) The OTS will also certify as acceptable for the Program other safety training courses for students or instructors which the Director determines meet standards which are the same as or substantially equivalent to the standards described and incorporated herein. The Director shall make such determination based upon: 1) a comparison of the objective standards of the other courses(s) with the objective standards expressly described in paragraph (e); and 2) a general review of the other courses to ensure that the content, criteria, and techniques of such courses will develop the knowledge, attitudes, habits, and skills necessary for the safe operation of a motorcycle, including instruction relating to the effects of alcohol and other drugs on the operation of a motorcycle, as required by the Statute for the Program, to the same or a substantially equivalent extent as the MSF courses incorporated in paragraph (b). Any person requesting OTS certification to use other courses in the Program must file a written application with the OTS, on a form to be provided by the OTS. Such other courses may be used in the Program only after written certification is issued by the OTS approving such use. (e) To be eligible to be certified by the OTS for use in the Program, a motorcycle safety training course must meet or exceed certain objective standards, including; 1. must be research based. 2. must provide a Basic Rider Education Course and an Instructor Preparation Course. At the option of the Sponsor he may provide an Advanced Rider Course. 3. curriculum for the Basic Rider Course shall provide classroom and actual on-cycle instruction in the basic operation of motorcycles. 4. all course participants and instructors shall wear protective gear including a helmet which meets U.S. DOT, ANSI Z90.1, or Snell safety standards, eye protection, long sleeved shirt or jacket, gloves, long legged pants, and sturdy boots or shoes that cover the ankle whenever sitting upon a motorcycle which has the engine running and/or the wheels in motion. 5. classroom training shall include at least seven hours of instruction. Such instruction shall include, but need not be limited to: (a) Motorcycle controls;

7 (b) Protective riding gear; (c) Pre-ride check; (d) Starting and stopping the motorcycle; (e) Riding in a straight line; (f) Turning; (g) Shifting; (h) Braking; (i) Visibility; (j) Lane positioning; (k) Defensive riding strategies; (l) Countersteering techniques for cornering and evasive maneuvers; (m) Riding on different surfaces; (n) Carrying passengers and loads; (o) Riding in adverse conditions; (p) Alcohol and drugs as they affect riding; (q) Risk awareness and risk acceptance. 6. Not more than three hours nor less than one hour thirty minutes of the classroom hours may be devoted to the showing of slides, transparencies or films. Only films, videotapes or slides approved by the OTS shall be used in the basic motorcycle safety and education course. 7. Practical on-cycle training shall include at least eight hours of instruction. Such instruction shall include, but need not be limited to: (a) Proper mounting and dismounting procedures; (b) Vehicle starting procedures; (c) Straight line riding; (d) Turning; (e) Shifting gears up and down; (f) Braking in a straight line and in a curve; (g) Cornering; (h) Countersteering techniques for cornering and evasive maneuvers.

8 8. The curriculum for the Advanced Rider Course shall provide classroom and actual on-cycle instruction in advanced techniques for operation of motorcycles for experienced motorcyclists. Classroom training shall include at least three hours and forty minutes of instruction. Such instruction shall include, but need not be limited to: (a) Risk management; (b) Rider responsibility; (c) Riding strategies; (d) Management of traction. 9. Actual on-cycle instruction shall include at least three hours and twenty minutes of instruction. Such instruction shall include, but need not be limited to: (a) Cornering; (b) Braking; (c) Swerving. 10. For the Advanced Rider Course, course participants must: (a) Provide their own motorcycle which meets all requirements in Colorado for operation on Colorado highways; (b) Provide proof of liability insurance which meets all requirements in Colorado for operation on Colorado highways; (c) Wear a helmet which meets U.S. DOT, ANSI Z90.1, or Snell safety standards, eye protection, long sleeved shirt or jacket, gloves, long legged pants, and sturdy boots or shoes that cover the ankle whenever sitting upon a motorcycle which has the engine running and/or the wheels in motion. 11. All courses shall include evaluation of the student's knowledge and skill relating to operation of the motorcycle. To successfully complete the Basic Rider Course the student shall: (a) Pass a knowledge test with eighty percent of the questions answered correctly; (b) Pass an on-cycle skill test by accumulating no more than twenty penalty points on all exercises combined for the Basic Course, or no more than fifteen penalty points all exercises or nine points on one exercise for the Advanced Course; (this requirement is not applicable to the Classroom Only Course); and To successfully complete the Basic Rider Course or the Advanced Rider Course the student must: (a) Attend the entire course of instruction, and; (b) Consistently demonstrate behavior during on-cycle instruction that does not endanger the safety of the student, other course participants or the instructional staff and/or that does not intentionally damage course equipment (this requirement is not applicable to the Classroom Only Course).

9 12. All Instructor Preparation Workshops for the Basic Rider Course and the Advanced Rider Course shall provide no less than fifty-three hours of instruction; such instruction shall include theoretical, practical and student teaching experience in motorcycle safety and education instructional theory and techniques. (a) Classroom training shall include, but not be limited to: 1. Training curriculum development; 2. Classroom teaching techniques; 3. Teaching the classroom curriculum; 4. Range teaching techniques including evaluation, coaching and range management; 5. Test administration. (b) On-cycle instruction shall include, but not be limited to: 1. All skills detailed in the basic course curriculum; 2. Teaching the practical on-cycle curriculum; 3. Practice of evaluation, coaching and range management techniques. (c The student teaching phase shall require that each instructor candidate, teach a minimum of one half hour classroom lesson and one half hour range lesson to a class of novice students; peer teaching is not acceptable. (d) Instructor candidates in the Instructor Preparation Workshop for the Basic Rider Course and the Advanced Rider Course shall pass the following to successfully complete the course: 1. A knowledge test with eighty percent of the questions answered correctly; 2. An on-cycle skill test, scoring no more than fifteen overall penalty points and no more than eight penalty points in any single exercise of the final skill test used in the Basic Rider Course and the Advanced Rider Course; and 3. A minimum of one classroom and one range student teaching assignment and taught two novice students: more than one overall failure in either teaching assignment constitutes failure of the course; 4. Attend the entire course of instruction; and 5. Consistently demonstrate behavior during on-cycle instruction that does not endanger the safety of the students, other course participants or the instructional staff and/or that does not intentionally damage the course equipment. (e) No Program Sponsor or Instructor shall conduct, offer, or instruct a Motorcycle Operator Safety Training Course for the Program other than motorcycle safety training courses approved by the OTS.

10 IX. Motorcycle Requirements (f) All Program Sponsors and Instructors shall comply with the following requirements concerning Program course instructions: 1. The student to instructor ratio for classroom instruction shall not exceed 24 students per instructor; 2. The student to instructor ratio for on-cycle instruction shall not exceed 6 students for 1 instructor unless the instructor is experienced. An experienced instructor is one who has taught at least eight basic training courses, such as the MSF course MRC:RSS. The student to instructor ratio for an experienced instructor shall not exceed 8 students to 1 instructor when teaching alone, or, 12 students to one instructor when being assisted by another nationally certified instructor approved in writing by the OTS; 3. A separate operating motorcycle shall be available to each individual student during the entire on-cycle portion of the training. (a) The Program Sponsor or Instructor shall reject any motorcycle for use in the Program if it fails to meet the requirements of this section or if, in the judgment of the Sponsor, the motorcycle is unsafe for the rider, an instructor, another student, or for any other person permitted in the riding area. A motorcycle may be deemed unsafe because of modification, damage, lack of maintenance, nonstandard configuration, or any other substantial safety reason. (b) Any motorcycle used in the Program must have insurance in an adequate amount which covers its use in the Program. The coverage shall be in an amount not less than the amount required by Colorado law for motor vehicles operating on the public highway. The Program Instructor must verify proof of adequate insurance coverage. (c) A student may use his own motorcycle if the student provides proof of ownership and meets the requirements of IX.(a) above. (d) A student may use a borrowed motorcycle if the student can show written permission of the owner to use the motorcycle in the course. (e) A motorcycle with an engine displacement of over 350 cc: 1. shall not be used in a Basic Course; and 2. may be used in an advanced course only if it meets all other requirements of this section. (f) No Program Sponsor or Program Instructor shall provide a motorcycle to a student for use in an advanced course. (g) Except for reasonable wear and tear, the Program Sponsor is responsible for the repairs and maintenance of all motorcycles, including replacement of tires. The Program Sponsor shall maintain all motorcycles in safe working condition. (h) The Program Sponsor shall not move any state owned motorcycle from its sites to any other Program Sponsor's sites without prior written approval by the OTS. X. Program Range Requirements

11 At all times relevant to the MOST contract, the Program Sponsor shall: (a) Have available a range which meets or exceeds the MSF minimum standards described in the MRC:RSS in Section VIII (b) (1) above. There may be more than one approved range at each site. (b) Provide a diagram of each range and a map showing a layout of ranges on the site to the OTS for approval. Any changes or adjustments to the range area or exercises must be diagrammed and approved in writing by the OTS prior to use. (c) Assure that all range markings are clearly visible during training. (d) Use a range whose surface is paved and free of potholes and other hazards. (e) Secure the range from other traffic and pedestrians. (f) Inspect the range prior to each training session to assure that it is free from gravel, broken glass, and other hazards which would impair the student's safety. (g) Not allow spectators and visitors on the range during any instruction, but may observe from a safe distance. XI. Quality Assurance (a) Program Sponsors and Program Instructors shall be subject to periodic Quality Assurance Reviews, by or on behalf of OTS, to assure compliance with all applicable MOST statute and Rule requirements and contract terms. (b) Program Sponsors and Program Instructors shall fully comply with all such reviews, and shall participate in such reviews as directed by OTS. (c) OTS may require that Program Sponsors and Program Instructors perform and complete appropriate action(s) to correct any lack of compliance with such requirements. (d) Quality Assurance reviews will include, but not limited to: 1. Range compliance with the approved diagram and map, and clarity of markings. 2. Adequate classroom and equipment. 3. Students and Instructors wearing proper protective gear while on the range. 4. Range exercises are being properly demonstrated. 5. Instructors are in the proper position for the exercise. 6. The Instructor follows the curriculum. 7. The Instructor uses proper coaching techniques. 8. The motorcycles are in good, safe working condition. 9. Range-aides are performing only non-instructional functions. (e) All Quality Assurance reviews will be documented on the appropriate OTS form. The review will

12 clearly indicate any lack of compliance with applicable MOST statute and Rule requirements and contract terms and what corrective action is being required to ensure compliance. (f) The OTS will contact the Program Sponsor and/or Program Instructor and discuss the results of the Quality Assurance review. The OTS is authorized to remedy any deficiencies shown by the review. Corrective action will be scheduled as directed by the OTS to bring deficiencies into compliance with the Rules and Regulations and contract. Program Sponsors and/or Instructors shall implement and complete corrective action as directed by the OTS. (g) The OTS may conduct a follow up Quality Assurance Review to ensure compliance. XII. Program Funds and Contract Procedures (a) The OTS may, in the Director's discretion, use the Motorcycle Operator Safety Training Funds to establish, implement, and administer the Program, and to participate in eligible costs of the Program. Such costs may include, but are not limited to the following: 1. The administrative costs of the OTS directly related to the Motorcycle Operator Safety Training Program, including personal services cost, operating costs, capital equipment costs, and travel costs in accordance with applicable state law and fiscal rules, provided that such costs shall not exceed 15% of the annual total Program appropriation; 2. The full or partial reimbursement of a portion of the actual costs incurred by a Program Sponsor which are directly related to implementing a certified motorcycle operator safety training course or administering a certified motorcycle operator safety training course, including personal services costs, operating costs, capital equipment costs, tuition costs, training material costs, and facilities costs; 3. The reimbursement of costs directly related to the training of individuals for qualification as certified Program Instructors; 4. The payment of costs to advertise and promote the Program which the OTS determines are necessary to implement and maintain the Program; 5. Costs which the OTS determines are necessary to obtain additional instructors and/or sponsors. 6. Operating costs and capital equipment costs including, but not limited to motorcycles, workbooks, student supplies and instructor supplies. 7. Costs of conducting and administering motorist awareness programs, provided that such costs expended for such purposes do not exceed the maximum allowed by (5)(b). (b) The OTS will participate in specific Program costs only to the extent expressly agreed to by the OTS in the contract with each individual Program Sponsor. Such participation will be at the discretion of the Director and will be determined in accordance with the contract procedures described in section XII (c) below. (c) The Director will contract as necessary, in accordance with the following procedure, with Program Sponsors to provide Motorcycle Operator Safety Training Courses to the public. 1. The Director will, on an annual basis, request each Program Sponsor to submit a written proposal to the OTS detailing the tuition cost per student the Sponsor will charge for providing the Motorcycle Operator Safety Training Courses and where the training will take place.

13 2. The Director will conduct discussions and negotiations with each sponsor submitting a proposal concerning the location of training, proposed training costs, the OTS's participation in such costs, contract conditions, and the ability of that Sponsor to provide the Program in accordance with the Rules. 3. The Director may enter a contract with each Sponsor to provide the Motorcycle Operator Safety Training Courses on terms and conditions which the Director, at his discretion, determines necessary and reasonable to implement the Program, including the extent of the OTS's participation in training costs and the maximum cost to be charge by the Sponsor to the students for the training. The contract(s) may be for a maximum term of up to one year, subject to the availability of monies in the Fund on a fiscal year basis. The contract(s) may be renewed by the OTS, at the discretion of the Director, provided however that the written proposal and discussion procedure described above must be adhered to prior to any contract or renewal to establish necessary contract conditions, including the extent of the OTS cost participation for the Program. 4. The Director will use monies from the Fund to pay for a portion of the tuition cost per student charged by the Sponsor for the Program training, and may use Fund monies to participate in other Program costs, as authorized by the Rules and as described in the contract. The actual amount of the portions of the Program costs to be paid by the OTS from the Fund will be determined each year by the Director, at his/her discretion, based upon all relevant factors including, but not limited to: the total amount of monies in the Fund which are available for training in that fiscal year; the total number of students anticipated to enroll in the Program in that fiscal year; the need of Sponsors for assistance with related costs; other financial needs of the Program. 5. The actual amount to be paid by the OTS to a Sponsor for a portion of the training costs per year shall be expressly described in the contract between the OTS and the Sponsor. The OTS will pay such amount(s) directly to the Sponsor, in accordance with the terms of the contract, after the Sponsor submits appropriate documentation to the OTS showing that each student for which partial payment is requested has completed, at a minimum, at least three hours of classroom instruction and one hours of on-cycle instruction, or if the student participated in the Classroom Only Course as described in section VIII(b) (1) that each student has successfully completed the entire 7 hours of the classroom instruction of the course. The payment obligation of the OTS for such training shall be limited to the amount(s) expressly described in the contract, subject to the availability of funds; the student shall be responsible for the remainder of the tuition cost charges by the Sponsor. 6. This contract procedure is necessary to ensure that the Fund be used to decrease the cost to the student that was formerly charged for such training and to, thereby, make such training more accessible and increase the number of students that are able to afford such safety training. This procedure is also necessary to comply with the purpose of the Statute and to obtain as much competition for such training services as is practicable in order to protect the public interest. 7. All contracts or agreements by or between the Program Sponsor and the OTS shall be prepared by the OTS in accordance with existing state of Colorado procurement contracting procedures and the contract shall include the following: (a) responsibilities of the contractor; (b) responsibilities of the OTS;

14 (c) a statement indicating the agreed contract price per student for reimbursement; (d) a statement indicating any additional allowable costs for reimbursement; and (e) any terms and conditions required by Colorado law. 8. The effective date of the contract shall be the date of execution by the State Controller. 9. If the Program Sponsor or Instructor incurs any expenditure prior to the effective date of the contract, the Sponsor or Instructor shall be solely responsible for such expense and it shall not be reimbursable under the contract. XIII. Denial, Suspension, and Revocation of Certification The MOST Program Sponsor and/or Instructor, as applicable, will be notified of any denial suspension, revocation, or re-certification actions. Certification as a Program Sponsor or as a Program Instructor may be immediately suspended, pursuant to the provisions of Section (4), C.R.S. The OTS may also deny, suspend, or revoke the certification of the Program Sponsor or Program Instructor for any action or omission which violates the purposes, scope, or terms of the Statute or the Rules, including: (a) failure to meet or to continue to meet the requirements of Sections III and IV (Sponsor) or Sections V and VI, (Instructor). (b) have been convicted of any : (1) offense involving tampering with a government record; (2) offense pursuant to (3) C.R.S. (c) knowingly present or allow to be presented to the OTS any false or misleading information relating to a requirement for certification or compliance with the Rules; (d) permit or engage in any fraud or fraudulent practice concerning an application for a motorcycle license or permit. (e) knowingly or recklessly disregard, change or fail to comply with any requirements of the rules or other applicable law regarding motorcycle operator safety training; (f) obtained program certification based on false or incorrect information or mistake; (g) have had their driver's license revoked or suspended by Colorado or any other state within the three year period preceding the date of application; (h) have been convicted of any traffic offense which is assigned eight or more points and which was committed within the three years preceding the date of application. (i) failure of Program Instructor to attend one scheduled Instructor Update Workshop each year without a written exemption approved in advance by the OTS, as described in Section VI (e). (j) Program Sponsors and/or Program Instructors who do not comply with the corrective action directed by the OTS shall have their certification denied, suspended, or revoked. XIV. Notice and Hearing Requirements

15 Any denial, suspension, or revocation of the certification for a Program Sponsor or Instructor required by the Rules shall be subject to the applicable notice and hearing provisions of Sections and C.R.S. of the Administrative Procedures Act. XV. Reinstatement Standards for Program Sponsors and Program Instructors (a) In an appropriate case, the OTS may reinstate a Program Sponsor or Program Instructor whose certification has been revoked or suspended. (b) The OTS Director will make the determination whether a particular case is appropriate for reinstatement. (c) In making that determination, the OTS Director may consider all relevant circumstances, including the performance and satisfactory completion of any remedial action(s) required by the OTS. (d) In addition to the above provisions, in order to be reinstated as a Program Instructor, the Instructor will be required to attend an Instructor Preparation Workshop, or at a minimum attend remedial training as prescribed by the OTS. The Instructor must successfully complete the appropriate test requirements. (e) In addition to the above provisions, in order to be reinstated as a Program Sponsor the Sponsor must have qualified and certified instructors to be considered for reinstatement.

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