Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-1136.01 Jery Payne x2157
SENATE BILL 24-192
Senate Committees House Committees
Business, Labor, & Technology
Appropriations
A BILL FOR AN ACT
C
ONCERNING CHANGES TO THE LAW REQUIRING PERSONS IN THE101
BUSINESS OF SELLING MOTOR VEHICLES TO MAKE A CONSUMER102
WHOLE IF THE MOTOR VEHICLE FAILS TO PERFORM , AND, IN
103
CONNECTION THEREWITH , MAKING AN APPROPRIATION .104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Current law, which is commonly known as the "lemon law",
requires a manufacturer, a manufacturer's agent, or a manufacturer's
authorized dealer (dealer) to replace or buy back a motor vehicle if the
SENATE
3rd Reading Unamended
April 29, 2024
SENATE
Amended 2nd Reading
April 26, 2024
SENATE SPONSORSHIP
Michaelson Jenet, Buckner, Cutter
HOUSE SPONSORSHIP
Soper and Snyder,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. consumer notified the dealer within the earlier of the warranty period or
one year after original delivery of the motor vehicle (notification time),
and the motor vehicle underwent a reasonable number of attempts to
repair. The number of repairs are considered reasonable if:
! The motor vehicle was out of service for repairs for a
cumulative total of 30 or more business days; or
! The dealer tried unsuccessfully to repair the motor vehicle
4 or more times.
The bill:
! Expands the lemon law to cover motor vehicles affected by
safety-based nonconformities;
! Expands the notification time to include the earlier of the
first 36,000 miles or 3 years after original delivery of the
motor vehicle;
! Clarifies that, for any claim a consumer raises against a
manufacturer, the lemon law is not an affirmative defense
against the consumer's claim when the statute of limitations
is tolled for a period of time after the consumer has
presented a claim and submitted the motor vehicle for
repair but before the threshold for cure has been met;
! Lowers the number of out-of-service business days from 30
to 21; and
! Lowers the number of required attempts to repair from 4 to
3.
Current law requires the manufacturer to be notified of a defect
and be given an opportunity to cure the defect in order to be subject to the
reasonable repairs presumption. The bill adds a 10-day limit on the
opportunity to cure the defect.
Current law allows a dealer, when buying back a motor vehicle, to
deduct a reasonable allowance for use. The bill sets a formula for
determining the reasonable allowance for use.
Current law exempts from the lemon law motor vehicles that have
a problem that does not affect the market value of the motor vehicle. The
bill adds that the problem must not affect the safety of the motor vehicle
to qualify for the exemption.
The bill changes the statute of limitations from the earlier of 6
months after the expiration of a warranty or within one year after the
original delivery of the motor vehicle to 42 months after the original
delivery.
The bill requires a dealer to allow an agent of a purchaser to
inspect a motor vehicle unless the dealer provides a 7-day free-look
period in which the purchaser may return the motor vehicle and receive
a refund of all money paid to the dealer to purchase the motor vehicle.
The dealer must notify purchasers of this inspection right. The dealer is
required to give certain notices that the motor vehicle was returned,
192
-2- including notifying the department of revenue (department). The
department must put a brand on the title to notify subsequent purchasers.
Failing to comply with the bill is a ground for discipline for a
manufacturer, distributor, motor vehicle dealer, wholesale motor vehicle
auction dealer, wholesaler, buyer agent, used motor vehicle dealer
licensee, motor vehicle salesperson, or business disposal licensee.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 42-10-101, amend2
the introductory portion, (1), and (2); and add (1.5) and
(2.5) as follows:3
42-10-101. Definitions. As used in this article ARTICLE 10, unless4
the context otherwise requires:5
(1) "Consumer" means the purchaser, other than for purposes of6
resale, of a motor vehicle normally THAT IS used for personal, family,7
or household purposes; any person to whom such THE motor vehicle is8
transferred for the same purposes during the duration of a manufacturer's9
express warranty for such THE motor vehicle; and any other person10
entitled by the terms of such THE warranty to enforce the obligations of11
the warranty.12
(1.5) "L
EMON LAW BUYBACK VEHICLE " MEANS A MOTOR VEHICLE
13
THAT WAS REPURCHASED BY OR RETURNED TO THE MANUFACTURER , THE14
MANUFACTURER'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER15
FOR INABILITY TO CONFORM THE MOTOR VEHICLE TO THE16
MANUFACTURER'S WARRANTY IN ACCORDANCE WITH THIS ARTICLE 10 OR17
WITH ANY OTHER STATE OR FEDERAL MOTOR VEHICLE WARRANTY LAW .18
(2) "Motor vehicle" means a self-propelled private passenger19
vehicle, including pickup trucks and vans, designed primarily for travel20
on the public highways and used to carry not more than ten persons,21
which is sold to a consumer in this state; except that the term does not22
192-3- include motor homes as defined in section 42-1-102 (57), or vehicles1
designed to travel on three or fewer wheels in contact with the ground,
OR
2
A MOTOR VEHICLE THAT HAS BEEN MODIFIED FOR COMMERCIAL USE .3
(2.5) "S
AFETY-BASED NONCONFORMITY " MEANS A
4
NONCONFORMITY THAT :5
(a) R
ESULTS IN A CONDITION THAT IS LIKELY TO CAUSE DEATH OR
6
SERIOUS BODILY INJURY IF THE VEHICLE IS DRIVEN; OR7
(b) C
REATES A RISK OF FIRE OR EXPLOSION.
8
SECTION 2. In Colorado Revised Statutes, amend 42-10-102 as9
follows:10
42-10-102. Repairs to conform vehicle to warranty. If a11
motor vehicle
HAS A SAFETY-BASED NONCONFORMITY OR does not12
conform to a warranty and the consumer reports the nonconformity to the13
manufacturer, its
THE MANUFACTURER 'S agent, or its THE14
MANUFACTURER'S authorized dealer during the term of such warranty or15
during a period of one year WITHIN THE FIRST TWENTY-FOUR THOUSAND16
MILES OF THE MOTOR VEHICLE 'S OPERATION OR WITHIN TWO YEARS17
following the date of the original delivery of the motor vehicle to a18
consumer, whichever is the OCCURS earlier, date, the manufacturer, its19
THE MANUFACTURER 'S agent, or its THE MANUFACTURER 'S authorized20
dealer shall make such repairs as are necessary to conform the
MOTOR21
vehicle to such
THE warranty, notwithstanding the fact that such THE22
repairs are made after the expiration of such term or such one-year THE23
period.24
25
SECTION 3. In Colorado Revised Statutes, 42-10-103, amend26
(1), (2)(a), (2)(b), and (2)(c); and add (4) as follows:27
192
-4- 42-10-103. Failure to conform vehicle to warranty -1
replacement or return of vehicle. (1) If the manufacturer, its THE2
MANUFACTURER'S agent, or its THE MANUFACTURER'S authorized dealer3
is unable to conform the motor vehicle to the warranty by repairing or4
correcting the defect or condition which THAT substantially impairs the5
use and market value of such OR SAFETY OF THE motor vehicle after a6
reasonable number of attempts, the manufacturer shall, at its THE7
MANUFACTURER'S option, replace the motor vehicle with a comparable8
motor vehicle or accept return of the motor vehicle from the consumer9
and refund to the consumer the full purchase price, including the sales10
tax, license fees, and registration fees and any similar governmental11
charges, less a reasonable allowance for the consumer's use of the motor12
vehicle. Refunds shall be made to the consumer and lienholder, if any, as13
their interests may appear. A reasonable allowance for use shall be that14
amount directly attributable to use by the consumer and any previous15
consumer prior to the consumer's first written report of the nonconformity16
to the manufacturer, agent, or dealer and during any subsequent period17
when the vehicle is not out of service by reason of repair.18
(2) (a) It shall be presumed that A reasonable number of attempts19
IS PRESUMED TO have been undertaken to conform a motor vehicle to the20
warranty if:21
(I) The same nonconformity has been subject to repair four THREE22
or more times by the manufacturer, its THE MANUFACTURER'S agent, or its23
THE MANUFACTURER 'S authorized dealer within the warranty term or24
during a period of one year THE FIRST TWENTY-FOUR THOUSAND MILES OR25
WITHIN TWO YEARS following the date of the original delivery of the26
motor vehicle to the consumer, whichever is the OCCURS earlier, date, but27
192
-5- such THE nonconformity continues to exist; or1
(II) The motor vehicle is out of service by reason of repair for a2
cumulative total of thirty TWENTY-FOUR or more business days of the3
repairer during the term MILEAGE specified in subparagraph (I) of this4
paragraph (a) SUBSECTION (2)(a)(I) OF THIS SECTION or during the TIME5
period specified in said subparagraph (I) SUBSECTION (2)(a)(I) OF THIS6
SECTION, whichever is the OCCURS earlier; date. OR7
(III) A
SAFETY-BASED NONCONFORMITY HAS BEEN SUBJECT TO8
TWO OR MORE REPAIR ATTEMPTS BY THE MANUFACTURER , THE9
MANUFACTURER'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER10
WITHIN THE FIRST TWENTY-FOUR
THOUSAND MILES OF OPERATION OR11
WITHIN TWO YEARS FOLLOWING THE DATE OF THE ORIGINAL DELIVERY OF12
THE MOTOR VEHICLE TO THE CONSUMER , WHICHEVER OCCURS EARLIER ,13
BUT THE SAFETY-BASED NONCONFORMITY CONTINUES TO EXIST .14
(b) For the purposes of this subsection (2), the term of a warranty,15
the one-year TWO-YEAR period, and the thirty-day TWENTY-FOUR-DAY16
period shall be ARE extended by any period of time during which repair17
services are not available to the consumer because of war, invasion,18
strike, or fire, flood, or other natural disaster.19
(c) In no event shall A presumption under paragraph (a) of this20
subsection (2) SUBSECTION (2)(a) OF THIS SECTION DOES NOT apply21
against a manufacturer unless the manufacturer has received prior written22
notification by certified mail from or on behalf of the consumer and23
STATING THAT ONE OR MORE ATTEMPTS TO REPAIR THE SAME24
NONCONFORMITY HAVE BEEN MADE PURSUANT TO SECTION 42-10-10225
AND THE ALLEGED NONCONFORMITY REMAINS , AND THE MANUFACTURER26
has been provided an opportunity TEN BUSINESS DAYS to cure the27
192
-6- ALLEGED defect alleged. Such AFTER RECEIPT OF THE NOTIFICATION.1
T
HE defect shall count
COUNTS as one nonconformity subject to repair2
under subparagraph (I) of paragraph (a) of this subsection (2) SUBSECTION3
(2)(a)(I)
AND (2)(a)(III)
OF THIS SECTION.4
(4) A
REASONABLE ALLOWANCE FOR USE , AS DESCRIBED IN5
SUBSECTION (1) OF THIS SECTION, MUST BE OBTAINED BY MULTIPLYING6
THE TOTAL CONTRACT PRICE OR LESSEE COST OF THE MOTOR VEHICLE BY7
A FRACTION HAVING AS ITS DENOMINATOR ONE HUNDRED THOUSAND AND8
HAVING AS THE FRACTION'S NUMERATOR THE SUM OF:9
(a) T
HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED10
BEFORE THE CONSUMER 'S FIRST PRESENTATION OF THE VEHICLE
TO THE11
MANUFACTURER, THE MANUFACTURER'S AGENT, OR THE MANUFACTURER'S12
DEALER OR LESSOR FOR REPAIR OF THE NONCONFORMITY ; AND13
(b) T
HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED14
DURING ANY SUBSEQUENT PERIOD WHEN THE MOTOR VEHICLE WAS NOT15
OUT OF SERVICE BY REASON OF REPAIR.16
SECTION 4. In Colorado Revised Statutes, 42-10-104, amend17
(1) introductory portion and (1)(a) as follows:18
42-10-104. Affirmative defenses. (1) It shall be
IS an affirmative19
defense to any claim under this article ARTICLE 10 that:20
(a) An alleged nonconformity does not substantially impair the21
SAFETY OF OR use and market value of a motor vehicle, AS APPLICABLE;
22
or23
SECTION 5. In Colorado Revised Statutes, amend 42-10-107 as24
follows:25
42-10-107. Statute of limitations. Any action brought to enforce26
the provisions of this article shall THIS ARTICLE 10 MUST be commenced27
192
-7- within six months following the expiration date of any warranty term or1
within one year THIRTY MONTHS following the date of the original2
delivery of a motor vehicle to a consumer; whichever is the earlier date;3
except that the statute of limitations shall be IS tolled during the period4
the consumer has submitted to arbitration under section 42-10-106
OR
5
WHILE THE MOTOR VEHICLE IS NOT AVAILABLE FOR USE BY REASON OF6
REPAIR.7
SECTION 6. In Colorado Revised Statutes, add 42-10-108,8
42-10-109, and 42-10-110 as follows:9
42-10-108. Third-party inspection - disclosure. (1) (a) A10
MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK VEHICLE TO A11
POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR RESALE MUST12
EITHER:13
(I) A
LLOW A THIRD-PARTY AGENT OF A POTENTIAL PURCHASER TO
14
INSPECT THE MOTOR VEHICLE BEFORE SELLING THE MOTOR VEHICLE ; OR15
(II) P
ROVIDE A SEVEN-DAY FREE-LOOK PERIOD DURING WHICH THE
16
PURCHASER MAY RETURN THE MOTOR VEHICLE AND RECEIVE A REFUND OF17
ALL MONEY PAID TO PURCHASE THE MOTOR VEHICLE , LESS SHIPPING18
COSTS.19
(b) T
O MAKE THE INSPECTION PROVIDED IN SUBSECTION (1)(a)(I)
20
OF THIS SECTION, A THIRD-PARTY AGENT MAY HAVE REASONABLE ACCESS21
TO CONDUCT THE INSPECTION , BUT THE THIRD-PARTY AGENT MUST BE22
QUALIFIED TO USE OR OPERATE ANY EQUIPMENT USED TO INSPECT THE23
VEHICLE AND MUST NOT INTERFERE WITH NORMAL BUSINESS OPERATIONS24
OF THE MOTOR VEHICLE DEALER .25
(2)
A MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK
26
VEHICLE TO A POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR27
192
-8- RESALE MUST CONSPICUOUSLY DISCLOSE IN WRITING , BEFORE THE MOTOR1
VEHICLE IS PURCHASED, TO EACH POTENTIAL PURCHASER OF THE MOTOR2
VEHICLE FOR PURPOSES OTHER THAN FOR RESALE THE RIGHT DESCRIBED3
IN SUBSECTION (1)(a) OF THIS SECTION.4
42-10-109. Buy back notice. (1) I
F THE MOTOR VEHICLE IS5
RETURNED PURSUANT TO SECTION 42-10-103 (1), A MANUFACTURER, A6
MANUFACTURER'S AGENT, OR A MANUFACTURER'S AUTHORIZED DEALER7
SHALL, BEFORE THE RESALE OF THE MOTOR VEHICLE IN THIS STATE :
8
9
(a) NOTIFY THE DEPARTMENT OF REVENUE THAT THE MOTOR10
VEHICLE WAS RETURNED TO THE MANUFACTURER , THE MANUFACTURER'S11
AGENT, OR THE MANUFACTURER 'S AUTHORIZED DEALER PURSUANT TO12
SECTION 42-10-103 (1);13
(b) ATTACH A DECAL TO THE MOTOR VEHICLE THAT CLEARLY AND14
CONSPICUOUSLY READS "LEMON LAW BUYBACK" ON THE BODY POST TO15
WHICH THE DRIVER'S DOOR LATCHES, ALSO KNOWN AS THE DRIVER'S DOOR16
B PILLAR, ON THE DATE THE MOTOR VEHICLE IS RETURNED AND SHALL NOT17
REMOVE THE DECAL; AND18
(c) APPLY FOR A LEMON LAW BUYBACK BRANDED CERTIFICATE OF19
TITLE PURSUANT TO ARTICLE 6 OF THIS TITLE 42 IN THE MANUFACTURER'S,20
THE MANUFACTURER'S AGENT'S, OR THE MANUFACTURER'S AUTHORIZED21
DEALER'S NAME.22
(2) A
SELLER OF A MOTOR VEHICLE, INCLUDING A MANUFACTURER
23
OR DEALER, WHO KNOWS OR SHOULD HAVE KNOWN THAT THE MOTOR24
VEHICLE IS A LEMON LAW BUYBACK VEHICLE SHALL CLEARLY AND25
CONSPICUOUSLY DISCLOSE THAT THE MOTOR VEHICLE IS A LEMON LAW26
BUYBACK VEHICLE BEFORE THE SALE OF THE MOTOR VEHICLE .27
192
-9- (3) THE SELLER OF A LEMON LAW BUYBACK VEHICLE SHALL NOT1
REMOVE A LEMON LAW BUYBACK DECA L FROM THE LEMON LAW BUYBACK2
VEHICLE.3
42-10-110. Applicability. (1) T
HIS ARTICLE 10 DOES NOT APPLY
4
TO A USED MOTOR VEHICLE ; EXCEPT THAT SECTIONS 42-10-108 AND5
42-10-109
APPLY TO A USED MOTOR VEHICLE.
6
(2) T
HIS ARTICLE 10 DOES NOT APPLY TO A USED MOTOR VEHICLE
7
DEALER LICENSED IN ACCORDANCE WITH ARTICLE 20 OF TITLE 44.8
SECTION 7. In Colorado Revised Statutes, 42-6-102, amend9
(1.7)(e) and (1.7)(f); and add (1.7)(g) as follows:10
42-6-102. Definitions. As used in this part 1, unless the context11
otherwise requires:12
(1.7) "Brand" means a permanent designation or marking on a13
motor vehicle's title, associated with the vehicle identification number,14
that conveys information about the value of the vehicle or indicates that15
the vehicle:16
(e) Has had its odometer tampered with; or17
(f) Has a designation placed on the title by another jurisdiction;
OR18
(g) I
S A LEMON LAW BUYBACK VEHICLE , AS DEFINED IN SECTION
19
42-10-101
(1.5).
20
SECTION 8. In Colorado Revised Statutes, 42-6-107, amend21
(1)(a)(III) as follows:22
42-6-107. Certificates of title - contents - rules. (1) (a) (III) If23
a vehicle shows a brand in its THE VEHICLE'S title history, or if the vehicle24
is subject to a brand, the department shall place the appropriate brand on25
the certificate of title. If the vehicle has multiple brands, the department26
shall place the most recent brand on the certificate of title and the notice27
192
-10- "other brands exist". If the brand is from a certificate of title issued in1
another jurisdiction, the brand must be carried forward to the Colorado2
certificate of title along with the name of the jurisdiction originating the3
brand. O
N AND AFTER JANUARY 1, 2027, THE APPROPRIATE BRAND IS
4
"L
EMON LAW BUYBACK" IF A MOTOR VEHICLE IS A LEMON LAW BUYBACK
5
VEHICLE, AS DEFINED IN SECTION 42-10-101 (1.5).6
SECTION 9. In Colorado Revised Statutes, 44-20-121, add7
(1)(d) as follows:8
44-20-121. Licenses - grounds for denial, suspension, or9
revocation. (1) A manufacturer's or distributor's license may be denied,10
suspended, or revoked on the following grounds:11
(d) F
AILING TO COMPLY WITH ARTICLE 10 OF TITLE 42.12
13
SECTION 10. Appropriation. (1) For the 2024-25 state fiscal14
year, $19,605 is appropriated to the department of revenue. This15
appropriation is from the Colorado DRIVES vehicle services account in16
the highway users tax fund created in section 42-1-211 (2), C.R.S. To17
implement this act, the department may use this appropriation as follows:18
(a) $14,700 for DRIVES maintenance and support;19
(b) $1,088 for personal services related to driver services; 20
(c) $1,540 for personal services related to administration and21
support; and22
(d) $2,277 for payments to OIT.23
SECTION 11. Act subject to petition - effective date -24
applicability. (1) This act takes effect at 12:01 a.m. on the day following25
the expiration of the ninety-day period after final adjournment of the26
general assembly; except that, if a referendum petition is filed pursuant27
192
-11- to section 1 (3) of article V of the state constitution against this act or an1
item, section, or part of this act within such period, then the act, item,2
section, or part will not take effect unless approved by the people at the3
general election to be held in November 2024 and, in such case, will take4
effect on the date of the official declaration of the vote thereon by the5
governor.6
(2) This act applies to motor vehicles sold or leased on or after the7
applicable effective date of this act.8
192
-12-