Colorado 2024 Regular Session

Colorado Senate Bill SB192 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-1136.01 Jery Payne x2157
1	8		SENATE BILL 24-192
2		-	BY SENATOR(S) Michaelson Jenet, Buckner, Cutter;
3		-	also REPRESENTATIVE(S) Soper and Snyder, Amabile, Bird,
4		-	Boesenecker, Brown, Daugherty, English, Hamrick, Jodeh, Kipp, Lieder,
5		-	Lindsay, Mauro, Ortiz, Ricks, Rutinel, Titone, Valdez, Weissman, Willford,
6		-	Woodrow, McCluskie.
	9	+	Senate Committees House Committees
	10	+	Business, Labor, & Technology Business Affairs & Labor
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
7	13		C
8		-	ONCERNING CHANGES TO THE LAW REQUIRING PERSONS IN THE BUSINESS
9		-	OF SELLING MOTOR VEHICLES TO MAKE A CONSUMER WHOLE IF THE
10		-	MOTOR VEHICLE FAILS TO PERFORM
11		-	, AND, IN CONNECTION
12		-	THEREWITH
13		-	, MAKING AN APPROPRIATION.
14		-
15		-	Be it enacted by the General Assembly of the State of Colorado:
16		-	SECTION 1. In Colorado Revised Statutes, 42-10-101, amend the
17		-	introductory portion, (1), and (2); and add (1.5) and (2.5) as follows:
18		-	42-10-101. Definitions. As used in this article
19		-	ARTICLE 10, unless
20		-	the context otherwise requires:
21		-	(1) "Consumer" means the purchaser, other than for purposes of
22		-	resale, of a motor vehicle normally THAT IS used for personal, family, or
23		-	household purposes; any person to whom such THE motor vehicle is
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. transferred for the same purposes during the duration of a manufacturer's
32		-	express warranty for such THE motor vehicle; and any other person entitled
33		-	by the terms of such THE warranty to enforce the obligations of the
34		-	warranty.
	14	+	ONCERNING CHANGES TO THE LAW REQUIRING PERSONS IN THE101
	15	+	BUSINESS OF SELLING MOTOR VEHICLES TO MAKE A CONSUMER102
	16	+	WHOLE IF THE MOTOR VEHICLE FAILS TO PERFORM , AND, IN
	17	+	103
	18	+	CONNECTION THEREWITH , MAKING AN APPROPRIATION .104
	19	+	Bill Summary
	20	+	(Note: This summary applies to this bill as introduced and does
	21	+	not reflect any amendments that may be subsequently adopted. If this bill
	22	+	passes third reading in the house of introduction, a bill summary that
	23	+	applies to the reengrossed version of this bill will be available at
	24	+	http://leg.colorado.gov
	25	+	.)
	26	+	Current law, which is commonly known as the "lemon law",
	27	+	requires a manufacturer, a manufacturer's agent, or a manufacturer's
	28	+	authorized dealer (dealer) to replace or buy back a motor vehicle if the
	29	+	HOUSE
	30	+	3rd Reading Unamended
	31	+	May 7, 2024
	32	+	HOUSE
	33	+	2nd Reading Unamended
	34	+	May 6, 2024
	35	+	SENATE
	36	+	3rd Reading Unamended
	37	+	April 29, 2024
	38	+	SENATE
	39	+	Amended 2nd Reading
	40	+	April 26, 2024
	41	+	SENATE SPONSORSHIP
	42	+	Michaelson Jenet, Buckner, Cutter
	43	+	HOUSE SPONSORSHIP
	44	+	Soper and Snyder, Amabile, Bird, Boesenecker, Brown, Daugherty, English, Hamrick,
	45	+	Jodeh, Kipp, Lieder, Lindsay, Mauro, McCluskie, Ortiz, Ricks, Rutinel, Titone, Valdez,
	46	+	Weissman, Willford, Woodrow
	47	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	48	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	49	+	Dashes through the words or numbers indicate deletions from existing law. consumer notified the dealer within the earlier of the warranty period or
	50	+	one year after original delivery of the motor vehicle (notification time),
	51	+	and the motor vehicle underwent a reasonable number of attempts to
	52	+	repair. The number of repairs are considered reasonable if:
	53	+	! The motor vehicle was out of service for repairs for a
	54	+	cumulative total of 30 or more business days; or
	55	+	! The dealer tried unsuccessfully to repair the motor vehicle
	56	+	4 or more times.
	57	+	The bill:
	58	+	! Expands the lemon law to cover motor vehicles affected by
	59	+	safety-based nonconformities;
	60	+	! Expands the notification time to include the earlier of the
	61	+	first 36,000 miles or 3 years after original delivery of the
	62	+	motor vehicle;
	63	+	! Clarifies that, for any claim a consumer raises against a
	64	+	manufacturer, the lemon law is not an affirmative defense
	65	+	against the consumer's claim when the statute of limitations
	66	+	is tolled for a period of time after the consumer has
	67	+	presented a claim and submitted the motor vehicle for
	68	+	repair but before the threshold for cure has been met;
	69	+	! Lowers the number of out-of-service business days from 30
	70	+	to 21; and
	71	+	! Lowers the number of required attempts to repair from 4 to
	72	+	3.
	73	+	Current law requires the manufacturer to be notified of a defect
	74	+	and be given an opportunity to cure the defect in order to be subject to the
	75	+	reasonable repairs presumption. The bill adds a 10-day limit on the
	76	+	opportunity to cure the defect.
	77	+	Current law allows a dealer, when buying back a motor vehicle, to
	78	+	deduct a reasonable allowance for use. The bill sets a formula for
	79	+	determining the reasonable allowance for use.
	80	+	Current law exempts from the lemon law motor vehicles that have
	81	+	a problem that does not affect the market value of the motor vehicle. The
	82	+	bill adds that the problem must not affect the safety of the motor vehicle
	83	+	to qualify for the exemption.
	84	+	The bill changes the statute of limitations from the earlier of 6
	85	+	months after the expiration of a warranty or within one year after the
	86	+	original delivery of the motor vehicle to 42 months after the original
	87	+	delivery.
	88	+	The bill requires a dealer to allow an agent of a purchaser to
	89	+	inspect a motor vehicle unless the dealer provides a 7-day free-look
	90	+	period in which the purchaser may return the motor vehicle and receive
	91	+	a refund of all money paid to the dealer to purchase the motor vehicle.
	92	+	The dealer must notify purchasers of this inspection right. The dealer is
	93	+	required to give certain notices that the motor vehicle was returned,
	94	+	192
	95	+	-2- including notifying the department of revenue (department). The
	96	+	department must put a brand on the title to notify subsequent purchasers.
	97	+	Failing to comply with the bill is a ground for discipline for a
	98	+	manufacturer, distributor, motor vehicle dealer, wholesale motor vehicle
	99	+	auction dealer, wholesaler, buyer agent, used motor vehicle dealer
	100	+	licensee, motor vehicle salesperson, or business disposal licensee.
	101	+	Be it enacted by the General Assembly of the State of Colorado:1
	102	+	SECTION 1. In Colorado Revised Statutes, 42-10-101, amend2
	103	+	the introductory portion, (1), and (2); and add (1.5) and
	104	+	(2.5) as follows:3
	105	+	42-10-101. Definitions. As used in this article ARTICLE 10, unless4
	106	+	the context otherwise requires:5
	107	+	(1) "Consumer" means the purchaser, other than for purposes of6
	108	+	resale, of a motor vehicle normally THAT IS used for personal, family,7
	109	+	or household purposes; any person to whom such THE motor vehicle is8
	110	+	transferred for the same purposes during the duration of a manufacturer's9
	111	+	express warranty for such THE motor vehicle; and any other person10
	112	+	entitled by the terms of such THE warranty to enforce the obligations of11
	113	+	the warranty.12
35	114		(1.5) "L
36	115		EMON LAW BUYBACK VEHICLE " MEANS A MOTOR VEHICLE
37		-	THAT WAS REPURCHASED BY OR RETURNED TO THE MANUFACTURER
38		-	, THE
39		-	MANUFACTURER
40		-	'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER
41		-	FOR INABILITY TO CONFORM THE MOTOR VEHICLE TO THE MANUFACTURER
42		-	'S
43		-	WARRANTY IN ACCORDANCE WITH THIS ARTICLE
44		-	10 OR WITH ANY OTHER
45		-	STATE OR FEDERAL MOTOR VEHICLE WARRANTY LAW
46		-	.
47		-	(2) "Motor vehicle" means a self-propelled private passenger
48		-	vehicle, including pickup trucks and vans, designed primarily for travel on
49		-	the public highways and used to carry not more than ten persons, which is
50		-	sold to a consumer in this state; except that the term does not include motor
51		-	homes as defined in section 42-1-102 (57), or
52		-	vehicles designed to travel on
53		-	three or fewer wheels in contact with the ground,
54		-	OR A MOTOR VEHICLE
55		-	THAT HAS BEEN MODIFIED FOR COMMERCIAL USE
56		-	.
	116	+	13
	117	+	THAT WAS REPURCHASED BY OR RETURNED TO THE MANUFACTURER , THE14
	118	+	MANUFACTURER'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER15
	119	+	FOR INABILITY TO CONFORM THE MOTOR VEHICLE TO THE16
	120	+	MANUFACTURER'S WARRANTY IN ACCORDANCE WITH THIS ARTICLE 10 OR17
	121	+	WITH ANY OTHER STATE OR FEDERAL MOTOR VEHICLE WARRANTY LAW .18
	122	+	(2) "Motor vehicle" means a self-propelled private passenger19
	123	+	vehicle, including pickup trucks and vans, designed primarily for travel20
	124	+	on the public highways and used to carry not more than ten persons,21
	125	+	which is sold to a consumer in this state; except that the term does not22
	126	+	192-3- include motor homes as defined in section 42-1-102 (57), or vehicles1
	127	+	designed to travel on three or fewer wheels in contact with the ground,
	128	+	OR
	129	+	2
	130	+	A MOTOR VEHICLE THAT HAS BEEN MODIFIED FOR COMMERCIAL USE .3
57	131		(2.5) "S
58		-	AFETY-BASED NONCONFORMITY " MEANS A ~~NONCONFORMITY~~
59		-	~~THAT~~
60		-	:
	132	+	AFETY-BASED NONCONFORMITY " MEANS A
	133	+	4
	134	+	NONCONFORMITY THAT :5
61	135		(a) R
62	136		ESULTS IN A CONDITION THAT IS LIKELY TO CAUSE DEATH OR
63		-	SERIOUS BODILY INJURY IF THE VEHICLE IS DRIVEN
64		-	; OR
65		-	(b) CREATES A RISK OF FIRE OR EXPLOSION.
66		-	SECTION 2. In Colorado Revised Statutes, amend 42-10-102 as
67		-	follows:
68		-	42-10-102. Repairs to conform vehicle to warranty. If a motor
69		-	vehicle
70		-	HAS A SAFETY-BASED NONCONFORMITY OR does not conform to a
71		-	warranty and the consumer reports the nonconformity to the manufacturer,
72		-	its
73		-	THE MANUFACTURER 'S agent, or its THE MANUFACTURER 'S authorized
74		-	dealer during the term of such warranty or during a period of one year
75		-	WITHIN THE FIRST TWENTY-FOUR THOUSAND MILES OF THE MOTOR VEHICLE 'S
76		-	OPERATION OR WITHIN TWO YEARS
77		-	following the date of the original
78		-	delivery of the motor vehicle to a consumer, whichever is the
79		-	OCCURS
80		-	earlier, date, the manufacturer, its THE MANUFACTURER'S agent, or its THE
81		-	PAGE 2-SENATE BILL 24-192 MANUFACTURER'S authorized dealer shall make such repairs as are
82		-	necessary to conform the
83		-	MOTOR vehicle to such
84		-	THE warranty,
85		-	notwithstanding the fact that such THE repairs are made after the expiration
86		-	of such term or such one-year THE period.
87		-	SECTION 3. In Colorado Revised Statutes, 42-10-103, amend (1),
88		-	(2)(a), (2)(b), and (2)(c); and add (4) as follows:
89		-	42-10-103. Failure to conform vehicle to warranty - replacement
90		-	or return of vehicle. (1) If the manufacturer, its THE MANUFACTURER 'S
91		-	agent, or its THE MANUFACTURER'S authorized dealer is unable to conform
92		-	the motor vehicle to the warranty by repairing or correcting the defect or
93		-	condition which
94		-	THAT substantially impairs the use and market value of
95		-	such OR SAFETY OF THE motor vehicle after a reasonable number of
96		-	attempts, the manufacturer shall, at its THE MANUFACTURER 'S option,
97		-	replace the motor vehicle with a comparable motor vehicle or accept return
98		-	of the motor vehicle from the consumer and refund to the consumer the full
99		-	purchase price, including the sales tax, license fees, and registration fees
100		-	and any similar governmental charges, less a reasonable allowance for the
101		-	consumer's use of the motor vehicle. Refunds shall be made to the consumer
102		-	and lienholder, if any, as their interests may appear. A reasonable allowance
103		-	for use shall be that amount directly attributable to use by the consumer and
104		-	any previous consumer prior to the consumer's first written report of the
105		-	nonconformity to the manufacturer, agent, or dealer and during any
106		-	subsequent period when the vehicle is not out of service by reason of repair.
107		-	(2) (a) It shall be presumed that A reasonable number of attempts IS
108		-	PRESUMED TO
109		-	have been undertaken to conform a motor vehicle to the
110		-	warranty if:
111		-	(I) The same nonconformity has been subject to repair four
112		-	THREE
113		-	or more times by the manufacturer, its THE MANUFACTURER'S agent, or its
114		-	THE MANUFACTURER'S authorized dealer within the warranty term or during
115		-	a period of one year THE FIRST TWENTY-FOUR THOUSAND MILES OR WITHIN
116		-	TWO YEARS
117		-	following the date of the original delivery of the motor vehicle
118		-	to the consumer, whichever is the
119		-	OCCURS earlier, date, but such THE
120		-	nonconformity continues to exist; or
121		-	(II) The motor vehicle is out of service by reason of repair for a
122		-	cumulative total of thirty TWENTY-FOUR or more business days of the
123		-	PAGE 3-SENATE BILL 24-192 repairer during the term MILEAGE specified in subparagraph (I) of this
124		-	paragraph (a) SUBSECTION (2)(a)(I) OF THIS SECTION or during the TIME
125		-	period specified in said subparagraph (I) SUBSECTION (2)(a)(I) OF THIS
126		-	SECTION
127		-	, whichever is the
128		-	OCCURS earlier; date. OR
129		-	(III) A SAFETY-BASED NONCONFORMITY HAS BEEN SUBJECT TO TWO
130		-	OR MORE REPAIR ATTEMPTS BY THE MANUFACTURER
131		-	, THE MANUFACTURER'S
132		-	AGENT
133		-	, OR THE MANUFACTURER'S AUTHORIZED DEALER WITHIN THE FIRST
134		-	TWENTY
135		-	-FOUR THOUSAND MILES OF OPERATION OR WITHIN TWO YEARS
136		-	FOLLOWING THE DATE OF THE ORIGINAL DELIVERY OF THE MOTOR VEHICLE
137		-	TO THE CONSUMER
138		-	, WHICHEVER OCCURS EARLIER, BUT THE SAFETY-BASED
139		-	NONCONFORMITY CONTINUES TO EXIST
140		-	.
141		-	(b) For the purposes of this subsection (2), the term of a warranty,
142		-	the one-year
143		-	TWO-YEAR period, and the thirty-day TWENTY-FOUR-DAY
144		-	period shall be ARE extended by any period of time during which repair
145		-	services are not available to the consumer because of war, invasion, strike,
146		-	or fire, flood, or other natural disaster.
147		-	(c) In no event shall
148		-	A presumption under paragraph (a) of this
149		-	subsection (2) SUBSECTION (2)(a) OF THIS SECTION DOES NOT apply against
150		-	a manufacturer unless the manufacturer has received prior written
151		-	notification by certified mail from or on behalf of the consumer and
152		-	STATING THAT ONE OR MORE ATTEMPTS TO REPAIR THE SAME
153		-	NONCONFORMITY HAVE BEEN MADE PURSUANT TO SECTION
154		-	42-10-102 AND
155		-	THE ALLEGED NONCONFORMITY REMAINS
156		-	, AND THE MANUFACTURER has
157		-	been provided an opportunity
158		-	TEN BUSINESS DAYS to cure the ALLEGED
159		-	defect alleged. Such AFTER RECEIPT OF THE NOTIFICATION. THE defect shall
160		-	count COUNTS as one nonconformity subject to repair under subparagraph
161		-	(I) of paragraph (a) of this subsection (2) SUBSECTIONS (2)(a)(I) AND
162		-	(2)(a)(III) OF THIS SECTION.
	137	+	6
	138	+	SERIOUS BODILY INJURY IF THE VEHICLE IS DRIVEN; OR7
	139	+	(b) C
	140	+	REATES A RISK OF FIRE OR EXPLOSION.
	141	+	8
	142	+	SECTION 2. In Colorado Revised Statutes, amend 42-10-102 as9
	143	+	follows:10
	144	+	42-10-102. Repairs to conform vehicle to warranty. If a11
	145	+	motor vehicle
	146	+	HAS A SAFETY-BASED NONCONFORMITY OR does not12
	147	+	conform to a warranty and the consumer reports the nonconformity to the13
	148	+	manufacturer, its
	149	+	THE MANUFACTURER 'S agent, or its THE14
	150	+	MANUFACTURER'S authorized dealer during the term of such warranty or15
	151	+	during a period of one year WITHIN THE FIRST TWENTY-FOUR THOUSAND16
	152	+	MILES OF THE MOTOR VEHICLE 'S OPERATION OR WITHIN TWO YEARS17
	153	+	following the date of the original delivery of the motor vehicle to a18
	154	+	consumer, whichever is the OCCURS earlier, date, the manufacturer, its19
	155	+	THE MANUFACTURER 'S agent, or its THE MANUFACTURER 'S authorized20
	156	+	dealer shall make such repairs as are necessary to conform the
	157	+	MOTOR21
	158	+	vehicle to such
	159	+	THE warranty, notwithstanding the fact that such THE22
	160	+	repairs are made after the expiration of such term or such one-year THE23
	161	+	period.24
	162	+	25
	163	+	SECTION 3. In Colorado Revised Statutes, 42-10-103, amend26
	164	+	(1), (2)(a), (2)(b), and (2)(c); and add (4) as follows:27
	165	+	192
	166	+	-4- 42-10-103. Failure to conform vehicle to warranty -1
	167	+	replacement or return of vehicle. (1) If the manufacturer, its THE2
	168	+	MANUFACTURER'S agent, or its THE MANUFACTURER'S authorized dealer3
	169	+	is unable to conform the motor vehicle to the warranty by repairing or4
	170	+	correcting the defect or condition which THAT substantially impairs the5
	171	+	use and market value of such OR SAFETY OF THE motor vehicle after a6
	172	+	reasonable number of attempts, the manufacturer shall, at its THE7
	173	+	MANUFACTURER'S option, replace the motor vehicle with a comparable8
	174	+	motor vehicle or accept return of the motor vehicle from the consumer9
	175	+	and refund to the consumer the full purchase price, including the sales10
	176	+	tax, license fees, and registration fees and any similar governmental11
	177	+	charges, less a reasonable allowance for the consumer's use of the motor12
	178	+	vehicle. Refunds shall be made to the consumer and lienholder, if any, as13
	179	+	their interests may appear. A reasonable allowance for use shall be that14
	180	+	amount directly attributable to use by the consumer and any previous15
	181	+	consumer prior to the consumer's first written report of the nonconformity16
	182	+	to the manufacturer, agent, or dealer and during any subsequent period17
	183	+	when the vehicle is not out of service by reason of repair.18
	184	+	(2) (a) It shall be presumed that A reasonable number of attempts19
	185	+	IS PRESUMED TO have been undertaken to conform a motor vehicle to the20
	186	+	warranty if:21
	187	+	(I) The same nonconformity has been subject to repair four THREE22
	188	+	or more times by the manufacturer, its THE MANUFACTURER'S agent, or its23
	189	+	THE MANUFACTURER 'S authorized dealer within the warranty term or24
	190	+	during a period of one year THE FIRST TWENTY-FOUR THOUSAND MILES OR25
	191	+	WITHIN TWO YEARS following the date of the original delivery of the26
	192	+	motor vehicle to the consumer, whichever is the OCCURS earlier, date, but27
	193	+	192
	194	+	-5- such THE nonconformity continues to exist; or1
	195	+	(II) The motor vehicle is out of service by reason of repair for a2
	196	+	cumulative total of thirty TWENTY-FOUR or more business days of the3
	197	+	repairer during the term MILEAGE specified in subparagraph (I) of this4
	198	+	paragraph (a) SUBSECTION (2)(a)(I) OF THIS SECTION or during the TIME5
	199	+	period specified in said subparagraph (I) SUBSECTION (2)(a)(I) OF THIS6
	200	+	SECTION, whichever is the OCCURS earlier; date. OR7
	201	+	(III) A
	202	+	SAFETY-BASED NONCONFORMITY HAS BEEN SUBJECT TO8
	203	+	TWO OR MORE REPAIR ATTEMPTS BY THE MANUFACTURER , THE9
	204	+	MANUFACTURER'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER10
	205	+	WITHIN THE FIRST TWENTY-FOUR
	206	+	THOUSAND MILES OF OPERATION OR11
	207	+	WITHIN TWO YEARS FOLLOWING THE DATE OF THE ORIGINAL DELIVERY OF12
	208	+	THE MOTOR VEHICLE TO THE CONSUMER , WHICHEVER OCCURS EARLIER ,13
	209	+	BUT THE SAFETY-BASED NONCONFORMITY CONTINUES TO EXIST .14
	210	+	(b) For the purposes of this subsection (2), the term of a warranty,15
	211	+	the one-year TWO-YEAR period, and the thirty-day TWENTY-FOUR-DAY16
	212	+	period shall be ARE extended by any period of time during which repair17
	213	+	services are not available to the consumer because of war, invasion,18
	214	+	strike, or fire, flood, or other natural disaster.19
	215	+	(c) In no event shall A presumption under paragraph (a) of this20
	216	+	subsection (2) SUBSECTION (2)(a) OF THIS SECTION DOES NOT apply21
	217	+	against a manufacturer unless the manufacturer has received prior written22
	218	+	notification by certified mail from or on behalf of the consumer and23
	219	+	STATING THAT ONE OR MORE ATTEMPTS TO REPAIR THE SAME24
	220	+	NONCONFORMITY HAVE BEEN MADE PURSUANT TO SECTION 42-10-10225
	221	+	AND THE ALLEGED NONCONFORMITY REMAINS , AND THE MANUFACTURER26
	222	+	has been provided an opportunity TEN BUSINESS DAYS to cure the27
	223	+	192
	224	+	-6- ALLEGED defect alleged. Such AFTER RECEIPT OF THE NOTIFICATION.1
	225	+	T
	226	+	HE defect shall count
	227	+	COUNTS as one nonconformity subject to repair2
	228	+	under subparagraph (I) of paragraph (a) of this subsection (2) SUBSECTION3
	229	+	(2)(a)(I)
	230	+	AND (2)(a)(III)
	231	+	OF THIS SECTION.4
163	232		(4) A
164		-	REASONABLE ALLOWANCE FOR USE , AS DESCRIBED IN
165		-	SUBSECTION
166		-	(1) OF THIS SECTION, MUST BE OBTAINED BY MULTIPLYING THE
167		-	TOTAL CONTRACT PRICE OR LESSEE COST OF THE MOTOR VEHICLE BY A
168		-	FRACTION HAVING AS ITS DENOMINATOR ONE HUNDRED THOUSAND AND
169		-	HAVING AS THE FRACTION
170		-	'S NUMERATOR THE SUM OF:
	233	+	REASONABLE ALLOWANCE FOR USE , AS DESCRIBED IN5
	234	+	SUBSECTION (1) OF THIS SECTION, MUST BE OBTAINED BY MULTIPLYING6
	235	+	THE TOTAL CONTRACT PRICE OR LESSEE COST OF THE MOTOR VEHICLE BY7
	236	+	A FRACTION HAVING AS ITS DENOMINATOR ONE HUNDRED THOUSAND AND8
	237	+	HAVING AS THE FRACTION'S NUMERATOR THE SUM OF:9
171	238		(a) T
172		-	HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED
173		-	BEFORE THE CONSUMER
174		-	'S FIRST PRESENTATION OF THE VEHICLE TO THE
175		-	PAGE 4-SENATE BILL 24-192 MANUFACTURER, THE MANUFACTURER'S AGENT, OR THE MANUFACTURER'S
176		-	DEALER OR LESSOR FOR REPAIR OF THE NONCONFORMITY
177		-	; AND
178		-	(b) THE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED
179		-	DURING ANY SUBSEQUENT PERIOD WHEN THE MOTOR VEHICLE WAS NOT OUT
180		-	OF SERVICE BY REASON OF REPAIR
181		-	.
182		-	SECTION 4. In Colorado Revised Statutes, 42-10-104, amend (1)
183		-	introductory portion and (1)(a) as follows:
	239	+	HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED10
	240	+	BEFORE THE CONSUMER 'S FIRST PRESENTATION OF THE VEHICLE
	241	+	TO THE11
	242	+	MANUFACTURER, THE MANUFACTURER'S AGENT, OR THE MANUFACTURER'S12
	243	+	DEALER OR LESSOR FOR REPAIR OF THE NONCONFORMITY ; AND13
	244	+	(b) T
	245	+	HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED14
	246	+	DURING ANY SUBSEQUENT PERIOD WHEN THE MOTOR VEHICLE WAS NOT15
	247	+	OUT OF SERVICE BY REASON OF REPAIR.16
	248	+	SECTION 4. In Colorado Revised Statutes, 42-10-104, amend17
	249	+	(1) introductory portion and (1)(a) as follows:18
184	250		42-10-104. Affirmative defenses. (1) It shall be
185		-	IS an affirmative
186		-	defense to any claim under this article ARTICLE 10 that:
187		-	(a) An alleged nonconformity does not substantially impair the
188		-	SAFETY OF OR use and market value of a motor vehicle, AS APPLICABLE; or
189		-	SECTION 5. In Colorado Revised Statutes, amend 42-10-107 as
190		-	follows:
191		-	42-10-107. Statute of limitations. Any action brought to enforce
192		-	the provisions of this article shall
193		-	THIS ARTICLE 10 MUST be commenced
194		-	within six months following the expiration date of any warranty term or
195		-	within one year THIRTY MONTHS following the date of the original delivery
196		-	of a motor vehicle to a consumer; whichever is the earlier date; except that
197		-	the statute of limitations shall be IS tolled during the period the consumer
198		-	has submitted to arbitration under section 42-10-106
199		-	OR WHILE THE MOTOR
200		-	VEHICLE IS NOT AVAILABLE FOR USE BY REASON OF REPAIR
201		-	.
202		-	SECTION 6. In Colorado Revised Statutes, add 42-10-108,
203		-	42-10-109, and 42-10-110 as follows:
204		-	42-10-108. Third-party inspection - disclosure. (1) (a) A
205		-	MOTOR
206		-	VEHICLE DEALER SELLING A LEMON LAW BUYBACK VEHICLE TO A POTENTIAL
207		-	PURCHASER FOR PURPOSES OTHER THAN FOR RESALE MUST EITHER
208		-	:
	251	+	IS an affirmative19
	252	+	defense to any claim under this article ARTICLE 10 that:20
	253	+	(a) An alleged nonconformity does not substantially impair the21
	254	+	SAFETY OF OR use and market value of a motor vehicle, AS APPLICABLE;
	255	+	22
	256	+	or23
	257	+	SECTION 5. In Colorado Revised Statutes, amend 42-10-107 as24
	258	+	follows:25
	259	+	42-10-107. Statute of limitations. Any action brought to enforce26
	260	+	the provisions of this article shall THIS ARTICLE 10 MUST be commenced27
	261	+	192
	262	+	-7- within six months following the expiration date of any warranty term or1
	263	+	within one year THIRTY MONTHS following the date of the original2
	264	+	delivery of a motor vehicle to a consumer; whichever is the earlier date;3
	265	+	except that the statute of limitations shall be IS tolled during the period4
	266	+	the consumer has submitted to arbitration under section 42-10-106
	267	+	OR
	268	+	5
	269	+	WHILE THE MOTOR VEHICLE IS NOT AVAILABLE FOR USE BY REASON OF6
	270	+	REPAIR.7
	271	+	SECTION 6. In Colorado Revised Statutes, add 42-10-108,8
	272	+	42-10-109, and 42-10-110 as follows:9
	273	+	42-10-108. Third-party inspection - disclosure. (1) (a) A10
	274	+	MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK VEHICLE TO A11
	275	+	POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR RESALE MUST12
	276	+	EITHER:13
209	277		(I) A
210	278		LLOW A THIRD-PARTY AGENT OF A POTENTIAL PURCHASER TO
211		-	INSPECT THE MOTOR VEHICLE BEFORE SELLING THE MOTOR VEHICLE
212		-	; OR
213		-	(II) PROVIDE A SEVEN-DAY FREE-LOOK PERIOD DURING WHICH THE
214		-	PURCHASER MAY RETURN THE MOTOR VEHICLE AND RECEIVE A REFUND OF
215		-	PAGE 5-SENATE BILL 24-192 ALL MONEY PAID TO PURCHASE THE MOTOR VEHICLE , LESS SHIPPING COSTS.
	279	+	14
	280	+	INSPECT THE MOTOR VEHICLE BEFORE SELLING THE MOTOR VEHICLE ; OR15
	281	+	(II) P
	282	+	ROVIDE A SEVEN-DAY FREE-LOOK PERIOD DURING WHICH THE
	283	+	16
	284	+	PURCHASER MAY RETURN THE MOTOR VEHICLE AND RECEIVE A REFUND OF17
	285	+	ALL MONEY PAID TO PURCHASE THE MOTOR VEHICLE , LESS SHIPPING18
	286	+	COSTS.19
216	287		(b) T
217		-	O MAKE THE INSPECTION PROVIDED IN SUBSECTION (1)(a)(I) OF
218		-	THIS SECTION
219		-	, A THIRD-PARTY AGENT MAY HAVE REASONABLE ACCESS TO
220		-	CONDUCT THE INSPECTION
221		-	, BUT THE THIRD-PARTY AGENT MUST BE
222		-	QUALIFIED TO USE OR OPERATE ANY EQUIPMENT USED TO INSPECT THE
223		-	VEHICLE AND MUST NOT INTERFERE WITH NORMAL BUSINESS OPERATIONS OF
224		-	THE MOTOR VEHICLE DEALER
225		-	.
226		-	(2) A
227		-	MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK
228		-	VEHICLE TO A POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR
229		-	RESALE MUST CONSPICUOUSLY DISCLOSE IN WRITING
230		-	, BEFORE THE MOTOR
231		-	VEHICLE IS PURCHASED
232		-	, TO EACH POTENTIAL PURCHASER OF THE MOTOR
233		-	VEHICLE FOR PURPOSES OTHER THAN FOR RESALE THE RIGHT DESCRIBED IN
234		-	SUBSECTION
235		-	(1)(a) OF THIS SECTION.
	288	+	O MAKE THE INSPECTION PROVIDED IN SUBSECTION (1)(a)(I)
	289	+	20
	290	+	OF THIS SECTION, A THIRD-PARTY AGENT MAY HAVE REASONABLE ACCESS21
	291	+	TO CONDUCT THE INSPECTION , BUT THE THIRD-PARTY AGENT MUST BE22
	292	+	QUALIFIED TO USE OR OPERATE ANY EQUIPMENT USED TO INSPECT THE23
	293	+	VEHICLE AND MUST NOT INTERFERE WITH NORMAL BUSINESS OPERATIONS24
	294	+	OF THE MOTOR VEHICLE DEALER .25
	295	+	(2)
	296	+	A MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK
	297	+	26
	298	+	VEHICLE TO A POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR27
	299	+	192
	300	+	-8- RESALE MUST CONSPICUOUSLY DISCLOSE IN WRITING , BEFORE THE MOTOR1
	301	+	VEHICLE IS PURCHASED, TO EACH POTENTIAL PURCHASER OF THE MOTOR2
	302	+	VEHICLE FOR PURPOSES OTHER THAN FOR RESALE THE RIGHT DESCRIBED3
	303	+	IN SUBSECTION (1)(a) OF THIS SECTION.4
236	304		42-10-109. Buy back notice. (1) I
237		-	F THE MOTOR VEHICLE IS
238		-	RETURNED PURSUANT TO SECTION
239		-	42-10-103 (1), A MANUFACTURER, A
240		-	MANUFACTURER
241		-	'S AGENT, OR A MANUFACTURER 'S AUTHORIZED DEALER
242		-	SHALL
243		-	, BEFORE THE RESALE OF THE MOTOR VEHICLE IN THIS STATE :
244		-	(a) N
245		-	OTIFY THE DEPARTMENT OF REVENUE THAT THE MOTOR
246		-	VEHICLE WAS RETURNED TO THE MANUFACTURER
247		-	, THE MANUFACTURER'S
248		-	AGENT
249		-	, OR THE MANUFACTURER 'S AUTHORIZED DEALER PURSUANT TO
250		-	SECTION
251		-	42-10-103 (1);
252		-	(b) A
253		-	TTACH A DECAL TO THE MOTOR VEHICLE THAT CLEARLY AND
254		-	CONSPICUOUSLY READS
255		-	"LEMON LAW BUYBACK" ON THE BODY POST TO
256		-	WHICH THE DRIVER
257		-	'S DOOR LATCHES, ALSO KNOWN AS THE DRIVER'S DOOR
258		-	B PILLAR, ON THE DATE THE MOTOR VEHICLE IS RETURNED AND SHALL NOT
259		-	REMOVE THE DECAL
260		-	; AND
261		-	(c) APPLY FOR A LEMON LAW BUYBACK BRANDED CERTIFICATE OF
262		-	TITLE PURSUANT TO ARTICLE
263		-	6 OF THIS TITLE 42 IN THE MANUFACTURER'S,
264		-	THE MANUFACTURER 'S AGENT'S, OR THE MANUFACTURER 'S AUTHORIZED
265		-	DEALER
266		-	'S NAME.
	305	+	F THE MOTOR VEHICLE IS5
	306	+	RETURNED PURSUANT TO SECTION 42-10-103 (1), A MANUFACTURER, A6
	307	+	MANUFACTURER'S AGENT, OR A MANUFACTURER'S AUTHORIZED DEALER7
	308	+	SHALL, BEFORE THE RESALE OF THE MOTOR VEHICLE IN THIS STATE :
	309	+	8
	310	+	9
	311	+	(a) NOTIFY THE DEPARTMENT OF REVENUE THAT THE MOTOR10
	312	+	VEHICLE WAS RETURNED TO THE MANUFACTURER , THE MANUFACTURER'S11
	313	+	AGENT, OR THE MANUFACTURER 'S AUTHORIZED DEALER PURSUANT TO12
	314	+	SECTION 42-10-103 (1);13
	315	+	(b) ATTACH A DECAL TO THE MOTOR VEHICLE THAT CLEARLY AND14
	316	+	CONSPICUOUSLY READS "LEMON LAW BUYBACK" ON THE BODY POST TO15
	317	+	WHICH THE DRIVER'S DOOR LATCHES, ALSO KNOWN AS THE DRIVER'S DOOR16
	318	+	B PILLAR, ON THE DATE THE MOTOR VEHICLE IS RETURNED AND SHALL NOT17
	319	+	REMOVE THE DECAL; AND18
	320	+	(c) APPLY FOR A LEMON LAW BUYBACK BRANDED CERTIFICATE OF19
	321	+	TITLE PURSUANT TO ARTICLE 6 OF THIS TITLE 42 IN THE MANUFACTURER'S,20
	322	+	THE MANUFACTURER'S AGENT'S, OR THE MANUFACTURER'S AUTHORIZED21
	323	+	DEALER'S NAME.22
267	324		(2) A
268	325		SELLER OF A MOTOR VEHICLE, INCLUDING A MANUFACTURER
269		-	OR DEALER
270		-	, WHO KNOWS OR SHOULD HAVE KNOWN THAT THE MOTOR
271		-	VEHICLE IS A LEMON LAW BUYBACK VEHICLE SHALL CLEARLY AND
272		-	PAGE 6-SENATE BILL 24-192 CONSPICUOUSLY DISCLOSE THAT THE MOTOR VEHICLE IS A LEMON LAW
273		-	BUYBACK VEHICLE BEFORE THE SALE OF THE MOTOR VEHICLE
274		-	.
275		-	(3) T
276		-	HE SELLER OF A LEMON LAW BUYBACK VEHICLE SHALL NOT
277		-	REMOVE A LEMON LAW BUYBACK DECA L FROM THE LEMON LAW BUYBACK
278		-	VEHICLE
279		-	.
	326	+	23
	327	+	OR DEALER, WHO KNOWS OR SHOULD HAVE KNOWN THAT THE MOTOR24
	328	+	VEHICLE IS A LEMON LAW BUYBACK VEHICLE SHALL CLEARLY AND25
	329	+	CONSPICUOUSLY DISCLOSE THAT THE MOTOR VEHICLE IS A LEMON LAW26
	330	+	BUYBACK VEHICLE BEFORE THE SALE OF THE MOTOR VEHICLE .27
	331	+	192
	332	+	-9- (3) THE SELLER OF A LEMON LAW BUYBACK VEHICLE SHALL NOT1
	333	+	REMOVE A LEMON LAW BUYBACK DECA L FROM THE LEMON LAW BUYBACK2
	334	+	VEHICLE.3
280	335		42-10-110. Applicability. (1) T
281		-	HIS ARTICLE 10 DOES NOT APPLY TO
282		-	A USED MOTOR VEHICLE
283		-	; EXCEPT THAT SECTIONS 42-10-108 AND 42-10-109
	336	+	HIS ARTICLE 10 DOES NOT APPLY
	337	+	4
	338	+	TO A USED MOTOR VEHICLE ; EXCEPT THAT SECTIONS 42-10-108 AND5
	339	+	42-10-109
284	340		APPLY TO A USED MOTOR VEHICLE.
	341	+	6
285	342		(2) T
286	343		HIS ARTICLE 10 DOES NOT APPLY TO A USED MOTOR VEHICLE
287		-	DEALER LICENSED IN ACCORDANCE WITH ARTICLE
288		-	20 OF TITLE 44.
289		-	SECTION 7. In Colorado Revised Statutes, 42-6-102, amend
290		-	(1.7)(e) and (1.7)(f); and add (1.7)(g) as follows:
291		-	42-6-102. Definitions. As used in this part 1, unless the context
292		-	otherwise requires:
293		-	(1.7) "Brand" means a permanent designation or marking on a motor
294		-	vehicle's title, associated with the vehicle identification number, that
295		-	conveys information about the value of the vehicle or indicates that the
296		-	vehicle:
297		-	(e) Has had its odometer tampered with; or
298		-	(f) Has a designation placed on the title by another jurisdiction; OR
299		-	(g) IS A LEMON LAW BUYBACK VEHICLE , AS DEFINED IN SECTION
300		-	42-10-101 (1.5).
301		-	SECTION 8. In Colorado Revised Statutes, 42-6-107, amend
302		-	(1)(a)(III) as follows:
303		-	42-6-107. Certificates of title - contents - rules. (1) (a) (III) If a
304		-	vehicle shows a brand in its THE VEHICLE'S title history, or if the vehicle is
305		-	subject to a brand, the department shall place the appropriate brand on the
306		-	certificate of title. If the vehicle has multiple brands, the department shall
307		-	place the most recent brand on the certificate of title and the notice "other
308		-	PAGE 7-SENATE BILL 24-192 brands exist". If the brand is from a certificate of title issued in another
309		-	jurisdiction, the brand must be carried forward to the Colorado certificate
310		-	of title along with the name of the jurisdiction originating the brand. O
311		-	N
312		-	AND AFTER
313		-	JANUARY 1, 2027, THE APPROPRIATE BRAND IS "LEMON LAW
314		-	BUYBACK" IF A MOTOR VEHICLE IS A LEMON LAW BUYBACK VEHICLE , AS
315		-	DEFINED IN SECTION
316		-	42-10-101 (1.5).
317		-	SECTION 9. In Colorado Revised Statutes, 44-20-121, add (1)(d)
318		-	as follows:
319		-	44-20-121. Licenses - grounds for denial, suspension, or
320		-	revocation. (1) A manufacturer's or distributor's license may be denied,
321		-	suspended, or revoked on the following grounds:
	344	+	7
	345	+	DEALER LICENSED IN ACCORDANCE WITH ARTICLE 20 OF TITLE 44.8
	346	+	SECTION 7. In Colorado Revised Statutes, 42-6-102, amend9
	347	+	(1.7)(e) and (1.7)(f); and add (1.7)(g) as follows:10
	348	+	42-6-102. Definitions. As used in this part 1, unless the context11
	349	+	otherwise requires:12
	350	+	(1.7) "Brand" means a permanent designation or marking on a13
	351	+	motor vehicle's title, associated with the vehicle identification number,14
	352	+	that conveys information about the value of the vehicle or indicates that15
	353	+	the vehicle:16
	354	+	(e) Has had its odometer tampered with; or17
	355	+	(f) Has a designation placed on the title by another jurisdiction;
	356	+	OR18
	357	+	(g) I
	358	+	S A LEMON LAW BUYBACK VEHICLE , AS DEFINED IN SECTION
	359	+	19
	360	+	42-10-101
	361	+	(1.5).
	362	+	20
	363	+	SECTION 8. In Colorado Revised Statutes, 42-6-107, amend21
	364	+	(1)(a)(III) as follows:22
	365	+	42-6-107. Certificates of title - contents - rules. (1) (a) (III) If23
	366	+	a vehicle shows a brand in its THE VEHICLE'S title history, or if the vehicle24
	367	+	is subject to a brand, the department shall place the appropriate brand on25
	368	+	the certificate of title. If the vehicle has multiple brands, the department26
	369	+	shall place the most recent brand on the certificate of title and the notice27
	370	+	192
	371	+	-10- "other brands exist". If the brand is from a certificate of title issued in1
	372	+	another jurisdiction, the brand must be carried forward to the Colorado2
	373	+	certificate of title along with the name of the jurisdiction originating the3
	374	+	brand. O
	375	+	N AND AFTER JANUARY 1, 2027, THE APPROPRIATE BRAND IS
	376	+	4
	377	+	"L
	378	+	EMON LAW BUYBACK" IF A MOTOR VEHICLE IS A LEMON LAW BUYBACK
	379	+	5
	380	+	VEHICLE, AS DEFINED IN SECTION 42-10-101 (1.5).6
	381	+	SECTION 9. In Colorado Revised Statutes, 44-20-121, add7
	382	+	(1)(d) as follows:8
	383	+	44-20-121. Licenses - grounds for denial, suspension, or9
	384	+	revocation. (1) A manufacturer's or distributor's license may be denied,10
	385	+	suspended, or revoked on the following grounds:11
322	386		(d) F
323		-	AILING TO COMPLY WITH ARTICLE 10 OF TITLE 42.
324		-	SECTION 10. Appropriation. (1) For the 2024-25 state fiscal
325		-	year, $19,605 is appropriated to the department of revenue. This
326		-	appropriation is from the Colorado DRIVES vehicle services account in the
327		-	highway users tax fund created in section 42-1-211 (2), C.R.S. To
328		-	implement this act, the department may use this appropriation as follows:
329		-	(a) $14,700 for DRIVES maintenance and support;
330		-	(b) $1,088 for personal services related to driver services;
331		-	(c) $1,540 for personal services related to administration and
332		-	support; and
333		-	(d) $2,277 for payments to OIT.
334		-	SECTION 11. Act subject to petition - effective date -
335		-	applicability. (1) This act takes effect at 12:01 a.m. on the day following
336		-	the expiration of the ninety-day period after final adjournment of the
337		-	general assembly; except that, if a referendum petition is filed pursuant to
338		-	section 1 (3) of article V of the state constitution against this act or an item,
339		-	section, or part of this act within such period, then the act, item, section, or
340		-	part will not take effect unless approved by the people at the general
341		-	election to be held in November 2024 and, in such case, will take effect on
342		-	PAGE 8-SENATE BILL 24-192 the date of the official declaration of the vote thereon by the governor.
343		-	(2) This act applies to motor vehicles sold or leased on or after the
344		-	applicable effective date of this act.
345		-	____________________________ ____________________________
346		-	Steve Fenberg
347		-	Julie McCluskie
348		-	PRESIDENT OF SPEAKER OF THE HOUSE
349		-	THE SENATE OF REPRESENTATIVES
350		-	____________________________ ____________________________
351		-	Cindi L. Markwell Robin Jones
352		-	SECRETARY OF CHIEF CLERK OF THE HOUSE
353		-	THE SENATE OF REPRESENTATIVES
354		-	APPROVED________________________________________
355		-	(Date and Time)
356		-	_________________________________________
357		-	Jared S. Polis
358		-	GOVERNOR OF THE STATE OF COLORADO
359		-	PAGE 9-SENATE BILL 24-192
	387	+	AILING TO COMPLY WITH ARTICLE 10 OF TITLE 42.12
	388	+
	389	+	13
	390	+	SECTION 10. Appropriation. (1) For the 2024-25 state fiscal14
	391	+	year, $19,605 is appropriated to the department of revenue. This15
	392	+	appropriation is from the Colorado DRIVES vehicle services account in16
	393	+	the highway users tax fund created in section 42-1-211 (2), C.R.S. To17
	394	+	implement this act, the department may use this appropriation as follows:18
	395	+	(a) $14,700 for DRIVES maintenance and support;19
	396	+	(b) $1,088 for personal services related to driver services; 20
	397	+	(c) $1,540 for personal services related to administration and21
	398	+	support; and22
	399	+	(d) $2,277 for payments to OIT.23
	400	+	SECTION 11. Act subject to petition - effective date -24
	401	+	applicability. (1) This act takes effect at 12:01 a.m. on the day following25
	402	+	the expiration of the ninety-day period after final adjournment of the26
	403	+	general assembly; except that, if a referendum petition is filed pursuant27
	404	+	192
	405	+	-11- to section 1 (3) of article V of the state constitution against this act or an1
	406	+	item, section, or part of this act within such period, then the act, item,2
	407	+	section, or part will not take effect unless approved by the people at the3
	408	+	general election to be held in November 2024 and, in such case, will take4
	409	+	effect on the date of the official declaration of the vote thereon by the5
	410	+	governor.6
	411	+	(2) This act applies to motor vehicles sold or leased on or after the7
	412	+	applicable effective date of this act.8
	413	+	192
	414	+	-12-