SENATE BILL 24-192
BY SENATOR(S) Michaelson Jenet, Buckner, Cutter;
also REPRESENTATIVE(S) Soper and Snyder, Amabile, Bird,
Boesenecker, Brown, Daugherty, English, Hamrick, Jodeh, Kipp, Lieder,
Lindsay, Mauro, Ortiz, Ricks, Rutinel, Titone, Valdez, Weissman, Willford,
Woodrow, McCluskie.
C
ONCERNING CHANGES TO THE LAW REQUIRING PERSONS IN THE BUSINESS
OF SELLING MOTOR VEHICLES TO MAKE A CONSUMER WHOLE IF THE
MOTOR VEHICLE FAILS TO PERFORM
, AND, IN CONNECTION
THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 42-10-101, amend the
introductory portion, (1), and (2); and add (1.5) and (2.5) as follows:
42-10-101. Definitions. As used in this article
ARTICLE 10, unless
the context otherwise requires:
(1) "Consumer" means the purchaser, other than for purposes of
resale, of a motor vehicle normally THAT IS used for personal, family, or
household purposes; any person to whom such THE motor vehicle is
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. transferred for the same purposes during the duration of a manufacturer's
express warranty for such THE motor vehicle; and any other person entitled
by the terms of such THE warranty to enforce the obligations of the
warranty.
(1.5) "L
EMON LAW BUYBACK VEHICLE " MEANS A MOTOR VEHICLE
THAT WAS REPURCHASED BY OR RETURNED TO THE MANUFACTURER
, THE
MANUFACTURER
'S AGENT, OR THE MANUFACTURER'S AUTHORIZED DEALER
FOR INABILITY TO CONFORM THE MOTOR VEHICLE TO THE MANUFACTURER
'S
WARRANTY IN ACCORDANCE WITH THIS ARTICLE
10 OR WITH ANY OTHER
STATE OR FEDERAL MOTOR VEHICLE WARRANTY LAW
.
(2) "Motor vehicle" means a self-propelled private passenger
vehicle, including pickup trucks and vans, designed primarily for travel on
the public highways and used to carry not more than ten persons, which is
sold to a consumer in this state; except that the term does not include motor
homes as defined in section 42-1-102 (57), or
vehicles designed to travel on
three or fewer wheels in contact with the ground,
OR A MOTOR VEHICLE
THAT HAS BEEN MODIFIED FOR COMMERCIAL USE
.
(2.5) "S
AFETY-BASED NONCONFORMITY " MEANS A NONCONFORMITY
THAT
:
(a) R
ESULTS IN A CONDITION THAT IS LIKELY TO CAUSE DEATH OR
SERIOUS BODILY INJURY IF THE VEHICLE IS DRIVEN
; OR
(b) CREATES A RISK OF FIRE OR EXPLOSION.
SECTION 2. In Colorado Revised Statutes, amend 42-10-102 as
follows:
42-10-102. Repairs to conform vehicle to warranty. If a motor
vehicle
HAS A SAFETY-BASED NONCONFORMITY OR does not conform to a
warranty and the consumer reports the nonconformity to the manufacturer,
its
THE MANUFACTURER 'S agent, or its THE MANUFACTURER 'S authorized
dealer during the term of such warranty or during a period of one year
WITHIN THE FIRST TWENTY-FOUR THOUSAND MILES OF THE MOTOR VEHICLE 'S
OPERATION OR WITHIN TWO YEARS
following the date of the original
delivery of the motor vehicle to a consumer, whichever is the
OCCURS
earlier, date, the manufacturer, its THE MANUFACTURER'S agent, or its THE
PAGE 2-SENATE BILL 24-192 MANUFACTURER'S authorized dealer shall make such repairs as are
necessary to conform the
MOTOR vehicle to such
THE warranty,
notwithstanding the fact that such THE repairs are made after the expiration
of such term or such one-year THE period.
SECTION 3. In Colorado Revised Statutes, 42-10-103, amend (1),
(2)(a), (2)(b), and (2)(c); and add (4) as follows:
42-10-103. Failure to conform vehicle to warranty - replacement
or return of vehicle. (1) If the manufacturer, its THE MANUFACTURER 'S
agent, or its THE MANUFACTURER'S authorized dealer is unable to conform
the motor vehicle to the warranty by repairing or correcting the defect or
condition which
THAT substantially impairs the use and market value of
such OR SAFETY OF THE motor vehicle after a reasonable number of
attempts, the manufacturer shall, at its THE MANUFACTURER 'S option,
replace the motor vehicle with a comparable motor vehicle or accept return
of the motor vehicle from the consumer and refund to the consumer the full
purchase price, including the sales tax, license fees, and registration fees
and any similar governmental charges, less a reasonable allowance for the
consumer's use of the motor vehicle. Refunds shall be made to the consumer
and lienholder, if any, as their interests may appear. A reasonable allowance
for use shall be that amount directly attributable to use by the consumer and
any previous consumer prior to the consumer's first written report of the
nonconformity to the manufacturer, agent, or dealer and during any
subsequent period when the vehicle is not out of service by reason of repair.
(2) (a) It shall be presumed that A reasonable number of attempts IS
PRESUMED TO
have been undertaken to conform a motor vehicle to the
warranty if:
(I) The same nonconformity has been subject to repair four
THREE
or more times by the manufacturer, its THE MANUFACTURER'S agent, or its
THE MANUFACTURER'S authorized dealer within the warranty term or during
a period of one year THE FIRST TWENTY-FOUR THOUSAND MILES OR WITHIN
TWO YEARS
following the date of the original delivery of the motor vehicle
to the consumer, whichever is the
OCCURS earlier, date, but such THE
nonconformity continues to exist; or
(II) The motor vehicle is out of service by reason of repair for a
cumulative total of thirty TWENTY-FOUR or more business days of the
PAGE 3-SENATE BILL 24-192 repairer during the term MILEAGE specified in subparagraph (I) of this
paragraph (a) SUBSECTION (2)(a)(I) OF THIS SECTION or during the TIME
period specified in said subparagraph (I) SUBSECTION (2)(a)(I) OF THIS
SECTION
, whichever is the
OCCURS earlier; date. OR
(III) A SAFETY-BASED NONCONFORMITY HAS BEEN SUBJECT TO TWO
OR MORE REPAIR ATTEMPTS BY THE MANUFACTURER
, THE MANUFACTURER'S
AGENT
, OR THE MANUFACTURER'S AUTHORIZED DEALER WITHIN THE FIRST
TWENTY
-FOUR THOUSAND MILES OF OPERATION OR WITHIN TWO YEARS
FOLLOWING THE DATE OF THE ORIGINAL DELIVERY OF THE MOTOR VEHICLE
TO THE CONSUMER
, WHICHEVER OCCURS EARLIER, BUT THE SAFETY-BASED
NONCONFORMITY CONTINUES TO EXIST
.
(b) For the purposes of this subsection (2), the term of a warranty,
the one-year
TWO-YEAR period, and the thirty-day TWENTY-FOUR-DAY
period shall be ARE extended by any period of time during which repair
services are not available to the consumer because of war, invasion, strike,
or fire, flood, or other natural disaster.
(c) In no event shall
A presumption under paragraph (a) of this
subsection (2) SUBSECTION (2)(a) OF THIS SECTION DOES NOT apply against
a manufacturer unless the manufacturer has received prior written
notification by certified mail from or on behalf of the consumer and
STATING THAT ONE OR MORE ATTEMPTS TO REPAIR THE SAME
NONCONFORMITY HAVE BEEN MADE PURSUANT TO SECTION
42-10-102 AND
THE ALLEGED NONCONFORMITY REMAINS
, AND THE MANUFACTURER has
been provided an opportunity
TEN BUSINESS DAYS to cure the ALLEGED
defect alleged. Such AFTER RECEIPT OF THE NOTIFICATION. THE defect shall
count COUNTS as one nonconformity subject to repair under subparagraph
(I) of paragraph (a) of this subsection (2) SUBSECTIONS (2)(a)(I) AND
(2)(a)(III) OF THIS SECTION.
(4) A
REASONABLE ALLOWANCE FOR USE , AS DESCRIBED IN
SUBSECTION
(1) OF THIS SECTION, MUST BE OBTAINED BY MULTIPLYING THE
TOTAL CONTRACT PRICE OR LESSEE COST OF THE MOTOR VEHICLE BY A
FRACTION HAVING AS ITS DENOMINATOR ONE HUNDRED THOUSAND AND
HAVING AS THE FRACTION
'S NUMERATOR THE SUM OF:
(a) T
HE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED
BEFORE THE CONSUMER
'S FIRST PRESENTATION OF THE VEHICLE TO THE
PAGE 4-SENATE BILL 24-192 MANUFACTURER, THE MANUFACTURER'S AGENT, OR THE MANUFACTURER'S
DEALER OR LESSOR FOR REPAIR OF THE NONCONFORMITY
; AND
(b) THE NUMBER OF MILES THAT THE MOTOR VEHICLE TRAVELED
DURING ANY SUBSEQUENT PERIOD WHEN THE MOTOR VEHICLE WAS NOT OUT
OF SERVICE BY REASON OF REPAIR
.
SECTION 4. In Colorado Revised Statutes, 42-10-104, amend (1)
introductory portion and (1)(a) as follows:
42-10-104. Affirmative defenses. (1) It shall be
IS an affirmative
defense to any claim under this article ARTICLE 10 that:
(a) An alleged nonconformity does not substantially impair the
SAFETY OF OR use and market value of a motor vehicle, AS APPLICABLE; or
SECTION 5. In Colorado Revised Statutes, amend 42-10-107 as
follows:
42-10-107. Statute of limitations. Any action brought to enforce
the provisions of this article shall
THIS ARTICLE 10 MUST be commenced
within six months following the expiration date of any warranty term or
within one year THIRTY MONTHS following the date of the original delivery
of a motor vehicle to a consumer; whichever is the earlier date; except that
the statute of limitations shall be IS tolled during the period the consumer
has submitted to arbitration under section 42-10-106
OR WHILE THE MOTOR
VEHICLE IS NOT AVAILABLE FOR USE BY REASON OF REPAIR
.
SECTION 6. In Colorado Revised Statutes, add 42-10-108,
42-10-109, and 42-10-110 as follows:
42-10-108. Third-party inspection - disclosure. (1) (a) A
MOTOR
VEHICLE DEALER SELLING A LEMON LAW BUYBACK VEHICLE TO A POTENTIAL
PURCHASER FOR PURPOSES OTHER THAN FOR RESALE MUST EITHER
:
(I) A
LLOW A THIRD-PARTY AGENT OF A POTENTIAL PURCHASER TO
INSPECT THE MOTOR VEHICLE BEFORE SELLING THE MOTOR VEHICLE
; OR
(II) PROVIDE A SEVEN-DAY FREE-LOOK PERIOD DURING WHICH THE
PURCHASER MAY RETURN THE MOTOR VEHICLE AND RECEIVE A REFUND OF
PAGE 5-SENATE BILL 24-192 ALL MONEY PAID TO PURCHASE THE MOTOR VEHICLE , LESS SHIPPING COSTS.
(b) T
O MAKE THE INSPECTION PROVIDED IN SUBSECTION (1)(a)(I) OF
THIS SECTION
, A THIRD-PARTY AGENT MAY HAVE REASONABLE ACCESS TO
CONDUCT THE INSPECTION
, BUT THE THIRD-PARTY AGENT MUST BE
QUALIFIED TO USE OR OPERATE ANY EQUIPMENT USED TO INSPECT THE
VEHICLE AND MUST NOT INTERFERE WITH NORMAL BUSINESS OPERATIONS OF
THE MOTOR VEHICLE DEALER
.
(2) A
MOTOR VEHICLE DEALER SELLING A LEMON LAW BUYBACK
VEHICLE TO A POTENTIAL PURCHASER FOR PURPOSES OTHER THAN FOR
RESALE MUST CONSPICUOUSLY DISCLOSE IN WRITING
, BEFORE THE MOTOR
VEHICLE IS PURCHASED
, TO EACH POTENTIAL PURCHASER OF THE MOTOR
VEHICLE FOR PURPOSES OTHER THAN FOR RESALE THE RIGHT DESCRIBED IN
SUBSECTION
(1)(a) OF THIS SECTION.
42-10-109. Buy back notice. (1) I
F THE MOTOR VEHICLE IS
RETURNED PURSUANT TO SECTION
42-10-103 (1), A MANUFACTURER, A
MANUFACTURER
'S AGENT, OR A MANUFACTURER 'S AUTHORIZED DEALER
SHALL
, BEFORE THE RESALE OF THE MOTOR VEHICLE IN THIS STATE :
(a) N
OTIFY THE DEPARTMENT OF REVENUE THAT THE MOTOR
VEHICLE WAS RETURNED TO THE MANUFACTURER
, THE MANUFACTURER'S
AGENT
, OR THE MANUFACTURER 'S AUTHORIZED DEALER PURSUANT TO
SECTION
42-10-103 (1);
(b) A
TTACH A DECAL TO THE MOTOR VEHICLE THAT CLEARLY AND
CONSPICUOUSLY READS
"LEMON LAW BUYBACK" ON THE BODY POST TO
WHICH THE DRIVER
'S DOOR LATCHES, ALSO KNOWN AS THE DRIVER'S DOOR
B PILLAR, ON THE DATE THE MOTOR VEHICLE IS RETURNED AND SHALL NOT
REMOVE THE DECAL
; AND
(c) APPLY FOR A LEMON LAW BUYBACK BRANDED CERTIFICATE OF
TITLE PURSUANT TO ARTICLE
6 OF THIS TITLE 42 IN THE MANUFACTURER'S,
THE MANUFACTURER 'S AGENT'S, OR THE MANUFACTURER 'S AUTHORIZED
DEALER
'S NAME.
(2) A
SELLER OF A MOTOR VEHICLE, INCLUDING A MANUFACTURER
OR DEALER
, WHO KNOWS OR SHOULD HAVE KNOWN THAT THE MOTOR
VEHICLE IS A LEMON LAW BUYBACK VEHICLE SHALL CLEARLY AND
PAGE 6-SENATE BILL 24-192 CONSPICUOUSLY DISCLOSE THAT THE MOTOR VEHICLE IS A LEMON LAW
BUYBACK VEHICLE BEFORE THE SALE OF THE MOTOR VEHICLE
.
(3) T
HE SELLER OF A LEMON LAW BUYBACK VEHICLE SHALL NOT
REMOVE A LEMON LAW BUYBACK DECA L FROM THE LEMON LAW BUYBACK
VEHICLE
.
42-10-110. Applicability. (1) T
HIS ARTICLE 10 DOES NOT APPLY TO
A USED MOTOR VEHICLE
; EXCEPT THAT SECTIONS 42-10-108 AND 42-10-109
APPLY TO A USED MOTOR VEHICLE.
(2) T
HIS ARTICLE 10 DOES NOT APPLY TO A USED MOTOR VEHICLE
DEALER LICENSED IN ACCORDANCE WITH ARTICLE
20 OF TITLE 44.
SECTION 7. In Colorado Revised Statutes, 42-6-102, amend
(1.7)(e) and (1.7)(f); and add (1.7)(g) as follows:
42-6-102. Definitions. As used in this part 1, unless the context
otherwise requires:
(1.7) "Brand" means a permanent designation or marking on a motor
vehicle's title, associated with the vehicle identification number, that
conveys information about the value of the vehicle or indicates that the
vehicle:
(e) Has had its odometer tampered with; or
(f) Has a designation placed on the title by another jurisdiction; OR
(g) IS A LEMON LAW BUYBACK VEHICLE , AS DEFINED IN SECTION
42-10-101 (1.5).
SECTION 8. In Colorado Revised Statutes, 42-6-107, amend
(1)(a)(III) as follows:
42-6-107. Certificates of title - contents - rules. (1) (a) (III) If a
vehicle shows a brand in its THE VEHICLE'S title history, or if the vehicle is
subject to a brand, the department shall place the appropriate brand on the
certificate of title. If the vehicle has multiple brands, the department shall
place the most recent brand on the certificate of title and the notice "other
PAGE 7-SENATE BILL 24-192 brands exist". If the brand is from a certificate of title issued in another
jurisdiction, the brand must be carried forward to the Colorado certificate
of title along with the name of the jurisdiction originating the brand. O
N
AND AFTER
JANUARY 1, 2027, THE APPROPRIATE BRAND IS "LEMON LAW
BUYBACK" IF A MOTOR VEHICLE IS A LEMON LAW BUYBACK VEHICLE , AS
DEFINED IN SECTION
42-10-101 (1.5).
SECTION 9. In Colorado Revised Statutes, 44-20-121, add (1)(d)
as follows:
44-20-121. Licenses - grounds for denial, suspension, or
revocation. (1) A manufacturer's or distributor's license may be denied,
suspended, or revoked on the following grounds:
(d) F
AILING TO COMPLY WITH ARTICLE 10 OF TITLE 42.
SECTION 10. Appropriation. (1) For the 2024-25 state fiscal
year, $19,605 is appropriated to the department of revenue. This
appropriation is from the Colorado DRIVES vehicle services account in the
highway users tax fund created in section 42-1-211 (2), C.R.S. To
implement this act, the department may use this appropriation as follows:
(a) $14,700 for DRIVES maintenance and support;
(b) $1,088 for personal services related to driver services;
(c) $1,540 for personal services related to administration and
support; and
(d) $2,277 for payments to OIT.
SECTION 11. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
PAGE 8-SENATE BILL 24-192 the date of the official declaration of the vote thereon by the governor.
(2) This act applies to motor vehicles sold or leased on or after the
applicable effective date of this act.
____________________________ ____________________________
Steve Fenberg
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 9-SENATE BILL 24-192