31 | 28 | | SENATE |
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32 | 29 | | Amended 2nd Reading |
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33 | 30 | | March 14, 2025 |
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34 | 31 | | SENATE SPONSORSHIP |
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35 | 32 | | Snyder and Jodeh, Liston |
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36 | 33 | | HOUSE SPONSORSHIP |
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37 | 34 | | Hamrick and Mauro, |
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38 | 35 | | Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. |
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39 | 36 | | Capital letters or bold & italic numbers indicate new material to be added to existing law. |
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40 | 37 | | Dashes through the words or numbers indicate deletions from existing law. dealer or used motor vehicle dealer in the state also includes competing |
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41 | 38 | | against a motor vehicle dealer or used motor vehicle dealer. Further, the |
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42 | 39 | | bill extends the prohibition to include motor vehicle dealer-operated |
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43 | 40 | | service centers in the state. |
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44 | 41 | | Current law does not prohibit ownership, operation, or control of |
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45 | 42 | | one or more motor vehicle dealers by a manufacturer if the manufacturer |
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46 | 43 | | manufactures only electric vehicles and has no franchised dealers of the |
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47 | 44 | | same line-make in the state. Under the bill, the ownership, operation, or |
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48 | 45 | | control of one or more motor vehicle dealers by a manufacturer is not |
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49 | 46 | | prohibited if the manufacturer manufactures any vehicle and has never |
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50 | 47 | | had franchised dealers of any line-make in the state. |
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51 | 48 | | Be it enacted by the General Assembly of the State of Colorado:1 |
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52 | 49 | | SECTION 1. In Colorado Revised Statutes, 44-20-102, amend2 |
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53 | 50 | | (14) introductory portion; and add (1.3) as follows:3 |
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54 | 51 | | 44-20-102. Definitions. As used in this part 1, and in part 4 of this4 |
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55 | 52 | | article 20, unless the context or section 44-20-402 otherwise requires:5 |
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56 | 53 | | (1.3) "A |
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57 | 54 | | FFILIATE" MEANS ANY PERSON, INCLUDING AN ENTITY,6 |
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58 | 55 | | THAT: |
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59 | 56 | | 7 |
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60 | 57 | | (a) D |
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61 | 58 | | IRECTLY OR INDIRECTLY, OR THROUGH ONE OR MORE |
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62 | 59 | | 8 |
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63 | 60 | | INTERMEDIARIES, CONTROLS OR IS CONTROLLED BY, OR IS UNDER COMMON9 |
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64 | 61 | | CONTROL WITH, A SPECIFIED PERSON OR ENTITY, OR HAS THE POWER TO10 |
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65 | 62 | | EXERCISE, DIRECTLY OR INDIRECTLY, A CONTROLLING INFLUENCE OVER11 |
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66 | 63 | | THE MANAGEMENT OR POLICIES OF THAT PERSON OR ENTITY ; AND12 |
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67 | 64 | | (b) M |
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68 | 65 | | ANUFACTURES, DISTRIBUTES, SELLS, OR OFFERS FOR SALE OR |
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69 | 66 | | 13 |
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70 | 67 | | LEASE NEW MOTOR VEHICLES TO RETAIL CONSUMERS .14 |
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71 | 68 | | (14) "Manufacturer" means any person, firm, association,15 |
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72 | 69 | | corporation, |
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73 | 70 | | AFFILIATE, or trust, resident or nonresident, who |
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74 | 71 | | THAT16 |
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75 | 72 | | manufactures or assembles new and unused motor vehicles; except that17 |
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76 | 73 | | "manufacturer" does not include:18 |
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77 | 74 | | SECTION 2. In Colorado Revised Statutes, 44-20-126, amend19 |
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78 | 75 | | 160-2- (1) and (2)(g); and add (2)(h), (2)(i), and (2)(j) as follows:1 |
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79 | 76 | | 44-20-126. Independent control of dealer - definitions.2 |
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80 | 77 | | (1) Except as otherwise provided in this section, no A manufacturer shall3 |
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81 | 78 | | NOT own, operate, or control, any OR COMPETE AGAINST A motor vehicle4 |
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82 | 79 | | dealer, |
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83 | 80 | | MOTOR VEHICLE DEALER -OPERATED SERVICE CENTER , or used5 |
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84 | 81 | | motor vehicle dealer in Colorado |
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85 | 82 | | IN THE RETAIL SALE, LEASE, RETAIL |
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86 | 83 | | 6 |
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87 | 84 | | SERVICE, OR WARRANTY SERVICE OF MOTOR VEHICLES .7 |
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88 | 85 | | (2) Notwithstanding subsection (1) of this section, the following8 |
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89 | 86 | | activities are not prohibited:9 |
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90 | 87 | | (g) Ownership, operation, or control of one or more motor vehicle10 |
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91 | 88 | | dealers if the manufacturer manufactures only electric vehicles ANY11 |
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92 | 89 | | VEHICLE and has no NEVER HAD ANY franchised dealers of the same ANY12 |
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93 | 90 | | line-make in this state.13 |
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94 | 91 | | (h) T |
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95 | 92 | | HE SERVICE OR REPAIR OF MOTOR VEHICLES OWNED BY A |
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96 | 93 | | 14 |
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97 | 94 | | MANUFACTURER BEFORE THE MOTOR VEHICLES ARE DELIVERED TO A15 |
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98 | 95 | | MOTOR VEHICLE DEALER.16 |
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99 | 96 | | (i) O |
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100 | 97 | | FFERING OR PROVIDING UPDATES TO OR REPAIRS OF MOTOR |
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101 | 98 | | 17 |
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102 | 99 | | VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT NO COST TO THE18 |
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103 | 100 | | RETAIL CONSUMER.19 |
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104 | 101 | | (j) A |
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105 | 102 | | UTHORIZING A FLEET OWNER , OPERATOR, OR OTHER THIRD |
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106 | 103 | | 20 |
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107 | 104 | | PARTY, SUCH AS A GOVERNMENT ENTITY OR A COMMERCIAL OR RENTAL21 |
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108 | 105 | | FLEET OPERATOR, TO PERFORM WARRANTY SERVICE WORK ON FLEET22 |
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109 | 106 | | VEHICLES OWNED OR OPERATED BY A FLEET OWNER , OPERATOR, OR OTHER23 |
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110 | 107 | | THIRD PARTY, SO LONG AS THE SALES OR LEASES ARE CONDUCTED WITH24 |
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111 | 108 | | THE INVOLVEMENT OF A MOTOR VEHICLE DEALER OF THE SAME25 |
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112 | 109 | | LINE-MAKE, AND THE MANUFACTURER DOES NOT PROHIBIT OR PREVENT26 |
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113 | 110 | | THE FLEET OPERATOR OR OTHER THIRD PARTY FROM OBTAINING27 |
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114 | 111 | | 160 |
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115 | 112 | | -3- WARRANTY SERVICE FROM A MOTOR VEHICLE DEALER OF THE SAME1 |
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116 | 113 | | LINE-MAKE.2 |
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117 | 114 | | SECTION 3. In Colorado Revised Statutes, 44-20-425, amend3 |
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118 | 115 | | (1); and add (2)(e) and (2)(f) as follows:4 |
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119 | 116 | | 44-20-425. Independent control of dealer - definitions.5 |
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120 | 117 | | (1) Except as otherwise provided in this section, no A powersports6 |
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121 | 118 | | vehicle manufacturer shall |
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122 | 119 | | NOT own, operate, or |
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123 | 120 | | control, any OR COMPETE7 |
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124 | 121 | | AGAINST A powersports vehicle dealer, POWERSPORTS VEHICLE8 |
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125 | 122 | | DEALER-OPERATED SERVICE CENTER, or used powersports vehicle dealer9 |
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126 | 123 | | in Colorado |
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127 | 124 | | IN THE RETAIL SALE, LEASE, RETAIL SERVICE, OR WARRANTY |
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128 | 125 | | 10 |
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129 | 126 | | SERVICE OF POWERSPORTS VEHICLES .11 |
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130 | 127 | | (2) Notwithstanding subsection (1) of this section, the following12 |
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131 | 128 | | activities are not prohibited:13 |
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132 | 129 | | (e) T |
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133 | 130 | | HE SERVICE OR REPAIR OF POWERSPORTS VEHICLES OWNED BY |
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134 | 131 | | 14 |
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135 | 132 | | A POWERSPORTS VEHICLE MANUFACTURER BEFORE THE POWERSPORTS15 |
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136 | 133 | | VEHICLES ARE DELIVERED TO A POWERSPORTS VEHICLE DEALER ;16 |
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137 | 134 | | (f) O |
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138 | 135 | | FFERING OR PROVIDING UPDATES TO OR REPAIRS OF |
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139 | 136 | | 17 |
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140 | 137 | | POWERSPORTS VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT18 |
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141 | 138 | | NO COST TO THE RETAIL CONSUMER .19 |
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142 | 139 | | SECTION 4. Act subject to petition - effective date. This act20 |
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143 | 140 | | takes effect at 12:01 a.m. on the day following the expiration of the21 |
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144 | 141 | | ninety-day period after final adjournment of the general assembly; except22 |
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145 | 142 | | that, if a referendum petition is filed pursuant to section 1 (3) of article V23 |
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146 | 143 | | of the state constitution against this act or an item, section, or part of this24 |
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147 | 144 | | act within such period, then the act, item, section, or part will not take25 |
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148 | 145 | | effect unless approved by the people at the general election to be held in26 |
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149 | 146 | | 160 |
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150 | 147 | | -4- November 2026 and, in such case, will take effect on the date of the1 |
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151 | 148 | | official declaration of the vote thereon by the governor.2 |
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152 | 149 | | 160 |
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153 | 150 | | -5- |
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