Colorado 2025 Regular Session

Colorado Senate Bill SB160 Compare Versions

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11 First Regular Session
22 Seventy-fifth General Assembly
33 STATE OF COLORADO
4-REENGROSSED
5-This Version Includes All Amendments
6-Adopted in the House of Introduction
4+ENGROSSED
5+This Version Includes All Amendments Adopted
6+on Second Reading in the House of Introduction
77 LLS NO. 25-0864.01 Brita Darling x2241
88 SENATE BILL 25-160
99 Senate Committees House Committees
1010 Business, Labor, & Technology
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING REQUIRING CERTAIN MOTOR VEHICLE MANUFACTURERS101
1414 THAT HAVE AFFILIATES TO SELL THROUGH FRANCHISED MOTOR102
1515 VEHICLE DEALERS.103
1616 Bill Summary
1717 (Note: This summary applies to this bill as introduced and does
1818 not reflect any amendments that may be subsequently adopted. If this bill
1919 passes third reading in the house of introduction, a bill summary that
2020 applies to the reengrossed version of this bill will be available at
2121 http://leg.colorado.gov
2222 .)
2323 The bill amends the definition of a "manufacturer" of new motor
2424 vehicles to include an affiliate of a manufacturer and defines the term
2525 "affiliate".
2626 The bill clarifies that the provision in current law prohibiting a
2727 manufacturer from owning, operating, or controlling a motor vehicle
28-SENATE
29-3rd Reading Unamended
30-March 17, 2025
3128 SENATE
3229 Amended 2nd Reading
3330 March 14, 2025
3431 SENATE SPONSORSHIP
3532 Snyder and Jodeh, Liston
3633 HOUSE SPONSORSHIP
3734 Hamrick and Mauro,
3835 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3936 Capital letters or bold & italic numbers indicate new material to be added to existing law.
4037 Dashes through the words or numbers indicate deletions from existing law. dealer or used motor vehicle dealer in the state also includes competing
4138 against a motor vehicle dealer or used motor vehicle dealer. Further, the
4239 bill extends the prohibition to include motor vehicle dealer-operated
4340 service centers in the state.
4441 Current law does not prohibit ownership, operation, or control of
4542 one or more motor vehicle dealers by a manufacturer if the manufacturer
4643 manufactures only electric vehicles and has no franchised dealers of the
4744 same line-make in the state. Under the bill, the ownership, operation, or
4845 control of one or more motor vehicle dealers by a manufacturer is not
4946 prohibited if the manufacturer manufactures any vehicle and has never
5047 had franchised dealers of any line-make in the state.
5148 Be it enacted by the General Assembly of the State of Colorado:1
5249 SECTION 1. In Colorado Revised Statutes, 44-20-102, amend2
5350 (14) introductory portion; and add (1.3) as follows:3
5451 44-20-102. Definitions. As used in this part 1, and in part 4 of this4
5552 article 20, unless the context or section 44-20-402 otherwise requires:5
5653 (1.3) "A
5754 FFILIATE" MEANS ANY PERSON, INCLUDING AN ENTITY,6
5855 THAT:
5956 7
6057 (a) D
6158 IRECTLY OR INDIRECTLY, OR THROUGH ONE OR MORE
6259 8
6360 INTERMEDIARIES, CONTROLS OR IS CONTROLLED BY, OR IS UNDER COMMON9
6461 CONTROL WITH, A SPECIFIED PERSON OR ENTITY, OR HAS THE POWER TO10
6562 EXERCISE, DIRECTLY OR INDIRECTLY, A CONTROLLING INFLUENCE OVER11
6663 THE MANAGEMENT OR POLICIES OF THAT PERSON OR ENTITY ; AND12
6764 (b) M
6865 ANUFACTURES, DISTRIBUTES, SELLS, OR OFFERS FOR SALE OR
6966 13
7067 LEASE NEW MOTOR VEHICLES TO RETAIL CONSUMERS .14
7168 (14) "Manufacturer" means any person, firm, association,15
7269 corporation,
7370 AFFILIATE, or trust, resident or nonresident, who
7471 THAT16
7572 manufactures or assembles new and unused motor vehicles; except that17
7673 "manufacturer" does not include:18
7774 SECTION 2. In Colorado Revised Statutes, 44-20-126, amend19
7875 160-2- (1) and (2)(g); and add (2)(h), (2)(i), and (2)(j) as follows:1
7976 44-20-126. Independent control of dealer - definitions.2
8077 (1) Except as otherwise provided in this section, no A manufacturer shall3
8178 NOT own, operate, or control, any OR COMPETE AGAINST A motor vehicle4
8279 dealer,
8380 MOTOR VEHICLE DEALER -OPERATED SERVICE CENTER , or used5
8481 motor vehicle dealer in Colorado
8582 IN THE RETAIL SALE, LEASE, RETAIL
8683 6
8784 SERVICE, OR WARRANTY SERVICE OF MOTOR VEHICLES .7
8885 (2) Notwithstanding subsection (1) of this section, the following8
8986 activities are not prohibited:9
9087 (g) Ownership, operation, or control of one or more motor vehicle10
9188 dealers if the manufacturer manufactures only electric vehicles ANY11
9289 VEHICLE and has no NEVER HAD ANY franchised dealers of the same ANY12
9390 line-make in this state.13
9491 (h) T
9592 HE SERVICE OR REPAIR OF MOTOR VEHICLES OWNED BY A
9693 14
9794 MANUFACTURER BEFORE THE MOTOR VEHICLES ARE DELIVERED TO A15
9895 MOTOR VEHICLE DEALER.16
9996 (i) O
10097 FFERING OR PROVIDING UPDATES TO OR REPAIRS OF MOTOR
10198 17
10299 VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT NO COST TO THE18
103100 RETAIL CONSUMER.19
104101 (j) A
105102 UTHORIZING A FLEET OWNER , OPERATOR, OR OTHER THIRD
106103 20
107104 PARTY, SUCH AS A GOVERNMENT ENTITY OR A COMMERCIAL OR RENTAL21
108105 FLEET OPERATOR, TO PERFORM WARRANTY SERVICE WORK ON FLEET22
109106 VEHICLES OWNED OR OPERATED BY A FLEET OWNER , OPERATOR, OR OTHER23
110107 THIRD PARTY, SO LONG AS THE SALES OR LEASES ARE CONDUCTED WITH24
111108 THE INVOLVEMENT OF A MOTOR VEHICLE DEALER OF THE SAME25
112109 LINE-MAKE, AND THE MANUFACTURER DOES NOT PROHIBIT OR PREVENT26
113110 THE FLEET OPERATOR OR OTHER THIRD PARTY FROM OBTAINING27
114111 160
115112 -3- WARRANTY SERVICE FROM A MOTOR VEHICLE DEALER OF THE SAME1
116113 LINE-MAKE.2
117114 SECTION 3. In Colorado Revised Statutes, 44-20-425, amend3
118115 (1); and add (2)(e) and (2)(f) as follows:4
119116 44-20-425. Independent control of dealer - definitions.5
120117 (1) Except as otherwise provided in this section, no A powersports6
121118 vehicle manufacturer shall
122119 NOT own, operate, or
123120 control, any OR COMPETE7
124121 AGAINST A powersports vehicle dealer, POWERSPORTS VEHICLE8
125122 DEALER-OPERATED SERVICE CENTER, or used powersports vehicle dealer9
126123 in Colorado
127124 IN THE RETAIL SALE, LEASE, RETAIL SERVICE, OR WARRANTY
128125 10
129126 SERVICE OF POWERSPORTS VEHICLES .11
130127 (2) Notwithstanding subsection (1) of this section, the following12
131128 activities are not prohibited:13
132129 (e) T
133130 HE SERVICE OR REPAIR OF POWERSPORTS VEHICLES OWNED BY
134131 14
135132 A POWERSPORTS VEHICLE MANUFACTURER BEFORE THE POWERSPORTS15
136133 VEHICLES ARE DELIVERED TO A POWERSPORTS VEHICLE DEALER ;16
137134 (f) O
138135 FFERING OR PROVIDING UPDATES TO OR REPAIRS OF
139136 17
140137 POWERSPORTS VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT18
141138 NO COST TO THE RETAIL CONSUMER .19
142139 SECTION 4. Act subject to petition - effective date. This act20
143140 takes effect at 12:01 a.m. on the day following the expiration of the21
144141 ninety-day period after final adjournment of the general assembly; except22
145142 that, if a referendum petition is filed pursuant to section 1 (3) of article V23
146143 of the state constitution against this act or an item, section, or part of this24
147144 act within such period, then the act, item, section, or part will not take25
148145 effect unless approved by the people at the general election to be held in26
149146 160
150147 -4- November 2026 and, in such case, will take effect on the date of the1
151148 official declaration of the vote thereon by the governor.2
152149 160
153150 -5-