First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 25-0864.01 Brita Darling x2241
SENATE BILL 25-160
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
C
ONCERNING REQUIRING CERTAIN MOTOR VEHICLE MANUFACTURERS101
THAT HAVE AFFILIATES TO SELL THROUGH FRANCHISED MOTOR102
VEHICLE DEALERS.103
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
.)
The bill amends the definition of a "manufacturer" of new motor
vehicles to include an affiliate of a manufacturer and defines the term
"affiliate".
The bill clarifies that the provision in current law prohibiting a
manufacturer from owning, operating, or controlling a motor vehicle
SENATE
3rd Reading Unamended
March 17, 2025
SENATE
Amended 2nd Reading
March 14, 2025
SENATE SPONSORSHIP
Snyder and Jodeh, Liston
HOUSE SPONSORSHIP
Hamrick and Mauro,
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. dealer or used motor vehicle dealer in the state also includes competing
against a motor vehicle dealer or used motor vehicle dealer. Further, the
bill extends the prohibition to include motor vehicle dealer-operated
service centers in the state.
Current law does not prohibit ownership, operation, or control of
one or more motor vehicle dealers by a manufacturer if the manufacturer
manufactures only electric vehicles and has no franchised dealers of the
same line-make in the state. Under the bill, the ownership, operation, or
control of one or more motor vehicle dealers by a manufacturer is not
prohibited if the manufacturer manufactures any vehicle and has never
had franchised dealers of any line-make in the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-20-102, amend2
(14) introductory portion; and add (1.3) as follows:3
44-20-102. Definitions. As used in this part 1, and in part 4 of this4
article 20, unless the context or section 44-20-402 otherwise requires:5
(1.3) "A
FFILIATE" MEANS ANY PERSON, INCLUDING AN ENTITY,6
THAT:
7
(a) D
IRECTLY OR INDIRECTLY, OR THROUGH ONE OR MORE
8
INTERMEDIARIES, CONTROLS OR IS CONTROLLED BY, OR IS UNDER COMMON9
CONTROL WITH, A SPECIFIED PERSON OR ENTITY, OR HAS THE POWER TO10
EXERCISE, DIRECTLY OR INDIRECTLY, A CONTROLLING INFLUENCE OVER11
THE MANAGEMENT OR POLICIES OF THAT PERSON OR ENTITY ; AND12
(b) M
ANUFACTURES, DISTRIBUTES, SELLS, OR OFFERS FOR SALE OR
13
LEASE NEW MOTOR VEHICLES TO RETAIL CONSUMERS .14
(14) "Manufacturer" means any person, firm, association,15
corporation,
AFFILIATE, or trust, resident or nonresident, who
THAT16
manufactures or assembles new and unused motor vehicles; except that17
"manufacturer" does not include:18
SECTION 2. In Colorado Revised Statutes, 44-20-126, amend19
160-2- (1) and (2)(g); and add (2)(h), (2)(i), and (2)(j) as follows:1
44-20-126. Independent control of dealer - definitions.2
(1) Except as otherwise provided in this section, no A manufacturer shall3
NOT own, operate, or control, any OR COMPETE AGAINST A motor vehicle4
dealer,
MOTOR VEHICLE DEALER -OPERATED SERVICE CENTER , or used5
motor vehicle dealer in Colorado
IN THE RETAIL SALE, LEASE, RETAIL
6
SERVICE, OR WARRANTY SERVICE OF MOTOR VEHICLES .7
(2) Notwithstanding subsection (1) of this section, the following8
activities are not prohibited:9
(g) Ownership, operation, or control of one or more motor vehicle10
dealers if the manufacturer manufactures only electric vehicles ANY11
VEHICLE and has no NEVER HAD ANY franchised dealers of the same ANY12
line-make in this state.13
(h) T
HE SERVICE OR REPAIR OF MOTOR VEHICLES OWNED BY A
14
MANUFACTURER BEFORE THE MOTOR VEHICLES ARE DELIVERED TO A15
MOTOR VEHICLE DEALER.16
(i) O
FFERING OR PROVIDING UPDATES TO OR REPAIRS OF MOTOR
17
VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT NO COST TO THE18
RETAIL CONSUMER.19
(j) A
UTHORIZING A FLEET OWNER , OPERATOR, OR OTHER THIRD
20
PARTY, SUCH AS A GOVERNMENT ENTITY OR A COMMERCIAL OR RENTAL21
FLEET OPERATOR, TO PERFORM WARRANTY SERVICE WORK ON FLEET22
VEHICLES OWNED OR OPERATED BY A FLEET OWNER , OPERATOR, OR OTHER23
THIRD PARTY, SO LONG AS THE SALES OR LEASES ARE CONDUCTED WITH24
THE INVOLVEMENT OF A MOTOR VEHICLE DEALER OF THE SAME25
LINE-MAKE, AND THE MANUFACTURER DOES NOT PROHIBIT OR PREVENT26
THE FLEET OPERATOR OR OTHER THIRD PARTY FROM OBTAINING27
160
-3- WARRANTY SERVICE FROM A MOTOR VEHICLE DEALER OF THE SAME1
LINE-MAKE.2
SECTION 3. In Colorado Revised Statutes, 44-20-425, amend3
(1); and add (2)(e) and (2)(f) as follows:4
44-20-425. Independent control of dealer - definitions.5
(1) Except as otherwise provided in this section, no A powersports6
vehicle manufacturer shall
NOT own, operate, or
control, any OR COMPETE7
AGAINST A powersports vehicle dealer, POWERSPORTS VEHICLE8
DEALER-OPERATED SERVICE CENTER, or used powersports vehicle dealer9
in Colorado
IN THE RETAIL SALE, LEASE, RETAIL SERVICE, OR WARRANTY
10
SERVICE OF POWERSPORTS VEHICLES .11
(2) Notwithstanding subsection (1) of this section, the following12
activities are not prohibited:13
(e) T
HE SERVICE OR REPAIR OF POWERSPORTS VEHICLES OWNED BY
14
A POWERSPORTS VEHICLE MANUFACTURER BEFORE THE POWERSPORTS15
VEHICLES ARE DELIVERED TO A POWERSPORTS VEHICLE DEALER ;16
(f) O
FFERING OR PROVIDING UPDATES TO OR REPAIRS OF
17
POWERSPORTS VEHICLE SOFTWARE THAT IS TRANSMITTED REMOTELY AT18
NO COST TO THE RETAIL CONSUMER .19
SECTION 4. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly; except22
that, if a referendum petition is filed pursuant to section 1 (3) of article V23
of the state constitution against this act or an item, section, or part of this24
act within such period, then the act, item, section, or part will not take25
effect unless approved by the people at the general election to be held in26
160
-4- November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
160
-5-