Senate Bill 25-160 Engrossed

A Bill for an Act

• Page 1, Line 101Concerning requiring certain motor vehicle manufacturers

• Page 1, Line 102that have affiliates to sell through franchised motor

• Page 1, Line 103vehicle dealers.

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 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.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 44-20-102, amend (14) introductory portion; and add (1.3) as follows:

• Page 2, Line 344-20-102.  Definitions. As used in this part 1, and in part 4 of this article 20, unless the context or section 44-20-402 otherwise requires:

• Page 2, Line 4(1.3)  "Affiliate" means any person, including an entity, that:

• Page 2, Line 5(a)  Directly or indirectly, or through one or more

• Page 2, Line 6intermediaries, controls or is controlled by, or is under common

• Page 2, Line 7control with, a specified person or entity, or has the power to

• Page 2, Line 8exercise, directly or indirectly, a controlling influence over the management or policies of that person or entity; and

• Page 2, Line 9(b)  Manufactures, distributes, sells, or offers for sale or lease new motor vehicles to retail consumers.

• Page 2, Line 10(14)  "Manufacturer" means any person, firm, association,

• Page 2, Line 11corporation, affiliate, or trust, resident or nonresident, who that

• Page 2, Line 12manufactures or assembles new and unused motor vehicles; except that "manufacturer" does not include:

• Page 2, Line 13SECTION 2.  In Colorado Revised Statutes, 44-20-126, amend (1) and (2)(g); and add (2)(h), (2)(i),and (2)(j) as follows:

• Page 3, Line 144-20-126.  Independent control of dealer - definitions.

• Page 3, Line 2(1)  Except as otherwise provided in this section, no a manufacturer shall

• Page 3, Line 3not own, operate, or control, any or compete against a motor vehicle

• Page 3, Line 4dealer, motor vehicle dealer-operated service center, or used

• Page 3, Line 5motor vehicle dealer in Colorado in the retail sale, lease, retail service, or warranty service of motor vehicles.

• Page 3, Line 6(2)  Notwithstanding subsection (1) of this section, the following activities are not prohibited:

• Page 3, Line 7(g)  Ownership, operation, or control of one or more motor vehicle

• Page 3, Line 8dealers if the manufacturer manufactures only electric vehicles any

• Page 3, Line 9vehicle and has no never had any franchised dealers of the same any line-make in this state.

• Page 3, Line 10(h)  The service or repair of motor vehicles owned by a

• Page 3, Line 11manufacturer before the motor vehicles are delivered to a motor vehicle dealer.

• Page 3, Line 12(i)  Offering or providing updates to or repairs of motor

• Page 3, Line 13vehicle software that is transmitted remotely at no cost to the retail consumer.

• Page 3, Line 14(j)  Authorizing a fleet owner, operator, or other third

• Page 3, Line 15party, such as a government entity or a commercial or rental

• Page 3, Line 16fleet operator, to perform warranty service work on fleet

• Page 3, Line 17vehicles owned or operated by a fleet owner, operator, or other

• Page 3, Line 18third party, so long as the sales or leases are conducted with

• Page 3, Line 19the involvement of a motor vehicle dealer of the same

• Page 3, Line 20line-make, and the manufacturer does not prohibit or prevent

• Page 3, Line 21the fleet operator or other third party from obtaining

• Page 4, Line 1warranty service from a motor vehicle dealer of the same line-make.

• Page 4, Line 2SECTION 3.  In Colorado Revised Statutes, 44-20-425, amend (1); and add (2)(e) and (2)(f) as follows:

• Page 4, Line 344-20-425.  Independent control of dealer - definitions.

• Page 4, Line 4(1)  Except as otherwise provided in this section, no a powersports

• Page 4, Line 5vehicle manufacturer shall not own, operate, or control, any or compete

• Page 4, Line 6against a powersports vehicle dealer, powersports vehicle

• Page 4, Line 7dealer-operated service center, or used powersports vehicle dealer

• Page 4, Line 8in Colorado in the retail sale, lease, retail service, or warranty service of powersports vehicles.

• Page 4, Line 9(2)  Notwithstanding subsection (1) of this section, the following activities are not prohibited:

• Page 4, Line 10(e)  The service or repair of powersports vehicles owned by

• Page 4, Line 11a powersports vehicle manufacturer before the powersports vehicles are delivered to a powersports vehicle dealer;

• Page 4, Line 12(f)  Offering or providing updates to or repairs of

• Page 4, Line 13powersports vehicle software that is transmitted remotely at no cost to the retail consumer.

• Page 4, Line 14SECTION 4.  Act subject to petition - effective date. This act

• Page 4, Line 15takes effect at 12:01 a.m. on the day following the expiration of the

• Page 4, Line 16ninety-day period after final adjournment of the general assembly; except

• Page 4, Line 17that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 4, Line 18of the state constitution against this act or an item, section, or part of this

• Page 4, Line 19act within such period, then the act, item, section, or part will not take

• Page 4, Line 20effect unless approved by the people at the general election to be held in

• Page 5, Line 1November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.