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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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,
whoPage 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) and (2)(i) 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,
noPage 3, Line 3not own, operate,
oranyPage 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 vehiclesPage 3, Line 9vehicle and has
nothe samePage 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 14SECTION 3. Act subject to petition - effective date. This act
Page 3, Line 15takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 16ninety-day period after final adjournment of the general assembly; except
Page 3, Line 17that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 18of the state constitution against this act or an item, section, or part of this
Page 3, Line 19act within such period, then the act, item, section, or part will not take
Page 3, Line 20effect unless approved by the people at the general election to be held in
Page 4, Line 1November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.