Bill > SB160

This bill amends Colorado law to expand regulations around motor vehicle manufacturers and dealers, primarily focusing on defining and restricting manufacturers' activities. The bill introduces a new definition of "affiliate" as an entity that directly or indirectly controls, is controlled by, or shares common control with another entity in the motor vehicle industry. It clarifies that manufacturers are prohibited from owning, operating, controlling, or competing against motor vehicle dealers and dealer-operated service centers in Colorado. The legislation creates several exceptions to these restrictions, such as allowing manufacturers who have never had franchised dealers to own dealerships, permitting manufacturers to service their own vehicles before dealer delivery, and enabling remote software updates at no cost to consumers. The bill also extends similar provisions to powersports vehicle manufacturers, adding nuanced rules about warranty service and fleet vehicle maintenance. These changes aim to maintain a clear separation between vehicle manufacturers and dealers while providing some flexibility for emerging business models, particularly those involving electric and technology-driven vehicles. The act is subject to potential referendum and would take effect after the standard legislative review period, with a possible voter approval process in November 2026 if challenged.

Business and Industry

https://leg.colorado.gov/bills/sb25-160