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First Regular Session | 75th General Assembly
Colorado General Assembly
SB17-298

Motor Vehicle Dealers And Manufacturers

Type Bill
Session 2017 Regular Session

Concerning the relationship between a motor vehicle manufacturer and the motor vehicle dealers that have franchise agreements with the manufacturer.

Bill Summary:

Current law prohibits a motor vehicle manufacturer (manufacturer) from requiring a motor vehicle dealer (dealer) to substantially alter a facility or premises if the manufacturer required it within the last 7 years at a cost set in statute based on the type of dealer. Section 1 of the bill extends this prohibition to 10 years. Section 1 also prohibits a manufacturer from:

  • Selling a similarly equipped motor vehicle to one dealer at a lower price than to another dealer;
  • Requiring or enforcing a contract giving the manufacturer a right of first refusal or an option to purchase the dealership; and
  • Using an unreasonable, arbitrary, unfair, or surprise performance standard in determining a dealer's compliance with a franchise agreement.
Section 2 repeals a provision that gives a dealer a right of first refusal for new franchises when the dealer was terminated due to the insolvency of the manufacturer. Section 2 also authorizes a dealer to sue in court to contest a manufacturer adding or moving a dealership to a market with a current dealer when this action would materially and adversely affect the dealer or the public. Such an action may currently be done administratively. Procedures are set for the civil action and an administrative hearing. Standards are set for determining the outcome. A prevailing party may get attorney fees and costs.

Section 3 authorizes a dealer to sue a manufacturer in court to contest whether a termination was for just cause or for failing to provide notice of a termination. Such an action may currently be done administratively. The current process for staying the termination is strengthened. The manufacturer has the burden of proof. A prevailing dealer may get attorney fees and costs.

Section 4 requires a manufacturer, when the manufacturer requires the dealer to stop selling a used motor vehicle due to a technical mechanical issue, to provide parts and a solution within 30 days or to provide compensation to the dealer. Standards are set for eligibility and payment.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Prime Sponsors

Senator Jack Tate

Senator

Jack Tate

Representative Tracy Kraft-Tharp

Representative

Tracy Kraft-Tharp

Committees

Senate

Business, Labor, & Technology

House

Business Affairs and Labor

Status

Became Law

Introduced

Passed

Became Law

Related Documents & Information

Date Version Documents
06/05/2017 Signed Act PDF
05/19/2017 Final Act PDF
05/08/2017 Rerevised PDF
05/05/2017 Revised PDF
05/02/2017 Reengrossed PDF
05/01/2017 Engrossed PDF
04/21/2017 Introduced PDF
Date Version Documents
05/05/2017 PA2 PDF
04/27/2017 PA1 PDF
Date Version Documents
09/11/2017 FN2 PDF
04/25/2017 FN1 PDF
Activity Vote Documents
Adopt amendment L.031. The motion passed without objection. Vote summary
Adopt amendment L.030. The motion passed without objection. Vote summary
Refer Senate Bill 17-298, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0. Vote summary
Hearing Summary
|
Committee Report:  PDF
Activity Vote Documents
Adopt amendment L.010. The motion passed without objection. Vote summary
Adopt amendment L.013. The motion passed without objection. Vote summary
Adopt amendment L.015. The motion passed without objection. Vote summary
Adopt amendment L.016. The motion passed without objection. Vote summary
Adopt amendment L.017, as amended. The motion passed without objection. Vote summary
Amend amendment L.017, line 5 and 6, strike "ONE HUNDRED SEVENTY-FIVE HUNDREDTHS" and substitute "ONE FIFTEENTH". The motion passed without objection. Vote summary
Adopt amendment L.018. The motion passed without objection. Vote summary
Adopt amendment L.019. The motion passed without objection. Vote summary
Refer Senate Bill 17-298, as amended, to the Committee of the Whole. The motion passed on a vote of 6-1. Vote summary
Hearing Summary
|
Committee Report:  PDF
Date Calendar Motion Vote Vote Document
05/09/2017 House Amendments REPASS
35
AYE
0
NO
0
OTHER
 		Vote record
05/09/2017 House Amendments CONCUR
35
AYE
0
NO
0
OTHER
 		Vote record
05/02/2017 Third Reading BILL
35
AYE
0
NO
0
OTHER
 		Vote record
05/02/2017 Third Reading AMEND (L.029)
35
AYE
0
NO
0
OTHER
 		Vote record
Date Calendar Motion Vote Vote Document
05/08/2017 Third Reading BILL
65
AYE
0
NO
0
OTHER
 		Vote record
Date Location Action
06/05/2017 Governor Governor Signed
05/19/2017 Governor Sent to the Governor
05/19/2017 House Signed by the Speaker of the House
05/18/2017 Senate Signed by the President of the Senate
05/09/2017 Senate Senate Considered House Amendments - Result was to Concur - Repass
05/08/2017 House House Third Reading Passed - No Amendments
05/05/2017 House House Second Reading Special Order - Passed with Amendments - Committee, Floor
05/04/2017 House House Committee on Business Affairs and Labor Refer Amended to House Committee of the Whole
05/02/2017 House Introduced In House - Assigned to Business Affairs and Labor
05/02/2017 Senate Senate Third Reading Passed with Amendments - Floor
05/01/2017 Senate Senate Second Reading Passed with Amendments - Committee, Floor
04/28/2017 Senate Senate Second Reading Special Order - Laid Over Daily with Amendments - Committee
04/26/2017 Senate Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole
04/21/2017 Senate Introduced In Senate - Assigned to Business, Labor, & Technology
Effective Date Chapter # Title Documents
08/09/2017 355 Motor Vehicle Dealers & Manufacturers PDF

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