Date: 04/20/2006
Final
BILL SUMMARY for SB06-231
SENATE COMMITTEE ON AGRICULTURE, NATURAL RESOURCES & ENERGY
| Votes: View--> | Action Taken: |
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02:16 PM -- Senate Bill 06-231
Senator Veiga, prime sponsor, said that the bill is necessary to avoid the failure of a business, and that it will grandfather in certain large vehicles providing a very limited exemption for sales of these vehicles in Colorado law. The bill would allow certain manufacturers to sell certain used motor vehicles with an empty weight of 8,000 pounds or more.
02:18 PM -- Rhonda Savage, TransWest Trucks, opposed the bill. She said that it is the responsibility of the state to provide a level playing field in the procurement of vehicles.
02:24 PM -- George Eidsness, TransWest Trucks, said that he has been affected by two manufacturers selling used trucks in his market. He commented on his company's investment in the state. He commented on his manufacturer's requirements on his business. He said that his business does not want to compete on an unequal playing field. He said that the bill would restrict competition. He said that some manufacturers sell below wholesale book values and that his company has lost money in the used truck business for five years.
02:39 PM -- Tim Jackson, Colorado Automobile Association, said that he is shocked that the bill has been introduced. He commented on requirements of truck dealers and said that the bill would devalue the inventory in Colorado dealerships, hurting those dealerships. He said that the bill's failure will not force any business under in the state.
02:39 PM -- Mike Feeley, Denver, opposed the bill and commented on franchise arrangements. He said that the current law has worked well and that one company is seeking "legislation that is very close to special legislation." He noted that investments have been made based on current law, and that these investments have resulted in the employment of thousands of people in the state. He commented on the franchise act and said that this special exception should not be carved out.
02:52 PM -- Lynn Fanning, International Truck, supported the bill. He said that his company will be shut down by the Colorado Motor Vehicle Board without this bill. He said that his company has held a used motor vehicle dealer's license prior to a change in the law in the past. He said that the Board's ruling has been appealed in court, and that the bill applies only to companies that held these licenses under the old law. He said that the bill has no impact on the new vehicle market. He said that his used truck center does not compete with their distribution of new trucks. He spoke of his company's contributions to Colorado.
03:12 PM -- Scott McCandless, McCandless Trucks, spoke of the impact of his company on Colorado and supported the bill. He spoke of the kinds of vehicles his company sells. He commented on the trucks that his company takes in as trade-ins.
03:17 PM -- Beth Casey, Colorado Mac Trucks, said that the bill would bring about unfair competition in the state. She said that the Motor Vehicle Dealer's Licensing Board is investigating the matter at this time. She said that this phenomenon is occurring in other states.
03:21 PM
Senator Isgar laid the bill over to the committee's next meeting for action only.