NOTE: The governor signed this measure on 5/4/2016.
      
      
      HOUSE BILL 16-1317
      
      
      BY REPRESENTATIVE(S) Williams, Hullinghorst;
      also SENATOR(S) Holbert, Baumgardner, Woods.
      
      
      Concerning clarifying the types of transactions that may be
           included in a motor vehicle service contract.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 42-11-101, amend (3);
      and add (5.5) as follows:
      
           42-11-101.  Definitions. As used in this article, unless the context
      otherwise requires:
      
           (3) (a)  "Motor vehicle service contract" or "service contract" means
      a contract or agreement between a provider and a service contract holder,
      which contract or agreement is given for consideration over and
      above the lease or purchase price of a motor vehicle that undertakes and
      obligates the provider to perform or provide repair or replacement
      service, or indemnification for that service, for the operational or structural
      failure of a motor vehicle due to a defect in materials or skill of work or
      normal wear and tear. but A motor vehicle service contract may
      provide for any one or more of the following services:
      
           (I)  Repairing or replacing tires or wheels on a motor
      vehicle damaged as a result of coming into contact with road
      hazards;
      
           (II)  Removing dents, dings, or creases on a motor vehicle
      that can be repaired using the process of paintless dent removal
      without affecting the existing paint finish and without replacing
      vehicle body panels, sanding, bonding, or painting;
      
           (III)  Replacing or repairing a windshield damaged by road
      hazards;
      
           (IV)  Replacing a motor vehicle key or key fob if the key or
      key fob becomes inoperable or is lost or stolen;
      
           (V)  Other services that are similar to the services listed in
      this paragraph (a).
      
           (b)  "Motor vehicle service contract" or "service contract"
      does not include mechanical breakdown insurance.
      
           (5.5)  "Road hazard" means a hazard that is encountered
      while driving a motor vehicle. "Road hazard" may include
      potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or
      composite scraps.
      
           SECTION 2.  In Colorado Revised Statutes, amend 42-11-105 as
      follows:
      
           42-11-105.  Manufacturers' express warranties and service
      contracts excluded. This article does not apply to motor vehicle
      manufacturers' express warranties and service contracts as defined in
      section 42-10-101 (3). For purposes of this section, the term
      "manufacturer" includes the manufacturer or distributor of the
      covered vehicle or a subsidiary or affiliate of a manufacturer or
      distributor if fifty-one percent or more of the subsidiary or
      affiliate is owned directly or indirectly by the manufacturer,
      distributor, or common owner of fifty-one percent or more of the
      manufacturer or distributor.
      
           SECTION 3.  In Colorado Revised Statutes, add 42-11-109 as
      follows:
      
           42-11-109.  Maintenance agreement excluded. A prepaid
      agreement that provides only routine maintenance is not a
      service contract nor a contract of insurance.
      
           SECTION 4.  Act subject to petition - effective date. This act
      takes effect at 12:01 a.m. on the day following the expiration of the
      ninety-day period after final adjournment of the general assembly (August
      10, 2016, if adjournment sine die is on May 11, 2016); except that, if a
      referendum petition is filed pursuant to section 1 (3) of article V of the state
      constitution against this act or an item, section, or part of this act within
      such period, then the act, item, section, or part will not take effect unless
      approved by the people at the general election to be held in November 2016
      and, in such case, will take effect on the date of the official declaration of
      the vote thereon by the governor.
      
      
      
      
      ________________________________________________________
      Dickey Lee Hullinghorst                Bill L. Cadman
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                            Effie Ameen
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO