First Regular Session
Sixty-second General Assembly
LLS NO. 99-0386.01 Robert Neill SENATE BILL 99-103
STATE OF COLORADO
BY SENATORS Anderson and Owen;
also REPRESENTATIVE Swenson.
TRANSPORTATION
A BILL FOR AN ACT
101 CONCERNING USED MOTOR VEHICLE DEALER LICENSEES' DISCLOSURE
102 REQUIREMENTS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Deletes the requirement that holders of a used motor vehicle
dealer's license disclose to all parties the amount of compensation to be
received from both the consumer and the owner of the vehicle as a result
of the sale, exchange, or lease of a motor vehicle not owned by the
licensee. Instead requires the licensee to disclose to all parties in writing
if the licensee will receive compensation from both the consumer and the
vehicle owner as a result of the transaction. Requires that disclosure be
made prior to the completion of the transaction rather than prior to any
negotiation.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 12-6-108 (1) (b), Colorado Revised Statutes, is
3 amended to read:
4 12-6-108. Classes of licenses. (1) Licenses issued under the
5 provisions of this part 1 shall be of the following classes:
6 (b) Used motor vehicle dealer's license shall permit the licensee
7 to engage in the business of selling, exchanging, leasing, or offering used
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 motor vehicles only. Such license shall also permit a licensee to negotiate
2 for a consumer the sale, exchange, or lease of used and new motor
3 vehicles not owned by the licensee, except those vehicles defined in
4 section 42-1-102 (55), C.R.S., as motorcycles and section 33-14.5-101
5 (3), C.R.S., as off-highway vehicles. however, IF THE LICENSEE WILL
6 RECEIVE COMPENSATION FROM BOTH THE CONSUMER AND THE OWNER OF
7 THE MOTOR VEHICLE AS A RESULT OF ANY SALE, EXCHANGE, OR LEASE OF
8 A MOTOR VEHICLE NOT OWNED BY THE LICENSEE, the licensee shall
9 disclose THE FACT THAT COMPENSATION WILL BE RECEIVED in writing to
10 all parties prior to any such negotiation for the sale, exchange, or lease of
11 a motor vehicle not owned by the licensee whether the licensee will
12 receive any compensation from the consumer and whether the licensee
13 will receive any compensation from the owner of the motor vehicle as a
14 result of such transaction. Prior to completion of such sale, exchange, or
15 lease of a motor vehicle not owned by the licensee, the licensee shall
16 disclose in writing to all parties the amount of the compensation to be
17 received from the consumer and the amount of compensation to be
18 received from the owner of the motor vehicle as a result of such
19 transaction THE COMPLETION OF THE SALE, EXCHANGE, OR LEASE. This
20 form of license shall permit not more than two persons named therein
21 who shall be owners or part owners of the business of the licensee to act
22 as motor vehicle salespersons.
23 SECTION 2. Safety clause. The general assembly hereby finds,
24 determines, and declares that this act is necessary for the|~ immediate
|~ 25 preservation of the public peace, health, and safety.