Colorado Legislative Update: Key Developments for Auto Dealers

As we approach the close of the 2024 legislative session on May 8th, the Colorado Automobile Dealers Association (CADA) is committed to keeping you informed on critical Colorado legislative updates affecting automotive retailing and broader business interests. With over 700 bills introduced, significant progress has been made in areas ranging from environmental regulations to consumer protection. Here are some pivotal updates:


Colorado Legislative Updates: Vehicle Licensing Notifications & Lemon Law Enhancements

Several bills have been introduced that have the potential to directly impact franchised dealerships. CADA is actively engaged in these bills, where our involvement is an asset, advocating for policies that protect dealer interests. 

  • SB24-189 – Motor Vehicle Lemon Law: In response to Colorado’s relatively lenient lemon laws, CADA has collaborated with legislators and manufacturers to enhance protections. The revised law will: 
    • Expand coverage to vehicles experiencing safety-related nonconformities after just one repair attempt 
    • Extend protections up to 36,000 miles or three years 
    • Reduce the out-of-service period from 30 to 21 days 
    • Decrease the required number of repair attempts from four to three
  • HB24-1089 – Vehicle Electronic Notifications: To reduce costs and improve efficiency, this bill allows vehicle owners to opt into electronic notifications for vehicle registration, lease renewals, and license plate issuances. CADA has actively supported this bill, recognizing its benefits in modernizing and streamlining communications.


Tax Policy and Property Taxes

TABOR and tax measures remain a top priority for lawmakers. Here’s a quick note on property taxes for these Colorado legislative updates:

  • Property Tax Commission: Following extended discussions, the commission has postponed its recommendations, potentially leading to a November ballot initiative supported by the business community to cap property taxes. CADA is deeply involved in these discussions, advocating for favorable outcomes for auto dealers.


Other Colorado Legislative Updates & Concerns

  • SB24-195 – Protect Vulnerable Road Users: Efforts to introduce new funding mechanisms for road user protections have faced challenges, including opposition to increased registration fees. Alternatives may involve funding through traffic violation fines linked to automated systems, a proposal CADA is monitoring closely.
  • SB24-130 – Cap on Noneconomic Damages in Medical Malpractice Actions: This bill proposes to increase the cap on noneconomic damages from $300,000 to $500,000 by 2025, a change primarily affecting legal practitioners within the auto industry. CADA continues to track this bill to inform and protect our members.
  • HB24-1075 – Universal Healthcare Payment System Analysis: This proposal requires the state to explore a single-payer healthcare system. CADA, in collaboration with the Colorado Chamber, is actively working to address the potential impacts on healthcare costs for employers and the auto industry.

About The Colorado Auto Dealers Association (CADA) 

Founded in 1933 and officially incorporated in 1938, the Colorado Automobile Dealers Association (CADA) began as a collective effort by dealers to contest a federal excise tax. Today, CADA serves as a dynamic trade association dedicated to advocating for the interests of Colorado’s auto dealers. It addresses legislative, regulatory, and operational challenges, ensuring that the state’s automotive sector and driving public are well-represented and supported.

CADA keeps dealers well-informed through various channels, including our publications like Above the Fold, the Bulletin (see archives), and regular updates on LinkedIn. We are also committed to the education of dealers, providing essential resources to help them understand and adapt to new legislation and industry trends, particularly following the conclusion of each legislative session in May.


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