Senate passes bill limiting direct motor‑vehicle sales by manufacturers with affiliates; opponents call it protectionist
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Summary
The Senate approved Senate Bill 160, which requires certain motor vehicle manufacturers with affiliates to sell through franchise dealers. The measure passed on a 22‑12 roll call after opponents argued it preserves a dealer‑franchise model that disadvantages direct‑to‑consumer sellers such as Tesla.
The Colorado Senate passed Senate Bill 160 on March 17, requiring certain motor vehicle manufacturers that have affiliates to sell through franchised motor vehicle dealers rather than by direct sales.
Senator Snyder moved for passage on third reading and final passage. Opponents criticized the measure as protectionist. "We're gonna allow companies like Tesla, owned by the richest man in the history of the world, to continue, to play by a different set of rules," Senator Gonzales said during debate, criticizing the bill for preserving an uneven regulatory playing field between traditional franchise dealers and direct‑to‑consumer manufacturers.
Supporters said the bill protects Colorado's dealer franchise model and the jobs tied to it. The Senate adopted the bill by roll call: 22 ayes, 12 noes, 0 absent, 1 vacancy; the bill passed and will proceed in the legislative process.
The transcript records debate over paragraph (g) and an unsuccessful amendment offered earlier in committee that sponsors said would have created an equal playing field for all manufacturers. The bill's passage keeps current franchise protections in place for dealers and is likely to affect manufacturers that seek to sell vehicles directly to consumers rather than through dealer networks.
No specific fiscal note or implementation timetable was discussed on the Senate floor in the excerpted transcript.
