CO SB140

Amends Colorado law to clarify that bonds required for motor vehicle dealers, salespersons, wholesalers, and powersports vehicle dealers must protect against fraud and violations related to fraud as designated by the board by rule.

Expands conditions for individuals to recover from surety bonds by allowing separate actions against sureties after either a board final agency order finding fraud or a court judgment of fraud, even if the licensed dealer or salesperson has not reimbursed the claimant.

Specifies bond amounts: $50,000 for motor vehicle dealers and wholesalers (except $5,000 for dealers selling only small utility trailers under 2,000 pounds), and $15,000 for salespersons.

Clarifies that surety bonds must protect retail consumers and establishes that retail consumers have priority recovery rights in wholesale transactions.

Takes effect August 5, 2020, subject to potential referendum petition, and applies to offenses committed on or after the effective date.