House Bill 25-1189 Introduced

A Bill for an Act

• Page 1, Line 101Concerning regulation related to the registration of motor

• Page 1, Line 102vehicles.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Current law sets fees for the titling and registration of vehicles and authorizes county clerks, as authorized agents of the department of revenue (department), to retain a portion of these fees to cover their costs. The bill raises the fees for the following by $4 and allows the county clerks to retain the additional $4:

• Issuing:
• Motor vehicle and other vehicle registrations requiring license plates;
• Temporary registration license plates;
• A validation tab, sticker, decal, or certificate for license plates; and
• A certificate of title;
• Filing, extending, or releasing a lien; and
• Obtaining a copy of a recorded title.
• Include the reason the vehicle is salvage, as listed in statute;
• Contain a statement from the owner stating the nature of the damage that resulted in the determination that the vehicle is a salvage vehicle; and
• Contain the signature of the seller and buyer to sell the salvage vehicle.

The department must increase these fees to account for inflation, but the department may not increase a fee more than 5% per year.

Current law authorizes a county clerk to set fees for shipping and handling of license plates. The bill authorizes the county clerk to set fees for the shipping and handling of motor vehicle documents. The county clerk is required to set and publish the fee by October 15 for registration periods beginning January 1 of the following year.

Current law allows people to register vehicles for less than one year so that each of their vehicles expire on the same month. The bill removes the multiple-vehicle requirement to allow people to register a vehicle for less than one year for any reason.

Current law requires a salvage vehicle's title to have a brand that says "rebuilt from salvage". The bill requires this brand to include a disclosure statement, which must:

Current law requires the seller of a salvage vehicle to provide a disclosure statement of the fact and have it signed. And if the buyer does not know about the vehicle being rebuilt from salvage, the buyer is entitled to a refund. The bill requires this disclosure statement and the buyer to be provided the refund only if the title of a salvage vehicle does not have the brand on the title or the vehicle is subject to multiple assignments.

Current law provides the option to have a rebuilder's certificate of title when a motor vehicle is a collector's item, the applicant is unable to provide appropriate evidence of ownership, and the applicant posts a bond. The bill authorizes the department to issue a rebuilder's certificate of title to people who can prove ownership. Under the current process, 2 bonds may be required. The bill changes the process to require only one bond.

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  In Colorado Revised Statutes, 42-1-210, amend (1)(a)(II) as follows:

• Page 3, Line 342-1-210.  Authorized agents - legislative declaration - fee.

• Page 3, Line 4(1) (a) (II) (A)  An authorized agent may appoint and employ such motor

• Page 3, Line 5vehicle registration and license clerks as are actually necessary in the

• Page 3, Line 6issuance of motor vehicle licenses and may retain for the purpose of

• Page 3, Line 7defraying these expenses, including mailing, a sum equal to four eight

• Page 3, Line 8dollars per paid motor vehicle registration and registration requiring a

• Page 3, Line 9license plate or plates; individual temporary registration number plates;

• Page 3, Line 10or a validation tab, sticker, decal, or certificate as provided in sections

• Page 3, Line 1142-3-201 and 42-3-203. This fee of four eight dollars applies to every

• Page 3, Line 12registration of a motor vehicle, except motor vehicles that are specifically

• Page 3, Line 13exempted from payment of any registration fee by article 3 of this title 42,

• Page 3, Line 14and the fee is required in addition to the annual registration fee

• Page 3, Line 15prescribed by law for a motor vehicle. When the department collects the

• Page 3, Line 16fee, the department shall transfer the fee to The state treasurer who shall

• Page 3, Line 17credit it the fee to the Colorado DRIVES vehicle services account

• Page 3, Line 18created in section 42-1-211; except that, if the fee is collected by a

• Page 3, Line 19third-party provider, the department shall transmit the fee to the

• Page 3, Line 20authorized agent where the vehicle or special mobile machinery is

• Page 3, Line 21registered. Authorized agents serve under this part 2 without additional

• Page 3, Line 22remuneration or fees, except as otherwise provided in articles 1 to 6 of this title 42.

• Page 3, Line 23(B)  The department shall annually adjust for inflation

• Page 3, Line 24the fee imposed in subsection (1)(a)(II)(A) of this section; except

• Page 3, Line 25that the department shall not raise the fee by more than five

• Page 4, Line 1percent per year or lower the fee. Inflation is measured by the

• Page 4, Line 2annual percentage increase in the United States department of

• Page 4, Line 3labor's bureau of labor statistics consumer price index, or a

• Page 4, Line 4successor index, for Denver-Aurora-Lakewood for all items paid for by urban consumers.

• Page 4, Line 5SECTION 2.  In Colorado Revised Statutes, 42-3-102, amend (3)(a) as follows:

• Page 4, Line 642-3-102.  Periodic registration - rules. (3) (a)  The department

• Page 4, Line 7may register vehicles at intervals of less than one year upon payment of

• Page 4, Line 8the appropriate registration fees, surcharges, and specific ownership tax

• Page 4, Line 9in order to allow the owner of more than one vehicle to provide for the

• Page 4, Line 10owner's vehicle registrations to expire simultaneously to choose the

• Page 4, Line 11month of expiration. The owner of a vehicle that is eligible as

• Page 4, Line 12determined by the authorized agent may elect a registration pursuant to

• Page 4, Line 13this subsection (3). The department may adopt rules as necessary for the administration of this subsection (3).

• Page 4, Line 14SECTION 3.  In Colorado Revised Statutes, 42-3-304, amend (22) as follows:

• Page 4, Line 1542-3-304.  Registration fees - passenger-mile taxes - clean

• Page 4, Line 16screen fund - pilot program - report - rules - definitions. (22)  In

• Page 4, Line 17addition to any other fees imposed by this section, the an authorized

• Page 4, Line 18agent may collect and retain, and an applicant for registration shall must

• Page 4, Line 19pay at the time of registration, a reasonable fee, as determined from time

• Page 4, Line 20to time by the authorized agent, that approximates the direct and indirect

• Page 4, Line 21costs incurred, not to exceed five dollars, by the authorized agent in

• Page 4, Line 22shipping and handling those motor vehicle documents or license

• Page 4, Line 23plates that the applicant has pursuant to section 42-3-105 (1)(a), requested

• Page 5, Line 1that the department mail to the owner. On an annual basis, an

• Page 5, Line 2authorized agent may, on or before October 15, calculate and

• Page 5, Line 3publish on county public-facing media the fee that applies to the registration period beginning January 1 of the following year.

• Page 5, Line 4SECTION 4.  In Colorado Revised Statutes, 42-6-107, amend (1)(a)(III) as follows:

• Page 5, Line 542-6-107.  Certificates of title - contents - rules. (1) (a) (III)  If

• Page 5, Line 6a vehicle shows a brand in the vehicle's title history, or if the vehicle is

• Page 5, Line 7subject to a brand, the department shall place the appropriate brand on the

• Page 5, Line 8certificate of title. If the vehicle has multiple brands, the department shall

• Page 5, Line 9place the most recent brand on the certificate of title and the notice "other

• Page 5, Line 10brands exist". If the brand is from a certificate of title issued in another

• Page 5, Line 11jurisdiction, the brand must be carried forward to the Colorado certificate

• Page 5, Line 12of title along with the name of the jurisdiction originating the brand. On

• Page 5, Line 13and after January 1, 2027, the appropriate brand is "Lemon Law

• Page 5, Line 14Buyback" if a motor vehicle is a lemon law buyback vehicle, as defined

• Page 5, Line 15in section 42-10-101 (1.5). If the brand is "REBUILT FROM

• Page 5, Line 16SALVAGE" as described in section 42-6-136.5, the department

• Page 5, Line 17shall include a statement of salvage disclosure on the title. The statement of salvage disclosure must:

• Page 5, Line 18(A)  Include the reason the vehicle is a salvage vehicle, as listed in section 42-6-102 (17)(a)(I);

• Page 5, Line 19(B)  Contain a statement from the owner stating the

• Page 5, Line 20nature of the damage that resulted in the determination that the vehicle is a salvage vehicle; and

• Page 5, Line 21(C)  Contain the signature of the seller and buyer to sell

• Page 5, Line 22the salvage vehicle.

• Page 6, Line 1SECTION 5.  In Colorado Revised Statutes, 42-6-137, amend (1)(a), (2), (3), (4), (5), and (8) as follows:

• Page 6, Line 242-6-137.  Fees - rules. (1) (a)  Upon filing To file with the an

• Page 6, Line 3authorized agent an application for a certificate of title, the an applicant

• Page 6, Line 4shall must pay to the agent a fee of seven eleven dollars and twenty

• Page 6, Line 5cents, which shall be is in addition to the fees for the registration of such

• Page 6, Line 6the motor vehicle. If the additional fee of seven eleven dollars and

• Page 6, Line 7twenty cents is collected by a third-party provider, as defined in section

• Page 6, Line 842-1-102, the provider shall collect and remit the fee to the department, who and the department shall transmit the fee to the authorized agent.

• Page 6, Line 9(2)  Upon the receipt by an authorized agent of To file for a

• Page 6, Line 10mortgage for filing under section 42-6-121, 42-6-125, or 42-6-129, the a

• Page 6, Line 11filer shall must pay the an authorized agent the fees that are imposed by

• Page 6, Line 12law for the filing of like instruments in the office of the county clerk and

• Page 6, Line 13recorder and, in addition, a fee of seven eleven dollars and twenty cents

• Page 6, Line 14for the issuance or recording of the certificate of title and the notation of

• Page 6, Line 15the existence of the mortgage. If the additional fee of seven eleven

• Page 6, Line 16dollars and twenty cents is collected by a third-party provider, as defined

• Page 6, Line 17in section 42-1-102, the provider shall collect and remit the fee to the

• Page 6, Line 18department, who and the department shall transmit the fee to the authorized agent.

• Page 6, Line 19(3)  Upon application To apply to the an authorized agent to have

• Page 6, Line 20noted or recorded on a certificate of title the extension of a mortgage

• Page 6, Line 21described in the certificate of title and noted or recorded on the certificate,

• Page 6, Line 22such authorized agent shall receive an applicant shall pay a fee of one dollar and fifty cents to the authorized agent.

• Page 6, Line 23(4)  Upon the release and satisfaction of a mortgage and upon

• Page 7, Line 1application to apply to the an authorized agent for the notation on the

• Page 7, Line 2certificate of title pursuant to section 42-6-125, such authorized agent

• Page 7, Line 3shall be paid an applicant must pay a fee of seven eleven dollars and twenty cents to the authorized agent.

• Page 7, Line 4(5)  For the issuance of a copy of a recorded certificate of title,

• Page 7, Line 5except as may be otherwise provided in this part 1, the authorized agent

• Page 7, Line 6shall be paid requestor must pay a fee of eight twelve dollars and

• Page 7, Line 7twenty cents to the authorized agent. If the department assigns a new

• Page 7, Line 8identifying number to any motor vehicle, the fee charged for such assignment shall be three dollars and fifty cents.

• Page 7, Line 9(8) (a)  Notwithstanding the amount specified for any fee in this

• Page 7, Line 10section, the director by rule or as otherwise provided by law may reduce

• Page 7, Line 11the amount of one or more of the fees if necessary pursuant to section

• Page 7, Line 1224-75-402 (3) C.R.S., to reduce the uncommitted reserves of the fund to

• Page 7, Line 13which all or any portion of one or more of the fees is credited. After the

• Page 7, Line 14uncommitted reserves of the fund are sufficiently reduced, the director by

• Page 7, Line 15rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4). C.R.S.

• Page 7, Line 16(b)  When the amount of the fees retained by the

• Page 7, Line 17authorized agent is increased in accordance with section

• Page 7, Line 1842-6-138 (1), the department shall increase the fees listed in

• Page 7, Line 19subsections (1)(a), (2), (4), and (5) of this section by the same amount to account for the increase.

• Page 7, Line 20SECTION 6.  In Colorado Revised Statutes, 42-6-138, amend (1)(a), (2) introductory portion, and (2)(a); and add (1)(c) as follows:

• Page 7, Line 2142-6-138.  Disposition of fees. (1) (a)  All fees received by the an

• Page 7, Line 22authorized agent under section 42-6-137 (1)(a), (2), or (4) or 38-29-138

• Page 8, Line 1(1)(a), (2), or (4) upon application for a certificate of title shall be are

• Page 8, Line 2disposed of as follows: Four Eight dollars shall be are retained by the

• Page 8, Line 3authorized agent and disposition made as provided by law, and three

• Page 8, Line 4dollars and twenty cents shall be credited to the Colorado DRIVES vehicle services account created in section 42-1-211 (2).

• Page 8, Line 5(c)  The department shall annually adjust for inflation

• Page 8, Line 6the fee retained by the authorized agent in subsection (1)(a) of

• Page 8, Line 7this section; except that the department shall not raise the fee

• Page 8, Line 8by more than five percent per year or lower the fee. Inflation is

• Page 8, Line 9measured by the annual percentage increase in the United

• Page 8, Line 10States department of labor's bureau of labor statistics

• Page 8, Line 11consumer price index, or a successor index, for

• Page 8, Line 12Denver-Aurora-Lakewood for all items paid for by urban consumers.

• Page 8, Line 13(2)  The An authorized agent shall dispose of all fees collected under section 42-6-137 (5) or 38-29-138 (5) as follows:

• Page 8, Line 14(a)  For a copy of a recorded certificate of title, six ten dollars and

• Page 8, Line 15fifty cents shall be retained by the authorized agent and disposition made

• Page 8, Line 16as provided by law, and one dollar and seventy cents shall be credited to

• Page 8, Line 17the Colorado DRIVES vehicle services account created in section 42-1-211 (2); and

• Page 8, Line 18SECTION 7.  In Colorado Revised Statutes, 42-6-206, amend (2) introductory portion and (3)(a) as follows:

• Page 8, Line 1942-6-206.  Disclosure requirements upon transfer of ownership

• Page 8, Line 20of a salvage vehicle - rules - definitions. (2)  Any If the title of a

• Page 8, Line 21salvage vehicle does not have the "REBUILT FROM SALVAGE"

• Page 8, Line 22brand on the title, or if the vehicle is subject to multiple

• Page 9, Line 1assignments, a person who that sells a vehicle rebuilt from salvage for

• Page 9, Line 2the purpose of transferring ownership of such vehicle the salvage vehicle shall:

• Page 9, Line 3(3) (a)  Any person who that purchases a vehicle rebuilt from

• Page 9, Line 4salvage who that was not provided with a copy of a disclosure affidavit

• Page 9, Line 5prepared in accordance with the provisions of subsection (1) of this

• Page 9, Line 6section and who that, subsequent to sale, discovers that the vehicle

• Page 9, Line 7purchased was rebuilt from salvage shall be entitled to a full and

• Page 9, Line 8immediate refund of the purchase price from the prior owner unless

• Page 9, Line 9subsection (2) of this section does not apply to the salvage vehicle.

• Page 9, Line 10SECTION 8.  In Colorado Revised Statutes, 42-12-102, amend (3)(a); repeal (2)(b); and add (1)(c) and (2)(c) as follows:

• Page 9, Line 1142-12-102.  Rebuilder's certificate of title. (1) (c)  If an

• Page 9, Line 12applicant for a certificate of title to a motor vehicle is able to

• Page 9, Line 13provide the director or an authorized agent with a certificate

• Page 9, Line 14of title duly transferred to the applicant or other evidence of

• Page 9, Line 15ownership that satisfies the director that the applicant owns

• Page 9, Line 16the vehicle, the director or authorized agent may issue a

• Page 9, Line 17rebuilder's title for the motor vehicle valued principally

• Page 9, Line 18because of the vehicle's early date of manufacture, design, or historical interest or valued as a collector's item if:

• Page 9, Line 19(I)  The motor vehicle is not roadworthy;

• (II)  The motor vehicle is at least twenty-five years old;

• Page 9, Line 20(III)  The components of the motor vehicle include at least a rolling chassis; and

• Page 9, Line 21(IV)  The applicant obtains a certified vehicle identification number inspection.

• Page 10, Line 1(2)  If a motor vehicle titled under this section is later made

• Page 10, Line 2roadworthy, the department shall issue to an applicant a standard certificate of title if the applicant:

• Page 10, Line 3(b)  Furnishes a bond under subsection (3) of this section.

• (c)  Surrenders the previous ownership document or title.

• Page 10, Line 4(3) (a)  To convert a rebuilder's title to a standard certificate of

• Page 10, Line 5title, the To comply with subsection (1)(a)(VI) of this section, an

• Page 10, Line 6applicant shall must furnish evidence of a savings account, deposit, or

• Page 10, Line 7certificate of deposit meeting the requirements of section 11-35-101

• Page 10, Line 8C.R.S., or a good and sufficient bond with a corporate surety. The

• Page 10, Line 9account, deposit, certificate, or bond must be in an amount fixed by the

• Page 10, Line 10director, but not less than twice the reasonable value of the vehicle,

• Page 10, Line 11determined as of the time of application. The applicant and the applicant's

• Page 10, Line 12surety shall must hold harmless any person who that suffers loss or damage by reason of the filing of a certificate of title under this section.

• Page 10, Line 13SECTION 9.  Act subject to petition - effective date -

• Page 10, Line 14applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 10, Line 15the expiration of the ninety-day period after final adjournment of the

• Page 10, Line 16general assembly; except that, if a referendum petition is filed pursuant

• Page 10, Line 17to section 1 (3) of article V of the state constitution against this act or an

• Page 10, Line 18item, section, or part of this act within such period, then the act, item,

• Page 10, Line 19section, or part will not take effect unless approved by the people at the

• Page 10, Line 20general election to be held in November 2026 and, in such case, will take

• Page 10, Line 21effect on the date of the official declaration of the vote thereon by the governor.

• Page 11, Line 1(2)  This act applies to titles issued and fees incurred on or after the applicable effective date of this act.