House Bill 25-1189

BY REPRESENTATIVE(S) Mauro and Weinberg, Clifford;

also SENATOR(S) Wallace.

Concerning regulation related to the registration of motor vehicles.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  In Colorado Revised Statutes, 42-1-210, amend (1)(a)(II) as follows:

42-1-210.  Authorized agents - legislative declaration - fee. (1) (a) (II) (A)  An authorized agent may appoint and employ such motor vehicle registration and license clerks as are actually necessary in the issuance of motor vehicle licenses and may retain for the purpose of defraying these expenses, including mailing, a sum equal to four dollars per paid motor vehicle registration and registration requiring a license plate or plates; individual temporary registration number plates; or a validation tab, sticker, decal, or certificate as provided in sections 42-3-201 and 42-3-203. This fee of four dollars applies to every registration of a motor vehicle, except motor vehicles that are specifically exempted from payment of any registration fee by article 3 of this title 42, and the fee is required in addition to the annual registration fee prescribed by law for a motor vehicle. When the department collects the fee, the department shall transfer the fee to The state treasurer who shall credit itthe fee to the Colorado DRIVES vehicle services account created in section 42-1-211; except that, if the fee is collected by a third-party provider, the department shall transmit the fee to the authorized agent where the vehicle or special mobile machinery is registered. Authorized agents serve under this part 2 without additional remuneration or fees, except as otherwise provided in articles 1 to 6 of this title 42.

(B)  The department shall annually adjust for inflation the fee imposed in subsection (1)(a)(II)(A) of this section; except that the department shall not raise the fee by more than five percent per year or lower the fee. Inflation is measured by the annual percentage increase in the United States department of labor's bureau of labor statistics consumer price index, or a successor index, for Denver-Aurora-Lakewood for all items paid for by urban consumers. The department may round the fee to the nearest dollar.

SECTION 2.  In Colorado Revised Statutes, 42-3-102, amend (3)(a) as follows:

42-3-102.  Periodic registration - rules. (3) (a)  The department may register vehicles at intervals of less than one year upon payment of the appropriate registration fees, surcharges, and specific ownership tax in order to allow the owner of more than one vehicle to provide for the owner's vehicle registrations to expire simultaneouslyto select the month of expiration during initial registration or registration renewal. The request must be made only one time in the twelve months after the transaction date. The owner of a vehicle that is eligible as determined by the authorized agent may elect a registration pursuant to this subsection (3). The department may adopt rules as necessary for the administration of this subsection (3).

SECTION 3.  In Colorado Revised Statutes, 42-3-304, amend (22) as follows:

42-3-304.  Registration fees - passenger-mile taxes - clean screen fund - pilot program - report - rules - definitions. (22)  In addition to any other fees imposed by this section, thean authorized agent may collect and retain, and an applicant for registration shallmust pay at the time of registration, a reasonable fee, as determined from time to time by the authorized agent, that approximatesis necessary to recover the direct and indirect costs incurred not to exceed five dollars, by the authorized agent in shipping and handling thosemotor vehicle documents or license plates that the applicant has pursuant to section 42-3-105 (1)(a), requested that the department or authorized agent mail to the owner. On an annual basis, an authorized agent may, on or before October 15, calculate and publish on county public-facing media the fee that applies to the registration period beginning January 1 of the following year.

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

42-6-107.  Certificates of title - contents - rules. (1) (a) (III)  If a vehicle shows a brand in the vehicle's title history, or if the vehicle is subject to a brand, the department shall place the appropriate brand on the certificate of title. If the vehicle has multiple brands, the department shall place the most recent brand on the certificate of title and the notice "other brands exist". If the brand is from a certificate of title issued in another jurisdiction, the brand must be carried forward to the Colorado certificate of title along with the name of the jurisdiction originating the brand. On and after January 1, 2027, the appropriate brand is "Lemon Law Buyback" if a motor vehicle is a lemon law buyback vehicle, as defined in section 42-10-101 (1.5). If the brand is "REBUILT FROM SALVAGE" as described in section 42-6-136.5, the department shall include a statement of salvage disclosure on the title. The statement of salvage disclosure must:

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

(B)  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

(C)  Contain the signature of the seller and buyer to sell the salvage vehicle.

SECTION 5.  In Colorado Revised Statutes, 42-6-206, amend (2) introductory portion as follows:

42-6-206.  Disclosure requirements upon transfer of ownership of a salvage vehicle - rules - definitions. (2)  AnyIf the title of a vehicle that was rebuilt from salvage does not have the "REBUILT FROM SALVAGE" disclosure on the title or if the vehicle is subject to multiple assignments, a person whothat sells athe vehicle rebuilt from salvage for the purpose of transferring ownership of such vehicle shall:

SECTION 6.  In Colorado Revised Statutes, 42-12-102, amend (3)(a); repeal (2)(b); and add (1)(c) and (2)(c) as follows:

42-12-102.  Rebuilder's certificate of title. (1) (c)  If an applicant for a certificate of title to a motor vehicle is able to provide the director or an authorized agent with a certificate of title duly transferred to the applicant or other evidence of ownership that satisfies the director that the applicant owns the vehicle, the director or authorized agent may issue a rebuilder's title for the motor vehicle valued principally because of the vehicle's early date of manufacture, design, or historical interest or valued as a collector's item if:

(I)  The motor vehicle is not roadworthy;

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

(III)  The components of the motor vehicle include at least a rolling chassis; and

(IV)  The applicant obtains a certified vehicle identification number inspection.

(2)  If a motor vehicle titled under this section is later made roadworthy, the department shall issue to an applicant a standard certificate of title if the applicant:

(b)  Furnishes a bond under subsection (3) of this section.

(c)  Surrenders the previous ownership document or title.

(3) (a)  To convert a rebuilder's title to a standard certificate of title, theTo comply with subsection (1)(a)(VI) of this section, an applicant shallmust furnish evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101 C.R.S., or a good and sufficient bond with a corporate surety. The account, deposit, certificate, or bond must be in an amount fixed by the director, but not less than twice the reasonable value of the vehicle, determined as of the time of application. The applicant and the applicant's surety shallmust hold harmless any person whothat suffers loss or damage by reason of the filing of a certificate of title under this section.

SECTION 7.  Act subject to petition - effective date - applicability. (1)  This act takes effect July 1, 2027; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect July 1, 2027, or on the date of the official declaration of the vote thereon by the governor, whichever is later.

(2)  This act applies to titles issued and fees incurred on or after the applicable effective date of this act.