House Bill 26-1041 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the use of an electronic vehicle record for a

• Page 1, Line 102certificate of title, and, in connection therewith,

• Page 1, Line 103repealing the requirement for a paper certificate of

• Page 1, Line 104title.

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/.)

Transportation Legislation Review Committee. The bill repeals the existing requirement that a paper certificate of title be used for specific vehicle transactions, thereby allowing the use of a certificate of title in an electronic format in all circumstances.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 42-6-109, amend (1),

• Page 2, Line 3(3)(a), and (3)(b)(IV); and repeal (2) as follows:

• Page 2, Line 442-6-109.  Sale or transfer of vehicle - program.

• Page 2, Line 5(1)  Except as provided in section 42-6-113, a person shall not sell

• Page 2, Line 6or otherwise transfer a motor or off-highway vehicle to a purchaser or

• Page 2, Line 7transferee without delivering to the purchaser or transferee a certificate

• Page 2, Line 8of title to the vehicle duly transferred in the manner prescribed in section

• Page 2, Line 942-6-110. Except as provided in subsection (2) of this section, the The

• Page 2, Line 10certificate of title may be in an electronic format. Except as provided in

• Page 2, Line 11section 42-6-115, a purchaser or transferee does not acquire any right,

• Page 2, Line 12title, or interest in and to a motor or off-highway vehicle purchased by the

• Page 2, Line 13purchaser or transferee unless and until he or she the purchaser or

• Page 2, Line 14transferee obtains from the transferor the certificate of title duly

• Page 2, Line 15transferred in accordance with this part 1. A lienholder may request either

• Page 2, Line 16a paper or electronic version of a certificate of title.

• Page 2, Line 17(2)  Except as provided in section 42-6-115, a paper copy of a

• Page 2, Line 18certificate of title is necessary for a transaction in which:

• Page 2, Line 19(a)  Either party to the transaction is located outside Colorado; or

• Page 2, Line 20(b)  The purchaser pays for a motor or off-highway vehicle entirely

• Page 2, Line 21with cash.

• Page 2, Line 22(3) (a)  Beginning January 1, 2019, the department shall implement

• Page 2, Line 23a voluntary program for an owner of a motor vehicle to notify the

• Page 2, Line 24department or an authorized agent after ownership of the motor vehicle

• Page 2, Line 25is transferred to another person in accordance with subsections (1) and (2)

• Page 3, Line 1subsection (1) of this section.

• Page 3, Line 2(b)  A report of ownership transfer is properly filed if the report is

• Page 3, Line 3made in a manner, which may include by electronic means, approved by

• Page 3, Line 4the department and received by the department or authorized agent within

• Page 3, Line 5five business days after the transfer of ownership, and includes the

• Page 3, Line 6following:

• Page 3, Line 7(IV)  An affidavit, signed under penalty of perjury, that the

• Page 3, Line 8requirements for the transfer of ownership in subsections (1) and (2)

• Page 3, Line 9subsection (1) of this section have been satisfied.

• Page 3, Line 10SECTION 2.  Act subject to petition - effective date. This act

• Page 3, Line 11takes effect at 12:01 a.m. on the day following the expiration of the

• Page 3, Line 12ninety-day period after final adjournment of the general assembly (August

• Page 3, Line 1312, 2026, if adjournment sine die is on May 13, 2026); except that, if a

• Page 3, Line 14referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 3, Line 15state constitution against this act or an item, section, or part of this act

• Page 3, Line 16within such period, then the act, item, section, or part will not take effect

• Page 3, Line 17unless approved by the people at the general election to be held in

• Page 3, Line 18November 2026 and, in such case, will take effect on the date of the

• Page 3, Line 19official declaration of the vote thereon by the governor.