House Bill 26-1053 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the administration of duties related to the

• Page 1, Line 102ownership of a vehicle.

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.)

Under current law, an owner of a vehicle that pays specific ownership tax, except intrastate commercial carriers, have their license plates retired and are reissued new plates when the vehicle's ownership is transferred. The bill repeals this requirement and authorizes the owner to transfer the plates to a new motor vehicle.

Current law provides for an electronic vehicle registration and titling system (electronic system). The bill requires the department of revenue (department) to develop an application programming interface for this electronic system. The department must provide the application programming interface to its authorized agents. An authorized agent may use this interface or use the agent's own interface system. The department may adopt rules governing the authorized agent's use of such an interface with the electronic system.

The bill requires the department to develop, implement, and maintain a comprehensive contingency plan to ensure continuity of operations and the protection of critical services in the event of a disruption in vehicle licensing operations. Standards are set for the contingency plan. The governor's office of information technology must provide the appropriate network and equipment support to the department.

Current law provides for the keep Colorado wild pass, which allows people to obtain a Colorado parks pass for a motor vehicle for a reduced fee when registering the motor vehicle. The bill requires the authorized agent of the department to retain 3.33% of the fee.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 42-3-115, amend

• Page 2, Line 3(5)(a); and repeal (5)(b) and (5)(d) as follows:

• Page 2, Line 442-3-115.  Registration upon transfer - rules - definitions.

• Page 2, Line 5(5) (a)  Except as otherwise provided in subsections (5)(b), (5)(c),

• Page 2, Line 6and (5)(d) of this section, on and after January 1, 2022, whenever the

• Page 2, Line 7owner of a motor vehicle that is Class C personal property, as described

• Page 2, Line 8in section 42-3-106 (2)(c), transfers or assigns the owner's title or interest,

• Page 2, Line 9the number plates issued to the owner for the vehicle expire and shall not

• Page 2, Line 10be transferred by the department to any other motor vehicle. Except as

• Page 2, Line 11otherwise provided in subsection (5)(d) of this section, whenever the

• Page 2, Line 12owner of a motor vehicle that is Class B personal property, as described

• Page 2, Line 13in section 42-3-106 (2)(b); Class D personal property, as described in

• Page 2, Line 14section 42-3-106 (2)(d); or Class F personal property, as described in

• Page 2, Line 15section 42-3-106 (2)(e), transfers or assigns the owner's title or interest,

• Page 3, Line 1the number plates issued to the owner for the vehicle expire and shall not

• Page 3, Line 2be transferred by the department to any other motor vehicle. An owner of

• Page 3, Line 3a motor vehicle whose number plates expire due to the operation of this

• Page 3, Line 4subsection (5)(a) who wishes to retain the same combination of letters or

• Page 3, Line 5numbers displayed on the expired license plates retains the priority right

• Page 3, Line 6to use the combination and may, after surrendering the expired plates to

• Page 3, Line 7the department, apply for personalized license plates with the

• Page 3, Line 8combination in the manner specified in section 42-3-211 when registering

• Page 3, Line 9another motor vehicle Upon request of the owner of a motor

• Page 3, Line 10vehicle, the department may transfer a number plate from one

• Page 3, Line 11motor vehicle to another motor vehicle if at least one person is

• Page 3, Line 12listed as an owner on the certificate of title for each motor

• Page 3, Line 13vehicle.

• Page 3, Line 14(b)  Subsection (5)(a) of this section does not apply to the transfer

• Page 3, Line 15or assignment of an owner's title or interest in Class B, Class C, and Class

• Page 3, Line 16D personal property that has number plates:

• Page 3, Line 17(I)  That are personalized license plates issued in accordance with

• Page 3, Line 18section 42-3-211, distinctive special license plates, group special license

• Page 3, Line 19plates, or special alumni license plates issued in accordance with section

• Page 3, Line 2042-3-214; or

• Page 3, Line 21(II)  That have a valuable registration number that has been

• Page 3, Line 22reserved for use under the "Laura Hershey Disability Support Act", part

• Page 3, Line 232 of article 88 of title 8.

• Page 3, Line 24(d)  Subsection (5)(a) of this section does not apply to number

• Page 3, Line 25plates issued to a fleet operator that are easily legible and in good

• Page 3, Line 26condition, and a fleet operator may transfer such number plates from one

• Page 3, Line 27fleet vehicle to another when the fleet operator transfers or assigns the

• Page 4, Line 1owner's title or interest in the fleet vehicle from which the number plates

• Page 4, Line 2are being transferred.

• Page 4, Line 3SECTION 2.  In Colorado Revised Statutes, 42-1-234, add (6) as

• Page 4, Line 4follows:

• Page 4, Line 542-1-234.  Electronic vehicle registration and titling - electronic

• Page 4, Line 6transmission of vehicle lien information - authority - rules - report -

• Page 4, Line 7electronic transactions fund - gifts, grants, and donations - notice to

• Page 4, Line 8revisor of statutes - repeal.

• Page 4, Line 9(6) (a)  On or before January 1, 2027, the department shall

• Page 4, Line 10develop an interface system to allow for an authorized agent

• Page 4, Line 11to use an application programming interface for the system

• Page 4, Line 12created pursuant to subsection (1)(a) of this section.

• Page 4, Line 13(b) (I)  On or before January 1, 2027, the department shall

• Page 4, Line 14provide access to an application programming interface for the

• Page 4, Line 15system created pursuant to subsection (1)(a) of this section that

• Page 4, Line 16an authorized agent may use with the system.

• Page 4, Line 17(II)  An authorized agent may adopt the application

• Page 4, Line 18programming interface provided by the department pursuant to

• Page 4, Line 19subsection (6)(b)(I) of this section or produce and use an

• Page 4, Line 20interface system developed and implemented by the authorized

• Page 4, Line 21agent. The department shall develop its interface system in a

• Page 4, Line 22manner that will interface any application programming

• Page 4, Line 23interface adopted by the authorized agent.

• Page 4, Line 24(c)  The department may adopt rules necessary for the

• Page 4, Line 25implementation of this section. The rules may:

• Page 4, Line 26(I)  Regulate the roles and interface system requirements

• Page 4, Line 27for application programming interfaces;

• Page 5, Line 1(II)  Set standards of compatibility with interface systems

• Page 5, Line 2and cross-agency integration; or

• Page 5, Line 3(III)  Set standards for secure transfer of data and

• Page 5, Line 4information.

• Page 5, Line 5SECTION 3.  In Colorado Revised Statutes, add 42-1-238 as

• Page 5, Line 6follows:

• Page 5, Line 742-1-238.  Comprehensive contingency plan - rules - repeal.

• Page 5, Line 8(1) (a)  The department of revenue shall develop,

• Page 5, Line 9implement, and maintain a comprehensive contingency plan to

• Page 5, Line 10ensure continuity of operations and the protection of critical

• Page 5, Line 11services in the event of a disruption in vehicle licensing

• Page 5, Line 12operations.

• Page 5, Line 13(b) (I)  The department shall implement the contingency

• Page 5, Line 14plan required in subsection (1)(a) of this section on or before

• Page 5, Line 15December 31, 2027.

• Page 5, Line 16(II)  This subsection (1)(b) is repealed, effective July 1, 2029.

• Page 5, Line 17(2)  To comply with this section, the contingency plan

• Page 5, Line 18must:

• Page 5, Line 19(a)  Identify the functions that are critical to vehicle

• Page 5, Line 20licensing operations and the resources required to support

• Page 5, Line 21them;

• Page 5, Line 22(b)  Establish procedures for backup, recovery, and

• Page 5, Line 23reconstitution of systems and services;

• Page 5, Line 24(c)  Designate roles and responsibilities during

• Page 5, Line 25contingency operations;

• Page 5, Line 26(d)  Identify alternate processing sites during contingency

• Page 5, Line 27operations;

• Page 6, Line 1(e)  Be tested and updated annually or upon changes to

• Page 6, Line 2critical functions and the systems that provide and support

• Page 6, Line 3critical functions;

• Page 6, Line 4(f)  Be annually reviewed and, when helpful, enhanced;

• Page 6, Line 5and

• Page 6, Line 6(g)  Be established through consultation with,

• Page 6, Line 7consideration of, recommendations by, and unanimous

• Page 6, Line 8acceptance from stakeholders that include:

• Page 6, Line 9(I)  An association of county clerks in Colorado; and

• Page 6, Line 10(II)  The governor's office of information technology

• Page 6, Line 11created in section 24-37.5-103.

• Page 6, Line 12(3)  The governor's office of information technology shall

• Page 6, Line 13provide the appropriate network and equipment support to the

• Page 6, Line 14department.

• Page 6, Line 15(4)  The department shall adopt rules necessary for the

• Page 6, Line 16implementation of this section.

• Page 6, Line 17SECTION 4.  In Colorado Revised Statutes, 24-37.5-105, amend

• Page 6, Line 18(3)(c) and (3)(d); and add (3)(e) as follows:

• Page 6, Line 1924-37.5-105.  Office - roles - responsibilities - state search

• Page 6, Line 20interface - rules - legislative declaration - definitions.

• Page 6, Line 21(3)  The office shall:

• Page 6, Line 22(c)  Assist the joint technology committee as necessary to facilitate

• Page 6, Line 23the committee's oversight of the office; and

• Page 6, Line 24(d)  Establish, maintain, and keep an inventory of information

• Page 6, Line 25technology owned by or held in trust for every state agency; and

• Page 6, Line 26(e)  Provide the support required by section 42-1-238 (3).

• Page 6, Line 27SECTION 5.  In Colorado Revised Statutes, 33-12-108, amend

• Page 7, Line 1(4)(d)(I) and (4)(d)(II) introductory portion as follows:

• Page 7, Line 233-12-108.  Keep Colorado wild pass - assess with vehicle

• Page 7, Line 3registration - option to decline to pay - rules - short title - legislative

• Page 7, Line 4declaration - definitions.

• Page 7, Line 5(4) (d) (I)  The pass fee shall be assessed when one of the motor

• Page 7, Line 6vehicles listed in subsection (4)(b)(II) of this section is registered as

• Page 7, Line 7required by article 3 of title 42. Each authorized agent shall remit to the

• Page 7, Line 8department of revenue no less frequently than once a month all the pass

• Page 7, Line 9fees collected by the authorized agent; except that the authorized

• Page 7, Line 10agent shall retain three and one-third percent of the fees. The

• Page 7, Line 11executive director of the department of revenue state treasurer shall

• Page 7, Line 12transmit credit all pass fees remitted by authorized agents plus any pass

• Page 7, Line 13fees collected directly by the department of revenue, minus the direct and

• Page 7, Line 14indirect costs for the collection and transmission of the pass fee as

• Page 7, Line 15incurred by the department of revenue and its authorized agents and as

• Page 7, Line 16annually appropriated by the general assembly, to the state treasurer no

• Page 7, Line 17less frequently than once a month, and the state treasurer shall credit the

• Page 7, Line 18fees to the specified funds in accordance with subsection (4)(e) of this

• Page 7, Line 19section.

• Page 7, Line 20(II)  Any money that the department of revenue receives and

• Page 7, Line 21transmits to the state treasurer pursuant to subsection (4)(d)(I) of this

• Page 7, Line 22section and the state treasurer credits to the parks and outdoor recreation

• Page 7, Line 23cash fund, the wildlife cash fund, or the backcountry search and rescue

• Page 7, Line 24fund pursuant to subsections (4)(e)(I)(A), (4)(e)(II), and (4)(e)(I)(B) of

• Page 7, Line 25this section:

• Page 7, Line 26SECTION 6.  In Colorado Revised Statutes, 42-3-254, amend

• Page 7, Line 27(4.5) as follows:

• Page 8, Line 142-3-254.  Special plates - Colorado professional fire fighters

• Page 8, Line 2- definition.

• Page 8, Line 3(4.5)  Notwithstanding section 42-3-115 (5)(b)(I) section

• Page 8, Line 442-3-115 (5)(a), whenever a person who has been issued the Colorado

• Page 8, Line 5professional fire fighters license plate transfers or assigns the person's

• Page 8, Line 6title or interest in a motorcycle, passenger car, truck, or noncommercial

• Page 8, Line 7or recreational motor vehicle upon which the license plate is affixed, the

• Page 8, Line 8license plate expires and the department shall not transfer the license plate

• Page 8, Line 9to another motor vehicle. A person whose license plate expires due to the

• Page 8, Line 10operation of this subsection (4.5) may apply again for the Colorado

• Page 8, Line 11professional fire fighters license plate if the person pays the taxes and

• Page 8, Line 12fees required under this section and fulfills the other requirements in this

• Page 8, Line 13section.

• Page 8, Line 14SECTION 7.  In Colorado Revised Statutes, 42-3-211, amend

• Page 8, Line 15(9)(a) as follows:

• Page 8, Line 1642-3-211.  Issuance of personalized plates authorized.

• Page 8, Line 17(9) (a)  A person who has been issued personalized license plates

• Page 8, Line 18pursuant to this section section 42-3-115 (5)(a), or section 42-3-206.5

• Page 8, Line 19may retain the unique combination of letters or numbers of such plate,

• Page 8, Line 20notwithstanding that the person no longer has a registered motor vehicle,

• Page 8, Line 21if the person pays an annual fee of twenty-five dollars, which shall be

• Page 8, Line 22transferred credited to the highway users tax fund.

• Page 8, Line 23SECTION 8.  In Colorado Revised Statutes, 42-3-301, amend

• Page 8, Line 24(2)(a) as follows:

• Page 8, Line 2542-3-301.  License plate cash fund - license plate fees - repeal.

• Page 8, Line 26(2) (a)  The fees imposed pursuant to subsection (1) of this section

• Page 8, Line 27are limited to the amount necessary to recover the costs of the production

• Page 9, Line 1and distribution of any license plates, decals, or validating tabs issued

• Page 9, Line 2pursuant to this article 3 including additional production and distribution

• Page 9, Line 3resulting from the enactment of section 42-3-115 (5)(a) by Senate Bill

• Page 9, Line 421-069, enacted in 2021, and the related support functions provided to the

• Page 9, Line 5department of revenue by the division. The correctional industries

• Page 9, Line 6advisory committee, established pursuant to section 17-24-104 (2), shall

• Page 9, Line 7annually review and recommend to the director of the division the

• Page 9, Line 8amounts of the fees to be imposed pursuant to subsection (1) of this

• Page 9, Line 9section. The director of the division, in cooperation and consultation with

• Page 9, Line 10the department of revenue and the office of state planning and budgeting,

• Page 9, Line 11shall annually establish the amounts of the fees imposed pursuant to

• Page 9, Line 12subsection (1) of this section to recover the division's costs pursuant to

• Page 9, Line 13this subsection (2).

• Page 9, Line 14SECTION 9.  Act subject to petition - effective date. Sections

• Page 9, Line 1542-3-115, Colorado Revised Statutes, as amended in section 1 of this act,

• Page 9, Line 1633-12-108, Colorado Revised Statutes, as amended in section 5 of this

• Page 9, Line 17act, 42-3-254, Colorado Revised Statutes, as amended in section 6 of this

• Page 9, Line 18act, 42-3-211, Colorado Revised Statutes, as amended in section 7 of this

• Page 9, Line 19act, and 42-3-301, Colorado Revised Statutes, as amended in section 8 of

• Page 9, Line 20this act, take effect January 1, 2028, and the remainder of this act takes

• Page 9, Line 21effect at 12:01 a.m. on the day following the expiration of the ninety-day

• Page 9, Line 22period after final adjournment of the general assembly; except that, if a

• Page 9, Line 23referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 9, Line 24state constitution against this act or an item, section, or part of this act

• Page 9, Line 25within the ninety-day period after final adjournment of the general

• Page 9, Line 26assembly, then the act, item, section, or part will not take effect unless

• Page 9, Line 27approved by the people at the general election to be held in November

• Page 10, Line 12026 and, in such case, will take effect on the date of the official

• Page 10, Line 2declaration of the vote thereon by the governor; except that sections

• Page 10, Line 342-3-115, Colorado Revised Statutes, as amended in section 1 of this act,

• Page 10, Line 433-12-108, Colorado Revised Statutes, as amended in section 5 of this

• Page 10, Line 5act, 42-3-254, Colorado Revised Statutes, as amended in section 6 of this

• Page 10, Line 6act, 42-3-211, Colorado Revised Statutes, as amended in section 7 of this

• Page 10, Line 7act, and 42-3-301, Colorado Revised Statutes, as amended in section 8 of

• Page 10, Line 8this act, take effect January 1, 2028.