House Bill 25-1189 Reengrossed

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 dollars

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

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

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

• Page 3, Line 1142-3-201 and 42-3-203. This fee of four 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

• Page 4, Line 5paid for by urban consumers.The department may round the fee to the nearest dollar.

• Page 4, Line 6SECTION 2.  In Colorado Revised Statutes, 42-3-102, amend (3)(a) as follows:

• Page 4, Line 742-3-102.  Periodic registration - rules. (3) (a)  The department

• Page 4, Line 8may register vehicles at intervals of less than one year upon payment of

• Page 4, Line 9the appropriate registration fees, surcharges, and specific ownership tax

• Page 4, Line 10in order to allow the owner of more than one vehicle to provide for the

• Page 4, Line 11owner's vehicle registrations to expire simultaneously to select the

• Page 4, Line 12month of expiration during initial registration or registration

• Page 4, Line 13renewal. The request must be made only one time in the twelve

• Page 4, Line 14months after the transaction date. The owner of a vehicle that is

• Page 4, Line 15eligible as determined by the authorized agent may elect a registration

• Page 4, Line 16pursuant to this subsection (3). The department may adopt rules as necessary for the administration of this subsection (3).

• Page 4, Line 17SECTION 3.  In Colorado Revised Statutes, 42-3-304, amend (22) as follows:

• Page 4, Line 1842-3-304.  Registration fees - passenger-mile taxes - clean

• Page 4, Line 19screen fund - pilot program - report - rules - definitions. (22)  In

• Page 4, Line 20addition to any other fees imposed by this section, the an authorized

• Page 4, Line 21agent may collect and retain, and an applicant for registration shall must

• Page 4, Line 22pay at the time of registration, a reasonable fee, as determined from time

• Page 4, Line 23to time by the authorized agent, that approximates is necessary to

• Page 5, Line 1recover the direct and indirect costs incurred not to exceed five dollars,

• Page 5, Line 2by the authorized agent in shipping and handling those motor vehicle

• Page 5, Line 3documents or license plates that the applicant has pursuant to section

• Page 5, Line 442-3-105 (1)(a), requested that the department or authorized agent

• Page 5, Line 5mail to the owner. On an annual basis, an authorized agent may, on

• Page 5, Line 6or before October 15, calculate and publish on county

• Page 5, Line 7public-facing media the fee that applies to the registration period beginning January 1 of the following year.

• Page 5, Line 8SECTION 4.  In Colorado Revised Statutes, 42-6-107, amend (1)(a)(III) as follows:

• Page 5, Line 942-6-107.  Certificates of title - contents - rules. (1) (a) (III)  If

• Page 5, Line 10a vehicle shows a brand in the vehicle's title history, or if the vehicle is

• Page 5, Line 11subject to a brand, the department shall place the appropriate brand on the

• Page 5, Line 12certificate of title. If the vehicle has multiple brands, the department shall

• Page 5, Line 13place the most recent brand on the certificate of title and the notice "other

• Page 5, Line 14brands exist". If the brand is from a certificate of title issued in another

• Page 5, Line 15jurisdiction, the brand must be carried forward to the Colorado certificate

• Page 5, Line 16of title along with the name of the jurisdiction originating the brand. On

• Page 5, Line 17and after January 1, 2027, the appropriate brand is "Lemon Law

• Page 5, Line 18Buyback" if a motor vehicle is a lemon law buyback vehicle, as defined

• Page 5, Line 19in section 42-10-101 (1.5). If the brand is "REBUILT FROM

• Page 5, Line 20SALVAGE" as described in section 42-6-136.5, the department

• Page 5, Line 21shall include a statement of salvage disclosure on the title. The statement of salvage disclosure must:

• Page 5, Line 22(A)  Include the reason the vehicle is a salvage vehicle, as listed in section 42-6-102 (17)(a)(I);

• Page 5, Line 23(B)  Contain a statement from the owner stating the

• Page 6, Line 1nature of the damage that resulted in the determination that the vehicle is a salvage vehicle; and

• Page 6, Line 2(C)  Contain the signature of the seller and buyer to sell the salvage vehicle.

• Page 6, Line 4SECTION 5.  In Colorado Revised Statutes, 42-6-206, amend (2) introductory portion as follows:

• Page 6, Line 542-6-206.  Disclosure requirements upon transfer of ownership

• Page 6, Line 6of a salvage vehicle - rules - definitions. (2)  Any If the title of a

• Page 6, Line 7vehicle that was rebuilt from salvage does not have the

• Page 6, Line 8"REBUILT FROM SALVAGE" disclosure on the title or if the

• Page 6, Line 9vehicle is subject to multiple assignments, a person who that sells

• Page 6, Line 10a the vehicle rebuilt from salvage for the purpose of transferring ownership of such vehicle shall:

• Page 6, Line 11SECTION 6.  In Colorado Revised Statutes, 42-12-102, amend (3)(a); repeal (2)(b); and add (1)(c) and (2)(c) as follows:

• Page 6, Line 1242-12-102.  Rebuilder's certificate of title. (1) (c)  If an

• Page 6, Line 13applicant for a certificate of title to a motor vehicle is able to

• Page 6, Line 14provide the director or an authorized agent with a certificate

• Page 6, Line 15of title duly transferred to the applicant or other evidence of

• Page 6, Line 16ownership that satisfies the director that the applicant owns

• Page 6, Line 17the vehicle, the director or authorized agent may issue a

• Page 6, Line 18rebuilder's title for the motor vehicle valued principally

• Page 6, Line 19because of the vehicle's early date of manufacture, design, or historical interest or valued as a collector's item if:

• Page 6, Line 20(I)  The motor vehicle is not roadworthy;

• Page 6, Line 21(II)  The motor vehicle is at least twenty-five years old;

• Page 7, Line 1(III)  The components of the motor vehicle include at least a rolling chassis; and

• Page 7, Line 2(IV)  The applicant obtains a certified vehicle identification number inspection.

• Page 7, Line 3(2)  If a motor vehicle titled under this section is later made

• Page 7, Line 4roadworthy, the department shall issue to an applicant a standard certificate of title if the applicant:

• Page 7, Line 5(b)  Furnishes a bond under subsection (3) of this section.

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

• Page 7, Line 6(3) (a)  To convert a rebuilder's title to a standard certificate of

• Page 7, Line 7title, the To comply with subsection (1)(a)(VI) of this section, an

• Page 7, Line 8applicant shall must furnish evidence of a savings account, deposit, or

• Page 7, Line 9certificate of deposit meeting the requirements of section 11-35-101

• Page 7, Line 10C.R.S., or a good and sufficient bond with a corporate surety. The

• Page 7, Line 11account, deposit, certificate, or bond must be in an amount fixed by the

• Page 7, Line 12director, but not less than twice the reasonable value of the vehicle,

• Page 7, Line 13determined as of the time of application. The applicant and the applicant's

• Page 7, Line 14surety 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 7, Line 15SECTION 7.  Act subject to petition - effective date -

• Page 7, Line 16applicability. (1)  This act takes effect July 1, 2027; except that, if a

• Page 7, Line 17referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 7, Line 18state constitution against this act or an item, section, or part of this act

• Page 7, Line 19within the ninety-day period after final adjournment of the general

• Page 7, Line 20assembly, then the act, item, section, or part will not take effect unless

• Page 7, Line 21approved by the people at the general election to be held in November

• Page 7, Line 222026 and, in such case, will take effect July 1, 2027, or on the date of the

• Page 8, Line 1official declaration of the vote thereon by the governor, whichever is later.

• Page 8, Line 2(2)  This act applies to titles issued and fees incurred on or after the applicable effective date of this act.