Bill Summary for Bill Number HB06-1294

Date: 02/15/2006

Final
BILL SUMMARY for HB06-1294

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Votes: View-->	Action Taken:
Move to refer House Bill 06-1294, as amended, to t Moved amendment L.001 (Attachment E). The motion Moved amendment L.002 (Attachment F). The motion	PASS Pass Without Objection Pass Without Objection

02:22 PM -- House Bill 06-1294

Representative Decker, prime sponsor, presented House Bill 06-1294 which creates a rebuilder's title for a motor vehicle. The bill requires an applicant for a rebuilder's title to furnish a statement indicating the means by which the applicant acquired the vehicle, the source of the vehicle's title of ownership, and other information the Department of Revenue (DOR) may require. The bill also requires the applicant to furnish a bond and evidence that the applicant has had a certified vehicle identification number inspection performed on the vehicle. After certain conditions are met, DOR must issue to the rebuilder's title holder a standard title and a new vehicle identification number (VIN).

Representative Decker stated that hobbyists, or rebuilders, need a way to claim or prove ownership while they are making a vehicle that is 25 years or older roadworthy. He stated that in the past rebuilders have invested thousands of dollars and hundreds of hours of work into repairing a vehicle only to have the original owner claim the vehicle; and that under current law, the rebuilder must return the vehicle to the original owner without any ability to recover their investment.

02:28 PM

Don Whissen, member of the Old Car Council of Colorado (OCCC), testified in support of the bill. Mr. Whissen stated that most of the cars that rebuilders acquire do have titles, but occasionally they do not. Mr. Whissen stated that if the vehicle is not roadworthy it is issued a salvage title, which stays with the vehicle for the remainder of the vehicle's life. He stated that the salvage title depreciates the value of the vehicle, but House Bill 06-1294 will give the vehicle a rebuilder's title, which will certify that the rebuilder has ownership of the title and may begin investing money in and rebuilding it. Mr. Whissen stated that once the vehicle is roadworthy, the rebuilder will bring the vehicle to DOR for another VIN inspection and title search and if everything is fine the rebuilder is given a clear title with no restrictions.

Responding to questions from members, Mr. Whissen stated that he did not have personal experience of unknowingly purchasing a vehicle that had been stolen in the past, but that he was familiar with that situation happening to other rebuilders.

02:33 PM

Richard Fritz, representing the OCCC, testified in support of the bill. Mr. Fritz stated that he would like a procedure whereby DOR can process a title soon after a rebuilder finds an abandoned vehicle. He stated that if a rebuilder immediately applies for a title for a car that is not roadworthy the rebuilder risks the vehicle being designated as salvage. Rebuilders would like to have the VIN run as soon as possible to ensure the vehicle is not stolen. Mr. Fritz stated that the title should establish ownership, not roadworthiness.

02:36 PM

Harold Naber, representing the Old Car Council of Colorado, testified in support of the bill. Mr. Naber stated that under current law, individuals have 45 days from the date of receiving the bill of sale to apply for a title. He stated that this process is fine if the vehicle is roadworthy, but not for vehicles that need significant work to make them roadworthy. Mr. Naber stated that rebuilders simply want to make sure the vehicles are not stolen before investing money in them.

02:39 PM

PJ Taylor, representing the County Clerks Association (CCA), testified in support of the bill. Ms. Taylor stated the CCA would like a procedure to ensure that the vehicles have some sort of ownership document that they can use to transfer into a title when the vehicle is roadworthy. Responding to questions from members, Ms. Taylor stated that the clerks have little to do with the fiscal note and could not address DOR's calculations. The fiscal note has an anticipated cash fund impact of $133,700. She stated that she believes the fiscal impact is a result of required programming for CSTARS, DOR's motor vehicle registration computer system.

02:46 PM

Jim Kautz, Detective for the Westminster Police Department, testified in support of the bill. Mr. Kautz stated that he would like to see that the vehicle the rebuilder begins investing in remains in their ownership and is not later hampered by someone trying to claim ownership.

02:53 PM

John Mack, representing the OCCC did not testify, but Representative McFadyen noted for the record that Mr. Mack supports House Bill 06-1294.


BILL:	HB06-1294
TIME:	02:53:47 PM
MOVED:	Pommer
MOTION:	Moved amendment L.001 (Attachment E). The motion passed without objection.
SECONDED:	Ragsdale
		VOTE
	Borodkin
	Green
	Hefley
	Knoedler
	Larson
	Lindstrom
	Ragsdale
	Sullivan
	Welker
	McFadyen
	Pommer
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1294
TIME:	02:55:26 PM
MOVED:	Pommer
MOTION:	Moved amendment L.002 (Attachment F). The motion passed without objection.
SECONDED:	Ragsdale
		VOTE
	Borodkin
	Green
	Hefley
	Knoedler
	Larson
	Lindstrom
	Ragsdale
	Sullivan
	Welker
	McFadyen
	Pommer
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

02:56 PM

Representative Decker gave his closing remarks.


BILL:	HB06-1294
TIME:	02:57:21 PM
MOVED:	Pommer
MOTION:	Move to refer House Bill 06-1294, as amended, to the Committee on Appropriations. The motion passed 10-0.
SECONDED:	Hefley
		VOTE
	Borodkin	Yes
	Green	Yes
	Hefley	Yes
	Knoedler	Yes
	Larson	Excused
	Lindstrom	Yes
	Ragsdale	Yes
	Sullivan	Yes
	Welker	Yes
	McFadyen	Yes
	Pommer	Yes
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:59 PM

The committee adjourned.