Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0885.01 Jery Payne x2157 HOUSE BILL 16-1342 HOUSE SPONSORSHIP Moreno, SENATE SPONSORSHIP Cooke, House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT Concerning the sale of motor vehicles that are required to be issued certain branded certificates of title. 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://www.leg.state.co.us/billsummaries.) The bill creates a state reporting database program (program) that is similar to and reports to the national motor vehicle title information system (NMVTIS). The program creates a database that will report state sales of motor vehicles with titles branded as salvage vehicles, junk motor vehicles, flood-damaged motor vehicles, nonrepairable motor vehicles, or similar brands to the national database. The department of revenue will administer the program through a third-party data consolidator. Each seller and purchaser of a motor vehicle with one of the mentioned branded titles must report the sale to the database. In addition, licensed dealers must keep records of sales, vehicle information, and certain seller and purchaser information. These records must be kept for 3 years. A licensed dealer must report sales once each month. A fee of up to 50 cents for the sale will be set and collected by a consolidator to implement the bill. The fee must be approved by the department of revenue. Law enforcement may use the database. Failure to report a purchase or sale as required is a class 1 misdemeanor. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 12-6-132 as follows: 12-6-132. State NMVTIS reporting database program - fund - definitions. (1) Sale of motor vehicle required to have a branded certificate of title - record keeping. Every person licensed under this part 1 who sells a salvage vehicle, nonrepairable motor vehicle, flood-damaged motor vehicle, junk motor vehicle, or similarly branded motor vehicle, whether or not the motor vehicle has been issued a branded certificate of title, shall: (a) Keep an electronic record of each sale of the motor vehicle with the following information: (I) The motor vehicle's make, model, year, and vehicle identification number; and (II) The name and address of both the purchaser and seller of the motor vehicle; (b) Obtain from the purchaser a copy of the purchaser's driver's license; (c) Obtain from the purchaser documented proof of any required license to buy or sell motor vehicles under this part 1 or any equivalent license in another jurisdiction; and (d) Maintain a copy, for three years after the sale, of the purchaser's identification document and documented proof of any required license obtained under paragraphs (b) and (c) of this subsection (1). (2) The state NMVTIS reporting database. (a) The state NMVTIS reporting database is hereby created in the department to track all transactions of salvage vehicles, junk motor vehicles, flood-damaged motor vehicles, nonrepairable motor vehicles, or similarly branded motor vehicles and to facilitate transactions under this part 1. (b) The department shall contract with an entity approved by the NMVTIS as a third-party data consolidator for the development of the database to hold and submit the information collected in accordance with subsection (1) of this section to the NMVTIS. The department shall use the database to maintain an accurate record of all transactions required to be reported in this section. The consolidator shall report the information to the NMVTIS on behalf of the reporting entity. (c) The department shall adopt any rules as necessary to assign a unique identifier to each purchaser of a salvage vehicle, nonrepairable motor vehicle, flood-damaged motor vehicle, or junk motor vehicle to facilitate tracking of purchases and reporting to the database. (3) Fees. The consolidator may charge a fee for each report of a motor vehicle sale or purchase made in accordance with this section if the fee is approved by the department. The department shall not approve a fee that is more than fifty cents for each vehicle. (4) The state NMVTIS reporting database fund. (a) The state NMVTIS reporting database fund is hereby created in the state treasury. The fund consists of money collected in accordance with this paragraph (a) and any other money that the general assembly may appropriate or transfer to the fund. (b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. (c) Subject to annual appropriation by the general assembly, the department may expend money from the fund to implement this section. (5) Law enforcement use of database. The department shall make the information received under this section available to a state or local law enforcement agency upon request. (6) Required reports. (a) A seller of a salvage vehicle, junk motor vehicle, flood-damaged motor vehicle, nonrepairable motor vehicle, or similarly branded motor vehicle shall report the sale to the database within two business days after the sale. (b) A person who is not licensed under this part 1 and who purchases a salvage vehicle, junk motor vehicle, flood-damaged motor vehicle, nonrepairable motor vehicle, or similarly branded motor vehicle shall report the sale to the database within two business days after the sale. (c) A person licensed under this part 1 that purchases a salvage vehicle, junk motor vehicle, flood-damaged motor vehicle, nonrepairable motor vehicle, or similarly branded motor vehicle shall report on a monthly basis to the database each transfer of the motor vehicle. (7) Violations. A person who knowingly violates subsection (6) of this section commits a class 1 misdemeanor and, upon conviction, shall be punished as provided in section 18-1.3-501, C.R.S. (8) Definitions. As used in this section, unless the context otherwise requires: (a) "Database" means the state NMVTIS reporting database created in paragraph (a) of subsection (2) of this section. (b) "Department" means the department of revenue. (c) "Fund" means the state NMVTIS reporting database fund created in paragraph (a) of subsection (4) of this section. (d) "NMVTIS" means the national motor vehicle title information system. SECTION 2. Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2016, if adjournment sine die is on May 11, 2016); 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 such period, 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 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to motor vehicles sold on or after January 1, 2017.