HOUSE 3rd Reading Unamended April 14, 2016 HOUSE Amended 2nd Reading April 12, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-0853.01 Jery Payne x2157 HOUSE BILL 16-1293 HOUSE SPONSORSHIP Melton, SENATE SPONSORSHIP Holbert, House Committees House Committees S Senate Committees enate Committees Transportation & Energy Appropriations A BILL FOR AN ACT Concerning the addition of a brand to designate a certificate of title to a motor vehicle that has been the subject of an insurance claim, and, in connection therewith, making an appropriation. 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.) Currently, a motor vehicle title is branded when certain events that negatively affect the vehicle's title occur. The bill adds a total loss brand when the motor vehicle has been: Reported stolen to law enforcement, and an insurer paid a claim; Found to need repairs whose cost exceeds the value of the vehicle; or Designated as a total loss by an insurer under the terms of its policy as a result of the vehicle being damaged. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 42-6-102, amend (1.7) (e) and (1.7) (f); and add (1.7) (g), (6.3), and (20.5) as follows: 42-6-102. Definitions. As used in this part 1, unless the context otherwise requires: (1.7) "Brand" means a permanent designation or marking on a motor vehicle's title, associated with the vehicle identification number, that conveys information about the value of the vehicle or indicates that the vehicle: (e) Has had its odometer tampered with; or (f) Has a designation placed on the title by another jurisdiction; or (g) Has suffered damage that costs more to repair than the value of the vehicle or has been designated by the insurer as a total loss. (6.3) "Insurer" has the same meaning as set forth in section 10-1-102 (13), C.R.S. (20.5) "Total loss" means an insurer's determination that repairing a damaged motor vehicle does not make economic sense. SECTION 2. In Colorado Revised Statutes, add 42-6-136.6 as follows: 42-6-136.6. Insurance loss - branding of titles. (1) The insurer shall submit a statement notifying the department that one of the following events occurred: (a) After an event that caused damage, an insurer determined that the cost to repair a motor vehicle exceeds the fair market value of the motor vehicle; or (b) A motor vehicle has been designated as a total loss by an insurer under the terms of its policy as a result of the vehicle being damaged, regardless of whether the ownership of the motor vehicle is transferred to the insurer, retained by the owner, or transferred to a third party. (2) If the department receives a statement under subsection (1) of this section concerning a motor vehicle, the department shall: (a) Notify the owner and all lienholders of record and provide them a copy of the statement; and (b) Issue the motor vehicle a new title branded "insurance loss" unless the statement includes facts that qualify the vehicle as a salvage vehicle. If the vehicle is salvage, the department shall issue the motor vehicle a new salvage certificate of title in accordance with section 42-6-136.5. (3) If a new title is issued under subsection (2) of this section, the department shall note on the title any unreleased liens and deliver the title to the holder of the most senior lien or, if none, to the owner, together with a demand that the original title be surrendered to the department. (4) This section does not apply to a collector's item or street-rod vehicle as both types of motor vehicles are defined in section 42-12-101. SECTION 3. Appropriation. (1) For the 2016-17 state fiscal year, $97,142 is appropriated to the department of revenue. This appropriation is from the Colorado state titling and registration account of the highway users tax fund created in section 42-1-211 (2), C.R.S. To implement this act, the department may use this appropriation as follows: (a) $16,389 for use by division of motor vehicles for personal services related to vehicles services, which amount is based on an assumption that the division will require an additional 0.5 FTE; (b) $475 for use by the division of motor vehicles for operating expenses related to vehicles services; (c) $76,982 for use by department for postage; and (d) $3,296 for the purchase of information technology services. (2) For the 2016-17 state fiscal year, $3,296 is appropriated to the office of the governor for use by the office of information technology. This appropriation is from reappropriated funds received from the department of revenue under paragraph (d) of subsection (1) of this section. To implement this act, the office may use this appropriation to provide information technology services for the department of revenue. SECTION 4. 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 insurance determinations made on or after the applicable effective date of this act.