NOTE: The governor signed this measure on 6/10/2016.
      
      
      SENATE BILL 16-140
      
      
      BY SENATOR(S) Sonnenberg, Baumgardner, Cooke, Heath, Newell,
      Scott, Woods;
      also REPRESENTATIVE(S) Kraft-Tharp, Arndt, Lontine, Saine.
      
      
      Concerning certificates of title issued for motor vehicles
           purchased from motor vehicle dealers.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 12-6-118, add (8) as
      follows:
      
           12-6-118.  Licenses - grounds for denial, suspension, or
      revocation. (8)  In any disciplinary hearing, action, or order of the
      board involving a violation of section 42-6-112 or 42-6-119 (3),
      C.R.S., it is an affirmative defense that the dealer has taken every
      reasonable action necessary to deliver or facilitate the delivery
      of the certificate of title within thirty days. To qualify as having
      taken every reasonable action to deliver or facilitate the
      delivery of the certificate of title, the dealer must have, at a
      minimum:
      
           (a)  Processed and mailed any required loan payoffs in a
      reasonable amount of time;
      
           (b)  Contacted the prior lender and taken any actions
      necessary to obtain a certificate of title or duplicate certificate
      of title, either of which must be free of liens;
      
           (c)  Taken any action necessary to obtain information or
      signatures from the prior owner necessary to have a new
      certificate of title issued for the motor vehicle;
      
           (d)  Submitted all paperwork that the dealer has obtained
      to the authorized agent and that is necessary to have a new
      certificate of title issued for the motor vehicle; and
      
           (e)  Corrected any errors in any filings with the department
      in a reasonable amount of time.
      
           SECTION 2.  In Colorado Revised Statutes, 42-3-203, add (3) (e)
      as follows:
      
           42-3-203.  Standardized plates - notice of funding through gifts,
      grants, and donations - rules - repeal. (3) (e)  A dealer may issue a
      second temporary registration number plate in accordance with
      this subsection (3) if the dealer:
      
           (I)  Has issued a temporary plate to the owner when selling
      the motor vehicle to the owner;
      
           (II)  Has not delivered or facilitated the delivery of the
      certificate of title to the purchaser or the holder of a chattel
      mortgage as required in section 42-6-112 or 42-6-119 (3) within
      sixty days after the motor vehicle was purchased; and
      
           (III)  Has taken every reasonable action necessary to
      deliver or facilitate the delivery of the certificate of title.
      
           SECTION 3.  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 purchases made, and to temporary certificates
      of registration issued, on or after the applicable effective date of this act.
      
      
      
      
      ____________________________  ____________________________
      Bill L. Cadman                Dickey Lee Hullinghorst
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Effie Ameen                            Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO