Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0392.02 Ed DeCecco HOUSE BILL 06-1007 HOUSE SPONSORSHIP Decker, SENATE SPONSORSHIP (None), House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT Concerning the transfer of a motor vehicle to a person not licensed as a motor vehicle dealer for the purpose of scrapping the motor vehicle, and, in connection therewith, establishing requirements for such person to purchase or otherwise receive a motor vehicle, or parts thereof, and requiring a waiting period before scrapping an abandoned motor vehicle. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Prohibits a person who purchases or otherwise receives a motor vehicle or a numbered motor vehicle part for the purpose of scrapping the motor vehicle or part, unless the person receives specified documents. Requires the person to contact a local law enforcement agency to see if the motor vehicle or part was stolen. Requires the person to send certain documents to the department of revenue (department) within a specified time. Requires the person to keep an abandoned motor vehicle for a specified time before scrapping it. Establishes a penalty for a person who fails to comply with these requirements. Exempts a licensed motor vehicle dealer from these requirements. Requires the department to keep records related to abandoned vehicles that are wrecked or dismantled for a specified time. Requires the executive director of the department to establish a form to be used for motor vehicles sold or transferred to a salvage yard. Defines terms. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 42-4-1810 (1) (b), Colorado Revised Statutes, is amended to read: 42-4-1810. Transfer and purge of certificates of title. (1) Whenever any motor vehicle is abandoned and removed and sold in accordance with the procedures set forth in this part 18, the department shall transfer the certificate of title or issue a new certificate of title or shall purge such certificate of title in either of the following cases: (b) Upon a person's submission of documents indicating the abandonment, removal, and subsequent wrecking or dismantling of a motor vehicle, including all sales of abandoned motor vehicles with an appraised value under two hundred dollars that are conducted pursuant to section 42-4-1805 (2), the department shall keep the records for one year and then purge the records for such abandoned motor vehicle; except that the department shall not be required to wait before purging the records if the purchaser is a licensed motor vehicle dealer. SECTION 2. 42-4-2109 (1) (b), Colorado Revised Statutes, is amended to read: 42-4-2109. Transfer and purge of certificates of title. (1) Whenever any motor vehicle is abandoned and removed and sold in accordance with the procedures set forth in this part 21, the department shall transfer the certificate of title or issue a new certificate of title or shall purge such certificate of title in either of the following cases: (b) Upon a person's submission of documents indicating the abandonment, removal, and subsequent wrecking or dismantling of a motor vehicle, including all sales of abandoned motor vehicles with an appraised value of two hundred dollars or less that are conducted pursuant to section 42-4-2104 (2) and all sales of abandoned motor vehicles, as defined in section 42-4-2104.5 (2) (a), with an appraised value of two hundred dollars or less that are conducted pursuant to section 42-4-2104.5 (4) (e) (II), the department shall keep the records for one year and then purge the records for such abandoned motor vehicle; except that the department shall not be required to wait before purging the records if the purchaser is a licensed motor vehicle dealer. SECTION 3. Article 4 of title 42, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read: PART 22 SCRAPPING MOTOR VEHICLES 42-4-2201. Definitions. As used in this part 22, unless the context otherwise requires: (1) "Abandoned motor vehicle" shall have the same meaning as set forth in section 42-4-1802 (1), 42-4-2102 (1), or 42-4-2104.5 (2) (a). (2) "Licensed motor vehicle dealer" means a motor vehicle dealer that is licensed pursuant to part 1 of article 6 of title 12, C.R.S. (3) "Scrapping" means scrapping, crushing, or dismantling. (4) "Secure and verifiable document" shall have the same meaning as set forth in section 24-72.1-102 (5), C.R.S. 42-4-2202. Disposal to salvage yard. (1) (a) No person shall purchase or otherwise receive a motor vehicle for the purpose of scrapping the vehicle, unless the seller or transferor: (I) Gives the person a certificate of title; other bonafide proof of ownership; or a completed vehicle identification number verification form; and (II) Shows a photo identification document that is a secure and verifiable document, which the person shall photocopy and retain for one year. (b) The executive director of the department shall approve the vehicle identification verification form to be used pursuant to subparagraph (I) of paragraph (a) of this subsection (1). (c) Upon receipt of the documents set forth in paragraph (a) of this subsection (1), a person shall immediately contact the sheriff, or the sheriff's designee, of the county in which the person resides or is located, or the chief of police, or the chief's designee, of the municipality in which the person resides or is located, in order that the law enforcement agency may use the vehicle identification number to verify that the vehicle was not reported stolen. (d) Any person who purchases an abandoned motor vehicle for the purpose of scrapping the vehicle shall keep the vehicle for five business days before scrapping it. (2) (a) No person shall purchase or otherwise receive a numbered motor vehicle part for the purpose of scrapping the part, unless the seller or transferor: (I) Gives the person proof of ownership of the part; and (II) Shows a photo identification document that is a secure and verifiable document, which the person shall photocopy and retain for one year. (b) Upon receipt of the documents set forth in paragraph (a) of this subsection (2), a person shall immediately contact the sheriff, or the sheriff's designee, of the county in which the person resides or is located, or the chief of police, or the chief's designee, of the municipality in which the person resides or is located, in order that the law enforcement agency may use the motor vehicle part number to verify that the part was not from a motor vehicle that was reported stolen. (3) If a person receives a document pursuant to this section that is otherwise required to be sent to the department, the person shall forward the document to the department within thirty days of receiving the motor vehicle. (4) Any person violating any provision of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars for the first offense and one thousand dollars for each subsequent offense. 42-4-2203. Exemption. This part 22 shall not apply to a licensed motor vehicle dealer. SECTION 4. Effective date - applicability. This act shall take effect July 1, 2006, and shall apply to sales or transfers of motor vehicles, or parts thereof, on or after said date. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.