TITLE: CONCERNING MANDATING THAT MOTOR VEHICLE OWNERS COMPLY WITH INSURANCE REQUIREMENTS PRIOR TO REGISTERING A MOTOR VEHICLE IN COLORADO AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

The reengrossed bill, as amended by the Senate Transportation Committee, Senate Journal, page 849, would prohibit the Department of Revenue from issuing or renewing motor vehicle registrations if the applicant does not have a motor vehicle insurance policy or a certificate of self-insurance. A person would have to provide the department a certificate of insurance provided by the applicant's insurer. Any person who knowingly provides fraudulent information or documents to the department would be guilty of a misdemeanor and subject to a $500 criminal penalty and a $500 civil penalty. Insurance companies would have to provide a certificate of insurance whenever the insurer issues or renews a policy. The Commissioner of Insurance in the Department of Regulatory Agencies would be required to inform the public about the requirement for providing proof of insurance prior to registering a motor vehicle. Section 4 of the bill would become effective upon the Governor’s signature. The remaining sections of the bill would become effective January 1, 1999.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund	($75,000)
State Expenditures Division of Insurance Cash Funds	$75,000
FTE Position Change	None	None
Local Government Impact —

The Division of Insurance Cash Funds are used to finance the Division of Insurance. Funds remaining in the fund after paying the division’s costs are transferred to the General Fund. Increasing expenditures in the Division of Insurance Cash Fund by $75,000 would reduce the revenue reverted to the General Fund by $75,000.

The bill would require the Department of Revenue to make changes to the motor vehicle registration computer programs. It is estimated that these changes would require 264 hours and would be done during the annual review and rewrite of computer programs. The Department of Regulatory Agencies would be required to conduct a statewide campaign using advertisements, public service announcements, and brochures to inform the public that a vehicle can not be registered without a valid insurance policy. This statewide effort using radio, television, newspapers, and brochures would cost approximately $75,000. Advertisements in ten local newspapers would cost an estimated $7,000, television broadcasts during the morning and evening news have been estimated at $45,000, radio broadcasts have been estimated to be $16,000, and public information brochures have been estimated to be $7,000 in Division of Insurance Cash Funds.

This bill would increase the amount of time it takes a county clerk employee to register a motor vehicle. It may also increase the number of persons that are sent away without registering their vehicle and have to return to complete the registration process. The increase in the amount of time to register a vehicle has not been estimated nor has the number of persons that may have to return to complete the registration process. County clerks offices would probably not add additional personnel to implement this bill. However, it would increase the amount of time people may have to wait to register a motor vehicle at the county clerks office.

This fiscal note implies that the Department of Regulatory Agencies would require a $75,000 Division of Insurance Cash Fund spending authority for FY 1998-99 to implement this bill.