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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0660.01 MCV HOUSE BILL 98­1320

STATE OF COLORADO

BY REPRESENTATIVE Leyba;

also SENATOR Thiebaut.

FINANCE

A BILL FOR AN ACT

CONCERNING THE PROVISION OF BASIC MOTOR VEHICLE INSURANCE FOR VEHICLES REGISTERED IN COLORADO, AND, IN CONNECTION THEREWITH, COLLECTING A PREMIUM FOR BASIC MOTOR VEHICLE INSURANCE COVERAGE WHEN GASOLINE OR SPECIAL FUEL IS PURCHASED, WHEN MOTOR VEHICLES ARE REGISTERED, AND WHEN DRIVERS' LICENSES ARE OBTAINED.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Requires that the following motor vehicle insurance surcharges be collected in addition to other taxes and fees:

$  A premium of ____ cents per gallon of gasoline or special fuels purchased; except that a person who purchases such gasoline or special fuels for operation as an interstate carrier is entitled to a refund of such premiums;

$  A premium surcharge of _______ dollars when registering or reregistering a motor vehicle;

$  A premium surcharge of ______ dollars when obtaining or renewing a driver's license; except that, if a person is renewing a driver's license and such person has been assessed _____ points or more against his or her license during any 2­year period of such license, then the surcharge is _______ dollars.

Establishes the state motor vehicle insurance division in the department of revenue. Requires the division to provide basic motor vehicle insurance coverage for any person who holds a valid Colorado driver's license and who is operating a motor vehicle that is validly registered in Colorado or another state or a person who holds a valid driver's license from another state and who is operating a motor vehicle that is validly registered in Colorado. Directs the state to contract with private insurers to administer such insurance program. Establishes the following levels of basic motor vehicle insurance coverage:

$  Liability coverage: $25,000 per person and $50,000 per accident

$  Property damage: $15,000 per accident

$  Personal injury protection: $5,000

$  Rehabilitation procedures: $5,000

$  Loss of income: $5,000

Authorizes the state motor vehicle insurance division to issue revenue bonds to pay division expenses and insurance claims in the event of a revenue shortfall.

Retains mandatory motor vehicle insurance requirements. Provides that the minimum levels of compulsory motor vehicle insurance coverage may be offset by the basic motor vehicle insurance coverage.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  10­4­706, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

10­4­706.  Required coverages ­ complying policies ­ PIP examination program. (3.5)  THE MINIMUM INSURANCE COVERAGES REQUIRED BY THIS SECTION MAY BE OFFSET BY THE BASIC MOTOR VEHICLE INSURANCE COVERAGE AMOUNTS PROVIDED UNDER PART 14 OF THIS ARTICLE.

SECTION 2.  Article 4 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:

PART 14

BASIC MOTOR VEHICLE INSURANCE COVERAGE

10­4­1401.  Short title. THIS PART 14 SHALL BE KNOWN AND MAY BE CITED AS THE "STATE BASIC MOTOR VEHICLE INSURANCE ACT".

10­4­1402.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY DECLARES THAT:

(a)  THE PURPOSE OF THIS PART 14 IS TO PROVIDE A BASIC LEVEL OF MOTOR VEHICLE INSURANCE FOR LICENSED DRIVERS WHO OPERATE VALIDLY REGISTERED VEHICLES IN COLORADO;

(b)  PERSONS DRIVING WITHOUT INSURANCE IN COLORADO ARE INCREASING THE RISK OF LEAVING VICTIMS UNCOMPENSATED FOR PROPERTY DAMAGE, PERSONAL INJURIES, AND ECONOMIC LOSSES;

(c)  THE PROBLEMS CAUSED BY UNINSURED MOTORISTS ARE MATTERS OF STATEWIDE CONCERN.

10­4­1403.  Definitions.  AS USED IN THIS PART 14, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "BASIC MOTOR VEHICLE INSURANCE" MEANS MOTOR VEHICLE INSURANCE PROVIDED BY THE DIVISION UNDER THIS PART 14.

(2)  "DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION.

(3)  "DIVISION" MEANS THE STATE MOTOR VEHICLE INSURANCE DIVISION CREATED IN SECTION 10­4­1404.

(4) (a)  "MOTOR VEHICLE" OR "VEHICLE" MEANS A VEHICLE OF A TYPE REQUIRED TO BE REGISTERED AND LICENSED UNDER THE LAWS OF THIS STATE AND THAT IS DESIGNED TO BE PROPELLED BY AN ENGINE OR MOTOR AND INCLUDES A "MOTORCYCLE" OR "MOTORSCOOTER" AS SUCH TERMS ARE DEFINED IN SECTION 42­1­102 (55) AND (59), C.R.S.

(b)  "MOTOR VEHICLE" DOES NOT INCLUDE:

(I)  A VEHICLE DESIGNED PRIMARILY FOR USE OFF­ROAD OR ON RAILS;

(II)  A MOTOR VEHICLE, INCLUDING ANY TRUCK, TRUCK TRACTOR, TRAILER, OR SEMITRAILER, USED IN THE BUSINESS OF TRANSPORTING PERSONS OR PROPERTY OVER ANY PUBLIC HIGHWAY IN THIS STATE AS AN INTERSTATE CARRIER, WHETHER OR NOT SUCH BUSINESS IS ENGAGED IN BY CONTRACT; OR

(III)  A MOTOR VEHICLE CARRIER, CONTRACT CARRIER BY MOTOR VEHICLE, OR MOTOR VEHICLE CARRIER EXEMPT FROM REGULATION AS A PUBLIC UTILITY UNDER TITLE 40, C.R.S.

(5)  "PRIVATE INSURANCE" MEANS ANY POLICY IN COMPLIANCE WITH SECTION 10­4­706 OR 10­4­706.5 OR CERTIFICATE OF SELF­INSURANCE PURSUANT TO SECTION 10­4­716.

10­4­1404.  Establishment of division ­ administration ­ regulations ­ status as enterprise. (1)  THE STATE MOTOR VEHICLE INSURANCE DIVISION IS HEREBY ESTABLISHED IN THE DEPARTMENT OF REVENUE TO ADMINISTER THE PROVISIONS OF THIS PART 14. THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL APPOINT THE DIRECTOR OF THE DIVISION. THE DIRECTOR SHALL ADMINISTER AND ENFORCE THE PROVISIONS OF THIS PART 14. THE DIRECTOR MAY PROMULGATE RULES NECESSARY FOR THE ADMINISTRATION OF THIS PART 14 IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S.

(2)  THE DIVISION SHALL OPERATE AS AN INSURER OF MOTOR VEHICLES REGISTERED IN COLORADO. THE DIVISION IS SUBJECT TO SUPERVISION BY THE INSURANCE COMMISSIONER AND IS SUBJECT TO REGULATION UNDER THE PROVISIONS OF THIS ARTICLE AND ARTICLE 3 OF THIS TITLE.

(3)  THE INSURANCE PREMIUMS FOR BASIC MOTOR VEHICLE INSURANCE SHALL BE COLLECTED WHEN GASOLINE IS PURCHASED PURSUANT TO SECTION 39­27­102 (1.5), C.R.S., WHEN SPECIAL FUEL IS PURCHASED PURSUANT TO SECTION 39­27­202 (1.5), C.R.S., WHEN DRIVERS' LICENSES ARE OBTAINED UNDER SECTION 42­2­114 (2) (a) (II), C.R.S., AND WHEN MOTOR VEHICLES ARE REGISTERED UNDER SECTION 42­3­134 (30).

10­4­1405.  Insurance premiums ­ basic motor vehicle insurance coverage fund created ­ authority to issue revenue bonds. (1)  THERE IS HEREBY CREATED IN THE STATE TREASURY THE BASIC MOTOR VEHICLE INSURANCE COVERAGE FUND. THE FUND SHALL CONTAIN BASIC MOTOR VEHICLE INSURANCE PREMIUMS COLLECTED PURSUANT TO SECTIONS 39­27­102 (1.5) AND 39­27­202 (1.5), C.R.S. ALL MONEYS IN THE FUND ARE SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY FOR THE PROVISION OF BASIC MOTOR VEHICLE INSURANCE BY THE DIVISION AND FOR THE DIRECT AND INDIRECT COSTS OF THE ACTIVITIES OF THE DIVISION. ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. AT THE END OF EACH FISCAL YEAR, ALL UNEXPENDED AND UNENCUMBERED MONEYS IN THE FUND SHALL REMAIN THEREIN AND MAY NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND.

(2) (a)  THE DIRECTOR MAY AUTHORIZE AND ISSUE REVENUE BONDS IN AN AMOUNT NOT TO EXCEED _________ DOLLARS IN THE AGGREGATE FOR THE PAYMENT OF EXPENSES OF THE DIVISION AND THE PAYMENT OF INSURANCE CLAIMS IN THE EVENT OF A REVENUE SHORTFALL. SUCH BONDS ARE TO BE PAID FROM MONEYS DERIVED FROM INSURANCE PREMIUMS ALLOCATED TO THE DIVISION PURSUANT TO SUBSECTION (1) OF THIS SECTION.

(b)  A BOND ISSUED BY THE DIVISION SHALL PROVIDE THAT:

(I)  A HOLDER OF ANY SUCH BOND MAY NOT COMPEL THE STATE OR ANY SUBDIVISION THEREOF TO EXERCISE ITS APPROPRIATION OR TAXING POWER; AND

(II)  THE BOND DOES NOT CONSTITUTE A DEBT OF THE STATE AND IS PAYABLE ONLY FROM THE NET REVENUES ALLOCATED TO THE DIVISION FOR EXPENSES, AS DESIGNATED IN THE BOND.

(3) (a)  ANY RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS UNDER THE TERMS OF THIS SECTION SHALL STATE:

(I)  THE DATE OF ISSUANCE;

(II)  A MATURITY DATE OR DATES, NOT TO EXCEED THIRTY YEARS FROM THE DATE OF ISSUANCE;

(III)  THE INTEREST RATE OR RATES ON, AND THE DENOMINATION OR DENOMINATIONS OF, THE BONDS;

(IV)  THE FORM OF THE BOND, WHETHER BEARER OR REGISTERED; AND

(V)  THE MEDIUM OF PAYMENT OF THE BONDS AND THE PLACE WHERE PAYMENT WILL TAKE PLACE.

(b)  A RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS UNDER THE TERMS OF THIS SECTION MAY:

(I)  STATE THAT THE BONDS ARE TO BE ISSUED IN ONE OR MORE SERIES;

(II)  STATE A RANK OR PRIORITY OF THE BONDS; OR

(III)  PROVIDE FOR REDEMPTION OF THE BONDS PRIOR TO MATURITY, WITH OR WITHOUT A PREMIUM.

(4) (a)  BONDS ISSUED PURSUANT TO THIS SECTION MAY BE SOLD AT A PUBLIC OR PRIVATE SALE.

(b)  IF BONDS ARE TO BE SOLD AT A PUBLIC SALE, THE DIVISION SHALL ADVERTISE THE SALE IN SUCH MANNER AS IT DEEMS APPROPRIATE.

(c)  EACH BOND ISSUED PURSUANT TO THE TERMS OF THIS SECTION SHALL BE SOLD AT THE PRICE, IN THE MANNER, AND AT SUCH TIME AS THE DIVISION SHALL DESIGNATE. THE DIVISION MAY PAY ANY FEES, EXPENSES, OR COMMISSIONS THAT IT DEEMS NECESSARY OR DESIRABLE TO ACCOMPLISH THE SALE OF SAID BONDS. THE DIVISION MAY DELEGATE TO AN OFFICER OR AGENT OF THE DIVISION THE AUTHORITY TO FIX THE DATE OF SALE OF THE BONDS, RECEIVE BIDS OR PROPOSALS, AWARD AND SELL BONDS, FIX INTEREST RATES, AND TAKE ALL OTHER ACTIONS NECESSARY TO SELL AND DELIVER BONDS.

(5)  NOTWITHSTANDING ANY PROVISIONS OF THE LAW TO THE CONTRARY, ALL BONDS ISSUED PURSUANT TO THIS SECTION ARE NEGOTIABLE.

(6) (a)  A RESOLUTION PERTAINING TO THE ISSUANCE OF BONDS UNDER THIS SECTION MAY CONTAIN COVENANTS FOR:

(I)  THE USE AND DISPOSITION OF BOND SALE PROCEEDS;

(II)  SUCH MATTERS AS ARE CUSTOMARY IN THE ISSUANCE OF REVENUE BONDS INCLUDING, WITHOUT LIMITATION, THE ISSUANCE AND LIEN POSITION OF OTHER OR ADDITIONAL BONDS; OR

(III)  BOOKS OF ACCOUNT AND THE INSPECTION AND AUDIT THEREOF.

(b)  A RESOLUTION MADE PURSUANT TO THIS SECTION IS A CONTRACT WITH THE BONDHOLDERS, AND THE DUTIES OF THE DIVISION UNDER A RESOLUTION ARE ENFORCEABLE BY APPROPRIATE ACTION IN A COURT OF COMPETENT JURISDICTION.

(7)  BONDS ISSUED UNDER THIS SECTION AND BEARING THE SIGNATURE OF THE DIRECTOR ON THE DATE OF THE SIGNING THEREOF ARE VALID AND BINDING OBLIGATIONS EVEN IF, PRIOR TO THE DELIVERY THEREOF AND PAYMENT THEREFOR, THE PERSON WHOSE SIGNATURE APPEARS THEREON HAS CEASED TO BE THE DIRECTOR OF THE DIVISION.

(8) (a)  EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION AUTHORIZING THE BONDS, ALL BONDS OF THE SAME ISSUE UNDER THIS SECTION HAVE A PRIOR AND PARAMOUNT LIEN ON THE NET REVENUES PLEDGED THEREFOR. TO THE EXTENT DEEMED FEASIBLE AND DESIRABLE, THE DIVISION MAY PROVIDE FOR PREFERENTIAL SECURITY FOR ANY BONDS, BOTH PRINCIPAL AND INTEREST, TO BE ISSUED UNDER THIS SECTION OVER ANY BONDS THAT MAY BE ISSUED THEREAFTER.

(b)  BONDS OF THE SAME ISSUE OR SERIES THAT ARE ISSUED UNDER THIS SECTION SHALL BE EQUALLY AND RATABLY SECURED, WITHOUT PRIORITY BY REASON OF NUMBER, DATE, SALE, EXECUTION, OR DELIVERY, BY A LIEN ON THE NET REVENUE PLEDGED IN ACCORDANCE WITH THE TERMS OF THE RESOLUTION AUTHORIZING THE BONDS.

10­4­1406.  Provision of insurance coverage ­ contracts for administration with private insurers. (1)  ON AND AFTER JANUARY 1, 2000, THE DIVISION SHALL PROVIDE BASIC MOTOR VEHICLE INSURANCE FOR MOTOR VEHICLES REGISTERED IN THIS STATE THAT ARE OPERATED BY LICENSED DRIVERS AND VEHICLES VALIDLY REGISTERED IN OTHER STATES THAT ARE OPERATED BY PERSONS WHO ARE LICENSED IN COLORADO. SUCH INSURANCE SHALL PROVIDE THE COVERAGE REQUIRED BY THIS PART 14. SUCH COVERAGE DOES NOT REPLACE THE COVERAGE REQUIRED UNDER SECTION 10­4­705; EXCEPT THAT THE AMOUNT OF INSURANCE COVERAGE MAY BE OFFSET PURSUANT TO SECTION 10­4­706 (3.5).

(2)  INSURANCE COVERAGE PROVIDED BY THE DIVISION FOR MOTORCYCLES AND MOTORSCOOTERS IS LIMITED TO THE COVERAGES REQUIRED BY SECTION 10­4­1407 (1) (a).

(3)  THE DIVISION SHALL CONTRACT WITH PRIVATE INSURERS TO ADMINISTER THE INSURANCE PROGRAM UNDER THE PROVISIONS OF THIS PART 14. THE DEPARTMENT SHALL ISSUE REQUESTS FOR PROPOSALS FOR SUCH CONTRACTS. THE DIVISION SHALL DIVIDE THE PROGRAM UNDER THIS PART 14 INTO CONTRACT PROPOSALS AS THE DIVISION DETERMINES IS APPROPRIATE.

10­4­1407.  Basic motor vehicle insurance coverages. (1)  ON AND AFTER JANUARY 1, 2000, SUBJECT TO THE LIMITATIONS AND EXCLUSIONS AUTHORIZED BY THIS PART 14, THE DIVISION SHALL PROVIDE THE FOLLOWING INSURANCE COVERAGE FOR A PERSON WHO HOLDS A VALID COLORADO DRIVER'S LICENSE AND WHO IS OPERATING A MOTOR VEHICLE THAT IS VALIDLY REGISTERED IN COLORADO OR ANOTHER STATE OR A PERSON WHO HOLDS A VALID DRIVER'S LICENSE FROM ANOTHER STATE AND WHO IS OPERATING A MOTOR VEHICLE THAT IS VALIDLY REGISTERED IN COLORADO:

(a)  FOR THE COVERAGE DESCRIBED IN SECTION 10­4­706 (1) (a):

(I)  TWENTY­FIVE THOUSAND DOLLARS TO ANY ONE PERSON IN ANY ONE ACCIDENT;

(II)  FIFTY THOUSAND DOLLARS TO ALL PERSONS IN ANY ONE ACCIDENT;

(III)  FIFTEEN THOUSAND DOLLARS FOR PROPERTY DAMAGE IN ANY ONE ACCIDENT;

(b)  FOR THE COVERAGE DESCRIBED IN SECTION 10­4­706 (1) (b), FIVE THOUSAND DOLLARS PER PERSON FOR ANY ONE ACCIDENT;

(c)  FOR THE COVERAGE DESCRIBED IN SECTION 10­4­706 (1) (c), FIVE THOUSAND DOLLARS PER PERSON FOR ANY ONE ACCIDENT;

(d)  FOR THE LOSS OF INCOME COVERAGE DESCRIBED IN SECTION 10­4­706 (1) (d), FIVE THOUSAND DOLLARS TOTAL BENEFIT PER PERSON FOR ANY ONE ACCIDENT.

(2)   TO THE EXTENT THAT THE BENEFITS OFFERED PURSUANT TO PARAGRAPH (b), (c), OR (d) OF SUBSECTION (1) OF THIS SECTION HAVE NOT BEEN EXHAUSTED, THE REMAINING VALUE OF SUCH BENEFITS SHALL BE AVAILABLE TO THE INSURED OR INJURED PERSON ENTITLED TO BENEFITS UNDER THE OTHER PROVISIONS OF PARAGRAPHS (b), (c), AND (d) OF SUBSECTION (1) OF THIS SECTION.

10­4­1408.  Applicability of statutory requirements. (1)  EXCEPT AS OTHERWISE PROVIDED IN THIS PART 14, THE PROVISIONS OF PART 7 OF THIS ARTICLE APPLY TO BASIC MOTOR VEHICLE INSURANCE COVERAGE ISSUED BY THE DIVISION UNDER THIS PART 14. REFERENCES IN SUCH STATUTES TO COVERAGES UNDER SECTION 10­4­706 (1) (b) TO (1) (e) APPLY TO COVERAGES UNDER SECTION 10­4­1407 (1) (b) TO (1) (d).

(2)  IN ADDITION TO ANY OTHER MODIFICATIONS MADE BY THIS PART 14, THE FOLLOWING STATUTES DO NOT APPLY TO BASIC MOTOR VEHICLE INSURANCE COVERAGE:

(a)  SECTION 10­4­708 REGARDING PAYMENT OF BENEFITS;

(b)  SECTION 10­4­708.4 REGARDING ASSIGNMENT OF PAYMENT FOR COVERED BENEFITS;

(c)  SECTION 10­4­711 (3) REGARDING COVERAGE WHEN A MOTOR VEHICLE IS OPERATED OUTSIDE OF COLORADO;

(d)  SECTION 10­4­718 REGARDING PREMIUM PAYMENTS;

(e)  SECTION 10­4­719 REGARDING PROHIBITED REASONS FOR NONRENEWAL OR REFUSAL TO WRITE POLICIES;

(f)  SECTION 10­4­719.5 REGARDING STANDARDS FOR CANCELLATION, NONRENEWAL, AND ADDITION OF SURCHARGES;

(g)  SECTION 10­4­719.7 REGARDING CANCELLATION AND NONRENEWAL OF INSURANCE COVERAGE.

(3)  EXCEPT AS SPECIFICALLY PROVIDED IN THIS PART 14 OR PART 7 OF THIS ARTICLE, THE BASIC INSURANCE PROGRAM MAY NOT BE INTERPRETED TO AFFECT THE RIGHTS OF A PERSON TO BRING A CAUSE OF ACTION AGAINST ANOTHER PERSON FOR DAMAGES ARISING FROM THE OPERATION OF A MOTOR VEHICLE.

10­4­1409.  Prompt payment of direct benefits. (1) (a)  BENEFITS DESCRIBED IN SECTION 10­4­1407 (1) (b) TO (1) (d) SHALL BE PAID ON A MONTHLY BASIS. BENEFITS FOR ANY PERIOD ARE OVERDUE IF NOT PAID WITHIN THIRTY DAYS AFTER THE INSURER RECEIVES REASONABLE PROOF OF THE FACT AND AMOUNT OF EXPENSES INCURRED DURING THAT PERIOD; EXCEPT THAT THE DIVISION MAY ACCUMULATE CLAIMS FOR UP TO ONE MONTH AND THE BENEFITS ARE NOT OVERDUE IF PAID WITHIN FIFTEEN DAYS AFTER THE PERIOD OF ACCUMULATION. IF REASONABLE PROOF IS NOT SUPPLIED FOR THE ENTIRE CLAIM, THE AMOUNT SUPPORTED BY REASONABLE PROOF IS OVERDUE IF NOT PAID WITHIN THIRTY DAYS AFTER SUCH PROOF IS RECEIVED BY THE DIVISION. ANY PART OR ALL OF THE REMAINDER OF THE CLAIM THAT IS LATER SUPPORTED BY REASONABLE PROOF IS OVERDUE IF NOT PAID WITHIN THIRTY DAYS AFTER SUCH PROOF IS RECEIVED BY THE DIVISION.

(b)  IF THE DIVISION FAILS TO PAY BENEFITS WHEN DUE, THE PERSON ENTITLED TO THE BENEFITS MAY BRING AN ACTION IN CONTRACT TO RECOVER THE SAME. IF THE DIVISION IS REQUIRED BY SUCH ACTION TO PAY OVERDUE BENEFITS, IT SHALL PAY, IN ADDITION TO THE BENEFITS PAID, THE REASONABLE ATTORNEY FEES INCURRED BY THE OTHER PARTY. THE DIVISION SHALL PAY INTEREST ON THE CONTESTED BENEFITS AT A RATE OF EIGHTEEN PERCENT PER ANNUM, WITH INTEREST ACCRUING FROM THE DATE THE CONTESTED BENEFITS WERE DUE.

(2)  BENEFITS PROVIDED UNDER SECTION 10­4­1407 (1) (b) AND (1) (c) MAY BE PAID BY THE DIVISION DIRECTLY TO ANY PERSON SUPPLYING NECESSARY PRODUCTS, SERVICES, OR ACCOMMODATIONS TO THE PERSON FOR WHOM BENEFITS ARE REQUIRED UNDER SUCH SECTION.

10­4­1410.  Premiums for basic motor vehicle insurance coverage. PREMIUMS FOR PRIVATE INSURANCE PURCHASED SEPARATE FROM THE BASIC MOTOR VEHICLE INSURANCE PROVIDED UNDER THIS PART 14 MAY NOT CHARGE FOR THE INSURANCE COVERAGE PROVIDED BY THIS PART 14.

10­4­1411.  Repeal ­ review of functions.  THIS PART 14 IS REPEALED, EFFECTIVE JULY 1, 2005. PRIOR TO SUCH REPEAL, THE FUNCTIONS OF THE STATE MOTOR VEHICLE INSURANCE DIVISION SHALL BE REVIEWED AS PROVIDED IN SECTION 24­34­104, C.R.S.

SECTION 3.  24­1­117 (4) (a), Colorado Revised Statutes, is amended BY THE ADDITION OF NEW SUBPARAGRAPH to read:

24­1­117.  Department of revenue ­ creation. (4) (a)  The department of revenue shall consist of the following divisions:

(VII.5) (A)  STATE MOTOR VEHICLE INSURANCE DIVISION, THE HEAD OF WHICH IS THE DIRECTOR OF THE STATE MOTOR VEHICLE INSURANCE DIVISION. THE STATE MOTOR VEHICLE INSURANCE DIVISION AND THE OFFICE OF THE DIRECTOR OF THE STATE MOTOR VEHICLE INSURANCE DIVISION SHALL EXERCISE THEIR POWERS AND PERFORM THEIR DUTIES AS IF THE SAME WERE TRANSFERRED BY A TYPE 2 TRANSFER TO THE DEPARTMENT OF REVENUE.

(B)  THIS SUBPARAGRAPH (VII.5) IS REPEALED, EFFECTIVE JULY 1, 2005. PRIOR TO SUCH REPEAL, THE FUNCTIONS OF THE STATE MOTOR VEHICLE INSURANCE DIVISION SHALL BE REVIEWED AS PROVIDED IN SECTION 24­34­104.

SECTION 4.  24­34­104, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

24­34­104.  General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (36)  THE FOLLOWING AGENCIES, FUNCTIONS, OR BOTH, SHALL TERMINATE ON JULY 1, 2005: THE STATE MOTOR VEHICLE INSURANCE DIVISION CREATED PURSUANT TO SECTIONS 10­4­1404, C.R.S., AND 24­1­117 (4) (a) (VII.5).

SECTION 5.  39­27­102, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

39­27­102.  Tax imposed ­ insurance premiums for basic motor vehicle insurance ­ deposits ­ penalties. (1.5)  ON AND AFTER JULY 1, 1999, AN INSURANCE PREMIUM FOR BASIC MOTOR VEHICLE INSURANCE SHALL BE IMPOSED WHENEVER A PERSON PURCHASES GASOLINE. THE PREMIUM IS ______ CENTS PER GALLON OR FRACTION THEREOF. SUCH PREMIUM IS IN ADDITION TO THE EXCISE TAX IMPOSED BY PARAGRAPH (a) OF SUBSECTION (1) OF THIS SECTION AND SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT SUCH MONEYS TO THE BASIC MOTOR VEHICLE INSURANCE COVERAGE FUND PURSUANT TO SECTION 10­4­1405, C.R.S.

SECTION 6.  39­27­103 (3), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

39­27­103.  Refunds ­ penalties ­ checkoff. (3) (a.5)  ANY PERSON WHO PURCHASES OR USES ANY GASOLINE FOR THE PURPOSE OF OPERATING A MOTOR VEHICLE AS AN INTERSTATE CARRIER IS ENTITLED TO A REFUND OF MOTOR VEHICLE INSURANCE PREMIUM SURCHARGES PAID UNDER SECTION 39­27­102 (1.5). THE CONTROLLER SHALL PAY SUCH REFUND UPON RECEIPT OF A VOUCHER CERTIFIED BY THE DEPARTMENT OF REVENUE OF THE AMOUNT OF SUCH SURCHARGES PAID BY SUCH PERSON. SUCH PERSON SHALL COMPLY WITH THE APPLICABLE CONDITIONS AND PROVISIONS OF THIS SECTION IN THE SAME MANNER AS REFUNDS OF TAXES. A PERSON IS NOT ENTITLED TO A REFUND ON PURCHASES OF GASOLINE IN QUANTITIES OF LESS THAN TWENTY GALLONS.

SECTION 7.  39­27­202, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

39­27­202.  Tax imposed ­ insurance premiums for basic motor vehicle insurance ­ exemptions ­ ex­tax purchases. (1.5)  ON AND AFTER JULY 1, 1999, AN INSURANCE PREMIUM FOR BASIC MOTOR VEHICLE INSURANCE SHALL BE IMPOSED WHENEVER A PERSON PURCHASES SPECIAL FUEL. THE PREMIUM IS ______ CENTS PER GALLON OR FRACTION THEREOF. SUCH PREMIUM IS IN ADDITION TO THE EXCISE TAX IMPOSED BY PARAGRAPH (a) OF SUBSECTION (1) OF THIS SECTION AND SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT SUCH MONEYS TO THE BASIC MOTOR VEHICLE INSURANCE COVERAGE FUND PURSUANT TO SECTION 10­4­1405, C.R.S.

SECTION 8.  39­27­203 (1) (b), Colorado Revised Statutes, is amended, and the said 39­27­203 (1) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

39­27­203.  Refunds. (1) (a.5)  ANY PERSON WHO PURCHASES OR USES ANY SPECIAL FUEL FOR THE PURPOSE OF OPERATING A MOTOR VEHICLE AS AN INTERSTATE CARRIER IS ENTITLED TO A REFUND OF MOTOR VEHICLE INSURANCE PREMIUM SURCHARGES PAID UNDER SECTION 39­27­202 (1.5). THE CONTROLLER SHALL PAY SUCH REFUND UPON RECEIPT OF A VOUCHER CERTIFIED BY THE DEPARTMENT OF REVENUE OF THE AMOUNT OF SUCH SURCHARGES PAID BY SUCH PERSON. SUCH PERSON SHALL COMPLY WITH THE APPLICABLE CONDITIONS AND PROVISIONS OF THIS SECTION IN THE SAME MANNER AS REFUNDS OF TAXES. A PERSON IS NOT ENTITLED TO A REFUND ON PURCHASES OF SPECIAL FUEL IN QUANTITIES OF LESS THAN TWENTY GALLONS.

(b)  All applicants claiming a refund under the provisions of paragraph (a) OR (b) of this subsection (1) shall be subject to the applicable provisions of section 39­27­103 (3) to (5), and, for purposes of such subsections (3) to (5), special fuel shall be treated as if it were gasoline.

SECTION 9.  42­2­114 (2) (a), Colorado Revised Statutes, is amended to read:

42­2­114.  License issued ­ fees. (2) (a) (I)  Except as provided in subsection (3) of this section, the fee for the issuance of a driver's or provisional driver's license shall be fifteen dollars, which license shall expire on the birthday of the applicant in the fifth year after the issuance thereof or when the applicant reaches age twenty­one, whichever occurs first; except that, in the case of a provisional driver's or driver's license issued by the office of the county clerk and recorder in each county, the office of the county clerk and recorder shall retain the sum of six dollars, and nine dollars shall be forwarded to the department for transmission to the state treasurer, who shall credit the same to the highway users tax fund, and the general assembly shall make appropriations therefrom for the expenses of the administration of parts 1 and 2 of this article; except that eight dollars and fifty cents of each fee shall be allocated pursuant to section 43­4­205 (6) (b), C.R.S.

(II)  ON AND AFTER JULY 1, 1999, IN ADDITION TO THE FEE IMPOSED BY SUBPARAGRAPH (I) OF THIS PARAGRAPH (a), ANY PERSON OBTAINING OR RENEWING A DRIVER'S OR PROVISIONAL DRIVER'S LICENSE IS REQUIRED TO PAY A MOTOR VEHICLE INSURANCE SURCHARGE OF _________ DOLLARS; EXPECT THAT, IF THE DEPARTMENT DETERMINES THAT SUCH PERSON HAD A PREVIOUS LICENSE AND ____ OR MORE POINTS WERE ASSESSED AGAINST SUCH PERSON'S LICENSE DURING THE TERM OF SUCH LICENSE, THE MOTOR VEHICLE INSURANCE SURCHARGE IS _______ DOLLARS. THE DEPARTMENT SHALL TRANSMIT MONEYS COLLECTED FOR SUCH SURCHARGE TO THE STATE TREASURER, WHO SHALL CREDIT SUCH MONEYS TO THE BASIC MOTOR VEHICLE INSURANCE COVERAGE FUND PURSUANT TO SECTION 10­4­1405, C.R.S.

SECTION 10.  42­3­134, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

42­3­134.  Registration fees ­ passenger and passenger­mile taxes. (30)  EFFECTIVE JULY 1, 1999, IN ADDITION TO ANY OTHER FEE IMPOSED BY THIS SECTION, THERE IS HEREBY IMPOSED A MOTOR VEHICLE INSURANCE PREMIUM SURCHARGE OF _____ DOLLARS TO BE COLLECTED AT THE TIME OF REGISTRATION OF ANY MOTOR VEHICLE. MONEYS COLLECTED FOR SUCH SURCHARGE SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT SUCH MONEYS TO THE BASIC MOTOR VEHICLE INSURANCE COVERAGE FUND PURSUANT TO SECTION 10­4­1405, C.R.S.

SECTION 11.  Refer to people under referendum.  This act shall be submitted to a vote of the registered electors of the state of Colorado at the next election for which it may be submitted, for their approval or rejection, under the provisions of the referendum as provided for in section 1 of article V and section 20 of article X of the state constitution, and in article 40 of title 1, Colorado Revised Statutes. Each elector voting at said election and desirous of voting for or against said act shall cast a vote as provided by law either "Yes" or "No" on the proposition: "SHALL THE STATE GASOLINE AND SPECIAL FUELS TAX BE INCREASED ____________ DOLLARS ANNUALLY, SAID AMOUNT REFLECTING THE ANTICIPATED REVENUES FROM AN ______ CENTS PER GALLON INCREASE IN THE TAX ON GASOLINE AND SPECIAL FUELS, A SURCHARGE OF ________ ON DRIVERS' LICENSES, AND A SURCHARGE OF _____ DOLLARS ON MOTOR VEHICLE REGISTRATIONS, FOR THE PURPOSE OF PROVIDING PREMIUMS FOR BASIC MOTOR VEHICLE INSURANCE FOR MOTOR VEHICLES REGISTERED IN COLORADO; SHALL THE STATE MOTOR VEHICLE INSURANCE DIVISION BE AUTHORIZED TO ISSUE MULTIPLE­FISCAL YEAR FINANCIAL OBLIGATIONS AND DISTRICT DEBT BE INCREASED BY _________ DOLLARS WITH A REPAYMENT COST OF _________ DOLLARS; AND SHALL ANY MONEYS COLLECTED FOR INSURANCE PREMIUMS THAT ARE IN EXCESS OF REVENUES ALLOWED UNDER SECTION 20 OF ARTICLE X OF THE COLORADO CONSTITUTION BE RETAINED BY THE STATE AS AN APPROVED REVENUE CHANGE?" The votes cast for the adoption or rejection of said act shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress.