(1) For the purposes of this section:
(a) Chief means the chief of the Colorado state patrol.
(b) Convicted means a conviction of, or pleading guilty or nolo contendere to, a violation of the law.
(c) Permit means authority for an organization to employ people to verify information, including a VIN, that may be required to register a commercial vehicle under article 3 of this title 42 or to be issued a certificate of title under article 6 of this title 42.
(d) VIN means vehicle identification number.
(2) The chief shall create a program that authorizes a transportation association or organization to verify commercial vehicle information, including a VIN, as a vehicle-related entity if the transportation association or organization demonstrates to the satisfaction of the chief that it and any individuals it may employ to verify information meet the requirements of this section and any rules promulgated to implement this section. Upon determining that a transportation association or organization meets the requirements of this section and any rules promulgated to implement this section, the chief may issue a permit to the applicant.
(3) To be issued a permit to verify information, including a VIN, as a vehicle-related entity, an applicant must:
(a) Employ verifiers who demonstrate knowledge of the process and standards and who have not been convicted of violating article 4 of title 18 within the last ten years;
(b) Submit the name, background, experience, location of operation, contact information, and any other information required by the chief of each employed verifier;
(c) Furnish evidence of a savings account or deposit in a certificate of deposit meeting the requirements of section 11-35-101 or a surety bond that:
(I) Holds harmless any person who suffers loss or damage arising from the issuance of a certificate of title that included a verification done by the permit holder; and
(II) Is in the amount of at least ten thousand dollars.
(4) A vehicle-related entity shall not employ a verifier until the chief has approved the verifier. The permit holder shall submit to the chief the name, background, experience, location of operation, contact information, and any other information required by the chief of each verifier. Within seven days after ceasing to employ a verifier, the vehicle-related entity shall notify the chief that the individual no longer verifies information for the vehicle-related entity.
(5) A vehicle-related entity shall not charge more than twenty-five dollars per transaction to verify information.
(6) The chief may deny or cancel a permit for:
(a) Failing to comply with this section;
(b) Failing to maintain in full force the savings account, deposit in a certificate of deposit, or surety bond required by subsection (3) of this section;
(c) Misrepresentations in applying for a permit;
(d) Being convicted under, or employing a verifier who is convicted under, article 4 of title 18;
(e) Incompetence or failing to adequately verify information, including a VIN, as a vehicle-related entity.
(7) The chief may promulgate rules reasonably necessary to implement this section, including establishing application procedures and any required forms and establishing procedures, in compliance with article 4 of title 24, for canceling a permit. The chief may summarily suspend a permit for up to sixty days pending a hearing to cancel a permit if the chief determines that irreparable harm may occur if the permit holder continues to verify information, including a VIN, as a vehicle-related entity.
(8) For the purposes of verifying information in accordance with articles 1 to 5 of this title 42, a permit holder is a vehicle-related entity.
Source: L. 2017: Entire section added, (HB 17-1105), ch. 44, p. 130, � 4, effective March 16. L. 2020: Entire section RC&RE, (SB 20-011), ch. 7, p. 11, � 1, effective March 5.
Editor's note: Subsection (9) provided for the repeal of this section, effective January 1, 2020. (See L. 2017, p. 130.) However, the entire section was recreated March 5, 2020.
42-1-233. Expedited registration program - private vendor providing services to register Class A commercial vehicles - rules. (1) Beginning January 1, 2019, the department shall create and implement an expedited registration program. The expedited registration program authorizes private providers to register commercial vehicles that are classified as Class A personal property in section 42-3-106. This includes collecting and remitting the taxes and fees for the registration to the department.
(2) (a) The department shall promulgate rules authorizing a private provider to participate in the expedited registration program if the provider:
(I) Has been approved by the department;
(II) Uses software that is approved by the department to calculate the amount of taxes and fees imposed in this title 42 and that is updated regularly to take into account any changes to the taxes and fees imposed in this title 42; and
(III) Procures and files with the department evidence of any of the following in an amount determined by rule by the department:
(A) A savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101; or
(B) A bond issued by a licensed corporate surety.
(b) The financial commitment required in subsection (2)(a)(III) of this section must provide for the reimbursement of any damages caused to the state of Colorado, a political subdivision of Colorado, or the owner of personal property registered through the expedited registration program by an act or omission of the private provider.
(c) A private provider may collect and retain a convenience fee for the services provided in the expedited registration program.
(3) (a) The department may accept financial assistance from a private party to implement the expedited registration program if the financial assistance is directly related to the expedited registration program and is not conditional upon an act or circumstance that conflicts with state law.
(b) The department shall transfer any money accepted under this subsection (3) to the state treasurer, who shall credit it to the Colorado DRIVES vehicle services account created in section 42-1-211 (2).
(c) The department shall use any money accepted under this subsection (3) to implement this section.
(4) To implement the expedited registration program, the department shall ensure that the expedited registration program:
(a) Operates efficiently;
(b) Provides additional services or increases the speed or quality of services at an overall cost savings to the state; and
(c) Registers commercial vehicles and collects and remits taxes and fees in compliance with state law.
(5) To implement this section, the department may promulgate rules in addition to the rules required under subsection (2)(a) of this section and may enter into contracts with private providers.
(6) Subject to article 4 of title 24, the department may approve, deny approval, suspend approval, or revoke approval of a private provider who:
(a) Violates the law in the provision of services approved under this section;
(b) Makes a material misstatement to the department or any county in seeking approval to provide expedited registration services;
(c) Fails to comply with this section or any rules promulgated under this section; or
(d) Fails to satisfactorily provide expedited registration services or to collect or remit appropriate taxes and fees.
Source: L. 2018: Entire section added, (HB 18-1042), ch. 375, p. 2277, � 1, effective August 8. L. 2022: (3)(b) amended, (HB 22-1339), ch. 135, p. 910, � 6, effective July 1.
42-1-234. Electronic vehicle registration and titling - electronic transmission of vehicle lien information - authority - rules - report - electronic transactions fund - gifts, grants, and donations - notice to revisor of statutes - repeal. (1) (a) On or before March 31, 2026, the department shall establish a system to allow the electronic transmission of registration, lien, and titling information for motor vehicles, off-highway vehicles, or special mobile machinery. On or before March 31, 2026, the system must support the ability to generate a title and registration for new leased vehicles and support the ability to generate a title for a lessee who purchases the lessee's leased vehicle without affecting the lessee's existing registration. On or before January 1, 2027, the system must support the ability to generate a new registration for a vehicle to a new lessee without modifying the title. Except as provided in subsection (3) of this section, the department may adopt rules necessary for the implementation of this section, including rules to allow the department to:
(I) Maintain titling information electronically and to produce paper titles only upon request of a party;
(II) Accept electronic signatures on any documents, including title transfers, odometer disclosures, and powers of attorney, required to issue a certificate of title to a new owner;
(III) Eliminate any notarization requirements for document signatures;
(IV) Allow all parties to electronically file and release lien information;
(V) Authorize approved third-party providers to:
(A) Electronically process registration, lien, and titling information and transmit the information to the department as authorized by the department;
(B) Order, manage, and distribute the department's license plate inventory to a client; and
(C) Access, print, and distribute the department's registration information to a client on demand.
(b) The department's approval of a third-party provider to register a vehicle or special mobile machinery, file or release liens, or issue any type of certificate of title must be evidenced by an agreement between the department and the third-party provider.
(c) In registering a vehicle or special mobile machinery, filing or releasing liens, or issuing any type of certificate of title, the third-party provider is acting as an agent of the department. The third-party provider shall collect and remit to the department all taxes and fees imposed by law to issue any type of certificate of title, to file or release a lien, or to register the vehicle or special mobile machinery.
(d) A third-party provider may charge its clients a fee for each electronic registration transaction, lien transaction, or titling transaction. The client may charge a consumer the fee the client paid to the third-party provider if the fee charged to the consumer does not exceed the fee charged to the client.
(e) The department shall ensure that the addresses of program participants under part 21 of article 30 of title 24 are not released to third-party providers or the clients of third-party providers.
(f) (I) Beginning in January 2025, and every year thereafter, the department shall include, as part of its presentation during its SMART Act hearing required by section 2-7-203, information concerning the implementation of the electronic titling and registration system required by subsection (1)(a) of this section.
(II) Beginning in January 2025, and every year thereafter, the department shall submit an annual report to the joint budget committee concerning the implementation of the electronic titling and registration system required by subsection (1)(a) of this section.
(2) (a) The department is authorized to seek and accept gifts, grants, or donations from private or public sources, including from third-party providers, for the purposes of this section; except that the department may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with this section or any other law of the state. The department shall ensure that any funds contributed to the department for the implementation of the system for the electronic transmission of registration, lien, and titling information for motor vehicles, vehicles, off-highway vehicles, and special mobile machinery are:
(I) Used only for the implementation of the system; and
(II) Transferred to the state treasurer, who shall credit the funds to the electronic transactions fund.
(b) (I) In addition to the fees described in subsection (1)(c) of this section, a third-party provider shall pay the department a fee of up to three dollars for each of the following types of transactions completed by the third-party provider:
(A) Issuance of or transfer of a certificate of title for a motor vehicle or an off-highway vehicle;
(B) Issuance of or renewal of a registration for a motor vehicle, a vehicle, or special mobile machinery; and
(C) A transaction that includes both the transactions described in subsections (2)(b)(I)(A) and (2)(b)(I)(B) of this section.
(II) The third-party provider may charge its client the fee imposed in subsection (2)(b)(I) of this section.
(III) The department shall set the fee imposed in subsection (2)(b)(I) of this section to:
(A) Offset the direct and indirect costs of administering the electronic transmission of registration, lien, and titling information in accordance with this section.
(B) Repealed.
(IV) The department shall remit all fees collected under this subsection (2)(b) to the state treasurer, who shall credit:
(A) Repealed.
(B) All other money collected from the fees to the electronic transactions fund.
(V) and (VI) Repealed.
(3) (a) The department need not promulgate rules, under subsection (1) of this section, that implement electronic transactions until the department has adequate money in the electronic transactions fund to implement the promulgated rules. The department shall, upon having adequate money in the fund, phase in implementation of this section as reasonable. The general assembly may appropriate money from the general fund or the highway users tax fund created in section 43-4-201 to implement this section.
(b) This subsection (3) does not affect any rules promulgated, or appropriations made, before July 1, 2019.
(4) (a) The electronic transactions fund, referred to in this subsection (4) as the fund, is hereby created in the state treasury. The fund consists of money that the general assembly may appropriate or transfer to the fund and money credited to the fund under this section.
(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(c) Subject to annual appropriation by the general assembly, the department may expend state money from the fund to implement and administer electronic transmission of registration, lien, and titling information in accordance with this section.
(5) (a) Subsections (2)(a) and (3) of this section and this subsection (5) will be repealed if the department fully implements this section. Upon fully implementing this section, the executive director of the department shall notify the revisor of statutes in writing of the date on which the condition specified in this subsection (5)(a) has occurred by e-mailing the notice to revisorofstatutes.ga@coleg.gov.
(b) Subsections (2)(a) and (3) of this section and this subsection (5) are repealed, effective upon the date identified in the notice that this section was fully implemented or, if the notice does not specify that date, upon the date of the notice to the revisor of statutes.
Source: L. 2018: Entire section added with relocations, (HB 18-1299), ch. 297, p. 1809, � 4, effective July 1, 2019. L. 2021: (2) and (3)(a) amended and (4) and (5) added, (SB 21-076), ch. 475, p. 3400, � 1, effective July 7. L. 2024: IP(1)(a) amended and (1)(f) added, (HB 24-1089), ch. 329, p. 2227, � 5, effective June 3.
Editor's note: (1) This section is similar to former � 42-3-113.5 as it existed prior to 2019.
(2) As of publication date, the revisor of statutes has not received the notice referred to in subsection (5).
(3) Subsection (2)(b)(VI) provided for the repeal of subsections (2)(b)(III)(B), (2)(b)(IV)(A), (2)(b)(V), and (2)(b)(VI), effective July 1, 2024. (See L. 2021, p. 3400.)