BILL SUMMARY for HB16-1342
HOUSE COMMITTEE ON TRANSPORTATION & ENERGY
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The committee returned to order.
12:17 PM -- HB 16-1342
Representative Moreno, prime sponsor, came to the table to present House Bill 16-1342. The bill requires licensed automobile dealers who sell salvage, non-repairable, flood-damaged, junk, or similarly branded motor vehicles to report each transaction to a third-party data consolidator within two days of the sale. The consolidator must be approved by the National Motor Vehicle Title Information System (NMVTIS) and must forward the report to NMVTIS by the following day. The consolidator may charge the dealer a per-transaction fee.
The report must be maintained electronically by the dealer for three years and must contain the following:
• the motor vehicle's make, model, year, vehicle identification number (VIN), and current odometer reading;
• the name and address of the purchaser and the seller;
• a copy of the purchaser's driver's license or other government-issued identification document; and
• proof of the purchaser's in- or out-of-state automobile dealer license, if applicable.
The consolidator is required to make information received under this section available without charge and upon request to law enforcement, the Department of Revenue (DOR), and, if the DOR approves, a nongovernmental entity.
Any person who violates the reporting requirements under the bill commits an unclassified misdemeanor, punishable by a fine of $500 per transaction, credited to the Auto Dealers License Fund.
In addition, the bill increases penalties for unlicensed automobile sales. Under current law, a person commits a class 3 misdemeanor for selling a motor vehicle without a license. Under the bill, this violation becomes an unclassified misdemeanor with the following penalties on unlicensed motor vehicle dealers, manufacturers, distributors, wholesalers, manufacturer representatives, used motor vehicle dealers, buyer agents, wholesale motor vehicle auction dealers, and motor vehicle salespersons:
• for an individual, a fine of no less than $1,000 and 25 hours of public service, neither of which may be suspended by the court. A second conviction results in a fine ranging from no less than $5,000 to no more than $25,000, neither of which may be suspended by the court; and
• for a corporation, a fine ranging from no less than $5,000 to no more than $25,000 for each separate offense.
Fines for unlicensed automobile sales are awarded half to the law enforcement agency that conducted the investigation and issued the citation and half to the Auto Dealers License Fund.
Amendments L.003, L.004, L.008, L.009, and L.010 (Attachments B, C, D, E, and F) were distributed to the committee, along with a fact sheet on the bill (Attachment G).
160407 AttachB.pdf160407 AttachC.pdf160407 AttachD.pdf160407 AttachE.pdf160407 AttachF.pdf160407 AttachG.pdf
12:21 PM -- RJ Hicks, representing the Institute of Scrap Recycling Industries and Scrap Metal Recyclers of Colorado, testified in opposition to the bill, as amended by amendments L.003, L.004, L.008, L.009, and L.010. He distributed a handout on the NMVTIS to the committee (Attachment H). Representative Moreno and Mr. Hicks responded to questions from the committee.
12:35 PM -- James Hines, representing Copart, testified in opposition to the introduced bill.
12:38 PM -- Shayne Madsen, representing the Consumer Data Industry Association, testified in opposition to the bill. Ms. Madsen responded to questions from the committee.
12:44 PM -- Ray Colas, representing LKQ Corporation, testified in support of the bill. Mr. Colas responded to questions from the committee.
01:04 PM -- Todd O'Connell, representing the Colorado Independent Automobile Dealers Association, testified in support of the bill. Mr. O'Connell responded to questions from the committee.
01:10 PM -- Jennifer Anderson, representing the Colorado Attorney General's Office, testified in support of the bill.
The committee took a brief recess.
The committee returned to order. Discussion ensued.
HB 16-1342 was laid over by the chair to a future committee meeting. The committee was adjourned.