h_tra_2016a_2016-04-28t13:13:57z1 Hearing Summary

Date: 04/28/2016

01:23 PM -- SB 16-140



Representative Kraft-Tharp, prime sponsor, presented Senate Bill 16-140 to the committee. Under current law, a motor vehicle dealer has 30 days following a sale to deliver or facilitate the delivery of the vehicle's certificate of title. At the time of sale, the dealer issues a temporary registration plate so that the vehicle can be driven by the purchaser before the title is received and the vehicle can be registered.



In any disciplinary hearing, action, or order of the Department of Revenue's (DOR's) Motor Vehicle Dealer Board, the reengrossed bill provides an affirmative defense that a dealer has taken reasonable action to deliver or facilitate the delivery of the certificate of title within 30 days if the dealer has, at a minimum:



• processed and mailed any required loan payoffs in a reasonable amount of time;

• contacted the prior lender and taken the necessary action to obtain the vehicle's title or duplicate title, which must be free of liens;

• taken any action necessary to obtain information or signatures from the prior owner necessary to have a new certificate of title issued for the motor vehicle;

• submitted all paperwork that the dealer has obtained to the county clerk and that is necessary to have a new certificate of title issued for the motor vehicle; and

• corrected any errors in any filings with the DOR in a reasonable amount of time.



In addition, the dealer may issue a second temporary registration plate to the owner if every reasonable action necessary has been taken by the dealer to facilitate delivery of the title.



Representative Kraft-Tharp responded to questions from the committee. Matt Kiszka, Legislative Council Staff, responded to a question from the committee.



01:27 PM -- Todd O'Connell, representing the Colorado Automobile Dealers Association, testified in support of the bill.

01:30 PM



The committee adjourned.