HB 1053

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1053
     BY REPRESENTATIVE(S) Mauro, Caldwell, Clifford, Duran, Garcia
     Sander, Keltie, Lindsay, Nguyen, Rutinel, Weinberg, Winter T., McCluskie,
     Phillips, Ricks;
     also SENATOR(S) Pelton B. and Wallace, Bright, Carson, Kipp,
     Marchman, Coleman.
     CONCERNING THE ADMINISTRATION OF DUTIES RELATED TO THE OWNERSHIP
          OF A VEHICLE, AND, IN CONNECTION THEREWITH, MAKING AN
          APPROPRIATION.
     Be it enacted by the General Assembly of the State of Colorado:
             SECTION 1. In Colorado Revised Statutes, 42-3-115, amend
     (5)(a); and repeal (5)(b) and (5)(d) as follows:
             42-3-115. Registration upon transfer - rules - definitions.
             (5) (a) Except as otherwise provided in subsections (5)(b), (5)(c),
     and (5)(d) of this section, on and after January 1, 2022, whenever the owner
     of a motor vehicle that is Class C personal property, as described in section
     42-3-106 (2)(c), transfers or assigns the owner's title or interest, the number
     plates issued to the owner for the vehicle expire and shall not be transferred
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
by the department to any other motor vehicle. Except as otherwise provided
in subsection (5)(d) of this section, whenever the owner of a motor vehicle
that is Class B personal property, as described in section 42-3-106 (2)(b);
Class D personal property, as described in section 42-3-106 (2)(d); or Class
F personal property, as described in section 42-3-106 (2)(e), transfers or
assigns the owner's title or interest, the number plates issued to the owner
for the vehicle expire and shall not be transferred by the department to any
other motor vehicle. An owner of a motor vehicle whose number plates
expire due to the operation of this subsection (5)(a) who wishes to retain the
same combination of letters or numbers displayed on the expired license
plates retains the priority right to use the combination and may, after
surrendering the expired plates to the department, apply for personalized
license plates with the combination in the manner specified in section
42-3-211 when registering another motor vehicle UPON REQUEST OF THE
OWNER OF A MOTOR VEHICLE, THE DEPARTMENT MAY TRANSFER A NUMBER
PLATE FROM ONE MOTOR VEHICLE TO ANOTHER MOTOR VEHICLE IF AT LEAST
ONE PERSON IS LISTED AS AN OWNER ON THE CERTIFICATE OF TITLE FOR EACH
MOTOR VEHICLE.
      (b) Subsection (5)(a) of this section does not apply to the transfer or
assignment of an owner's title or interest in Class B, Class C, and Class D
personal property that has number plates:
        (I) That are personalized license plates issued in accordance with
section 42-3-211, distinctive special license plates, group special license
plates, or special alumni license plates issued in accordance with section
42-3-214; or
        (II) That have a valuable registration number that has been reserved
for use under the "Laura Hershey Disability Support Act", part 2 of article
88 of title 8.
        (d) Subsection (5)(a) of this section does not apply to number plates
issued to a fleet operator that are easily legible and in good condition, and
a fleet operator may transfer such number plates from one fleet vehicle to
another when the fleet operator transfers or assigns the owner's title or
interest in the fleet vehicle from which the number plates are being
transferred.
       SECTION 2. In Colorado Revised Statutes, add 42-1-238 as
PAGE 2-HOUSE BILL 26-1053
follows:
      42-1-238. Comprehensive contingency plan - rules - repeal.
      (1) (a) THE DEPARTMENT OF REVENUE SHALL DEVELOP, IMPLEMENT,
AND MAINTAIN A COMPREHENSIVE CONTINGENCY PLAN TO ENSURE
CONTINUITY OF OPERATIONS AND THE PROTECTION OF CRITICAL SERVICES IN
THE EVENT OF A DISRUPTION IN VEHICLE LICENSING OPERATIONS.
       (b) (I) THE DEPARTMENT SHALL IMPLEMENT THE CONTINGENCY PLAN
REQUIRED IN SUBSECTION (1)(a) OF THIS SECTION ON OR BEFORE DECEMBER
31, 2027.
      (II) THIS SUBSECTION (1)(b) IS REPEALED, EFFECTIVE JULY 1, 2029.
      (2) TO COMPLY WITH THIS SECTION, THE CONTINGENCY PLAN MUST:
      (a) IDENTIFY THE FUNCTIONS THAT ARE CRITICAL TO VEHICLE
LICENSING OPERATIONS AND THE RESOURCES REQUIRED TO SUPPORT THEM;
      (b)  ESTABLISH PROCEDURES FOR BACKUP, RECOVERY, AND
RECONSTITUTION OF SYSTEMS AND SERVICES;
     (c) DESIGNATE ROLES AND RESPONSIBILITIES DURING CONTINGENCY
OPERATIONS;
     (d) IDENTIFY ALTERNATE PROCESSING SITES DURING CONTINGENCY
OPERATIONS;
      (e) BE TESTED AND UPDATED ANNUALLY OR UPON CHANGES TO
CRITICAL FUNCTIONS AND THE SYSTEMS THAT PROVIDE AND SUPPORT
CRITICAL FUNCTIONS;
      (f) BE ANNUALLY REVIEWED AND, WHEN HELPFUL, ENHANCED; AND
      (g)     BE   ESTABLISHED THROUGH CONSULTATION WITH,
CONSIDERATION OF, RECOMMENDATIONS BY, AND UNANIMOUS ACCEPTANCE
FROM STAKEHOLDERS THAT INCLUDE:
      (I) AN ASSOCIATION OF COUNTY CLERKS IN COLORADO THAT HAS
PAGE 3-HOUSE BILL 26-1053
EXISTED AND HAS BEEN ACTIVE FOR AT LEAST TEN YEARS; AND
       (II) THE GOVERNOR'S OFFICE OF INFORMATION TECHNOLOGY
CREATED IN SECTION 24-37.5-103.
       (3) THE GOVERNOR'S OFFICE OF INFORMATION TECHNOLOGY SHALL
PROVIDE THE APPROPRIATE NETWORK AND EQUIPMENT SUPPORT TO THE
DEPARTMENT.
      (4) THE DEPARTMENT SHALL ADOPT RULES NECESSARY FOR THE
IMPLEMENTATION OF THIS SECTION.
        SECTION 3. In Colorado Revised Statutes, 24-37.5-105, amend
(3)(c) and (3)(d); and add (3)(e) as follows:
       24-37.5-105. Office - roles - responsibilities - state search
interface - rules - legislative declaration - definitions.
       (3) The office shall:
      (c) Assist the joint technology committee as necessary to facilitate
the committee's oversight of the office; and
      (d) Establish, maintain, and keep an inventory of information
technology owned by or held in trust for every state agency; AND
       (e) PROVIDE THE SUPPORT REQUIRED BY SECTION 42-1-238 (3).
        SECTION 4. In Colorado Revised Statutes, 42-3-254, amend (4.5)
as follows:
       42-3-254. Special plates - Colorado professional fire fighters -
definition.
        (4.5) Notwithstanding section 42-3-115 (5)(b)(I) SECTION 42-3-115
(5)(a), whenever a person who has been issued the Colorado professional
fire fighters license plate transfers or assigns the person's title or interest in
a motorcycle, passenger car, truck, or noncommercial or recreational motor
vehicle upon which the license plate is affixed, the license plate expires and
the department shall not transfer the license plate to another motor vehicle.
PAGE 4-HOUSE BILL 26-1053
A person whose license plate expires due to the operation of this subsection
(4.5) may apply again for the Colorado professional fire fighters license
plate if the person pays the taxes and fees required under this section and
fulfills the other requirements in this section.
        SECTION 5. In Colorado Revised Statutes, 42-3-211, amend (9)(a)
as follows:
       42-3-211. Issuance of personalized plates authorized.
       (9) (a) A person who has been issued personalized license plates
pursuant to this section section 42-3-115 (5)(a), or section 42-3-206.5 may
retain the unique combination of letters or numbers of such plate,
notwithstanding that the person no longer has a registered motor vehicle, if
the person pays an annual fee of twenty-five dollars, which shall be
transferred CREDITED to the highway users tax fund.
        SECTION 6. In Colorado Revised Statutes, 42-3-301, amend (2)(a)
as follows:
       42-3-301. License plate cash fund - license plate fees - repeal.
        (2) (a) The fees imposed pursuant to subsection (1) of this section
are limited to the amount necessary to recover the costs of the production
and distribution of any license plates, decals, or validating tabs issued
pursuant to this article 3 including additional production and distribution
resulting from the enactment of section 42-3-115 (5)(a) by Senate Bill
21-069, enacted in 2021, and the related support functions provided to the
department of revenue by the division. The correctional industries advisory
committee, established pursuant to section 17-24-104 (2), shall annually
review and recommend to the director of the division the amounts of the
fees to be imposed pursuant to subsection (1) of this section. The director
of the division, in cooperation and consultation with the department of
revenue and the office of state planning and budgeting, shall annually
establish the amounts of the fees imposed pursuant to subsection (1) of this
section to recover the division's costs pursuant to this subsection (2).
       SECTION 7. Appropriation. (1) For the 2026-27 state fiscal year,
$18,170 is appropriated to the department of revenue. This appropriation is
from the Colorado DRIVES vehicle services account in the highway users
PAGE 5-HOUSE BILL 26-1053
tax fund created in section 42-1-211 (2), C.R.S. To implement this act, the
department may use this appropriation as follows:
       (a) $13,520 for DRIVES maintenance and support;
       (b) $1,148 for use by the division of motor vehicles for personal
services related to vehicle services;
       (c) $1,558 for use by the executive director's office for personal
services related to administration and support; and
       (d) $1,944 for payments to OIT.
        SECTION 8. Act subject to petition - effective date. Sections
42-3-115, Colorado Revised Statutes, as amended in section 1 of this act,
42-3-254, Colorado Revised Statutes, as amended in section 4 of this act,
42-3-211, Colorado Revised Statutes, as amended in section 5 of this act,
and 42-3-301, Colorado Revised Statutes, as amended in section 6 of this
act, take effect January 1, 2028, and the remainder of this act takes effect
at 12:01 a.m. on the day following the expiration of the ninety-day period
after final adjournment of the general assembly; except that, if a referendum
petition is filed pursuant to section 1 (3) of article V of the state constitution
against this act or an item, section, or part of this act within the ninety-day
period after final adjournment of the general assembly, then the act, item,
section, or part will not take effect unless approved by the people at the
general election to be held in November 2026 and, in such case, will take
effect on the date of the official declaration of the vote thereon by the
governor; except that sections 42-3-115, Colorado Revised Statutes, as
amended in section 1 of this act, 42-3-254, Colorado Revised Statutes, as
amended in section 4 of this act, 42-3-211, Colorado Revised Statutes, as
PAGE 6-HOUSE BILL 26-1053
amended in section 5 of this act, and 42-3-301, Colorado Revised Statutes,
as amended in section 6 of this act, take effect January 1, 2028.
____________________________  ____________________________
Julie McCluskie  James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
____________________________  ____________________________
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
       APPROVED________________________________________
                          (Date and Time)
                   _________________________________________
                  Jared S. Polis
                  GOVERNOR OF THE STATE OF COLORADO
PAGE 7-HOUSE BILL 26-1053