HB 18-1105

HB 18-1105, also known as the Motor And Powersports Vehicle License Requirement, is a Colorado bill that changes how fines are handled for certain violations related to motor vehicle and powersports dealers. Currently, if someone violates licensing rules by selling vehicles without proper licenses or issues bad checks, half of their fine money will now go into a special fund for auto dealer licensing instead of staying with the law enforcement agency. Additionally, the bill exempts small businesses from needing these licenses if they sell fewer than 20 used vehicles over two years that have been owned and exclusively used for business purposes. The bill has been signed into law, meaning its provisions are now in effect.

Official Summary

Section 1 of the bill clarifies that money received as fines for the following violations may be deposited in the auto dealers license fund: Issuance of a bad check by a motor vehicle dealer; and Failure to obtain any necessary license to be a motor vehicle dealer, manufacturer, distributor, wholesaler, manufacturer representative, used motor vehicle dealer, buyer agent, wholesale motor vehicle auction dealer, or motor vehicle salesperson. Currently, a law enforcement agency may keep any fine money if it issues a citation for failing to obtain a license to be a wholesaler, powersports vehicle dealer, used powersports vehicle dealer, powersports vehicle manufacturer, powersports vehicle distributor, or powersports vehicle manufacturer representative. Section 3 diverts half of this fine to the auto dealers license fund. Section 2 applies to the requirement that specified sellers of powersports vehicles be licensed. It exempts businesses that sell vehicles that meet the following criteria: The vehicle has been owned for more than one year; The vehicle has been used exclusively for business purposes; The vehicle is titled in the name of the business; All taxes for the vehicle have been paid; and The total number of vehicles sold by the business owner over a 2-year period does not exceed 20 vehicles.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) Read More

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