HB 22-1339

House Bill 22-1339, which has been signed into law, merges two funds within the Colorado Department of Revenue related to motor vehicle services. The Licensing Services Cash Fund, which collects fees for drivers' licenses and identification cards, will be combined with the DRIVES Vehicle Services Account, which handles title and registration fees. This merger means that all money from the Licensing Services Cash Fund will now go into the DRIVES account, and the department will use this larger fund to support its driver and vehicle services software platform. This change took effect on July 1, 2022, and it simplifies how funds are managed for these services.

Official Summary

The licensing services cash fund (fund) consists mainly of fees charged for the issuance of drivers' licenses, driving permits, and state identification cards. The department of revenue (department) uses the fund primarily to fund the issuance of those documents. The Colorado DRIVES vehicle services account (DRIVES account) of the highway users tax fund consists mainly of vehicle title and registration fees and specific ownership tax transaction fees. The department uses the DRIVES account for the development and operation of the department's driver and motor vehicles services software platform commonly known as Colorado DRIVES. Effective July 1, 2022, the act merges the fund into the DRIVES account, which involves: Repealing the fund and requiring all money in the fund to be credited to the DRIVES account; Requiring all fees that had been credited to the fund to instead be credited to the DRIVES account; and Requiring all functions that had been funded from the fund to instead be funded from the DRIVES account. The act also requires DRIVES account investment earnings to be credited to the account. (Note: This summary applies to this bill as enacted.)

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