HB 25-1112
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1112: LOCAL AUTHORITIES ENFORCE VEHICLE REGISTRATION
Prime Sponsors:
Rep. Titone; Hamrick
Sen. Exum
Published for: House Trans., Hous. & Local Gov.
Drafting number: LLS 25-0103
Fiscal Analyst:
Colin Gaiser, 303-866-2677
colin.gaiser@coleg.gov
Version: Initial Fiscal Note
Date: February 5, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill allows local authorities to enforce vehicle registration requirements and requires courts
to waive fees and penalties for certain people for failing to register a vehicle.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
State Revenue
TABOR Refunds
Local Government
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures (Cash Funds) $0 $51,953
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
February 5, 2025 HB 25-1112
Summary of Legislation
Beginning July 1, 2027, bill allows local authorities to enforce vehicle registration requirements.
For any violations of failing to register a vehicle, the bill requires a court to waive penalties,
past-due specific ownership taxes, and past-due fees if the failure to register was for good cause
or the person’s household had an income below a certain threshold when the violation
occurred.
The bill also requires the Department of Revenue (DOR) to adopt forms and rules to implement
the bill and, beginning January 2028, present information to the General Assembly on waived
past-due fees, past-due specific ownership taxes, and penalties.
State Revenue
The bill decreases state revenue by an indeterminate amount in the Highway Users Tax Fund
(HUTF), the State Highway Fund, and various cash funds beginning in FY 2025-26 from waivers
for penalties and past-due fees. Due to uncertainties over how many local governments will
enforce vehicle registration requirements, how often they will do so, and how often a waiver will
be issued, the fiscal note cannot determine how many waivers the courts will issue. Of the HUTF
revenue decreased by the bill, 65 percent of revenue is reduced from the State Highway Fund
for expenditure by CDOT, 26 percent is reduced from counties, and 9 percent is reduced from
municipalities.
State Expenditures
The bill increases state expenditures in the DOR by about $52,000 in FY 2026-27, paid from the
DRIVES Cash Fund. It also affects workload in the DOR and the Judicial Department.
Department of Revenue
The bill requires $51,953 for DRIVES programming in FY 2026-27 to create a new waiver for
past-due registration fees and specific ownership tax, and update conviction reporting to
include waiver information. These programming costs include $40,092 for 156 hours of
programming at a rate of $257 per hour, plus $11,861 for ISD development, Office of
Information Technology support, and additional testing.
The bill also increases workload in the DOR to conduct rulemaking and update forms to comply
with the bill’s requirements. This workload can be accomplished within existing resources.
Judicial Department
The bill increases workload in the trail courts for judicial officers to review fee and penalty
waivers to determine indigency and/or good cause, as well as process forms containing any
court orders. In addition, the bill requires programming to update data transfers from the DMV
to include a modifier reflecting if a fee is waived by the courts. However, the department is not
able to include information on fee and fine amounts (see Technical Note). The department can
absorb this workload impact with current resources. Page 3
February 5, 2025 HB 25-1112
TABOR Refunds
The bill is expected to decrease the amount of state revenue required to be refunded to
taxpayers as explained in the State Revenue section above. This estimate assumes the December
2024 LCS revenue forecast. A forecast of state revenue subject to TABOR is not available beyond
FY 2026-27. Because TABOR refunds are paid from the General Fund, decreased cash fund
revenue will increase the amount of General Fund available to spend or save.
Local Government
The bill may increase workload for counties and municipalities that are currently not enforcing
vehicle registration if they choose to enforce vehicle registration as a result of the bill. While this
may increase revenue from fines and fees, the bill also allows for many of these fines and fees to
be waived. For counties and municipalities already enforcing vehicle registration, these waivers
may reduce revenue.
Technical Note
The bill would require courts to include information about fee waivers when they transfer
conviction records to the DMV. However, the DOR imposes the fees and penalties being waived
by the bill, and the courts do not currently collect or possess information about fees imposed by
another agency. As a result, it is currently not possible for courts to include information about
the amounts of fees and fines waived in the data transfer.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Judicial
Law
Local Affairs
Public Safety
Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.