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; Frizell Published for: Senate Appropriations Drafting number: LLS 25-0103 Fiscal Analyst: Colin Gaiser, 303-866-2677 colin.gaiser@coleg.gov Version: Third Revised Note Date: April 22, 2025 Fiscal note status: The revised fiscal note reflects the reengrossed bill. Summary Information Overview. The bill allows local authorities to enforce vehicle registration requirements and allows courts to dismiss certain violations for failing to register a vehicle. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: State Revenue Minimal State Workload 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 (Cash Funds) -$91,607 -$118,108 State Expenditures $0 $0 Transferred Funds $0 $0 Change in TABOR Refunds -$91,607 -$118,108 Change in State FTE 0.0 FTE 0.0 FTE Page 2 April 22, 2025 HB 25-1112 Summary of Legislation The bill allows local authorities to enforce vehicle registration requirements. It also allows a court to dismiss a violation for failing to register a vehicle if the vehicle was unregistered for no more than four months at the time of the violation, the owner registers the vehicle before the first court date, and the owner pays a $30 administrative dismissal fee if the court is a municipal court. Citation or summons forms must include that disclosure provided in the bill that explains to the vehicle owner how to have their violation dismissed. State Revenue The bill decreases revenue in the Judicial Department by an estimated $91,607 in FY 2025-26, $118,108 in FY 2026-2027, and increasing amounts ongoing, credited to various cash funds, including the Highway Users Tax Fund. The fiscal note assumes 1,760 individuals will be eligible to have their violations dismissed and no longer have to pay certain fines, fees, and surcharges. This calculation factors in assumed indigency rates, collection rates, and collections from assessments from prior years. The HUTF reduction is roughly 50 percent of the decreased revenue, which calculates to $49,005 in FY 2025-26 and $54,450 in FY 2026-27, and increasing amounts ongoing. The State Highway Fund in CDOT receives 65 percent of the HUTF revenues generated through license plate fees, while the rest is distributed to local governments. State Expenditures The bill may increase workload in the Judicial Department for trial courts to process forms containing any court orders. Any impact is absorbable with current resources. Local Government Vehicle Registration Enforcement 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. HUTF Revenue As discussed in the State Revenue section, the bill will decrease local government HUTF revenue. HUTF revenue generated by license plate fees is distributed to counties (26 percent) and municipalities (9 percent) for transportation needs. Municipal Courts The bill will increase revenue to municipal courts by an indeterminate amount from vehicle owners who pay the $30 administrative dismissal fee. Page 3 April 22, 2025 HB 25-1112 TABOR Refunds The bill is expected to decrease the amount of state revenue required to be refunded to taxpayers by the amounts shown in the State Revenue section above. This estimate assumes the March 2025 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. 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 Municipalities 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.