CO SB140

Adds affirmative defense in disciplinary proceedings against motor vehicle dealers for violations of certificate of title delivery requirements, allowing dealers to defend against violations if they took every reasonable action to deliver or facilitate delivery within thirty days.

Establishes five minimum actions dealers must take to qualify for the affirmative defense: process and mail loan payoffs, contact prior lenders for certificates of title free of liens, obtain necessary information and signatures from prior owners, submit all paperwork to authorized agents, and correct filing errors within reasonable time.

Permits dealers to issue a second temporary registration plate if they issued an initial temporary plate at sale, have not delivered the certificate of title within sixty days after purchase, and have taken every reasonable action to obtain and deliver the title.

Applies to motor vehicle purchases made and temporary certificates of registration issued on or after the effective date of August 10, 2016.

Subject to referendum petition provisions; will take effect unless voters reject it in November 2016 referendum.