Sale of registration numbers for license plates - license to buy and sell - market for - royalty payment - administration - third-party contracting entity

8-88-206. Sale of registration numbers for license plates - license to buy and sell - market for - royalty payment - administration - third-party contracting entity. (1) (a) The state or a person may sell, and the state or a person may purchase, the exclusive right to use a registration number selected by the committee under subsection (2) of this section for the purpose of registering a vehicle under article 3 of title 42. (b) The right to use a registration number is a license, the use of which is subject to compliance with this part 2. The duration of the license is determined by the committee. (2) (a) The committee shall raise money by selling to a buyer the right to use valuable letter and number combinations for a registration number. (b) (I) The committee shall study the market to determine which registration numbers are the most valuable. Based on the study, the committee shall select the most valuable registration numbers and request the department of revenue to verify whether plates with the registration numbers are currently issued. The committee and the department of revenue shall enter into an agreement establishing a process for requesting registration numbers, including specifying the frequency of these requests. (II) Upon receiving the committee's request, the department of revenue shall verify whether the plates are currently issued. For purposes of this subsection (2)(b), a plate that expires due to the operation of section 42-3-115 (5)(a) is considered currently issued until the expiration of the right of the owner of the motor vehicle to which the expired plate was affixed to apply to use the registration number of the expired plate when registering another motor vehicle. If the plate is not currently issued, the department of revenue shall reserve the registration number until the committee notifies the department of revenue to release the registration number. (III) The committee shall establish a process for determining the value of all configurations of registration numbers reserved by the committee. The pricing and manner of sale must follow the established process. (IV) If a registration number is not currently issued, the committee may sell the right to use the registration number in a manner calculated to bring the highest price; except that the department of revenue may deny the sale or use of a registration number that is offensive or inappropriate. (3) (a) The committee shall raise revenue by creating a market, which may include an online site, for the resale of license plate configurations of registration numbers using methods that are commercially reasonable, account for expenditures, and ensure the collection of the state's approval and transfer royalty. (b) The royalty for the state's approval and transfer of the right to use a registration number is twenty-five percent of the sale price of the transfer. At the time of sale, the purchaser shall pay the royalty to the committee. This payment is in addition to and not in lieu of the normal registration fees, sales or use taxes, or specific ownership tax. (c) A person shall not sell a registration number, and the department of revenue shall not assign a registration number, as a result of the right to use the number being sold to a vehicle unless the registration number was sold using the market created by the committee. (4) (a) The committee shall notify the department of revenue when the right to use a registration number has been sold and the committee has collected the state's sale proceeds or approval and transfer royalty. Upon receiving the notice, the department of revenue shall create a record in Colorado DRIVES, created in section 42-1-211, containing the name of the buyer; the vehicle identification number, if applicable; and the corresponding registration number. (b) If the registration number consists of a combination of letters and numbers that is not within the normal format of a license plate currently produced for the department of revenue, the department of revenue shall issue the plates as personalized plates under section 42-3-211; except that, notwithstanding section 42-3-211, the committee may sell, and the buyer or any subsequent buyer may use: (I) A registration number or letter of one position; or (II) Any symbol on the standard American keyboard or approved by the committee. (c) The committee shall transfer the money collected under this part 2 to the state treasurer, who shall credit the money to the fund. (d) The committee may contract with one or more public or private entities to implement this part 2. (e) Any revenue received by the committee from the sale of registration numbers shall be deposited in the fund. Source: L. 2024: Entire article added, (HB 24-1360), ch. 324, p. 2164, � 2, effective July 1. Editor's note: The provisions of this section are similar to several former provisions of �� 24-30-2206, 24-30-2208, 24-30-2209, and 24-30-2210, as they existed prior to 2024. For a detailed comparison, see HB 24-1360, L. 2024, p. 2164.