(1) (a) Except as provided in paragraph (b) of this subsection (1), any county, city and county, city, or town acting by its governing body may regulate the operation of off-highway vehicles on public lands, waters, and property under its jurisdiction and on streets and highways within its boundaries by resolution or ordinance of the governing body and by giving appropriate notice of the regulation if the regulation is not inconsistent with this article and the rules promulgated under this article.

(b) (I) Notwithstanding the requirement that its ordinance or resolution not be inconsistent with this article 14.5 or a rule promulgated under this article 14.5, a county, city and county, city, or town may, when an off-highway vehicle is being driven on a street, road, or highway within the jurisdiction of the county, city and county, city, or town, do any combination of the following:

(A) Require the driver to have a driver's license;

(B) Require the driver to carry liability insurance;

(C) Require the occupants to wear a safety belt system if the manufacturer installed a safety belt system in the off-highway vehicle;

(D) Require the use of a child restraint system in accordance with section 42-4-236 if the off-highway vehicle was designed by the manufacturer to be used with a child restraint system;

(E) Require the use of eye protection for all occupants in the off-highway vehicle, which eye protection must conform to section 42-4-232 (1) unless the eye protection is a windshield;

(F) Require the use of a helmet for an occupant who is under eighteen years of age, in accordance with section 42-4-1502 (4.5); or

(G) Limit the number of occupants to the greater of the number of occupants that the off-highway vehicle was designed by the manufacturer to hold or the number of occupants that the vehicle was designed to hold plus one occupant in an aftermarket seat if the aftermarket seat is installed in accordance with the instructions of the aftermarket seat manufacturer and does not extend outside the roll cage; but if the off-highway vehicle is an all-terrain vehicle or motorcycle, limit the number of occupants to two.

(II) Notwithstanding subsection (1)(b)(I) of this section, a county, city and county, city, or town does not have authority to promulgate a resolution or ordinance imposing the requirements authorized by subsection (1)(b)(I) of this section under the circumstances described in section 33-14.5-108 (1)(a), (1)(d), (1)(e), and (1)(g) to (1)(i).

(2) No county, city and county, city or town acting by its governing body may adopt an ordinance which imposes a fee for the use of public land or water under the jurisdiction of any agency of the state or for the use of any access thereto owned by the county, city and county, city, or town; nor shall it require an off-highway vehicle to be licensed or registered in such political subdivision.

(3) For a city or town to regulate the crossing of a state highway under the jurisdiction of the Colorado department of transportation, the city or town must request in writing that the regional office of the department approve the regulation. The regional office shall not unreasonably withhold approval. If the regional office does not approve or deny the request within sixty days after received, the request is deemed approved.