Electronic Filing Title Registration Motor Vehicle

Registration - certificates of title - electronic processing of registrations, liens, and titles - appropriation. The act creates a framework for the department of revenue to establish electronic processing for issuing certificates of title, filing or releasing liens, or registering vehicles and special mobile machinery. This is subject to the department promulgating rules covering the following:

• County clerks continue to receive registration fees;
• The department may maintain titling information electronically and may produce paper titles only upon request of a party;
• The department may accept electronic signatures;
• Notarization requirements are eliminated;
• Vendors are authorized to electronically register vehicles;
• A vendor may order, manage, and distribute license plate inventory to a client;
• A vendor may access, print, and distribute the registration information to a client on demand; and
• A vendor is an agent of the department, so the vendor must collect and remit taxes and fees.

The department's approval of a third-party provider to register a vehicle, file or release liens, or issue any type of certificate of title must be evidenced by an agreement between the department and the third-party provider. The vendor may charge a fee. A vendor is authorized to give the department gifts, grants, and donations to implement electronic transactions.

The department may deny a person access to records for misuse and shall ensure that addresses of people in the address protection program are not released.

Preexisting law prohibits denying legal effect or enforceability of an electronic document to issue a certificate of title. The act expands this provision to cover vehicle registration, clarifies that this includes electronic signatures, and clarifies that this applies to a court of law.

Tow carriers, insurers, and salvage pools use an electronic system to access department records to ascertain the motor vehicle's owner and lienholder. The act allows motor vehicle dealers and other businesses approved by the department to use the same system to determine a motor vehicle's owner and lienholder.

Preexisting law requires the owner of a new motor vehicle to provide a manufacturer's certificate of origin to obtain a certificate of title for the vehicle. The act allows a motor vehicle rental company to obtain title without a manufacturer's certificate of origin if the company:

• Presents a manufacturer's invoice; and
• Submits a signed affidavit attesting that the motor vehicle is new and has not been issued a certificate of title and that the business is entitled to be issued a certificate of title for the motor vehicle.

$1,187,502 is appropriated to the department of revenue from gifts, grants, and donations in the highway users tax fund to implement the act.

(Note: This summary applies to this bill as enacted.)