Legislative Update

June Legislative Update: Six States Introduce or Pass Electronic Titling Bills

New Ohio Legislation Gives Dealers Liability Exemption for Vehicle Reports

Published June 23, 2022 - Written by IAA, Inc.

Summary

June’s Legislative Update from DDI Technology looks at six states that have introduced or passed bills focused on electronic titling.

IAA, Inc. is dedicated to being proactive when monitoring legislative and regulatory matters that affect our customers and our industry. We believe being engaged with the legislative process is critical to the auto auction industry to promote responsible business conduct and continued healthy expansion. IAA works with lobbyists, insurance companies and other industry participants towards seeing our customers’ needs are met when it comes to legislative matters that may affect the industry.

NEW BILLS

New Jersey Senate Bill 2629

Introduced May 16, 2022

This bill was filed per request of IAA. The bill would require the Motor Vehicle Commission to establish a system for salvage processors such as IAA to electronically process applications for salvage certificates of title or certificates of ownership on behalf of insurers and to be able to print titles at the salvage processors’ facilities.

DDI’s position: Support

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Ohio Senate Bill 342

Introduced May 24, 2022

This bill would generally exempt a motor vehicle dealer from liability for the contents of a third-party motor vehicle history report.The motor vehicle dealer may be held liable for a representation, error, omission, or inaccuracy contained in a third-party motor vehicle history report that is based on information the dealer directly provided to the report's preparer.

DDI’s position: Neutral

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Enacted Legislation

Indiana House Bill 1167

Effective: July 1, 2022, January 1, 2023

This act relates to Bureau of Motor Vehicles. Some of the provisions that are relevant to lienholders include:

Electronic Lien Title System. The act amends certain dates regarding the statewide electronic lien and title system (system). The bureau shall require that the statewide electronic lien system made available be used for recording and release of liens after June 30, 2023.

The statewide electronic title system capable of processing vehicle titles through electronic means must be made available for voluntary use by vehicle dealers, lienholders, and owners not later than July 1, 2025. The bureau shall require that the statewide electronic title system be used for processing vehicle titles after June 30, 2026.

Notification of Lienholders: Currently, if a mechanic lienholder wishes to sell a vehicle at auction, they are only required to notify the vehicle’s owner. This act requires notifications to also be sent to all persons who hold a lien of record with the vehicle.

DDI’s position: Support

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Kentucky House Bill 284

Effective January 1, 2024

This act requires the Transportation Cabinet to establish an electronic title application and registration system that allows submission of required forms and fees electronically. It allows approved entities to access the system to facilitate title transfers, fleet registrations, and permanent fleet registrations.

DDI’s position: Support

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Maine Legislative Document 1843

Effective August 8, 2022

This act defines the term "electronic lien titling program" under the Maine Motor Vehicle Certificate of Title and Antitheft Act as a program that permits the creation and exchange of an electronic record for maintaining lien information. It also allows the Secretary of State to use an electronic lien titling program for the purposes of that Act.

DDI’s position: Support

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Oklahoma Senate Bill 1276

Effective May 3, 2022

This act provides that any documents created, stored, or delivered under the electronic lien title program as provided in this section shall be presumed valid instead of considered valid as provided for in current law. The Oklahoma Tax Commission is required to implement a program, which will permit the electronic filing, storage, and delivery of boat and motor certificates of title and allow a lienholder to perfect, assign, and release a lien on a boat or motor in lieu of submission and maintenance of paper documents no later than July 1, 2022.

DDI’s position: Support

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Virginia Senate Bill 215

Effective July 1, 2022

This act permits the Department of Motor Vehicles to expand the existing electronic titling program for new motor vehicles to all applications for original motor vehicle titles, thereby authorizing person-to-person online titling. The act authorizes the Department to charge certain fees. The act also allows for the online registration of such motor vehicles, allows for the issuance of a temporary certificate of registration valid for no more than 30 days, and makes discretionary the current requirement to search a nationally recognized motor vehicle title database prior to transfer of vehicle ownership.

DDI’s position: Neutral

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For more information about IAA's legislative and regulatory activities, contact:

Katerina Dotzeva
Director of Government Affairs, IAA
kdotzeva@iaai.com