The bill 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:
- Vendors are authorized to electronically register vehicles;
- 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;
- The vender may order, manage, and distribute license plate inventory to a client;
- The vendor may access, print, and distribute the registration information to a client on demand;
- The vendor is an agent of the department, so the vendor must collect and remit taxes and fees; and
- The vendor may perform these services only for business entities.
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 the records for misuse and shall ensure that addresses of people in the address protection program are not released.
Current law prohibits denying legal effect or enforceability of an electronic document to issue a certificate of title. The bill expands this provision to cover vehicle registration, clarifies that this includes electronic signatures, and clarifies that this applies to a court of law.
Currently, tow carriers, insurers, and salvage pools use an electronic system to access department records to ascertain the motor vehicle's owner and lienholder. The bill 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 for purposes authorized by current law. The department shall ensure that addresses of people in the address protection program are not released.
Current law requires a manufacturer's certificate of origin to issue a certificate of title for a vehicle. The bill allows a motor vehicle rental company to obtain title without a manufacturer's certificate of origin if the business:
- 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 this act. From that appropriation, $16,590 is appropriated to the office of the governor for use by the office of information technology.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)