Alabama Requiring ETAPS

In a March 4, 2013 Memo, the Alabama Department of Revenue directed that all "entities (i.e. pawnshops, title loan/pawn lenders, etc.) involved with the filing of liens on motor vehicle certificates of titles, with places of business in Alabama" are required to file liens electronically using the Electronic Title Application Processing System (ETAPS).

It is DDI's understanding that this requirement does not apply to traditional lenders (banks and credit unions) located outside of Alabama.  All entities that qualify to be a Designated Agent are required to participate.

Image above is from Signs by Andrea in Hoover, AL.

ELT Program Recommendations

Decision Dynamics, Inc. is very interested in seeing each US State implement an Electronic Lien and Title program.  We monitor active ELT programs, states working on developing ELT (such as Iowa, Indiana, and Maryland), and changes to state laws to allow ELT (as in Colorado), implement a new program (as we mentioned about Nevada and North Carolina), or make changes to their existing ELT program (such as Texas).

We have experience in joining ELT programs, working with states as they bring on a new ELT program, and trying to meet our customers' needs in ELT states and non-ELT states through the DDI Title Center.  Whenever we can, we present details from our experiences to the states (as we did with South Dakota).

AllAboutTitles.com is designed to gather that kind of state-relevant information about Electronic Liens and Titles.  We recently updated our Best Practices for ELT Programs document which contains a number of brief suggestions and feedback (pros and cons) about existing state programs.

Image above is State Greetings (a collection of post cards from the 50 US States) by Hoch Sollst Du Leben.

North Carolina ELT Bill Signed

July 23, 2013 - Raleigh, NC

North Carolina Governor Pat McCrory signed legislation requiring the NC Department of Transportation Division of Motor Vehicles to implement an "electronic lien system to process the notification and release of security interests and certificate of title data."  The bill includes a deadline that the new Electronic Lien and Title (ELT) system be implemented by July 1, 2014.

The bill clarifies the legal status of an electronic title for odometer disclosure compliance as well as any legal evidence for the existence of a lien.  It also grants the DMV options for developing or contracting the new system.  The DMV is required to report progress to the legislative oversight committee by October 1, 2013.

Participation in the program will be mandatory beginning July 1, 2015.  All individuals and lenders who normally finance motor vehicles will be required to participate in the NC ELT program.  The only exception is for those who perform less than five transactions each year.

DDI will post updates to our North Carolina Electronic Lien and Title site at NCELT.com.

Image above is of a car on display at the North Carolina Transportation Museum.

Colorado Legislation Enables ELT

On June 5, 2013 Colorado Governor John Hickenlooper signed HB 1289 into law, giving the Colorado Department of Revenue authority to "allow the electronic transmission of registration, lien, and titling information for motor vehicles." Other changes were made to existing regulations to ensure that the Division of Motor Vehicles would be able to adopt procedures to handle electronic lien and title (ELT) and electronic vehicle registion (EVR) transactions.

The bill also grants authority to the DOR to mandate participation in the ELT program for lenders doing 50 transactions or more per year. Interestingly, the bill specifically words it as "requiring lien and title documents to be filed electronicaly" allowing both typical Electronic Lien and Title transactions as well as title applications (lien notations) to be required as a paperless transaction. The DOR is not compelled to require participation.

For updates on the Colorado ELT program, visit COeTitleLien.com.

Image above is Interstate 70, Glenwood Springs, CO from The world’s most spectacular roads, vol. 2.

Texas ELT Deadlines for 2013

The next deadline to apply to participate in the Texas ELT program is one week away. Lenders need to complete the State of Texas DMV Electronic Lien and Title Program Service Level Agreement available from our website at http://www.etitlelien.com/texas.

The Texas DMV only enrolls lenders once a quarter. To begin participating in September 2013, the SLA must be submitted by Thursday, August 1, 2013.

The last deadline to begin participating in 2013 is November 1, 2013. Lenders who submit applications by that date will become active in the program on November 30, 2013.

Image above is of the Texas Star from the Texas House of Representatives site.

Nevada Legislation Requires ELT

June 11, 2013 - Carson City, Nevada

Governor Brian Sandoval approved Assembly Bill 309 directing the Nevada DMV to "establish, implement and operate, in lieu of the issuance and maintenance of paper documents otherwise required by this chapter, an electronic lien system to process the notification and release of security interests through electronic batch file transfers". This will mean the creation of an Electronic Lien and Title (ELT) system for Nevada.

The bill also requires almost all lienholders to participate in the ELT program.

Except for persons who are not normally engaged in the business or practice of financing vehicles, all lienholders are required to participate in the electronic lien system.

This does not provide exceptions for out of state lenders or lenders who only process a small number of loans. The DMV is not granted authority in the bill to extend exceptions to lenders.  The bill does provide for a staggered implementation of the requirement, with lienholders who execute "26 or fewer liens in a calendar year" exempt from the mandatory participation requirement until 24 months after the ELT system is implemented.

The bill requires the DMV to "submit a report on or before February 1, 2015, to the 78th Session of the Legislature concerning the implementation of the electronic lien system." This allows Nevada time to assess their systems and develop a plan.

For details on the Nevada ELT program (as they become available), please visit NVeTitleLien.com.

Image above is Boulder City Nevada - old cars fascinate me by Laura Grace Bordeaux.

Indiana ELT target: June 2014

The Indiana Bureau of Motor Vehicles is continuing to progress in their plans for an Electronic Lien and Title program for Indiana. DDI participated in a recent call with BMV representatives during which they provided a brief update on their plans for ELT.

Initial specifications are scheduled for distribution this fall (2013), with the program beginning to pilot in June 2014.  The pilot phase is expected to take 1 to 2 months, allowing additional lenders to enroll in the fall of 2014.

The BMV is working to make the new Indiana ELT program compatible with all title and registration processes, including the existing Electronic Vehicle Registration system.  They are also working to consolidate lienholder records to make the transition to electronic liens simpler for lenders.

There are no plans at this time to make the program mandatory.  The BMV is not opposed to requiring participation, but will wait for enacted legislation to do so.

Image above is a 1985 Indiana license plate "Wander" for sale by Deer Run Mercantile: "Vintage License Plates from the 50 States".