Bill Summaries: S 407 ELECTRONIC VEHICLE LIEN/TITLE.

Tracking:
  • Summary date: Jul 25 2013 - More information

    AN ACT TO REQUIRE THE DIVISION OF MOTOR VEHICLES TO IMPLEMENT A STATEWIDE ELECTRONIC LIEN SYSTEM TO PROCESS THE NOTIFICATION AND RELEASE OF SECURITY INTERESTS AND CERTIFICATE OF TITLE DATA. Enacted July 23, 2013. Effective July 23, 2013.


  • Summary date: Jun 19 2013 - More information

    Senate committee substitute makes the following changes to the 1st edition.

    Authorizes the Division of Motor Vehicles (DMV) to either (1) contract with a qualified vendor or vendors to implement a statewide electronic lien system to process and maintain security interests and certificate of title dataor (2) develop and make available to qualified service providers an interface that enables them to access data and facilitate the creation of a system (was, the only option was to contract with a qualified vendor).

    Provides the minimum standards for a vendor-implemented system, requiring the DMV to issue a competitive request for proposal to assess the qualifications of vendors. Provides that the resulting contract cannot include costs payable by the DMV to the vendor or vendorsand must reimburse the DMV for reasonable costs of implementation. Allows aqualifiedvendor or vendors to charge participating lienholders a per-transaction fee that is consistent with market price but does not exceed $3.50 (was, $8.00). Allows lienholders to charge borrowers the per-transaction fee plus an amount not more than $3.00. Also allows qualified vendor(s) to serve as service providers to lienholders if certain conditions are met.

    Also provides the minimum standards for a DMV-implemented system. Prohibits the cost for a DMV implemented system from exceeding $250,000. Directs the DMV to establish the qualifications for service providers. Requires approved service providers to pay an equal share of the development costs plus an annual fee of not more than $3,000 for operation and maintenance of the system. Prohibits contracts from including costs payable by the DMV to the service provider. Allows service providers to charge participating lienholders a per-transaction fee consistent with market price. Prohibits service providers from using information on vehicle titles for marketing purposes.

    Requires qualified vendors and service providers to have experience in providing electronic solutions to state motor vehicle departments or agencies (was, required a qualified vendor to have experience indirectly providing electronic lien services to lienholders and state motor vehicle departments or agencies).

    Provides that participation in the electronic lien systemis mandatory for allindividuals and lienholders engaged in the business or practice of financing motor vehiclesand who conduct at least five transactions annually, beginning July 1, 2015.

    Authorizes the DMV to work with one or more qualified vendors (was, a qualified vendor) to conduct a pilot program prior to implementation of the electronic lien system.

    Provides that the DMV's report to the chairs of the Joint Legislative Transportation Oversight Committee must specify, at minimum, whether the DMV is proceeding with a vendor-implemented system or a DMV-implemented systemand whether the implementation is on schedule and on budget.


  • Summary date: Mar 25 2013 - More information

    Enacts new GS 20-58.4A (Electronic lien system), as the title indicates. Requires the Division of Motor Vehicles (DMV)to implement a statewide electronic lien system no later than July 1, 2014. Directs the DMV to contract with a qualified vendor to implement this statewide electronic lien system. Provides minimum standards for the DMV to consider in contracting with a vendor. Mandates participation in the electronic lien system by all individuals and lienholders normally engaged in the business or practice of financing motor vehicles beginning July 1, 2015. Provides that an electronic notice or release is to have the same force and effect as a paper document of notice or release as provided under GS 20-58 through GS 20-58.8. Directs the DMV to adopt rules to implement this section. Authorizes the DMV, the qualified vendor, and up to five lienholders to conduct a pilot program of the electronic lien system for up to a 90-day period prior to the statewide implementation of the system. Requires the DMV to report, no later than October 1, 2013,to the chairs of the Joint Legislative Transportation Oversight Committee on the status of the implementation of the electronic lien system.


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