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Introduced House Bill (H)

DIGEST

Electronic lien and title system. Amends as follows the Indiana Code section requiring the bureau of motor vehicles (bureau) to implement a statewide electronic lien and title system (system) to process vehicle titles and transactions involving security interests in vehicles: (1) Provides that if the bureau elects under the statute to allow qualified electronic lien service providers (providers) to facilitate the creation of the system, a participating provider may, upon implementation of the system, recover the provider's proportionate share of the costs associated with the development and ongoing administration of the system by charging a fee in an amount that Electronic lien and title system. Amends as follows the Indiana Code section requiring the bureau of motor vehicles (bureau) to implement a statewide electronic lien and title system (system) to process vehicle titles and transactions involving security interests in vehicles: (1) Provides that if the bureau elects under the statute to allow qualified electronic lien service providers (providers) to facilitate the creation of the system, a participating provider may, upon implementation of the system, recover the provider's proportionate share of the costs associated with the development and ongoing administration of the system by charging a fee in an amount that is: (A) consistent with market pricing; and (B) determined by the bureau upon implementation of the system; for each lien notification transaction provided through the system. (Current law provides that if the bureau elects under the statute to contract with a vendor to develop the system, the vendor may recover, upon implementing the system, system development and administration costs through the imposition of a fee. However, if the bureau elects to allow providers to facilitate the creation of the system, current law requires each participating provider to remit to the bureau, not later than 30 days after being notified of the provider's qualification to participate, a payment in the amount of the provider's proportionate share of the total cost to develop the system.) (2) Prohibits a provider from charging lienholders or their agents any additional fee for lien releases, assignments, or transfers (as is provided for in current law with respect to the lien notification fee that a vendor selected by the bureau is authorized to charge). (3) Authorizes lienholders or their agents to charge: (A) the borrower in a vehicle loan; or (B) the lessee in a vehicle lease; an amount equal to any lien notification fee imposed by a provider, plus a fee in an amount not to exceed $3 for each electronic lien transaction (as is provided for in current law if the bureau elects under the statute to contract with a vendor to develop the system). (4) Eliminates the requirement that each provider remit to the bureau an annual fee: (A) established by the bureau; and (B) not exceeding $3,000; for the operation and maintenance of the system. ... View more