MI SB0918

Secretary of state may contract with a service provider to establish and operate an electronic lien title system for processing security interests in motor vehicles through electronic file transfers instead of paper documents.

All secured parties engaged in vehicle financing are required to participate in the electronic lien title system, with security interest information maintained electronically satisfying title requirements.

Secured parties must release security interests within 14 days of receiving payment, delivering the release to the vehicle owner or department depending on whether the title is held physically or electronically; failure to comply results in liability for all damages to the vehicle owner.

Electronic lien title system must be established and operational no later than July 1, 2016, with the department requiring electronic entry of security interests beginning October 1, 2016.

Secretary of state may monitor service provider fees, establish contractor qualifications, and determine program specifications for the electronic lien title system; this act does not take effect unless Senate Bills 916 and 917 are also enacted.