HB 6486 Summary

• Establishes an electronic lien title (ELT) system for watercraft to process security interest notifications and releases through electronic file transfers instead of paper documents, with implementation required by February 16, 2021.

• Requires all secured parties normally engaged in watercraft financing to participate in the electronic lien title system, while allowing the Secretary of State to maintain electronic records of titles and security interests without issuing paper certificates.

• Permits watercraft dealers to assign ownership without proof of prior lien satisfaction through the ELT system, with dealers warranting title is clear and assuming responsibility for satisfying any existing security interests.

• Requires secured parties to release security interests within 14 days of receiving payment, with liability to watercraft owners for damages if they fail to comply.

• Authorizes the Secretary of State to contract with service providers and contractors to establish and operate the electronic lien title system, with authority to monitor reasonable fees and establish program specifications.