Senate Finance transportation subcommittee adopts series of provisos, approves DMV electronic-titling pilot and fee cap

The Senate Finance Transportation Regulatory Subcommittee adopted a package of budget provisos at its final meeting to clear agency spending authorities and to authorize several pilot programs and technical changes.

The subcommittee approved a new proviso directing the Department of Motor Vehicles to contract with a third-party vendor, using up to $1,000,000 in appropriated funds, to create an electronic titling program that would let dealers, lenders and auctioneers transfer vehicle ownership and place and release liens digitally; the vendor portion must be operational by the end of the fiscal year. The panel also accepted a separate amendment capping DMV fee increases related to sale of digitized images and photos at $4 for this fiscal year and directing any amount collected above that cap to the general fund.

The electronic-titling proposal drew the most discussion. Miss Adler, the committee staff member who presented the provisos, said the new proviso “directs the department to utilize up to $1,000,000 of funds … to create an electronic titling program,” and explained the vendor side of the program must be operational by the fiscal-year end. Dealer representatives said the system would move routine title work off paper and reduce wait times. Sims Floyd, who identified himself as representing the South Carolina Automobile Dealers Association, told the subcommittee, “it’s all secure,” and described how a third-party contractor would handle data security and permit dealers, lenders and auctioneers to complete title transfers without printed paper.

Committee members asked how the consumer portal would work and raised privacy and cost questions. A senator from Williamsburg asked whether consumers would be able to access titles online; Floyd and a dealer representative explained the consumer portal would be tied to driver-services…