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 security so that individuals could access only their own vehicle records. Questions were raised about third-party portal fees after one senator described a prior $20 portal charge when obtaining records from the secretary of state; the dealer representative said a vendor fee is typical and compared it to existing third-party fees for services such as online fishing-license renewals. Miss Adler told the panel the consumer-facing portion will require more time to ensure identity protections and therefore is not required to be operational this fiscal year.

Other provisos adopted without objection included: a carry-forward for the Commission on Minority Affairs of unexpected funds to support the transferred Division of Small and Minority Business Contracting and Certification (the agency provided a balance of $556,677); repurposing an earlier appropriation of $250,000 to allow the Public Service Commission to pay third-party avoided-cost consultants; authorization for the Department of Employment and Workforce to spend $2,375,072 of funds made available under section 903 of the Social Security Act for unemployment-insurance–related work; and several Department of Transportation housekeeping items, including deletion of a fuel-fee transfer proviso, continued use of waiver valuations for small property acquisitions estimated at $20,000 or less, and retention of indirect-cost reimbursements on federally funded projects.

The subcommittee also approved an amendment extending dates for the electricity market reform study through 2026, as presented by the committee staff, and a final procedural motion authorizing staff to make technical conforming changes to the proviso language approved at the meeting.

Votes at a glance

- Proviso 71.7 — Commission on Minority Affairs carry forward (authorizes carry-forward of unexpected funds for costs related to transfer of the Division of Small and Minority Business Contracting and Certification). Outcome: adopted without objection. Clarifying amount: agency-provided carry-forward balance $556,677.

- Proviso 72.4 — Public Service Commission (PSC) avoided-cost experts (repurposes funds from prior appropriation to pay third-party avoided-cost consultants). Outcome: adopted without objection. Original appropriation referenced: $250,000.

- Proviso 82.2 — DMV cost-recovery fee; sale of photos/digitized images (amendment caps allowable fee increase at $4 for the fiscal year and remits amounts above that cap to the general fund). Outcome: adopted as amended, without objection.

- New Proviso 82ET — DMV electronic titling pilot (authorizes up to $1,000,000 to contract with a third-party vendor to create an electronic titling program; vendor side must be operational by fiscal-year end). Outcome: adopted without objection.

- Proviso 83.5 — Department of Employment and Workforce (Reed Act spending authority under Section 903 of the Social Security Act). Outcome: adopted without objection. Amount: up to $2,375,072.

- Proviso 84.11 — DOT deletion (deletes authorization to transfer motor fuel user fee portion to Department of Revenue tied to preventative maintenance credits following sunset of related income tax credits). Outcome: adopted without objection.

- Proviso 84WV — DOT waiver valuations (continues department practice allowing waiver valuations and acquisition of small property strips estimated at $20,000 or less). Outcome: adopted without objection.

- Proviso 84 (indirect cost retention) — DOT indirect-cost reimbursement retention for federally funded road and bridge projects. Outcome: adopted without objection.

- Proviso 117.146 (amendment) — Electricity market reform study (extends dates for report and committee meetings through 2026). Outcome: adopted as amended, without objection.

- Final procedural motion — Authorized staff to make technical conforming changes to proviso language adopted at the meeting. Motion moved from the floor and approved (voice vote). Outcome: adopted.

What the actions mean

- The DMV electronic-titling proviso allows the DMV to contract for a vendor-build that will enable dealers, lenders and auctioneers to transact title transfers and lien releases electronically; the consumer portal and identity-verification functionality will require further integration with driver-services and is not required to be live this fiscal year. The third-party vendor model implies a vendor fee for participating dealers, as with other state third-party portals.

- The fee cap on sale of DMV photos/digitized images limits near-term increases to $4 and directs any overage to the state general fund, rather than allowing DMV to retain all incremental revenue.

- The Commission on Minority Affairs carry-forward restores an available balance tied to the recent transfer of the Division of Small and Minority Business Contracting and Certification and authorizes expenditure for training, technical assistance and research related to helping small and minority businesses secure state certification and contracting opportunities.

Who spoke

Speakers at the meeting included committee staff who presented the provisos, the subcommittee chair, several senators who asked technical and policy questions, and outside testifiers representing the dealer community. The proposal that drew extended discussion was the DMV electronic-titling pilot, which included testimony from industry representatives about system security and consumer access.

Next steps

The subcommittee chair closed the session and said the committee will reconvene in the Senate Finance Committee in two weeks for additional work on the budget.