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Committee advances bill allowing DFA to implement electronic vehicle titling and registration
Summary
The committee approved House Bill 1845, a permissive measure that would allow the Department of Finance and Administration to implement an electronic titling and registration system; DFA counsel said there is no immediate cost as filed and the agency would follow an RFP process for implementation.
Representative Mike Holcomb described House Bill 1845 as a permissive measure allowing the Department of Finance and Administration (DFA) to implement an electronic titling and registration system that would let dealers and authorized users upload customer documents digitally to speed transfers of ownership.
"HB 18 45 is a permissive bill allowing DFA to implement a system for the electronic ignition and tiling of motor vehicles that will allow dealers in Arkansas to digitally upload customer documents with a goal of ultimately just speeding up," Holcomb said, explaining the bill would clarify that certain documents may be signed electronically.
Alicia Austin Smith, chief counsel for revenue with DFA, told the committee the bill had just been filed and the agency was still scoring the fiscal impacts but was not opposed. "So this bill just hit our system yesterday. So we are still scoring it, but no, we are not opposed to the bill and as it stands right now, it's just allowing us to create this system," Austin Smith said. She said DFA expected to run a request-for-proposals process for any vendor work and that the bill as filed is permissive and does not create an immediate cost to the state.
Members asked about fraud, duplicate electronic titles, whether a third-party vendor would run the system and whether Arkansas would still receive paper titles. Greg Kirkpatrick of the Arkansas Automobile Dealers Association told the committee that many states already implement electronic registration and titling and that the bill primarily allows dealers to digitally transmit paperwork to the state. "This is going to allow DFA to start implementing and it is permissive to implement a system that would allow dealers to upload that paperwork digitally," Kirkpatrick said. He added the bill does not itself convert the title to digital form and that Arkansas would continue to issue paper titles unless and until the state decides to implement digital titles.
Committee members asked DFA to proceed carefully on implementation; DFA counsel said the agency would do due diligence and use normal checks and procedures. No public testimony for or against the bill was recorded; the committee advanced the measure by voice vote.
