Committee hears bill to extend vehicle title and temporary registration period to 60 days

Senate Bill 28, introduced to the House Transportation Committee by Senator Becky Beard, would extend the statutory grace period for vehicle titling and the expiration date for temporary registration permits from 40 days to 60 days.

The measure, Beard said, was requested by a local government in her Senate District 38 to reduce delays in vehicle title work and give county treasurer offices more flexibility to serve customers while Montana moves to an electronic titling and registration system. "This revises both the grace period for vehicle titling and the expiration date for temporary registration permits to 60 days," Senator Becky Beard said.

Supporters said the change is primarily a customer-service fix that would reduce pressure on county offices and dealerships. Bruce Knudsen, executive vice president of the Montana Auto Dealers Association, called the bill straightforward: "This is probably this has to be the easiest bill I've ever been involved with." Rebecca Myers, speaking for the Montana County Treasurer's Association, said the longer period would give purchasers more time to complete registration amid long lines and postal delays: "Currently, dealerships have 30 days to get signed, paperwork to the county office." Laurie Bakri, Motor Vehicle Division administrator, testified informationally and described the long-standing 40-day timeframe: "The time frame has always been 40 days."

Committee members pressed for operational clarifications. Witnesses said dealers generally have 30 days to send signed paperwork to counties, counties send a postcard that gives purchasers 45 days (including weekends and holidays) to complete registration, and counties assess a $10 late fee if the title is not completed within the statutory period. Bakri said the department prepared a late-fee assessment "just for awareness sake," and the sponsor disputed relying on late fees as budgetary revenue. "Late fees, we shouldn't I I believe we shouldn't be counting on," Senator Beard said, noting a fiscal-note estimate in the hearing record.

Witnesses also described the state's modernization project. Dealers and associations said the CARS electronic titling and registration system is being rolled out in phases: drivers' credentials already moved and vehicle functionality is scheduled to go live in mid-March. Bruce Knudsen said the full electronic system should eventually speed title delivery: "You'll get titles in 48 hours, and you can get the bridal in your dealership, and your registration is right in your dealership as well." Committee members asked why the fiscal note included roughly $20,000 for making the change; Bakri and witnesses explained that, because of a February code freeze and the need to modify and test multiple system time frames, development and testing costs were estimated at roughly that amount.

No formal committee action was taken on Senate Bill 28 at the hearing; the sponsor closed by framing the bill as a stopgap customer-service measure while the state completes its electronic titling rollout. "This is a customer service bill," Senator Beard said. The hearing concluded with no vote recorded on the bill.

Ending: The committee moved on to other agenda items. If the measure is scheduled for executive action, members will receive amendments and additional information from staff prior to that session.