Montana committee hears bill to extend vehicle title and temporary registration period from 40 to 60 days

Sen. Becky Beard, sponsor: Senate Bill 28 would extend the statutory period for vehicle titling and the expiration date for temporary registration permits from 40 days to 60 days, giving counties and dealers 20 additional days to complete paperwork and to provide 60-day temporary registration stickers to purchasers.

The change is “about customer service,” Sen. Becky Beard said at the House Transportation Committee hearing. The sponsor said one of her local governments requested the change to reduce the number of motorists driving on expired temporary registrations while counties and dealers process title paperwork.

County treasurers and dealer representatives testified in support. Rebecca Myers of the Montana County Treasurer’s Association said counties currently mail a postcard after they receive title paperwork; recipients then have 45 days including weekends and holidays to register their purchase and that a longer temporary registration would reduce the risk that a postcard arriving late leaves a customer with an expired sticker. “We believe it gives more time for constituents to get the arrangements done,” Myers said.

Bruce Knudsen, executive vice president of the Montana Auto Dealers Association, said the bill would help new and used car dealers and RV dealers statewide and urged the committee to pass it. Tom Jacobson of Montana Registration Services said the change would be a “game changer” for companies that do title and registration work across state lines and across Montana.

Laurie Bakri, administrator for the Motor Vehicle Division (MVD), appeared as an informational witness. She confirmed that the current period has been 40 days during her tenure and that a 90-day extension option would remain available for unusual circumstances. Bakri said the MVD prepared an informational fiscal assessment noting a $10 late fee currently charged by treasurer offices when titles are late; the department provided the late-fee estimate for awareness but said the bill’s purpose is not to collect late fees. The fiscal note attached to the bill was unsigned at the time of the hearing, committee members noted.

Committee members asked about causes for title delays, including dealer flooring arrangements that can hold titles until a vehicle’s lien is satisfied. Knudsen said the bill would not change underlying processes; it would simply give dealerships and counties 20 additional days to complete paperwork while Montana transitions to an electronic titling and registration system (referred to in testimony as the “CARS” system). Knudsen estimated that once electronic titling and registration are fully implemented, processing times will be much faster, but he and others told the committee that full deployment could take roughly another two years.

Key clarifying details from testimony: the current temporary registration window is 40 days; the bill would change that to 60 days; a 90-day extension option would remain available for exceptional cases; there is a $10 late fee currently assessed by county treasurers when paperwork is not completed within the statutory period; an informational fiscal estimate noted about a $127,000 net impact from foregone late fees but the fiscal note was unsigned and committee members asked for more detail; the state is rolling out a new electronic system ("CARS") with vehicles going live March 17.

There was no committee vote on SB 28 during the hearing. The committee chair closed the hearing after questions and responses from witnesses, and the bill was left for further committee action at a later date.