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Senate repeals ban on passing e-lien fees, approves electronic lien and title bill
Summary
After a day-long debate over who should bear the cost of a new electronic lien and title system, the Wyoming Senate adopted an amendment removing a prohibition on vendors passing transaction fees to customers and passed Senate File 25 on final reading.
The Wyoming Senate on Jan. 21 adopted an amendment that removes a legislative ban on private vendors passing transaction fees to users of an electronic lien and title system, then passed Senate File 25, the measure to create an electronic lien and title filing system.
The bill aims to replace a paper-based lien and title recording system that committee members said imposes substantial time and postage costs on businesses. Senate File 25 authorizes the department to contract with vendors to build and administer the electronic filing system and allows vendors to charge transaction fees to recover development and operating costs.
Senator Fred Nethercott moved the 3rd-reading amendment that repealed a second-reading prohibition on vendors passing fees to customers, saying the repeal is consistent with free-market principles and that private businesses should be able to determine how to recover costs. "Which is not something that we tend to do here for those of us that like small government and a free market economy," Nethercott said during debate.
Senator Ralphies urged colleagues to retain the prohibition and warned consumers could be charged convenience fees. "If we pass this, a year from now . . . someone in this chamber . . . is going to see that convenience fee — $25 for that electronic lien filing fee," Ralphies said. He argued the committee process had established a fee structure to be paid by operators rather than added on as line-item convenience fees to customers.
Several senators said the bill responds to significant administrative burdens from the paper system. A supporter noted companies spend six-figure sums on postage and employ staff to handle filings; proponents argued electronic filing would save time and money even if vendors charge fees. Senator Bridal said private markets and customer choice would discipline excessive fees.
The Senate adopted the Nethercott amendment (3rd-reading amendment number 1) after a division: the amendment passed 18 ayes to 11 noes. On final passage, the Senate approved Senate File 25 by roll call, 28 ayes, 1 no, with 2 excused.
The bill amends statutes on motor vehicle lien and title processes to permit electronic recording and vendor transaction fees; it does not include a new state licensing board or an appropriation to cover vendor costs.
Votes at the amendment and final passage were recorded in the Senate journal and on the floor roll calls.
Senate File 25 passed the Senate and will proceed as required by the legislative process.
