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House transportation committee advances bill to formalize electronic vehicle lien and title procedures
Summary
The House Transportation Committee reported Senate Bill 136 favorably after adopting a committee substitute that adds clerk-requested cleanup language to formalize electronic submissions of liens and require broader use of the electronic title and registration system beginning July 1, 2026.
The House Transportation Committee on Thursday reported Senate Bill 136 with a committee substitute, advancing a package of clerks’ requested changes that formalize electronic submissions for vehicle liens and satisfactions and set a timeline for wider use of the state’s electronic title and registration system.
The measure, introduced in the committee by Senator Jimmy Higdon (Senate District 14), includes a last‑minute committee substitute. Jason Denny, Anderson County clerk and current treasurer of the County Clerks Association, told the committee the substitute “adds … established procedure for electronic submissions of liens and satisfactions” and that clerks asked for the cleanup language.
Why it matters: the substitute clarifies how lienholders and clerks will use electronic filings and sets an implementation date. The bill text says lienholders “shall begin using electronic title and registration system beginning 07/01/2026,” language sponsors and testifiers discussed during questions from committee members.
Committee discussion and details: Representative Tackett Lafferty asked how the bill would treat an original paper title; Denny confirmed that an earlier draft’s requirement for an “original paper” title was removed from the substitute. Representative Huth questioned whether the bill would require electronic filings even when a paper title still exists; witnesses said that the contested language was not part of the committee’s substitute. Tom Underwood, who identified himself as a representative of Champ Title and part of the ELT system, told the committee that the section requiring use of the system was “agreed to by the banks” and that the provision primarily involves lenders and financing entities. Underwood said the statute’s requirement would not take effect until July 1, 2026, giving time for implementation and stakeholder input.
Formal action: the committee adopted the committee substitute and then reported the bill with a favorable expression and the substitute attached.
What remains: sponsors and clerks said they expect additional work with stakeholders as the July 1, 2026, date approaches to finalize administrative procedures and address practical details for entities that do not routinely finance vehicles.
