Lawmakers hear bill to streamline dealer fraud checks and extend temporary-plate deadlines; measure held for amendment

Representative Ethan Lawson presented House Bill 1153 to the Roads and Transportation Committee, saying the measure would streamline dealer access to limited tax-warrant and child-support-lien information via the state dealer portal, reduce per-lookup fees and help dealers spot problematic liens when selling vehicles. "By adding it into the state's existing dealer portal, dealers will be able to access it quickly and at no cost," Lawson said.

Lawson outlined five main elements: allowing the Departments of Revenue and Child Services to share limited lien information with the Auto Dealer Services Division; codifying dealer best practices for retaining purchaser identification; making interim license plates valid for 60 days and extending title-delivery deadlines to 45 days; requiring transport operators to have a physical Indiana business address or a USDOT registration; and making operating a dealership with no license an infraction to match existing penalties for expired licenses.

Kyle Bonnick of the Secretary of State's Auto Dealer Services Division told the committee he reviewed the bill and "give[s] this bill my full-throated support," and said staff were available for questions. Marty Murphy of the Auto Dealers Association of Indiana said dealers already check lien and title information through the state's IT system or third-party vendors and welcomed the bill's approach to reduce transaction costs: "Sometimes $5 a transaction ... if you do 1,000 cars a month, it's a lot of money." Fritz Kreutzinger, a longtime used-car dealer, said the industry worked with the office and supported the measure. Ron Braemeyer of the Indiana Manufactured Housing Association explained the transport-operator provisions help modular-home manufacturers that deliver units on disposable trailers.

Witnesses described frequent delays and costs tied to banks and out-of-state title processing and said extending the interim-plate and title-delivery windows would reduce the risk of fines and paperwork problems for dealers and customers. Dealers and industry groups said the portal integration and parity in licensing penalties would increase accountability and reduce friction in sales and transport operations.

The committee closed testimony and the chair said he would hold the bill to allow agencies, including the Bureau of Motor Vehicles and Child Services, to review details and to consider amendments before the next meeting. No committee vote was taken on House Bill 1153 at this session.

The bill remains on hold for amendments and agency input; the sponsor and witnesses indicated they are available to assist drafting changes before the committee reconvenes.