DMVRegistration Operations Division Electronic Titling Changes AB 1515 – Business Partner Automation New Title Transfer Restrictions
History of ELT in California • California was the first state to implement ELT, starting a pilot program with GMAC in 1989 • By 1995, there were 15 lienholders were participating • In 1999, ELT became an official program • Today, there are more than 550 ELT lienholders with more added each quarter
ELT Workload • Six ELT vendors send electronic records to DMV (up from four last year). • Transactions processed over past 12 years:
ELT Program – Current Status • Rulemaking under final review: • Financial institutions must participate • No other group will be required to participate at this time • All activity through service providers • No contracts required – participants issued a permit/certificate • System enhancements: • New ELT User Interface to better service lienholders • Reduce errors with simplified requirements • Improve the submission process for electronic records • Allowing lienholders to update address and issue title on payoff • Create “expedite” stream for immediate title issuance
BPA Background • Implemented administratively in 1996 to allow direct processing of new reports of sale and registration renewals by high volume customers. • California Vehicle Code Section 1685 was enacted in July 2001 to formally establish a permanent program; regulations were first approved for Title XIII in 2003. • There are three types of Business Partners • First Line Business Partner - receives information from DMV and uses it for that partner’s business. • First Line Service Provider - receives information from DMV and transmits it to another for processing. • Second Line Business Partner - receives information from a first line provider and must be a registration service, vehicle dealer or leasing company, salvage pool, dismantler, or rental car company. • First Line Business Partners and Service Providers are responsible for all fees due to DMV and pay via an Electronic Fund Transfer. Second Line Business Partners remit fees to the service provider.
AB 1215 – Effective July 2012 • All licensed new car dealers must enroll in the DMV Business Partner program • All new and used car sales by these dealers must be processed through DMV’s BPA Program unless the transaction cannot be accommodated in that system. Fees can be passed through to consumers. • Document Preparation Fees - up to $80 for BPA enrolled dealers; for non-enrolled dealers fees are $55 for vehicle purchase and $45 for lease transactions. • Dealers must inquire against the National Motor Vehicle Title Information System (NMVTIS) prior to offering a vehicle for retail sale and provide the report on request. • Vehicles “branded” in NMVTIS must be identified through special tagging.
BPA Program Update • System now available daily • Transaction capacity expanded – virtually all transactions can be processed through BPA Environment • Field offices will continue to support transactions that cannot be handled through BPA • Bond and contract requirements eliminated for Second-Line Participants • 48-hour EFT transaction
Vehicle Titling and Lien Washing • Using stolen or fraudulent identifies, vehicles are financed and purchased, usually under $0 drive-off specials • Lien holders are then removed using an Application for Duplicate Title or Lien Satisfied form using fake or crooked notaries and bogus lien releases • The criminal either sells the vehicle to another unsuspecting dealership or ships it overseas • The crime is only discovered when the finance company fails to receive several payments – months later
New Title Transfer Restrictions • Effective March 1, 2012, the California Certificate of Title is the only document that can be used to release a lien for California-titled vehicles two model years old or newer. • DMV will no longer accept a lien release on an Application for Duplicate Title (REG 227), a Lien Satisfied/Title Holder Release (REG 166), or any other type of lien release for these vehicles. • The address of the legal owner cannot be changed when applying for a duplicate title. This should be done prior to requesting a duplicate title. • Electronic lien and title (ELT) legal owner of record participants must continue to use the appropriate ELT process to release the lien or transfer legal ownership.
Contact Information Andrew Conway, Chief Registration Policy and Automation Branch 916.657.6259 email@example.com