Transcript Document 7700874

DMV
Registration 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:
YEAR
TOTAL ELT
TRANSACTIONS
2011
TOTAL # OF
PARTICIPANTS
831
2010
2.5 million
529
2009
3.4 million
460
2006
3.6 million
355
2003
2.9 million
280
2000
2.0 million
175
1998
< 1.0 million
50
ELT Program – Current Status
 Rulemaking under final review:
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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:
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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.
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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.
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There are three types of Business Partners
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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
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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 Customer Charges
Item
Pass Through?
First Line Service Provider Title/Registration
Processing Charge
Yes
First Line Service Provider Charge for handling
and mailing license plates and tags
Yes
Dealer Postage Charge
No
Dealer Internal Processing Costs (e.g., labor for
dealership staff)
No
Dealer Costs for Enrolling in BPA Program
No
First Line Service Provider Charges for
Advertising
No
Dealer Markup Beyond First Line Service
Provider Charge
No!
Any Charge from a Registration Service
No
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
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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 protected]