ELECTRONIC TITLE TRANSFERS & TEMP. PERMITS S.B. 1008 - 1010:

SUMMARY OF BILL

REPORTED FROM COMMITTEE

Senate Bills 1008 through 1010 (as reported without amendment)

Sponsor: Senator Erika Geiss (S.B. 1008)

Senator Jeremy Moss (S.B. 1009)

Senator Veronica Klinefelt (S.B. 1010)

Committee: Transportation and Infrastructure

CONTENT

Senate Bill 1008 would amend the Michigan Vehicle Code to specify that buyers and purchasers of vehicles would not have to provide certain physical copies of certificates or records of title for a title transferred electronically.

Senate Bill 1009 would amend the Code to allow the Secretary of State (SOS) to issue a temporary registration permit to an applicant who had current vehicle registration that would expire before that individual received the individual's license plate.

Senate Bill 1010 would amend Part 803 (Watercraft Transfer and Certificate of Title) of the Natural Resources and Environmental Protection Act (NREPA) to allow the Department of State (DOS) to implement and operate an electronic system to process watercraft and off-road vehicle (ORV) title transfers between private parties.

MCL 257.233 et al. (S.B. 1008) Legislative Analyst: Abby Schneider

257.227 (S.B. 1009); 324.80304 & 324.81105 (S.B. 1010)

BRIEF RATIONALE

Reportedly, recent legislation has challenged the SOS s efficiency. Firstly, Public Act 240 of 2023 allowed the SOS to establish an electronic system to facilitate electronic transfers of vehicle ownership between private parties and to issue a vehicle title electronically; however, vehicle owners issued electronic title transfers have been unable to fulfill certain legal requirements. For example, the Code requires a purchaser to endorse the back of a title, and digital titles do not have backs. Additionally, the use of electronic titles has proven popular, but the SOS may only issue electronic titles for motor vehicles. Secondly, in 2023 the Legislature approved several new types of vehicle license plates; however, testimony before the Senate Committee on Transportation and Infrastructure indicates that SOS branch offices may not have the stock to fulfill specialized plate requests. Accordingly, the bills would address some of the SOS s difficulties in implementing this recent legislation.

FISCAL IMPACT

Senate Bill 1008 and Senate Bill 1009 would have no fiscal impact on State or local government. Senate Bill 1010 likely would not result in any additional costs for the DOS. The Department has indicated that it already has established an online title transfer program and thus the addition of processing watercraft and ORVs should not bear any additional costs and should be absorbable within current annual appropriations.

Date Completed: 11-14-24 Fiscal Analyst: Joe Carrasco, Jr.

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.