The study was required to estimate costs and benefits of such a system to the DOT, counties, auto dealers, and consumers
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- Ezra Beasley
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1 2010 -Iowa SF2273 passed Required the Iowa DOT to conduct a study, to be completed by Dec 1, 2010, of how to best implement a uniform statewide system to allow for: Electronic applications for registration and titling Electronic lien perfection Electronic issuance of secure temporary registrations Electronic transfer of funds The study was required to estimate costs and benefits of such a system to the DOT, counties, auto dealers, and consumers
2 A working group was formed consisting of representatives from the AG s Office, Public Safety, Dept. of Revenue, County Treasurers, Dealer associations, Bankers, and the Iowa DOT The working group met eight times and heard testimony from other states that utilize electronic transactions Vendor presentations were also heard
3 Surveys were conducted of Iowa s 99 counties to determine: Backlogs 11 counties reported backlogs Only 3 of the 11 were more than 3 days behind Dealer transaction limits 8 counties reported limiting the number of daily dealer transactions Transaction limits were a driving force behind dealer interest, particularly high volume dealers, in electronic transactions
4 Surveys were conducted of dealers to determine: Interest in electronic transactions Types of dealer software systems in use Services provided by dealers for their customers Dealer sales volume Rating of current titling and registration services provided by counties
5 Other issues included in the study Revenue concerns As electronic transactions are developed, efforts may be needed to keep certain processes revenue neutral Odometer waiver Before true end to end electronic transactions can be implemented, a waiver from federal odometer disclosure requirements will be required The study contemplated that, in early phases, partial electronic transactions would be initiated Paper titles, damage disclosure statements, odometer statements would still be sent from dealer to county for the foreseeable future
6 Phase 1 Implement Electronic Lien and Title (ELT) transactions these are transactions that allow for the electronic release and addition of security interests and for the issuance of electronic (paperless) titles Utilizing a vendor to implement ELT is preferred because large lienholders are more likely to participate Lienholder can use one interface to add/release SIs for all participating states Costs to DOT, counties, dealers, and consumers can be minimized because lienholders pay to participate
7 Phase 2 Implement Electronic Funds Transfer (EFT) transactions Create additional EFT transactions to enable new electronic transactions such as transfer of titling fees from dealership to county Dealers favor one central account so transactions can be completed for multiple counties Eliminates need for dealer to maintain separate escrow accounts in multiple counties
8 Phase 3 Implement Electronic Registration and Titling (ERT) and temporary registration card transactions E-Titling and temporary registration card transactions allow for the electronic transmission of vehicle titling information from a dealership to the county treasurer and for the issuance, by dealers, of temporary registration cards that can be queried by law enforcement upon issuance Due to vendor fees for each transaction, DOT would implement E-Titling Either internet based and dealer management system based systems could be implemented
9 Where we are today
10 ELT Program Implemented Iowa implemented the state's Electronic Lien & Title Program (ELT) in May This program was developed in-house Lenders who choose to participate in the ELT program receive lien notation and release messages electronically from the Iowa DOT through a service provider E-title (paperless) title is created with ability for lender/owner to electronically request a paper title No state fee involved. The only fee for service is between participating lender and their provider Presently, 453 lenders participate in the program which is not mandatory
11 FAST Act Congress passed the Act in December 2015 It allows states general authority to move forward with programs to implement electronic odometer disclosures, notices, and related materials as long as those processes provide appropriate authentication and security measures General authority to implement electronic processes ceases to be effective on the date NHTSA regulations for odometer disclosures become effective
12 Iowa SF2228 passed Requires the DOT to implement, by January 1, 2018, a uniform statewide system to allow for electronic applications, titling, registering, and funds transfers for vehicles subject to registration in order to improve the efficiency and timeliness of the processes and to reduce costs for all parties involved. This legislation was proposed by the Iowa Automobile Dealer s Association (new vehicle dealers)
13 Iowa partners with Gartner Iowa partners with Garner Solutions to: Identify strategic objectives to realize implementation of ERT and EFT functionality Identify desired outcomes when functionality is deployed Develop up to 30 high-level use cases that describe system and User interactions o High-level use cases should address most potential scenarios that would be experienced by Users in the Iowa DOT, customers, dealers, and county treasurers
14 Temp Tag Existing web functionality (Fee Estimator, Credit Calculator, Truck Rate Calculator, Weight and List Calculator, and Vehicle Inquiry) code, which is being developed in-house, is encapsulated into web services so that integration between state titling system and dealerships Dealer Management System (DMS) is possible. Fees need to be established at time of temp tag printing as this is a condition of issuance. This can be leveraged for future ERT transactions Temp tag is live the moment it is issued ensuring that law enforcement can query to ensure positive identification of owner/vehicle and payment of required fees This coding will not be used in production until such time as pilot temp tag processing is implemented (anticipated early 2017 timeframe).
15 For More Information Contact: Andrew Lewis
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