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SLS 26RS-171 REENGROSSED Regular Session SENATE BILL NO.
Regular Session ENROLLED SENATE BILL NO.
72 BY SENATOR HODGES MOTOR VEHICLES.
72 BY SENATOR HODGES AND REPRESENTATIVES DICKERSON AND SAWYER AN ACT To amend and reenact R.S.
Provides for electronictitles andregistration ofmotor vehicles.
32:707.2(A), (C)(1), and (D), to enact R.S.
(gov sig) AN ACT To amend and reenact R.S.
32:702(18), 705(B)(6) and (7), 707.2(I) and (J), 707.2.1, and 707.2.2, and to repeal R.S.
32:707.2(A), (C)(1) and (2), and (D), to enact R.S.
32:702(18), 705(B)(6) and (7), 707.2(I) and (J), 707.2.1, 707.2.2, and 714, and to repeal R.S.
to provideforsystemrequirementsforelectroniclien,titling,andrecordationofmotor vehicles;
to provideforsystem requirementsforelectroniclien,titling,andrecordationofmotor vehicles;
32:707.2(A), (C)(1) and (2), and (D) are hereby amended and reenactedandR.S.32:702(18),705(B)(6)and(7),707.2(I)and(J),707.2.1,707.2.2,and714 are herebyenacted to read as follows:
32:707.2(A), (C)(1), and (D) are herebyamended and reenacted and R.S.32:702(18),705(B)(6)and(7),707.2(I)and(J),707.2.1,and707.2.2areherebyenacted to read as follows:
* * * Page 1 of 10 Coding:
* * * (18)"Certificateoftitle"meanstherecordthatisevidenceofownership of a motor vehicle, whether paper or electronic, issued by the department.
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SLS 26RS-171 REENGROSSED SB NO.
72 (18)"Certificateoftitle"meanstherecordthatisevidenceofownership of a motor vehicle, whether paper or electronic, issued by the department.
* * * (6) The electronic signature of the seller affixed to an electronic record of assignment or transfer of title in a manner authorized by the department, consistent with the provisions of the Uniform Electronic Transaction Act, R.S.
* * * (6) The electronic signature of the seller affixed to an electronic record of assignment or transfer of title in a manner authorized by the department, Page 1 of 9 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SB NO.
72 ENROLLED consistent with the provisions of the Uniform Electronic Transaction Act, R.S.
The electronic signatures shall comply with the Authentication AssuranceLevel2(AAL2)securitystandardasdefinedintheNationalInstitute of Standards and Technology Special Publication 800-63-3.
The electronic signatures shall comply with the Identity Assurance Level 2 (IAL2) security standard when required by federal law or regulation, as defined in the National Institute of Standards and Technology Special Publication 800-63A.
Electronic media system for lien recordation and title information;
Electronic media system for lien recordation;
vehicle titling and registration;
participation requirements;
rules and regulations A.(1) The department shall develop and implement on a statewide basis no later than January 1, 2010, a computer system which will permit the electronic recording of information concerning the perfection and release of vehicle security interestswithoutsubmittingorreceivingpapertitledocuments,includingelectronic lien, electronic titling, and electronic registration.
rules and regulations A.Thedepartmentshalldevelopandimplementonastatewidebasisnolater than January1, 2010, a computer system which will permit the electronic recording of information concerning the perfection and release of vehicle security interests withoutsubmittingorreceivingthepapertitledocumentsincludingelectroniclien, electronictitling,andelectronicregistration.Thedepartmentmayshallallowthe submission of vehicle title information for new, transferred, and corrected certificatesoftitle,includingtheperfectionandreleaseofsecurityinterests,through electronic media means in a cost-effective manner in lieu of the submission and maintenance of paper documents otherwise required by this Chapter.
The department may shall allow thesubmission of vehicle title information for new, transferred,and corrected certificatesoftitle,includingtheperfectionandreleaseofsecurityinterests,through electronic media means in a cost-effective manner in lieu of the submission and Page 2 of 10 Coding:
The system shall enable the ability to transact, process, record,and transmit certificates of titleand to recordand releaseliens through acompletelyelectronicprocessfor the following users:
(1) All business entities and their service providers applying for automotive titles and registrations, for itself or the customers.
(2) All federally insured depository institutions, their affiliates and subsidiaries, other lenders, and their public tag agents and other service providers.
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SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 maintenance of paper documents otherwise required by this Chapter.
72 ENROLLED * * * C.(1)Anapprovedpubliclicensetagagentoperatingasecuredhostcomputer systeminterfacingwiththecomputersystemoftheDepartmentofPublic Safetyand Corrections, office of motor vehicles, and the computer system of a lending institution orothersalesfinancecompanyshallbebondedinanamount specifiedby the department.
The system shall enable the ability to transact, process, record,and transmit certificates of title through a completely electronic process for:
(a) All business entities and their service providers applying for automotive titles and registrations, for itself or the customers.
(b) Electronic submission of liens and lien satisfactions by financial institutions and its service providers pursuant to R.S.
32:708.
(2) The electronic lien, electronic titling, and electronic registration system shall provide that any lien or security pursuant to R.S.
32:708 shall be electronically transmitted to the department based on the following:
(a) If thereare oneormoreliens orencumbranceson the motor vehicle, the department shall electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens, provided thatamotor vehicle lien is noted on the face of the certificate of titleand notwithstanding any other requirements in this Chapter.
(i)Subsequentliensatisfactionsshallbeelectronicallytransmittedtothe departmentandshallincludethenameandaddressofthepersonsatisfyingthe lien.
(ii) A certificate of title shall not be issued until the last lien is satisfied and there is a clear certificate of title that can be issued to the owner of the vehicle.Thedepartmentisnotobligatedtoprintapapertitleuntilthefinallien is satisfied, except where specifically requested by a dealer or financial institution to fulfill its business requirements.
A paper certificate of title shall be issued only upon request of the vehicle owner or lienholder and upon payment of any applicable fees established by the department.
(b)(i) Vehicles subject to an electronic lien shall have the certificate of title for the vehicle considered to be physically held by the lienholder for the purposeofcompliancewithstateandfederalodometerdisclosurerequirements.
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(ii)Adulycertifiedcopyoftheofficeofmotorvehicle'selectronicrecord Page 3 of 10 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SLS 26RS-171 REENGROSSED SB NO.
72 of the lien shall be admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence of a lien.
* * * C.(1)Anapprovedpubliclicensetagagentoperatingasecuredhostcomputer systeminterfacingwith thecomputersystemoftheDepartmentofPublicSafetyand Corrections, office of motor vehicles, and the computer system of a lending institution orothersalesfinancecompanyshall bebondedinanamountspecifiedby the department.
Notwithstanding anyother law to the contrary, a written or printed report of an electronic media transactionor recordingrequiredunder the provisions of this Section, if certified as true and correct bythe department, shall serve as evidence of any signature, acknowledgment, or information which was provided to or by the departmentthroughelectronicmeans,andthecertificationshallbeadmissibleinany legal proceeding as evidence of the facts stated therein.
Notwithstanding anyother law to the contrary, a written or printed report of an electronic media transaction or recordingrequired under the provisions of this Section, if certified as true and correct bythe department, shall serve as evidence of any signature, acknowledgment, or information which was provided to or by the departmentthroughelectronicmeans,andthecertificationshallbeadmissibleinany legal proceeding as evidence of the facts stated therein.
Lienholders shall process electronic lien releases within two business days fromthedatethefunds aredeemedcollectedand shall maintain real-time Page 4 of 10 Coding:
Any lienholder using the department's electronic lien and electronic titling system, directly or through a public tag agent, to release a lien encumbering an electronic certificate of title shall process the electronic lien release within five business days after the lienholder has been paid in full and the payoff funds are deemed by the lienholder to be collected.
The Page 3 of 9 Coding:
SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 accuracy of status information.
72 ENROLLED requirements of this Subsection shall not apply to paper certificates of title, which shall be governed by R.S.
J.
32:708.
Beginning twelve months after the effective date on which the office of motor vehicles certifies that the electronic lien, electronic titling, and electronic registration functionality is available for use by all licensed motor vehicle dealers statewide, each motor vehicle dealer licensed pursuant to R.S.
J.(1) Beginning twelve months after January 1, 2028, or the date the Departmentof Public Safetyand Corrections,officeof motorvehicles,certifies that a fully operational statewide electronic, lien, electronic titling, and electronicregistrationsystemhasbeenimplemented,whicheveroccurssooner, any person who, in the regular course of business, submits applications for certificates of title, registration, lien recordings, lien satisfactions, or other documents to the department in connection with motor vehicle transactions shall submit those applications through the system, subject to such exceptions as the department may provide by rule.
32:1251etseq.,shallsubmitallapplicationsforcertificatesoftitle,registration, andotherownershiptransferdocumentsthrough theelectroniclien,electronic titling, and electronic registration system, except contrary to any other provision of law or provided by rule of the department.
(2)Thedepartmentshallpromulgaterulesandregulationsinaccordance with the Administrative Procedure Act establishing definitions, operational standards, performance requirements, compliance criteria, and reporting requirements for electronic lien and title, electronic vehicle registration, and electronic registration and titling systems.
Electronic signatures and records for motor vehicle transactions A.Notwithstanding anyprovisionoflawtothecontrary,anydocument, record, or instrument required in connection with the sale, lease, transfer, titling, registration, or financing of amotorvehicle,unless otherwise exempted bythisSectionshallbecreated,executed,transmitted,andstoredelectronically, including but not limited to the following:
Electronic signatures and records for motor vehicle transactions A.Anydocument,record,orinstrumentrequiredinconnectionwiththe sale,lease,transfer,titling, registration, or financing of amotorvehiclemaybe created, executed, transmitted, and stored electronically, including but not limited to the following:
(3) Odometer disclosures.
(3) Odometer disclosure forms.
(5) Electronic attestations.
(5) Attestations.
B.(1) Any documents used to transfer ownership of a vehicle to an insurancecompanyafterpaymentofdamagesmaybesignedelectronicallyand reproduced in paper form and shall not require notarization.
B.
Any documents used to transfer ownership of a vehicle to an insurancecompanyafterpaymentofdamagesmaybesignedelectronicallyand reproduced in paper form and shall not require notarization.
(a) Limited powers of attorney.
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(b) Applications for duplicate titles.
(c) Odometer disclosure forms.
(2)ElectronicsignaturesshallcomplywiththeAuthenticationAssurance Level 2 (AAL2) security standard as defined in the National Institute of Page 5 of 10 Coding:
SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 Standards and Technology Special Publication 800-63-3.
72 ENROLLED (1) Limited powers of attorney.
C.(1) The Department of Public Safety and Corrections,office of motor vehicles, shall accept electronic records and electronic signatures for the documents and records identified in Subsection A of this Section and any electronic signature or electronic record acceptedby the department pursuant to this Section shall have the same force and effect as an original written document or handwritten signatureand shall satisfyany legal requirement for a written record or signature.
(2) Applications for duplicate titles.
(3) Odometer disclosure forms.
C.(1) Electronic signatures shall comply with the Identity Assurance Level2(IAL2)securitystandardwhenrequiredbyfederallaworregulationas defined in the National Institute of Standards and Technology Special Publication 800-63A.
(2) An electronic signature or electronic record accepted by the departmentpursuanttothisSection,includingalegiblyscannedorimagedcopy of a signed document, shall have the same force and effect as a handwritten signature or original paper document, shall satisfy any legal requirement for a written signature or record, shall not require notarization, and shall be admissible for all legal and evidentiary purposes to the same extent as a handwritten signature or original paper document.
D.(1) The Department of Public Safety and Corrections, office of motor vehicles, shall accept electronic records and electronic signatures for the documentsandrecordsidentifiedinSubsectionsAandBofthisSectionandany electronic signature or electronic record accepted by the department pursuant to this Section shall have the same force and effect as an original written documentorhandwrittensignature and shall satisfy any legalrequirementfor a written record or signature.
D.
E.(1) A dealer or authorized officer as set forth in R.S.
An electronic signature that is authenticated in a manner approved by the department shall satisfy any requirement for a written signature and shall not require notarization.
32:702 using an approved system in good faith and without actual knowledge of fraud or unauthorized accessshall beimmune fromcivil liability arising solely fromthe use of electronic signatures, remote notarization of powers of attorney or Page 5 of 9 Coding:
E.Anelectronicallysigned,oralegiblyscannedorimagedcopythereof, shall have the same force and effect as an original paper document bearing a handwritten signature and shall be admissible for all legal and evidentiary purposes to the same extent as the original paper document.
F.(1) A dealer or authorized officer, as set forth in R.S.
32:702, using an approved system in good faith and without actual knowledge of fraud or unauthorizedaccess,shallbeimmunefromcivilliabilityarisingsolelyfromthe use of electronic signatures, remote notarization of powers of attorney or electronicrecords,includingclaimsallegingimproperexecution,authentication, or transmission, provided the dealer complied with the requirements of this Section and any rules promulgated by the department.
(2)The immunity provided for in Paragraph (1) of this Subsection shall not apply to intentional misconduct or gross negligence.
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SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 §707.2.2.
72 ENROLLED electronicrecords,includingclaimsallegingimproperexecution,authentication, or transmission, provided the dealer or authorized officer complied with the requirements of this Section and any rules promulgated by the department.
(2) The immunity provided forin Paragraph (1) of this Subsection shall not apply to intentional misconduct or gross negligence.
§707.2.2.
The Department of Public Safety and Corrections, office of motor vehicles, shall implement a system that offers vehicle title holders a fully paperless, secure digital vehicle title that may be issued in lieu of a paper certificate of title.
The Department of Public Safety and Corrections, office of motor vehicles,shallimplement,orauthorizetheuseof,asecure,interoperablesystem that offers vehicle title holders a fully paperless, secure digital vehicle title that may beissued in lieu of apapercertificateof title,including theability forsuch title to be made available tothetitle holder through a department-approved or state-authorized digital credential platform.
(4)Supportsecureinteroperabilitywithdepartment-approvedsystems, including approved digital credential platforms, dealer service providers, financial institution service providers, and verification services, through standards-based interfaces, application programming interfaces, or other methods approved by the department.
Ownership transfers executed through an approved electronic title system shall have the same legal effect as transfers executed through a paper certificate of title.
Ownership transfers executed through an approved electronic title system shall have the Page 6 of 9 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SB NO.
72 ENROLLED same legal effect as transfers executed through a paper certificate of title.
F.Thecommissioneroftheofficeofmotorvehiclesshallpromulgateany rules and regulations necessary to implement the provisions of this Section.
F.Thecommissioneroftheofficeofmotorvehiclesshallpromulgateany rulesandregulationsnecessarytoimplementtheprovisionsofthisSection.Any rulespromulgatedunderthisSectionshallbedesignedtopromotecompetition, transparency, interoperability, and consumer choice, subject to security, privacy, and technical standards established by the department.
* * * §714.
The department shall not require a title holder, dealer, lender, insurer, or other authorized user to use a specific proprietary application to access, present, or verify a secure digital title where a department-approved interoperable alternativemeetingthedepartment'ssecurity,privacy,andtechnicalstandards is available.
Titling;
G.
electronic signature Page 7 of 10 Coding:
Nothing in this Section shall be construed to grant any vendor, contractor,systemintegrator,oroperatorofthedepartment'ssystemofrecord the exclusive right to display, present, verify, or otherwise make available to residents a digital wallet, identity verification, electronic signature, verifier services,orotherresident-facing servicesrelatedtosecuredigital vehicletitles.
The department shall remain the soleissuerof securedigital vehicletitles.
The departmentmayauthorizeoneormorequalifiedproviders,includingapproved digitalcredentialplatformsandverificationservices,toperformresident-facing display, presentation, or verification functions, subject to security, privacy, audit, and interoperability requirements established by the department.
H.
The department shall remain the authoritative source of all title records.
Any display, presentation, verification, or use of a secure digital title throughanapproveddigitalcredentialplatformshallnotalterthedepartment's Page 7 of 9 Coding:
SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 A.
72 ENROLLED ownership or control of the authoritative title record and shall be subject to technical standards and business requirements established by the department.
Notwithstanding any other provision of law, any document required or permitted to be executed in connection with the sale, transfer, titling, registration, or encumbrance of a motor vehicle may be created, executed, and submittedinelectronicformwhentheofficeofmotorvehiclesoritsagentshave the technological capability to do so, and shall not deny legal effect or enforceability to a document solely due to its electronic form.
I.
B.
A secure digital title issued pursuant to this Section may be verified through a department-approved digital verification service, provided such service meets security, privacy, audit, and interoperability requirements established by the department.
An electronic signature shall satisfy any requirement of law that a document be signed, endorsed, or executed.
Nothing in this Section shall be construedtowaiveoreliminateanywitnessing,acknowledgment,notarization, or other execution formality otherwise required by law.
C.
Any document required to be notarized in connection with a motor vehicle transaction may be notarized electronically or by remote online notarization in accordance with R.S.
35:5 or R.S.
35:621 et seq.
Section 3.
Section3.(A)TheprovisionsofR.S.32:705(B)(6)and(7),R.S.32:707.2(A),(C)(1), (D), (I), and (J), and R.S.
The provisions of this Act establishing or requiring the use of electronic lien and title services, electronic registration and titling, secure digital motor vehicle titles, or other electronic titling and registration transactions shall not become effective until the Department of Public Safetyand Corrections, office of motor vehicles, certifies that a fully operationalstatewideelectroniclien,electronictitling,andelectronicregistrationsystemhas been implemented.
32:707.2.1, as enacted or amended by this Act, shall become effectiveonJanuary1,2028,oronthedatetheDepartmentofPublicSafetyandCorrections, officeofmotorvehicles,certifiesthatafullyoperationalstatewideelectroniclien,electronic titling, and electronic registration system has been implemented, whichever occurs sooner.
(B) Nothing in this Section shall be construed to invalidate or limit any electronic record, electronic signature, or electronic transaction otherwise authorized by law or by policy of the Department of Public Safety and Corrections, office of motor vehicles, prior to the effective date of this Section.
(C)TheprovisionsofR.S.32:707.2.2,asenactedbythisAct,shallbecomeeffective on the date the Department of Public Safety and Corrections, office of motor vehicles, certifies that the secure digital title system required by R.S.
32:707.2.2 has been implemented and is operational, or January 1, 2031, whichever occurs sooner.
The provisions of R.S.
R.S.
32:705(B)(6) and (7) and R.S.
32:702(18), the repeal of R.S.
32:707.2.1 shall become effective on January 1, 2028, or when the Department of Public Safety and Corrections, office of motor vehicles, electronic vehicle and registration system is updated to comply with the statutory provisions contained in this Act, whichever occurs first.
32:707.2(G), and Sections 5 and 6 of this Act shall become effective upon signature by the governor or, if not signed by the governor, upon expiration of the time for bills to become law without signature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.
Nothing in this Section shall be construed to invalidate or limit any electronic record, electronic signature, or electronic transaction otherwise authorized by law or by policy of the Department of Public Safety and Corrections, office of motor vehicles, prior to the effective date of this Section.
If vetoed bythegovernorandsubsequentlyapprovedbythelegislature,thoseprovisionsshallbecome effective on the dayfollowing such approval.
Section5.Allotherprovisionsshallbecomeeffectiveuponsignaturebythegovernor Page 8 of 10 Coding:
Section5.IfanyprovisionofthisAct,ortheapplicationthereof,isheldinvalid,such invalidity shall not affect other provisions, items, or applications of the Act which can be giveneffectwithouttheinvalidprovision,item,orapplicationandtothisendtheprovisions of this Act are herebydeclared severable.
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SLS 26RS-171 REENGROSSED SB NO.
SB NO.
72 or,ifnotsignedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithout signature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.
72 ENROLLED Section 6.
If vetoed bythe governor and subsequentlyapproved bythe legislature, this Act shall become effective on the dayfollowing such approval.
Section6.IfanyprovisionofthisAct,ortheapplicationthereof,isheldinvalid,such invalidity shall not affect other provisions, items, or applications of the Act which can be giveneffectwithouttheinvalidprovision,item,orapplicationandtothisendtheprovisions of this Act are herebydeclared severable.
Section 7.
The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared bySenate Legislative Services.
PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
The keyword, summary, and digest do not constitute part of the law or proof or indicia of legislative intent.
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[R.S.
1:13(B) and 24:177(E)] DIGEST SB 72 Reengrossed 2026 Regular Session Hodges Presentlaw(R.S.32:702)providesfordefinitions.Proposedlawdefines"certificateoftitle" and meanings for "endorsement".
Present law provides by January 1, 2010 the department would develop and implement on a statewide basis a computer system which will permit the electronic recording of information concerning liens without submitting or receiving paper title documents.
Proposed law retains present law and removes provision for the submission of paper documents.
Proposed law further provides for the system to enable the ability to transact, process, record, and transmit certificates of title through a completely electronic process for all businessentitiesandtheirserviceprovidersapplyingforautomotivetitles andregistrations, for itself or the customers.
Proposedlawprovidessubsequentliensatisfactionswillbeelectronicallytransmittedtothe departmentandwillincludethenameandaddressofthepersonsatisfyingthelien.Proposed law furtherprovides a certificateof title shall not be issued until the last lien is satisfied and there is a clear certificate of title that can be issued to the owner of the vehicle.
Proposedlawprovidesthedepartmentisnotobligatedtoprintapapertitleuntilthefinallien is satisfied, except where specificallyrequested bya dealer or financial institution to fulfill its business requirements.
Proposed law further provides a certified copy of the office of motor vehicle's electronic record of the lien shall be admissible in anycivil, criminal, or administrative proceeding in this state as evidence of the existence of a lien.
Proposed law provides that the legal effect or enforceability of a document cannot be disputed solely due to its electronic form.
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Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SLS 26RS-171 REENGROSSED SB NO.
72 Proposed law provides for notaries who do not reside in Louisiana.
Proposedlawrequiresanydocumentunlessotherwiseexemptedwill be byelectronicform.
Proposed law provides any electronic signature or electronic record accepted by the department will have the same force and effect as an original written document or handwrittensignatureandwillsatisfyanylegalrequirementforawrittenrecordorsignature.
Proposed law provides a dealer or authorized officer will be immune from civil liability arising solely from the use of electronic signatures, remote notarization of powers of attorneyorelectronicrecords,includingclaimsallegingimproperexecution,authentication, ortransmission, providedthedealercompliedwith therequirementsofthis Sectionandany rules promulgated by the department.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S.
32:707.2(A), (C)(1) and (2), and (D);
adds R.S.
32:702(18), 705(B)(6) and (7), 707.2(I) and (J), 707.2.1, 707.2.2, and 714;
repeals R.S.
32:707.2(G)) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill 1.
Makes technical changes.
2.
Defines "certificate of title".
3.
Providesforsystemrequirementsforelectroniclienrecordation,registration and titling fees.
4.
Adds provisions for obtaining certificate of title.
5.
Provides for requirements for receiving electronic information.
6.
Changes number of transactions from 250 to 25 for institutions designating a public tag agent relative to transmitting a release of satisfaction of lien.
7.
Provides for requirements for lienholders processing electronic liens.
8.
Provides documentation in connection with the sale, lease, transfer, titling, registration, or financing of a motor vehicle.
9.
Provides for requirements for electronic systems.
10.
Provides promulgation of rules.
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