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H7452APersonal

Motor and Other Vehicles - Electronic Registration and Titling

This bill lets the state create a digital system for vehicle titles, registrations, and liens instead of using paper.

Introduced68 Yea0 Nay7 Not voting
Population
Affected
45
Email Legislator
Introduced Jan 30, 2026Committee House State Government & Elections

Plain-English Summary

This bill allows the Division of Motor Vehicles to create an electronic system for vehicle registrations, titles, and liens. Instead of relying on paper documents, financial institutions and car dealerships will be able to process and hold vehicle titles and liens digitally. It requires larger banks and dealerships to use this new electronic system by specific dates. The bill also permits the DMV to charge a fee per transaction to maintain the system and updates odometer disclosure rules to allow for electronic forms and signatures without needing a notary.

For younger readers

When someone buys a car, they get a special piece of paper called a "title" that proves they own it. If they borrow money to buy the car, the bank holds onto a record called a "lien" until the money is paid back. This bill lets the state put all these car records on a computer instead of using paper. It means car dealerships and banks can do their paperwork online, making things faster and saving paper. It also lets people sign car documents on a computer without needing a special official to watch them sign.

Who & Where It Applies

Impacted groups
Car buyersMotor vehicle dealersFinancial institutionsCredit unionsDivision of Motor Vehicles
Impacted communities
All

Constitutional & Fiscal Check

None Likely. The bill simply modernizes administrative procedures for vehicle registration, titling, and lien recording. It does not infringe upon free speech, due process, or protection from unreasonable searches and seizures.

Estimated cost
Amount unknown
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Modernizes a public service (the DMV), making it more efficient and accessible for residents without requiring them to travel or wait in physical lines.
  • Promotes environmental sustainability by reducing the need for paper titles, forms, and physical mailings, aligning with conservation goals.
  • Eliminates the need for notarization on certain forms, which removes a small financial and logistical barrier for low-income individuals interacting with the DMV.
  • Authorizes a new per-transaction fee, which could be passed down to consumers and disproportionately burden low-income vehicle buyers.
  • The shift to a digital system could create accessibility issues for marginalized individuals who lack reliable internet access or digital literacy.
  • Allows private service providers to handle government data, which could raise concerns about data privacy and the outsourcing of public services to for-profit companies.
For Conservatives
  • Streamlines government bureaucracy by modernizing the DMV, reducing red tape and making the registration process faster for businesses and consumers.
  • Exempts small businesses, such as dealerships selling fewer than 150 cars or banks issuing fewer than five loans, from the mandate, protecting them from forced compliance costs.
  • Reduces overhead and administrative costs for large auto dealerships and financial institutions by allowing them to process titles and liens digitally instead of managing physical paperwork.
  • Introduces a new per-transaction fee for using the digital system, which functions as an additional tax on businesses and consumers.
  • Imposes a new government mandate requiring larger businesses and financial institutions to adopt the state's electronic system, limiting corporate freedom.
  • Centralizing vehicle titles and financial lien data into a state-run digital database increases the risk of government surveillance and potential data breaches.

Votes

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Full Bill Text

2 versions
Changes to existing Rhode Island law · 93 additions · 3 deletions

SECTION 1. Title 31 of the General Laws entitled "MOTOR AND OTHER VEHICLES" is hereby amended by adding thereto the following chapter: 31-3.4-1. Short title. This chapter shall be known and may be cited as the "Electronic Registration and Titling Act". 31-3.4-2. Definitions. As used in this chapter:

(1) "Business entity" means a sole proprietorship, partnership, association, joint venture, firm, corporation, holding company, joint stock company, receivership, trust, limited liability company, limited liability partnership, or any other legal entity.

(2) "Credit union" means a credit union duly organized under the laws of this state.

(3) "Division" means the division of motor vehicles.

(4) "ELT system" means the electronic lien and title system authorized in § 31-3.4-3.

(5) "ERT system" means the electronic registration and title system authorized in § 31-3.4- 3.

(6) "Financial institution" means any entity, other than a credit union, duly organized under the laws of this state that has the statutory authority to accept money on deposit pursuant to title 19, including an entity that is prohibited from accepting deposits by its own bylaws or agreement to form; the term includes, but is not limited to, banks, trust companies, savings banks, loan and investment banks, and savings and loan associations.

(7) "Licensed motor vehicle dealer" means a motor vehicle dealer licensed under chapter 5 of this title.

(8) "Service provider" means a person or entity that provides credit unions, financial institutions, or licensed motor vehicle dealers with software or services to interact with the division's electronic lien and title system or electronic registration and title system. 31-3.4-3. Implementation.

(a) The division may implement an electronic lien and title ("ELT") system, as authorized in § 31-3.1-16.1, and an electronic registration and title ("ERT") system that enable the ability to transact through a completely electronic process for:

(1) All business entities, including licensed motor vehicle dealers, and their service providers applying for automotive titles and registrations, for themselves or their customers; and

(2) All credit unions or financial institutions and their service providers recording and releasing security interests.

(b) With respect to transactions processed through the ELT system or the ERT system:

(1) Notwithstanding any other requirements in this title that a security interest on a motor vehicle shall be noted on the face of the certificate of title, if there are one or more security interests on the motor vehicle, the division shall electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens;

(2) Subsequent releases of security interests shall be electronically transmitted to the division and shall include the name and address of the person releasing the security interest;

(3) A certificate of title need not be issued to the owner of the motor vehicle until the last security interest is released. The division is not obligated to print a paper certificate of title until after the last security interest has been released;

(4) When a motor vehicle is subject to an electronic lien, the certificate of title for the motor vehicle shall be considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements;

(5) A duly certified copy of the division's electronic record of a security interest shall be admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence of the security interest.

(c) Beginning on October 1, 2026, all credit unions and financial institutions that record five (5) or more security interests in a calendar year shall use the division's ELT system to record and release all security interests. Provided, however, nothing shall prohibit any credit union or financial institution that records four (4) or less security interests in a calendar year from using the division's ELT system to record and release security interests.

(d) Beginning twelve (12) months after the administrator of the division certifies that the division's ERT system is available for use by all licensed motor vehicle dealers, any licensed motor vehicle dealer who sells more than one hundred fifty (150) motor vehicles in a calendar year shall use the division's ERT system to submit title and registration applications. Provided, however, nothing shall prohibit any licensed motor vehicle dealer who sells one hundred fifty (150) or less motor vehicles in a calendar year from using the division's ERT system to submit title and registration applications. 31-3.4-4. Secure digital vehicle titles.

(a) The division may implement a system that offers vehicle title holders a fully paperless, secure digital vehicle certificate of title in lieu of a secure paper vehicle certificate of title.

(b) Once implemented, the secure digital title and the secure digital title system shall:

(1) Include all functions related to title re-assignments;

(2) Meet or exceed applicable security requirements as set forth in regulations promulgated by the division; and

(3) Provide title holders with online, real-time access to motor vehicle titles and status of titles in process.

(c) A secure digital vehicle title produced under this section shall be regarded as an official vehicle title from the State of Rhode Island and be fully transactable within the State of Rhode Island and all other U.S. jurisdictions.

(d) A duly certified copy of the division's secure digital vehicle title shall be admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence of the title. 31-3.4-5. Fees.

(a) Notwithstanding any general law to the contrary, the division may authorize a per- transaction fee to be assessed for the use of the ELT system and the ERT system.

(b) The per-transaction fee:

(1) Shall be consistent with market pricing for costs associated with the development and ongoing management, maintenance and enhancement of the ELT system and the ERT system; and

(2) Shall integrate with current division payment service provider(s). 31-3.4-6. Rules and regulations. The administrator of the division may promulgate rules and regulations to implement the provisions of this chapter.

SECTION 2. Section 31-23.2-6 of the General Laws in Chapter 31-23.2 entitled "Tampering with Odometers" is hereby amended to read as follows: 31-23.2-6. Transfer of vehicle.

(a) Any sales agreement for the transfer of a motor vehicle between persons as defined in this chapter shall contain the words "both buyer and seller have examined the title certificate of this motor vehicle and it correctly reflects the mileage as it appears on the odometer" which shall be placed conspicuously and prominently on the agreement.

(b) It shall be unlawful for any person to transfer ownership of a motor vehicle previously registered in this state or a motor vehicle used by a dealer as a demonstrator unless the person:

(1) Enters on a written or electronic form prescribed by the department of revenue, as prescribed by state law, the mileage the motor vehicle has been operated. The form shall be signed by both the seller and buyer and contain a statement that both parties have viewed the odometer of the motor vehicle. The form as completed shall then be attached to the instrument evidencing transfer of ownership; or

(2) Enters upon the form "not actual mileage" in the event that the odometer mileage is known to the person to be less than the motor vehicle has actually traveled; or

(3) Enters the total cumulative mileage on the form in the event that it is known that the mileage indicated on the odometer is beyond its designated mechanical limits;

(4) Enters the same information as set forth in subdivisions subsections (b)(1) through (b)(3) of this subsection section on the owner's title certificate; and

(5) The owner of a motor vehicle shall supply its mileage upon the annual renewal registration form supplied by the division of motor vehicles.

(c) It shall be a violation of this chapter for any person to give a false statement to a transferee under the provisions of this section; provided, however, that no person shall be in violation of this chapter where a vehicle has been resold in reliance on the required statement of the prior owner made pursuant to this section.

(d) No motor vehicle, previously registered in another state, shall be registered for use in this state unless the application for a certificate of title in Rhode Island is accompanied by the prior owner's certificate of title and a form as set forth in subdivision subsection (b)(1) of this section.

(e) The certificate of title of the motor vehicle issued to the new owner by the state of Rhode Island shall:

(1) Be provided electronically, or printed using a process determined by the director to be the most efficient and effective means of avoiding unauthorized duplication;

(2) Indicate on its face the mileage required to be disclosed by the transferor under subsections (b)(1) and (d) of this section; and

(3) Contains a space for the transferee to disclose the mileage at the time of any future transfer and to sign and date the disclosure.

(f) No registration card may be issued in this state for any motor vehicle unless:

(1) The application for the registration card contains the prior owner's most recent registration card and the prior owner's title; and

(2) The new registration card contains such information as provided on the application.

(g) Pursuant to the provisions of § 42-127.1-7, any form required pursuant to the provisions of this section may be signed electronically and shall not require notarization.

SECTION 3. This act shall take effect on July 1, 2026.