1. AAMVA Official Use Only Vehicle Lifecycle Administration (VLA) E-Titling & NMVTIS Wednesday, October 24, 2012 Patrice Aasmo, AAMVA Deb Hillmer, South Dakota

2. AAMVA Official Use Only Vehicle Lifecycle Administration (VLA) Vehicle administration from cradle to grave Birth Purchase Maintenance Inspections Damage Death VMT ??? NMVTIS E-Titling ??? 2

3. AAMVA Official Use Only Vehicle Lifecycle Administration (VLA) Vehicle Lifecycle Administration (VLA) provides an opportunity to minimize: Paper handling Investigative/Administrative efforts Opportunities for document fraud Expenditures in processing, paper, storage, mailings, etc. DMVs agree that the ability to reliably and electronically administer and monitor a vehicle through its entire lifecycle lends an immeasurable effectiveness to its operations. 3

4. AAMVA Official Use Only E-Titling Proof of Concept Concept developed by E-Titling Working Group comprised of 4 State Members (2011) Working Group expanded to 12 State Members and the Chair of the Vehicle Standing Committee (2012) Board approved budget for 2 year pilot (May 2012) Task Force formed, includes: – E-Titling Working Group – National Level Industry Reps (manufacturers, dealers, lenders, fleets, floor planners, NICB) – Federal Reps (DOJ and NHTSA) 4

5. AAMVA Official Use Only E-Titling Proof of Concept Goal: Demonstrate cost savings, process efficiencies and reduction in fraud by implementing technology and procedures to use electronic records to track a new vehicle from its manufacturer to its first title issuance. Approach: Remain a state-initiated and state-controlled program To the extent possible, use or adapt existing tools or systems including those: – Under direct state control – Provided by industry – Controlled by the Federal Government Comply with both State and Federal Regulations Collaborate with industry stakeholders to gain their input 5

6. AAMVA Official Use Only E-Titling Proof of Concept 6

7. AAMVA Official Use Only Proof of Concept Deliverables:  Roadmap for E-Titling  Standardized Data Definition of E-Titling Record  MCO System Modifications to enable E-Titling  AAMVA ELT Service Requirements  Return on Investment Analysis  Proof of Concept Evaluation Report  Best Practices E-Titling 7

8. AAMVA Official Use Only Proof of Concept Schedule: July 2012 through March 2013: Prepare infrastructure and data integration standards March 2013 through October 2013: Pilot participants implementation October 2013 through June 2014: Pilot operation and evaluation E-Titling 8

9. AAMVA Official Use Only All states can prepare: Collaborate with stakeholders to ensure that the necessary online data exchanges are functional, accurate and timely. At a minimum, be prepared to verify the title application data with both MCO file and NMVTIS. Transacting with NMVTIS online or, at a minimum be performing nightly batch updates to NMVTIS to prevent a title from being issued by another state in error. Be participating in ELT or have a process to allow the lien holder to come into the MVA and verify their information. Develop processes to authenticate title applicants, notify applicants of electronic records and ultimately, allow for transfer of ownership. Develop legislative support for electronic titling. E-Titling 9

10. AAMVA Official Use Only Industry stands to benefit as well, and can support and prepare in similar fashion: Collaborate with DMVs to ensure that the necessary online data exchanges are functional, accurate and timely. Assist in the business considerations for the Roadmap and comprehensive. Develop processes and procedures to handle records electronically. E-Titling 10

11. AAMVA Official Use Only E-Titling 11 Challenge: TIMA Odometer Disclosure Requirements Strategy: Multi-faceted approach - Utilize surface transportation measure (HR 4348) - Develop guidelines for state petitions - AFSA to provide additional expertise and/or information on electronic signatures - 2003 ANSI standards - Association - E-commerce Regulations

12. AAMVA Official Use Only NMVTIS The measureable benefits of NMVTIS and its use as part of a Vehicle Lifecycle Administration strategy: – Public safety – Fraud reduction – Consumer protection 12

13. AAMVA Official Use Only NMVTIS NMVTIS also boasts ancillary benefits such as: Cost reduction Data integrity New business opportunities Additionally, DMVs should consider that with each vehicle fraud case averaging $6500 in property loss, reducing a state’s theft cases by even a marginal amount will have significant impact on administrative, investigative and legal sources. 13

14. AAMVA Official Use Only NMVTIS AAMVA and the Board of Directors remain committed to assist states as they navigate both national and local environments to meet their obligations and: – Improve services – Reduce burdens – Stop criminal exploitation of DMV systems 14

15. AAMVA Official Use Only NMVTIS Annual Report: Produced and published by August 31 st Reports on progress/challenges, results from all users and stakeholders; looks to the future www.vehiclehistory.gov 15

16. AAMVA Official Use Only NMVTIS - Maturity As a maturing system flexibility and data reliability become key focus. System Flexibility Reengineering Project Near completion Data IntegrityOngoing process 16

17. AAMVA Official Use Only NMVTIS – Data Integrity All data “owners” have an important responsibility Unable to improve NMVTIS data without help! Possible causes of data errors: – System errors and warnings messages: not being processed properly or in a timely fashion – Changes made to state title application and NMVTIS is not notified or considered. – Inquiries not being done prior to adding a record to NMVTIS 17

18. AAMVA Official Use Only VLA: Potential Next Steps Vehicle lifecycle transactions pertinent to state records: E-Titling beyond Proof of Concept Vehicle Miles Traveled (VMT) Toll projects Emissions/safety inspections 18