1. DMV Registration Operations Division
Electronic Titling Changes
AB 1515 – Business Partner Automation
New Title Transfer Restrictions

2. History of ELT in California
California was the first state to implement ELT, starting a pilot program with GMAC in 1989
By 1995, there were 15 lienholders were participating
In 1999, ELT became an official program
Today, there are more than 550 ELT lienholders with more added each quarter

3. TOTAL ELT TRANSACTIONS TOTAL # OF PARTICIPANTS
ELT Workload
Six ELT vendors send electronic records to DMV (up from four last year).
Transactions processed over past 12 years:
YEAR
TOTAL ELT TRANSACTIONS
TOTAL # OF PARTICIPANTS
2011
831
2010
2.5 million
529
2009
3.4 million
460
2006
3.6 million
355
2003
2.9 million
280
2000
2.0 million
175
1998
< 1.0 million 50

4. ELT Program – Current Status
Rulemaking under final review:
Financial institutions must participate
No other group will be required to participate at this time
All activity through service providers
No contracts required – participants issued a permit/certificate
System enhancements:
New ELT User Interface to better service lienholders
Reduce errors with simplified requirements
Improve the submission process for electronic records
Allowing lienholders to update address and issue title on payoff
Create “expedite” stream for immediate title issuance

5. BPA Background
Implemented administratively in 1996 to allow direct processing of new reports of sale and registration renewals by high volume customers.
California Vehicle Code Section 1685 was enacted in July 2001 to formally establish a permanent program; regulations were first approved for Title XIII in 2003.
There are three types of Business Partners
First Line Business Partner - receives information from DMV and uses it for that partner’s business.
First Line Service Provider - receives information from DMV and transmits it to another for processing.
Second Line Business Partner - receives information from a first line provider and must be a registration service, vehicle dealer or leasing company, salvage pool, dismantler, or rental car company.
First Line Business Partners and Service Providers are responsible for all fees due to DMV and pay via an Electronic Fund Transfer. Second Line Business Partners remit fees to the service provider.

6. AB 1215 – Effective July 2012
All licensed new car dealers must enroll in the DMV Business Partner program
All new and used car sales by these dealers must be processed through DMV’s BPA Program unless the transaction cannot be accommodated in that system. Fees can be passed through to consumers.
Document Preparation Fees - up to $80 for BPA enrolled dealers; for non-enrolled dealers fees are $55 for vehicle purchase and $45 for lease transactions.
Dealers must inquire against the National Motor Vehicle Title Information System (NMVTIS) prior to offering a vehicle for retail sale and provide the report on request.
Vehicles “branded” in NMVTIS must be identified through special tagging.

7. BPA Customer Charges Item Pass Through?
First Line Service Provider Title/Registration Processing Charge
Yes
First Line Service Provider Charge for handling and mailing license plates and tags
Dealer Postage Charge No
Dealer Internal Processing Costs (e.g., labor for dealership staff)
Dealer Costs for Enrolling in BPA Program
First Line Service Provider Charges for Advertising
Dealer Markup Beyond First Line Service Provider Charge
No!
Any Charge from a Registration Service

8. BPA Program Update System now available daily
Transaction capacity expanded – virtually all transactions can be processed through BPA Environment
Field offices will continue to support transactions that cannot be handled through BPA
Bond and contract requirements eliminated for Second-Line Participants
48-hour EFT transaction

9. Vehicle Titling and Lien Washing
Using stolen or fraudulent identifies, vehicles are financed and purchased, usually under $0 drive-off specials
Lien holders are then removed using an Application for Duplicate Title or Lien Satisfied form using fake or crooked notaries and bogus lien releases
The criminal either sells the vehicle to another unsuspecting dealership or ships it overseas
The crime is only discovered when the finance company fails to receive several payments – months later

10. New Title Transfer Restrictions
Effective March 1, 2012, the California Certificate of Title is the only document that can be used to release a lien for California-titled vehicles two model years old or newer.
DMV will no longer accept a lien release on an Application for Duplicate Title (REG 227), a Lien Satisfied/Title Holder Release (REG 166), or any other type of lien release for these vehicles.
The address of the legal owner cannot be changed when applying for a duplicate title. This should be done prior to requesting a duplicate title.
Electronic lien and title (ELT) legal owner of record participants must continue to use the appropriate ELT process to release the lien or transfer legal ownership.

11. Contact Information
Andrew Conway, Chief
Registration Policy and Automation Branch