Legislative Analysis
Phone: (517) 373-8080
ELECTRONIC VEHICLE TITLE TRANSFER http://www.house.mi.gov/hfa
Senate 533 as reported from House committee Analysis available at
Sponsor: Sen. Erika Geiss http://www.legislature.mi.gov
House Committee: Transportation, Mobility and Infrastructure
Senate Committee: Transportation and Infrastructure
Complete to 11-4-23
(Enacted as Public Act 240 of 2023)
SUMMARY:
Senate Bill 533 would amend the Michigan Vehicle Code to allow the secretary of state to
issue an electronic vehicle title and establish and operate an electronic system to facilitate
electronic transfers of vehicle ownership between private parties (when neither the buyer
nor the seller is a dealer).
Specifically, the bill would authorize the Department of State to establish, implement, and
operate an electronic system to process the notification and transfer of a vehicle ownership
interest between private parties through an electronic transfer instead of the collection of
paper documents otherwise required under the act.
If the electronic system is established, a private party using it would have to comply with
any requirement, and provide any information, the department determines is necessary.
The bill would also allow the department to enter one or more contracts to establish,
implement, and operate the electronic system. The contract would have to require the
protection of proprietary information contained in the electronic system and other
information as protected under the act.
MCL 257.217 et seq.
FISCAL IMPACT:
The bill would result in additional costs to the Department of State. The department
estimates one-time programming costs to fully incorporate the electronic transfer of vehicle
titles functionality into its computer systems would be approximately $550,000. It is
unknown at this time whether there would be additional ongoing costs related to third-party
vendor software services for facilitating data transfers between the state and private parties.
The bill, in conjunction with previous initiatives to provide online or electronic self-service
vehicle and driver services, may contribute to fewer in-person transactions at secretary of
state branch offices and help alleviate staffing needs there. The Department of State
estimates that title transfer services make up the vast majority of all current in-person
branch office transactions, up to 75% at some offices. The shift of services from being
performed in-person at branch offices to being done electronically without office visits has
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 shifted some responsibilities from branch office staff to central operations staff. The fiscal
impact of this shift in services and labor costs is indeterminate at this time.
The bill would have no fiscal impact on local units of government.
POSITIONS:
A representative of the Department of State testified in support of the bill. (10-31-23)
Legislative Analyst: E. Best
Fiscal Analyst: Michael Cnossen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 464 as reported from House committee Page 2 of 2


Statutes affected:
Senate Introduced Bill: 257.217
As Passed by the Senate: 257.217
As Passed by the House: 257.217
Public Act: 257.217
Senate Enrolled Bill: 257.217