The bill establishes a new chapter, CHAPTER 3.4, titled the "Electronic Registration and Titling Act," within Title 31 of the General Laws concerning motor vehicles. This chapter outlines the implementation of an electronic lien and title (ELT) system and an electronic registration and title (ERT) system, enabling business entities, credit unions, and financial institutions to conduct transactions electronically for automotive titles and registrations.

The bill specifies that beginning on October 1, 2026, credit unions and financial institutions that record five or more security interests in a calendar year must use the ELT system to record and release all security interests. Additionally, starting twelve months after the administrator of the division certifies that the ERT system is available for use by all licensed motor vehicle dealers, any dealer who sells more than 150 motor vehicles in a calendar year will be required to use the ERT system to submit title and registration applications.

The bill also introduces provisions for secure digital vehicle titles, which will be regarded as official titles from the State of Rhode Island and will be fully transactable within the state and other U.S. jurisdictions. It allows the division of motor vehicles to impose a per-transaction fee for the use of the ELT and ERT systems, ensuring that these fees are consistent with market pricing for the development and ongoing management of the systems.

Furthermore, the bill amends existing laws related to odometer disclosures during vehicle transfers, allowing for electronic forms and requiring accurate documentation of mileage. The act is set to take effect on July 1, 2026.

Statutes affected:
2330: 31-23.2-6
2330  SUB A: 31-23.2-6