Dems: Transportation – week of Feb. 29, 2016

March 5, 2016

SF 2228 – Electronic motor vehicle registration



SF 2228, as amended on the floor, is a consumer-friendly initiative that increases efficiencies. The bill requires the Department of Transportation (DOT) to develop and implement a program to electronically handle the applications and transfer of funds for motor vehicle registration, titling and related required statements by July 1, 2018. If the program is not in place by then, vehicle owners may apply to the treasurer of the county where they reside or any contiguous county.


Code section 322.4 requires an applicant for a motor vehicle dealer’s license to furnish a surety bond. The bill increases the required amount from $50,000 to $75,000.


A motor vehicle dealer may charge as much as $180 to prepare title and registration documents. The maximum fee drops to $155 when electronic titling and registration is implemented. This “documentary fee” is part of the price of a vehicle and must be disclosed in advertising, price negotiations and the required notice to purchasers. Failure to comply is a violation of the Consumer Fraud Act.

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