Bill > S2968

Introduced Session

This bill establishes an electronic lien and titling system for New Jersey motor vehicles, replacing the State's current paper based system for those vehicles. The New Jersey Motor Vehicle Commission (MVC) is required to complete a study to determine whether it has the resources and capability to establish and implement, within one year of the bill's enactment, an electronic lien and titling system to process and administer, in a cost-effective manner, the notification, recording, and release of security interests and titling information by the lienholders of motor vehicles in lieu of the current paper based system. If the MVC determines it does have the resources and capability to implement a system, it is to proceed immediately to establish a system within 12 months of the bill's effective date. If the MVC determines it does not have the resources and capability to implement a system, the MVC would be required to contract with a qualified bidder to establish and implement a system for the State. Any contract is to be offered, advertised, and awarded subject to the State public contracts law (chapter 34 of Title 52 of the Revised Statutes). In addition, the bill specifies that the contract would: 1) be for a term of not less than seven years; 2) be a no-cost contract, ensuring that the MVC is assessed no charges by the successful bidder for establishing and implementing the electronic lien and titling system and that the successful bidder is obligated to reimburse the MVC for all reasonable costs directly associated with the establishment and implementation of the system; and 3) include an authorization permitting the successful bidder to charge participating lienholders and their agents reasonable fees. The bill also specifies requirements for applicants seeking to enter into a contract with the State. In addition to the qualifications set forth in the State public contracts law, the bill requires applicants to have a demonstrated history of directly providing both electronic lien services to state motor vehicle departments or agencies and electronic lien software and services to lienholders. Finally, the bill mandates that within one year of the date upon which the electronic lien and titling system becomes operational, all lienholders in New Jersey are required to participate in the system, except individuals and those lienholders who are not normally engaged in the business of financing motor vehicles and are administratively exempted by the chief administrator.

AI Summary

Committee Categories

Nicholas Chiaravalloti (D)*,  Craig Coughlin (D)*,  Linda Greenstein (D)*,  Raj Mukherji (D)*,  Joe Vitale (D)*,  John Wisniewski (D)*,  Robert Clifton (R),  Patrick Diegnan (D),  Joe Lagana (D),  Steven Oroho (R),  Nancy Pinkin (D), 

Passed Assembly (Passed Both Houses) (59-8-0) (on 01/08/2018)