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HB 5111

AN ACT RELATING TO EDUCATION -- CURRICULUM

2025 Regular Session Introduced by Edith Ajello and 3 co-sponsors

Allows private-party ORV ownership transfers to be processed electronically via a state system, with contracts and protections, not for dealers.

04/22/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5111

Summary — HB 5111 (Natural Resources and Environmental Protection Act, amend MCL 324.81105)

Purpose

HB 5111 authorizes the Michigan Department of State to establish, implement, and operate an electronic system for processing transfers and notifications of ownership interests in off‑road vehicles (ORVs) between private parties. The intent is to permit electronic title/ownership transfers for ORVs (when no party is a dealer), mirroring language used in prior legislation that enabled electronic vehicle title transfers.

Key provisions

  • Amends section 81105 of the Natural Resources and Environmental Protection Act (MCL 324.81105).
  • Retains existing requirements that owners must deliver certificates of title to transferees and that purchasers must obtain certificates of title, except as otherwise provided by statute.
  • Adds a new subsection authorizing the Department of State to:
    • Establish, implement, and operate an electronic system to process notification and transfer of ORV ownership interests between private parties (non‑dealer transactions).
    • Enter into one or more contracts to build/operate that electronic system.
    • Require users of the system to comply with departmental requirements and to provide information the department requires.
    • Include contractual protections for proprietary information and other information protected under the Act.
  • Confirms existing limitation: the department is not required to issue a certificate of title to an owner if the title is subject to a security interest (per sec. 81109(5)).

Who would be affected

  • Private ORV buyers and sellers in Michigan (non‑dealer transactions) — they would be able to use electronic means to transfer ownership interests instead of relying solely on physical certificates.
  • The Michigan Department of State — would implement and oversee the electronic system and may contract with vendors.
  • Third‑party vendors or contractors who may be engaged to build/operate the system.
  • Dealers are excluded from using the private‑party electronic transfer authority established by this bill.

Fiscal and administrative impact

  • House Fiscal Agency analysis: no net fiscal impact to the state or local units. The Department of State may incur marginal administrative costs to extend electronic transfer capabilities and, where applicable, issue temporary permits at no charge; those costs are expected to be absorbed within existing resources.

Procedural status and timeline (highlights)

  • Filed: March 13, 2025.
  • Committee activity and public hearings occurred in April 2025; reported favorably to the floor.
  • House actions recorded in May 2025 (including passage/engrossment entries).
  • A House introduced bill version was electronically reproduced Oct 22, 2025.
  • Most recent status provided: reported with recommendation without amendment and referred to second reading (Nov 4, 2025).

Notes

  • The bill’s language mirrors provisions enacted for motor vehicle electronic title transfers (2023 PA 240).
  • The authorization is limited to private‑party transfers (no dealer involvement) and contains provisions to protect proprietary and otherwise protected information in any contracts.

Compiled from official sources — confirm details with the bill’s official record.

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