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Bill

Bill

S 2371

Enacts the "red tape reduction act"

2025 Regular Session Introduced by Pam Helming and 1 co-sponsor

Massachusetts would modernize titles/registrations to be electronic, enable cross-state electronic titling, require faster lien releases, and allow paper titles on demand.

REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
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Bill Summary · S 2371

Summary — S.2371: "An Act modernizing and expanding availability of motor vehicle titling and registration services"

Status (from bill text)
- Commonwealth of Massachusetts bill introduced Jan 16, 2025 (Senate Docket No. 1781 / Senate No. 2371).
- Referred to Committee on Commerce, Economic Development and Small Business. Takes effect upon passage.

Note on sponsorship/metadata
- The bill text and petitioners identify Massachusetts senators Sal N. DiDomenico and Angelo J. Puppolo, Jr. as sponsors. Other sponsor lists and legislative-action entries provided with the request appear to mix in metadata from other jurisdictions or sessions (some committee names and federal senator names do not match the Massachusetts bill text). This summary focuses on the bill language included above.

Purpose and intent
- Modernize and expand electronic motor vehicle titling and registration services in Massachusetts, reduce reliance on paper certificates, speed lien satisfaction and title transfers, and enable reciprocal cross‑border electronic titling and registration with other U.S. states or the District of Columbia.

Key provisions
1. Reciprocal cross‑border electronic titling/registration (amending St. 90 §2)
- Authorizes the Registrar of Motor Vehicles to enter agreements with other states/DC to create a reciprocal electronic titling and registration program.
- Allows a purchaser who bought a vehicle in another participating state to have that vehicle titled/registered electronically in their state of residence under program rules.
- Restricts out‑of‑state sellers: a person selling vehicles outside Massachusetts under another state’s laws may not engage in electronic titling/registration into Massachusetts until a reciprocal program is in place between Massachusetts and that other state.

  1. Non‑discrimination by dealer transaction volume (amending St. 90 §31)

    • Prohibits the Registrar from adopting rules that exclude a class of motor vehicle dealer from the registry’s electronic registration program solely because of the dealer’s transaction volume.
  2. Electronic notification and waiver of paper title issuance (amending St. 90D §11a)

    • Permits the Registrar to waive issuing/mailing a paper certificate of title after receiving electronic notification that a security interest (lien) is satisfied.
    • If waived, the owner or authorized third party must be able to request a paper certificate at no fee, and the Registrar must provide processes enabling owner actions normally requiring the paper certificate.
  3. Lien release timing, payment clearing, and dealer retail process (replacing St. 90D §24)

    • Requires a lienholder, upon satisfaction of a security interest, to execute and deliver a release within 3 days after demand and no later than 10 days, and to mail/deliver the certificate/release to the next lienholder, owner, or authorized recipient.
    • Defines certain payment types (cash, certified/cashier/teller checks, intra/interbank transfers, electronic transfers) as cleared immediately upon receipt.
    • Directs the Registrar, no later than Jan 1, 2026, to prescribe a form or electronic process allowing a dealer to retail a vehicle when (i) the dealer has made a cleared payment as defined above, or (ii) the Registrar has received electronic notification that a security interest is satisfied pursuant to §11a. The Registrar must also prescribe how dealers maintain, invalidate, or surrender certificates in these circumstances.

Who is affected
- Vehicle purchasers and owners (easier electronic titling/registration; continued right to request paper titles).
- Motor vehicle dealers (expanded access to electronic registration; restrictions on out‑of‑state sellers until reciprocity established).
- Lienholders and financial institutions (clearer and shorter timelines for lien release; must accept/direct electronic notifications).
- Registrar / RMV (responsible for creating inter-state agreements and electronic systems; must adopt forms/processes by Jan 1, 2026).
- Title service providers and third-party processors who may need integration with new electronic systems.

Procedural/timeline notes
- Effective on passage.
- Registrar must prescribe the dealer electronic retail process and related forms by January 1, 2026.
- Implementation will require inter‑agency and inter‑state agreements, technical systems for secure electronic lien notifications, and administrative rulemaking.

Potential impacts (practical)
- Expected to speed title processing and vehicle retailing, reduce paper handling and mailing delays, and improve convenience for buyers purchasing across state lines once reciprocity is established.
- May impose implementation costs for the RMV and require secure electronic interfaces between states, lienholders, and dealers.
- Limits some out‑of‑state electronic registration activity until reciprocal agreements are in place, potentially protecting Massachusetts’ title integrity while reciprocity is negotiated.

For more detail
- See the bill text for exact statutory amendments to Massachusetts General Laws chapters 90 and 90D and the precise timing and compliance language.

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

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