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HB 1845

TO ALLOW THE ELECTRONIC ADMINISTRATION OF DOCUMENTS RELATED TO THE OWNERSHIP OF MOTOR VEHICLES; TO AUTHORIZE ELECTRONIC LIEN, TITLING, AND REGISTRATION SYSTEMS; AND TO AUTHORIZE THE CREATION OF A SECURE DIGITAL TITLE SYSTEM.

2025 Regular Session Introduced by Ricky Hill and 1 co-sponsor

HB 1845 modernizes motor vehicle ownership in Arkansas by allowing electronic lien, titling, and registration systems, improving efficiency for owners and dealers.

Notification that HB1845 is now Act 926
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WeVote Research Nonpartisan
Bill Summary · HB 1845

Summary of HB 1845: Electronic Administration of Motor Vehicle Documents

Bill Number: HB 1845
Title: To Allow the Electronic Administration of Documents Related to the Ownership of Motor Vehicles; To Authorize Electronic Lien, Titling, and Registration Systems; and To Authorize the Creation of a Secure Digital Title System.
Status: Now Act 926
Introduced: March 18, 2025
Sponsors: Rep. Holcomb and Sen. Hill

Purpose and Intent

HB 1845 aims to modernize the administration of motor vehicle ownership documents in Arkansas by allowing electronic processes for lien recording, titling, and registration. The bill seeks to enhance efficiency, reduce paperwork, and improve accessibility for vehicle owners and dealers.

Key Provisions

  • Electronic Systems Authorization:
    The bill authorizes the Department of Finance and Administration (DFA) to implement:

    • An electronic lien system
    • An electronic titling system
    • An electronic registration system

  • Real-Time Connectivity:
    The electronic systems must connect in real-time to the National Motor Vehicle Title Information System and comply with security standards set by the Department of Shared Administrative Services.

  • Implementation and Certification:
    The DFA can develop the system internally or contract with a vendor at no cost to the state. The vendor will charge a per-transaction fee to users. Once operational, the DFA must certify the system's implementation to the Bureau of Legislative Research and the Arkansas Code Revision Commission.

  • Mandatory Use for Dealers:
    Within one year of the system's launch, motor vehicle dealers will be required to use the electronic system unless exempted or granted a waiver by the DFA.

  • Electronic Documentation:
    The bill allows for electronic records related to:

    • Odometer statements
    • Powers of attorney for vehicle transactions
    • Applications for registration and certificates of title

  • Secure Digital Title System:
    A secure digital vehicle title may be offered as an alternative to a paper title, ensuring that it meets all necessary security requirements.

Impact

  • Affected Parties:
    The legislation will primarily impact:

    • Motor vehicle owners and dealers in Arkansas
    • The Department of Finance and Administration
    • Vendors providing electronic services

  • Fiscal Impact:
    The bill is projected to have no fiscal impact on the state budget, as the implementation costs will be covered by user fees.

  • Training and Resources:
    The DFA will need to update its manuals and website, and conduct training sessions for relevant staff to ensure smooth adoption of the new systems.

Procedural Aspects

  • The bill was introduced on March 18, 2025, and underwent several legislative actions, including amendments and committee reviews, before being passed and signed into law as Act 926 on April 21, 2025.

  • The implementation timeline allows for adequate preparation and training for all stakeholders involved.

Conclusion

HB 1845 represents a significant step toward digitizing the processes associated with motor vehicle ownership in Arkansas. By enabling electronic administration, the bill aims to streamline operations, enhance security, and improve service delivery for vehicle owners and dealers alike.

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

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