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HB 5112

Vehicles: off-road; electronic transfer of title or interest in off-road vehicle or watercraft; provide for. Amends sec. 80304 of 1994 PA 451 (MCL 324.80304).

2025-2026 Regular Session Introduced by Karl Bohnak and 2 co-sponsors

Allows private-party watercraft ownership transfers to be processed electronically through a state system, reducing the need for paper title delivery.

referred to second reading
#vehicles:off-road #watercraft:other
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Bill Summary · HB 5112

Summary — HB 5112 (Natural Resources and Environmental Protection Act, amending MCL 324.80304)

Status: Referred to second reading (reported with recommendation without amendment 11/04/2025)
Introduced: Filed 03/13/2025; printed/introduced in current form 10/22/2025
Sponsor: Rep. Dave Prestin (with Reps. Bohnak and Outman)
Related/companion: SB 1909; part of a bill package with HBs 5109–5111 (electronic title/temporary permit changes)

Purpose

HB 5112 authorizes the Secretary of State to create and operate an electronic system to process private-party watercraft ownership transfers (title or ownership interest) without requiring physical delivery of a paper certificate of title. The change is intended to extend to watercraft the electronic-title authority previously granted for motor vehicles (2023 PA 240) and to modernize title transfer procedures.

Key provisions

  • Amends section 80304 of the Natural Resources and Environmental Protection Act (MCL 324.80304).
  • Retains existing requirements that sellers deliver a certificate of title and buyers obtain a title, subject to statutory exceptions (e.g., sections 80306 and 80320(4)).
  • Adds an express grant of authority allowing the Secretary of State to:
    • Establish, implement, and operate an electronic system to process notification and transfer of a watercraft ownership interest between private parties (non-dealers).
    • Enter into one or more contracts to establish and operate that system.
    • Require users of the electronic system to comply with department requirements and provide requested information.
    • Include contract provisions to protect proprietary information and other data protected under the NREPA.
  • Applies only to transfers where none of the parties is a dealer (private-party transfers).

Who is affected

  • Private sellers and buyers of titled watercraft in Michigan (non-dealer transfers) — will be able to use an electronic transfer process when the system is available.
  • Department of State — will develop, operate, and oversee the electronic transfer system and may contract with vendors.
  • Title-related service providers/contractors — potential vendors for system development and operation.
  • Dealers are not authorized to use this private-party electronic-transfer provision.

Fiscal and procedural notes

  • House Fiscal Agency estimates no net fiscal impact to state or local government. The Department of State may incur marginal administrative costs to implement/operate the system and to issue temporary permits (related bills), but these costs are expected to be covered with existing resources.
  • Background: This bill is a follow-up to provisions enacted for vehicle electronic titles (2023 PA 240) and mirrors similar language in companion bills addressing vehicles and off‑road vehicles.

Effect if enacted

Permits electronic watercraft ownership transfers between private parties under Department of State rules, reducing dependence on physical paper title delivery where the electronic system is used, while maintaining statutory protections and data-control requirements.

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

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