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SB 1010

Vehicles: off-road; electronic transfer of title or interest in off-road vehicle or watercraft; provide for. Amends secs. 80304 & 81105 of 1994 PA 451 (MCL 324.80304 & 324.81105).

2023-2024 Regular Session Introduced by Erika Geiss and 2 co-sponsors

Allows the Department of State to create an electronic title-transfer system for private-party watercraft and ORVs, modernizing transfers and reducing paper certificates.

placed on second reading
#vehicles:off-road #watercraft:other
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Bill Summary · SB 1010

Summary — SB 1010 (Natural Resources & Environmental Protection Act amendments)

Amends MCL 324.80304 and 324.81105 to allow electronic transfers of title or ownership interests in watercraft and off‑road vehicles (ORVs) between private parties.

Purpose / Intent

Enable the Department of State (DOS) to extend electronic title-transfer technology (similar to electronic motor‑vehicle title systems) to watercraft and ORVs, modernize and streamline private-party transfers, reduce reliance on paper certificates, and allow the State to contract for system development and operation.

Key provisions

  • Adds explicit authority for the Secretary/Department of State to establish, implement, and operate an electronic system to process notification and transfer of watercraft and ORV ownership interests where none of the parties is a dealer (private‑party transfers).
  • If the electronic system is used, private parties must comply with any requirements the DOS determines necessary and must provide any information the DOS requires.
  • DOS may enter into one or more contracts to establish, implement, and operate the system.
  • Contracts must require protection of proprietary information contained in the electronic system and other information protected under NREPA.
  • Leaves intact existing requirements for delivery/possession of a certificate of title where the electronic system is not used.

Who is affected

  • Private buyers and sellers of watercraft and ORVs (i.e., transactions where neither party is a registered dealer).
  • Department of State (tasked with designing/operating the system and adopting any procedural requirements).
  • Third‑party contractors engaged by DOS to build/operate the system.
  • Title service providers and county/state officials who interact with title records.

Procedural / timeline notes

  • Statutory sections amended: MCL 324.80304 (watercraft transfer) and 324.81105 (ORV title provisions).
  • Legislative history in the provided materials: introduced in the Senate (sponsor: Sen. Veronica Klinefelt) and reported favorably by the Senate Transportation & Infrastructure Committee; Senate passage recorded 12/5/2024. As provided in the bill header, status is “placed on second reading” (subsequent House action may be pending).
  • No explicit effective date included in the excerpt; implementation would depend on final enactment and any statutory effective date.

Fiscal impact / other considerations

  • State Fiscal Agencies report the DOS already operates an online title transfer program for motor vehicles; extending capability to watercraft and ORVs is expected to be absorbable within current appropriations and likely to result in minimal or no net fiscal impact.
  • The bill requires DOS to define compliance rules for private‑party users; those administrative rules will determine operational details (authentication, evidence required, fraud prevention, records retention).

Related legislation / context

  • Mirrors and extends principles of 2023 Public Act 240 (which authorized electronic motor‑vehicle titles and private‑party electronic transfers).
  • Part of a package of bills addressing electronic title transfers and temporary registration permits (e.g., SB 1008, SB 1009 in committee reports).

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

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