VEHICLE TITLES – Amends existing law to provide for cancellation or discharge of an encumbrance by an Idaho vehicle dealer and to allow electronic motor vehicle records as evidence of ownership.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
742
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
VEHICLE
TITLES;
AMENDING
SECTION
49
-
504,
IDAHO
CODE,
TO
PROVIDE
2
FOR
ELECTRONIC
RECORDS
OF
OWNERSHIP;
AMENDING
SECTION
49
-
511,
IDAHO
3
CODE,
TO
ESTABLISH
PROVISIONS
REGARDING
CANCELLATION
OR
DISCHARGE
OF
4
LIENS
OR
ENCUMBRANCES
BY
IDAHO
DEALERS;
AND
DECLARING
AN
EMERGENCY
AND
5
PROVIDING
AN
EFFECTIVE
DATE.
6
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
7
SECTION
1.
That
Section
49
-
504,
Idaho
Code,
be,
and
the
same
is
hereby
8
amended
to
read
as
follows:
9
49
-
504.
APPLICATIONS
TO
DEPARTMENT
FOR
CERTIFICATES
-
-
PROCEDURE
-
-
10
IDENTIFICATION
NUMBERS.
(1)
Application
for
a
certificate
of
title
shall
be
1
1
made
upon
a
form
furnished
by
the
department
and
shall
contain
the
owner's
12
Idaho
driver's
license
number,
Idaho
identification
card
number
or
social
13
security
number
or
individual
taxpayer
identification
number.
In
the
case
14
of
a
business,
the
employer
tax
identification
number
is
required.
Every
15
application
shall
also
contain
the
owner's
true
and
full
legal
name.
In
16
the
event
that
the
owner
does
not
possess
a
social
security
number,
Idaho
17
driver's
license
number,
Idaho
identification
card
number
or
individual
18
taxpayer
identification
number,
the
owner
shall
present
written
documenta
-
19
tion
sufficient
to
the
department
to
determine
that
no
social
security
num
-
20
ber
has
been
issued.
In
the
event
that
a
business,
trust,
or
other
statuto
-
21
rily
created
entity
is
not
required
to
have
and
does
not
possess
an
employer
22
tax
identification
number,
the
applicant
shall
provide
a
written
statement
23
certifying
that
the
entity
does
not
possess
an
employer
tax
identification
24
number.
The
form
must
contain
the
owner's
physical
domicile
address
or,
25
in
the
case
of
a
business,
trust
or
other
statutorily
created
entity,
such
26
entity's
physical
address
and
any
mailing
address
if
different
from
the
27
physical
address.
If
the
owner
has
submitted
an
application
pursuant
to
the
28
provisions
of
chapter
58,
title
19,
Idaho
Code,
then
the
owner
may
state,
in
29
the
application
required
pursuant
to
this
section,
the
applicant's
alterna
-
30
tive
Idaho
mailing
address
in
place
of
his
or
her
physical
domicile
address.
31
Such
application
must
be
signed
by
the
owner
and
contain
a
full
description
32
of
the
vehicle,
including
the
make,
identification
numbers,
and
the
odometer
33
reading
at
the
time
of
sale
or
transfer,
and
whether
the
vehicle
is
new
or
34
used,
together
with
a
statement
of
the
applicant's
title
and
of
any
liens
or
35
encumbrances
upon
the
vehicle,
and
the
name
and
address
of
the
person
to
whom
36
the
certificate
of
title
shall
be
delivered,
and
any
other
information
as
the
37
department
may
require.
The
application
shall
be
filed
with
the
department
38
and,
if
a
certificate
of
title
has
previously
been
issued
for
that
vehicle
in
39
this
state,
shall
be
accompanied
by
the
certificate
of
title
duly
assigned,
40
unless
otherwise
provided
for
in
this
chapter.
The
department
may
promul
-
41
gate
rules
to
provide
for
exceptions
to
the
odometer
requirement.
Social
42

2
security
numbers
collected
shall
not
appear
on
certificates
of
title,
and
1
all
applications
on
file
shall
be
exempt
from
disclosure,
except
as
provided
2
in
sections
49
-
202,
49
-
203
and
49
-
203A,
Idaho
Code.
3
(2)
If
the
current
certificate
of
title
was
not
issued
for
the
vehicle
4
in
this
state,
the
application,
unless
otherwise
provided
for
in
this
chap
-
5
ter,
shall
be
accompanied
by
a
certificate
of
title,
bill
of
sale
,
electronic
6
motor
vehicle
record,
or
other
evidence
of
ownership
required
by
the
law
of
7
any
other
jurisdiction
from
which
the
vehicle
was
brought
into
this
state
and
8
a
vehicle
identification
number
inspection
completed
by
any
city,
county
or
9
state
peace
officer
or
other
special
agent
authorized
by
the
department.
10
(3)
In
the
case
of
a
new
vehicle
being
titled
for
the
first
time,
no
cer
-
1
1
tificate
of
title
or
registration
shall
be
issued
unless
the
application
is
12
endorsed
by
a
franchised
new
vehicle
dealer
licensed
to
sell
a
new
vehicle.
13
Each
application
shall
be
accompanied
by
a
statement
completed
by
the
fran
-
14
chised
new
car
dealer
that
it
is
authorized
to
transfer
the
vehicle
to
the
15
purchaser.
The
dealer
shall
retain
in
its
records
a
manufacturer's
certifi
-
16
cate
of
origin
or
manufacturer's
statement
of
origin
executed
by
the
manu
-
17
facturer
and
delivered
to
his
agent
or
his
franchised
vehicle
dealer.
The
18
certificate
or
statement
of
origin
shall
be
in
a
form
prescribed
by
the
board
19
and
shall
contain
the
year
of
manufacture
or
the
model
year
of
the
vehicle,
20
the
manufacturer's
vehicle
identification
number,
the
name
of
the
manufac
-
21
turer,
the
number
of
cylinders,
a
general
description
of
the
body,
if
any,
22
and
the
type
or
model.
Upon
sale
of
a
new
vehicle,
the
manufacturer
or
his
23
agent
or
franchised
dealer
shall
execute
and
deliver
to
the
purchaser
an
as
-
24
signment
of
the
certificate
or
statement,
together
with
any
lien
or
encum
-
25
brance
to
which
the
vehicle
is
subject.
The
certificate
or
statement
will
be
26
retained
by
the
dealer
for
five
(5)
years
so
that
it
is
available
for
inspec
-
27
tion
by
the
department.
28
(4)
The
department
shall
retain
the
evidence
of
title
presented
by
29
the
applicant
and
on
which
the
certificate
of
title
is
issued.
The
depart
-
30
ment
shall
maintain
an
identification
numbers
index
of
registered
vehicles
31
except
that
said
index
is
not
required
to
include
operators
who
have
been
32
issued
a
certificate
of
number
or
nonresident
user
certificate
pursuant
to
33
sections
67
-
7122
and
67
-
7124,
Idaho
Code,
and,
upon
receiving
an
applica
-
34
tion
for
a
certificate
of
title
shall
first
check
the
identification
number
35
shown
in
the
application
against
the
index.
The
department,
when
satisfied
36
that
the
applicant
is
the
owner
of
the
vehicle
and
that
the
application
is
in
37
proper
form,
shall
issue
in
the
name
of
the
owner
of
the
vehicle
a
certificate
38
of
title
bearing
a
title
number,
the
date
issued
and
a
description
of
the
39
vehicle
as
determined
by
the
department,
together
with
a
statement
of
the
40
owner's
title
and
of
all
liens
or
encumbrances
upon
the
vehicle,
and
whether
41
possession
is
held
by
the
owner
under
a
lease,
contract
or
conditional
sale,
42
or
other
like
agreement.
43
(5)
In
all
cases
of
transfer
of
vehicles,
the
application
for
certifi
-
44
cates
of
title
shall
be
filed
within
thirty
(30)
calendar
days
after
the
de
-
45
livery
of
the
vehicles.
Licensed
dealers
need
not
apply
for
certificate
of
46
title
for
vehicles
in
stock
or
when
they
are
acquired
for
stock
purposes.
47
(6)
In
the
case
of
the
sale
of
a
vehicle
by
a
dealer
to
a
general
pur
-
48
chaser
or
user,
the
certificate
of
title
shall
be
obtained
in
the
name
of
the
49
purchaser
by
the
dealer
upon
application
signed
by
the
purchaser.
If
a
lien
50

3
is
to
be
recorded,
the
title
documentation
as
required
in
this
section
shall
1
be
submitted
to
the
department
by
the
dealer
or
the
lienholder
upon
appli
-
2
cation
signed
by
the
purchaser.
A
copy
of
this
application
shall
be
given
3
to
the
purchaser
to
be
used
as
a
seventy
-
two
(72)
hour
temporary
permit,
4
unless
the
application
is
submitted
by
an
electronic
means
approved
by
the
5
department,
in
which
case
a
forty
-
five
(45)
calendar
day
temporary
permit
6
may
be
issued.
In
all
other
cases,
the
certificates
shall
be
obtained
by
the
7
purchaser
and
the
certificate
of
title
properly
assigned
and
dated
by
the
8
seller,
or
the
seller's
bill
of
sale
shall
serve
as
a
seventy
-
two
(72)
hour
9
permit.
The
seventy
-
two
(72)
hour
time
period
for
temporary
permits
shall
10
be
calculated
excluding
weekend
days
and
legal
holidays
observed
by
the
1
1
state
of
Idaho.
These
temporary
permits
allow
operation
of
any
noncommer
-
12
cial
vehicle
or
unladened
commercial
vehicle
or
vehicle
combination
without
13
license
plates
for
the
period
of
time
specified
in
the
permit.
A
ladened
14
commercial
vehicle
or
vehicle
combination
may
also
operate
without
license
15
plates
for
the
period
of
time
specified
in
the
temporary
permit,
provided
16
that
the
owner
or
operator
has
also
obtained
a
permit
issued
under
the
provi
-
17
sions
of
section
49
-
432,
Idaho
Code.
18
(7)
If
the
vehicle
has
no
identification
number,
then
the
department
19
shall
designate
an
identification
number
for
that
vehicle
at
the
time
of
is
-
20
suance
of
the
certificate
of
title.
The
identification
number
shall
be
per
-
21
manently
affixed
to
or
indented
upon
the
frame
of
the
vehicle
and
legibly
22
maintained
by
the
owner
at
all
times
while
a
certificate
of
title
to
the
vehi
-
23
cle
shall
be
issued
and
outstanding.
24
(8)
An
EVC
provider
authorized
pursuant
to
section
49
-
401C,
Idaho
Code,
25
may
act
on
behalf
of
the
department
in
receiving,
processing,
and
transmit
-
26
ting
applications
for
title
and
any
related
fees
to
the
department.
The
se
-
27
curity,
oversight,
and
processing
requirements
in
chapter
4,
title
49,
Idaho
28
Code,
shall
also
apply
to
titling
transactions
conducted
by
an
EVC
provider.
29
(9)
The
department
may
allow
a
person
to
submit
a
required
document
by
30
using
electronic
media
deemed
feasible
by
the
department
instead
of
requir
-
31
ing
an
original
document.
If
a
signature
on
a
document
is
required
by
law
and
32
the
document
is
submitted
electronically,
the
signature
requirement
will
33
be
satisfied
by
an
authenticated
electronically
submitted
signature.
An
34
electronically
submitted
document,
once
accepted
by
the
department,
shall
35
be
deemed
the
same
as
an
original
document
and
shall
be
admissible
in
all
36
administrative,
quasi
-
judicial,
and
judicial
proceedings.
37
SECTION
2.
That
Section
49
-
511,
Idaho
Code,
be,
and
the
same
is
hereby
38
amended
to
read
as
follows:
39
49
-
511.
CANCELLATION
OR
DISCHARGE
OF
LIEN
OR
ENCUMBRANCE.
(1)
When
a
40
lien
or
encumbrance
is
canceled
or
discharged,
the
lienholder
shall
provide
41
notice
of
such
cancellation
or
discharge
to
the
department
within
thirty
42
(30)
days.
If
the
lienholder
was
holding
the
paper
certificate
of
title,
43
he
shall
note
the
cancellation
or
discharge
on
the
certificate
of
title
in
44
the
space
provided,
over
his
signature,
or
by
some
other
legal
document,
45
discharging
the
encumbrance,
and
shall
deliver
the
paper
certificate
of
46
title
to
the
owner
within
thirty
(30)
days
of
receipt
of
payoff
of
the
encum
-
47
brance.
If
the
lienholder
was
holding
an
electronic
title,
he
shall
send
the
48
department
an
electronic
transaction
that
directs
the
department
to
provide
49

4
a
paper
title
to
the
owner
free
of
the
lienholder's
lien
within
thirty
(30)
1
days
of
receipt
of
payoff
of
the
encumbrance.
2
(2)(a)
Notwithstanding
the
provisions
of
subsection
(1)
of
this
sec
-
3
tion,
when
an
Idaho
vehicle
dealer
licensed
pursuant
to
chapter
16,
4
title
49,
Idaho
Code,
cancels
or
discharges
a
lien
or
encumbrance,
the
5
lienholder
shall
provide
notice
of
such
cancellation
or
discharge
to
6
the
department
within
ten
(10)
business
days
of
receipt
of
verified
7
funds.
If
the
lienholder
was
holding
the
paper
certificate
of
title,
8
such
lienholder
shall
note
the
cancellation
or
discharge
on
the
cer
-
9
tificate
of
title
in
the
space
provided,
over
his
signature,
or
by
some
10
other
legal
document,
discharging
the
encumbrance.
If
the
lienholder
1
1
has
received
authorization
from
the
current
owner
to
do
so,
by
personal
12
notification
from
the
current
owner,
by
power
of
attorney,
or
by
other
13
legal
document
granted
to
a
dealer,
the
lienholder
shall
send
the
paper
14
certificate
of
title
to
the
dealer
within
ten
(10)
business
days
of
re
-
15
ceipt
of
verified
funds
to
pay
off
the
encumbrance.
16
(b)
For
the
purposes
of
this
subsection,
"verified
funds"
means
funds
17
when
such
funds
credit
to
the
lienholder's
account
and
become
final
in
18
accordance
with
the
law
or
rules
applicable
to
the
method
by
which
the
19
funds
were
transmitted
to
the
lienholder.
20
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
21
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
22
July
1,
2026.
23