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HLS 26RS-925 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 885
BY REPRESENTATIVE MELERINE
MOTOR VEHICLES: Provides with respect to electronic titles and registration for motor
vehicles
1 AN ACT
2 To amend and reenact R.S. 32:707.2 and to enact R.S. 32:705.2 and 726.2, relative to
3 electronic lien, titling, and recordation of motor vehicles; to provide for system
4 requirements for electronic lien, titling, and recordation of motor vehicles; to provide
5 for the duties of the office of motor vehicles; to provide for the use of electronic
6 signatures; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 32:707.2 is hereby amended and reenacted and R.S. 32:705.2 and
9 726.2 are hereby enacted to read as follows:
10 §705.2. Secure digital motor vehicle titles; electronic recordation; electronic
11 signatures
12 A. The Department of Public Safety and Corrections, office of motor
13 vehicles, may implement a system that offers vehicle title holders a fully paperless,
14 secure digital vehicle title instead of the standard secure paper vehicle title.
15 B. Once implemented, the secure digital title system shall:
16 (1) Include all functions related to title re-assignments.
17 (2) Meet or exceed applicable security requirements as set forth in
18 regulations promulgated by the office of motor vehicles.
19 (3) Provide title holders with online, real-time access to motor vehicle titles
20 and status of titles in process.
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 C. A secure digital vehicle title produced under this Section shall be regarded
2 as an official title from the state of Louisiana and be fully recognized legally for any
3 motor vehicle related transactions within the state and all other United States
4 jurisdictions.
5 D. A duly certified copy of the office of motor vehicle's secure digital title
6 shall be admissible in any civil, criminal, or administrative proceeding in this state
7 as evidence of the existence of the title.
8 E. The commissioner of the office of motor vehicles may promulgate any
9 necessary rules and regulations to implement the provisions of this Section.
10 * * *
11 §707.2. Electronic media system for lien recordation and title information; fees;
12 required bond; confidentiality of information; rules and regulations
13 A. The department shall develop and implement on a statewide basis no later
14 than January 1, 2010, a computer system which will permit the electronic recording
15 of information concerning the perfection and release of vehicle security interests
16 without submitting or receiving paper title documents, including electronic lien,
17 electronic titling, and electronic registration. The department may allow the
18 submission of vehicle title information for new, transferred, and corrected
19 certificates of title, including the perfection and release of security interests, through
20 electronic media in a cost-effective manner in lieu of the submission and
21 maintenance of paper documents otherwise required by this Chapter. The system
22 shall enable the ability to transact, process, record, and transmit certificates of title
23 through a completely electronic process for:
24 (1) All business entities and their service providers applying for automotive
25 titles and registrations, for itself or the customers.
26 (2) Electronic submission of liens and lien satisfactions by financial
27 institutions and its service providers pursuant to R.S. 32:708.
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 B. The electronic lien, electronic titling, and electronic registration system
2 shall provide that any lien or security pursuant to R.S. 32:708 shall be electronically
3 transmitted to the department based on the following:
4 (1) If there are one or more liens or encumbrances on the motor vehicle, the
5 department shall electronically transmit the lien to the first lienholder and notify the
6 first lienholder of any additional liens, provided that a motor vehicle lien is noted on
7 its face of the certificate of the title and notwithstanding any other requirements in
8 this Chapter.
9 (a) Subsequent lien satisfactions shall include the name and address of the
10 person satisfying the lien.
11 (b) A certificate of title shall not be issued until the last lien is satisfied and
12 a clear certificate of title is issued to the owner of the vehicle. The department is not
13 obligated to print a paper title until the final lien is satisfied.
14 (2)(a) Vehicles subject to an electronic lien shall have the certificate of title
15 for the vehicle considered to be physically held by the lienholder for the purpose of
16 compliance with state and federal odometer disclosure requirements.
17 (b) A duly certified copy of the office of motor vehicle's electronic record
18 of the lien shall be admissible in any civil, criminal, or administrative proceeding in
19 this state as evidence of an existence of a lien.
20 B. C.(1) The department is hereby authorized to contract with public license
21 tag agents for the purpose of administering a system which will provide for the
22 recording of vehicle title information and security interest notification without
23 issuance of a paper title.
24 (2) The department is hereby authorized to promulgate rules and regulations
25 in accordance with the Administrative Procedure Act, to provide for certain limited
26 exceptions to the electronic recordation requirements set forth by this Section, for
27 individuals and lienholders that are not normally engaged in the business or practice
28 of financing vehicles.
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 C. D.(1) An approved public license tag agent operating a secured host
2 computer system interfacing with the computer system of the Department of Public
3 Safety and Corrections, office of motor vehicles, and the computer system of a
4 lending institution or other sales finance company shall be bonded in an amount
5 specified by the department. The public license tag agent is hereby authorized to
6 charge a fee to customers utilizing this electronic media system.
7 (2) Each federally insured depository institution that originates more than
8 two hundred fifty motor vehicle transactions per year, and each finance company,
9 lending institution, or other lender shall designate a public tag agent with which such
10 bank, finance company, lending institution, or other lender shall interface its
11 computer system for the purpose of receiving electronic confirmation from the
12 department, of the receipt and the filing of the security interest on the subject motor
13 vehicle. Each federally insured depository institution that originates more than two
14 hundred fifty motor vehicle transactions per year, and each finance company, lending
15 institution, or other lender shall also designate such public tag agent when
16 transmitting a release or satisfaction of its lien.
17 (3) Any request to convert an electronic lien and title record to a paper
18 document shall be forwarded to the department by the federally insured depository
19 institution, finance company, lending institution, or other lender through its interface
20 with its designated public tag agent. Upon receipt of the appropriate title and
21 handling fees, the department shall provide the requested paper title.
22 (4) Any request to convert an existing paper title to an electronic title shall
23 be forwarded to the department by the federally insured depository institution,
24 finance company, lending institution, or other lender through its interface with its
25 designated public tag agent. Upon receipt of such a request, the department shall
26 convert the paper to an electronic title at a charge to the lender not to exceed one
27 dollar and fifty cents per title. This charge shall be forwarded to the state treasurer
28 for deposit into the Office of Motor Vehicles Customer Service and Technology
29 Dedicated Fund Account. The public tag agent fee shall not exceed three dollars per
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 title conversion request. The provisions of R.S. 32:412.1 and 728 shall not apply to
2 this Paragraph.
3 D. E. Notwithstanding any other law to the contrary, a written or printed
4 report of an electronic media transaction or recording required under the provisions
5 of this Section, if certified as true and correct by the department, shall serve as
6 evidence of any signature, acknowledgment, or information which was provided to
7 or by the department through electronic means, and the certification shall be
8 admissible in any legal proceeding as evidence of the facts stated therein.
9 E. F. All information received by the department or a public license tag agent
10 in connection with an electronic lien recordation or title information shall remain
11 confidential as specified by the department.
12 F. G. The department shall promulgate rules and regulations in accordance
13 with the Administrative Procedure Act as are necessary to implement the provisions
14 of this Section, including but not limited to rules and regulations regarding the
15 setting of fees in accordance with R.S. 47:532.1(C), the amount of bond required for
16 public license tag agents operating a secured host computer system, and the
17 confidentiality of information.
18 G. H.(1) The department is authorized to form a task force to develop and
19 implement the system required by this Section. The members of this task force shall
20 be appointed by the secretary and shall include representatives from the department,
21 the commercial banking industry, sales finance companies, credit unions, savings
22 institutions, and the vehicle dealership industry.
23 (2)(a) The task force shall research methods whereby the department,
24 lending institutions and sales finance companies may exchange and maintain
25 information concerning the perfection and release of vehicle security interests
26 without submitting or receiving a paper title document. Further, the task force shall
27 develop methods whereby lending institutions and sales finance companies may
28 submit, through a variety of electronic media, updated information pertaining to the
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 title record, including the addition, assignment or release of vehicle security
2 interests.
3 (b) No later than January 1, 2009, the task force shall develop and implement
4 a pilot program to implement the requirements set forth by this Section.
5 H. I. The procedures referred to in this Section shall be referred to as
6 electronic lien and title services or E.L.T. services.
7 J. Out-of-state lienholders participating in the Electronic Lien and Title
8 program recognized by the American Association of Motor Vehicle Administrators
9 shall be deemed in compliance with this Section.
10 K. Lienholders shall process electronic lien releases within two business
11 days from the date the funds are deemed collected and shall maintain real-time
12 accuracy of status information.
13 L. Applications for registration submitted by licensed Louisiana motor
14 vehicle dealers may be executed and submitted using electronic signatures and
15 electronic records pursuant to R.S. 47:503.
16 M. All systems approved under this Section shall utilize electronic signatures
17 and shall integrate seamlessly with electronic lien and title systems.
18 * * *
19 §726.2. Tampering with or altering odometers; electronic usages
20 A. Licensed Louisiana motor vehicle dealers may execute and submit
21 electronic signatures and electronic records for all motor vehicle titling, registration,
22 odometer disclosure, and related documents in connection with the sale, lease,
23 transfer, or financing of a motor vehicle.
24 B.(1) Any sales agreement for the transfer of a motor vehicle between
25 persons as defined in this Section shall contain the following statement:
26 "Both buyer and seller have examined the title certificate of the motor vehicle
27 and it correctly reflects the mileage as it appears on the odometer."
28 (2) This statement shall be placed conspicuously and prominently on the
29 agreement.
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 C. It shall be unlawful for any person to transfer ownership of a motor
2 vehicle previously registered in this state or a motor vehicle used by a dealer as a
3 demonstrator, unless the transferor takes one of the following actions:
4 (1)(a) Enters on an electronic form prescribed by the Department of Public
5 Safety and Corrections, office of motor vehicles, as specified by state law, the
6 mileage the motor vehicle has been operated.
7 (b) The form shall be signed by both the seller and buyer and contain a
8 statement that both parties have viewed the odometer of the motor vehicle. The form
9 as completed shall then be attached to the instrument evidencing transfer of
10 ownership.
11 (2) Enters upon the form "not the actual mileage" in the event that the
12 odometer mileage is known to the person to be less than the motor vehicle has
13 actually traveled.
14 (3) Enters the total cumulative mileage on the form in the event that it is
15 known that the mileage indicated on the odometer is beyond its designated mechnical
16 limits.
17 (4) Enters the same information as set forth in Paragraphs (1) through (3) of
18 this Subsection on the owner's title certification.
19 (5) The owner of a motor vehicle supplies its mileage upon the annual
20 renewal registration form supplied by the Department of Public Safety and
21 Corrections, office of motor vehicles.
22 D.(1) All electronic odometer disclosures executed pursuant to this Section
23 shall comply with 49 U.S.C. 32705 and 49 CFR Part 580 et seq.
24 (2) The Department of Public Safety and Corrections, office of motor
25 vehicles, may approve electronic systems that meet or exceed the Identity Assurance
26 Level 2 standard outlined pursuant to the National Institute of Standards and
27 Technology under SP 800-63 or any successor federal standard.
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 E. It shall be a violation of this Section for any person to knowingly give a
2 false statement to a transferee, unless the vehicle has been resold in reliance on the
3 required statement of the prior owner made pursuant to this Section.
4 F. No motor vehicle previously registered in another state, shall be registered
5 for use in this state, unless the application for a certificate of title in Louisiana is
6 accompanied by the prior owner's certificate of title and includes the statement as set
7 forth in Subsection (B)(1) of this Section.
8 G. The certificate of title of the motor vehicle issued to the new owner by the
9 state of Louisiana shall:
10 (1) Be provided electronically, or printed using a process determined by the
11 commissioner of the office of motor vehicles to be the most efficient and effective
12 means of avoiding unauthorized duplication.
13 (2) Indicate on its face the mileage required to be disclosed by the transferor
14 under this Section.
15 (3) Contain a space for the transferee to disclose the mileage at the time of
16 any future transfer and to sign and date the disclosure.
17 H. No registration card shall be issued in this state for any motor vehicle,
18 unless:
19 (1) The application for the registration card contains the prior owner's most
20 recent registration card and the prior owner's title.
21 (2) The new registration card contains such information as provided on the
22 application.
23 I. Pursuant to the provisions of R.S. 9:2607, any form used to transfer a
24 motor vehicle may be signed electronically and shall not require notarization.
25 (1) All systems approved under this Section for electronic signatures and
26 electronic records shall integrate seamlessly with the electronic lien and title system
27 established under this Section to create a unified electronic transaction platform.
28 (2) Electronic signatures, electronic records, and powers of attorney executed
29 pursuant to this Section shall have the same force and effect as written signatures and
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HLS 26RS-925 ORIGINAL
HB NO. 885
1 paper documents, consistent with the Louisiana Uniform Electronic Transactions
2 Act, pursuant to R.S. 9:2601 et seq., the federal Electronic Signatures in Global and
3 National Commerce Act, pursuant to 15 U.S.C. 7001 et seq., and the Remote Online
4 Notarization Act, pursuant to R.S. 25:621 et seq.
5 J. A licensed Louisiana motor vehicle dealer who relies in good faith on a
6 Department of Public Safety and Corrections, office of motor vehicles, approved
7 system for electronic signatures, remote notarization of power of attorney, electronic
8 records, or electronic odometer disclosures shall be deemed in compliance with the
9 state's requirements governing the form, execution, and submission of these
10 documents.
11 K.(1) A licensed Louisiana motor vehicle dealer using an approved system
12 in good faith and without actual knowledge of fraud or unauthorized access shall be
13 immune from civil liability arising solely from the use of electronic signatures,
14 remote notarization of powers of attorney or electronic records, including claims
15 alleging improper execution, authentication, or transmission, provided said dealer
16 complied with the requirements of this Section and any rules promulgated in
17 accordance with law.
18 (2) The immunity provided for in Paragraph (1) of this Section shall not
19 apply to intentional misconduct or gross negligence.
20 L. The provisions contained in this Section shall apply to all motor vehicles
21 bought, sold, or transferred within the state of Louisiana.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 885 Original 2026 Regular Session Melerine
Abstract: Provides for electronic lien, titling, and recordation of motor vehicles and motor
vehicle identification plates.
Proposed law (R.S. 32:705.2(A)) authorizes the Department of Public Safety and Corrections
(DPS&C), office of motor vehicles (OMV) to implement a system that offers vehicle title
holders a fully paperless and secure digital title.
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HLS 26RS-925 ORIGINAL
HB NO. 885
Proposed law (R.S. 32:705.2(B)) requires that the system:
(1) Include all functions related to title re-assignments.
(2) Meet or exceed applicable security requirements as set forth in regulations
promulgated by the office of motor vehicles.
(3) Provide title holders with online, real-time access to motor vehicle titles and status
of titles in process.
Proposed law (R.S. 32:705.2(C)) requires that the secure digital vehicle title under proposed
law be considered the official title from La. and fully and legally recognized for vehicle
related transactions within the state and the U.S.
Proposed law (R.S. 32:705.2(D)) requires a duly certified copy of the digital title be
admissible in any civil, criminal, or administrative proceeding as evidence of the title.
Proposed law (R.S. 32:705.2(E)) authorizes the commissioner of OMV to promulgate
necessary rules and regulations to implement proposed law.
Present law (R.S. 32:707.2(A)) requires the dept. to develop and implement a statewide
computer system permitting the electronic recording of information concerning the
perfection and release of vehicle security interests without submitting or receiving paper title
documents. Further authorizes the dept. to allow submission of title information for new,
transferred, and corrected certifications of title.
Proposed law (R.S. 32:707.2(A)) specifies that electronic liens, electronic titling, and
electronic registration will be included in the system. Further requires that the system have
the ability to transact, process, record, and transmit certificates of title through a completely
electronic process for:
(1) All business entities and their service providers applying for automotive titles and
registrations, for itself or the customers.
(2) Electronic submission of liens and lien satisfactions by financial institutions and its
service providers pursuant to proposed law.
Proposed law (R.S. 32:707.2(B)) requires that the system be electronically transmitted to the
department based on the following:
(1) If there are one or more liens or encumbrances on the motor vehicle, the dept. must
electronically transmit the lien to the first lienholder and notify the first lienholder
of any additional liens, provided that a motor vehicle lien is noted on its face of the
certificate of the title and notwithstanding any other requirements in present law.
(a) Subsequent lien satisfactions must include the name and address of the
person satisfying the lien.
(b) A certificate of title cannot be issued until the last lien is satisfied and a clear
certificate of title is issued to the owner of the vehicle. Until the final lien is
satisfied, the department is not obligated to print a paper title.
(2) Vehicles subject to an electronic lien must have the certificate of title for the vehicle
considered to be physically held by the lienholder for the purpose of compliance with
state and federal odometer disclosure requirements. Requires a duly certified copy
of the office of motor vehicle's electronic record of the lien be admissible in any
civil, criminal, or administrative proceeding in this state as evidence of an existence
of a lien.
Proposed law (R.S. 32:707.2(J)) specifies that out-of-state lienholders participating in the
Electronic Lien and Title program recognized by the American Association of Motor
Vehicle Administrators will be deemed in compliance.
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HLS 26RS-925 ORIGINAL
HB NO. 885
Proposed law (R.S. 32:707.2(K)) requires lienholders to process electronic lien releases
within two business days from the date the funds are deemed collected and maintain real-
time accuracy of status information.
Proposed law (R.S. 32:707.2(L)) requires that all applications for registration submitted by
licensed La. motor vehicle dealers be executed and submitted using electronic signatures and
electronic records pursuant to present law.
Proposed law (R.S. 32:707.2(M)) requires that all systems approved utilize electronic
signatures and integrate seamlessly with electronic lien and title systems.
Proposed law (R.S. 32:726.2(A)) authorizes licensed La. motor vehicle dealers to execute
and submit electronic signatures and electronic records for all motor vehicle titling,
registration, odometer disclosure, and related documents in connection with the sale, lease,
transfer, or financing of a motor vehicle.
Proposed law (R.S. 32:726.2(B)) requires any sales agreement for the transfer of a motor
vehicle between persons as defined in proposed law contain the following statement:
"Both buyer and seller have examined the title certificate of the motor vehicle
and it correctly reflects the mileage as it appears on the odometer."
Further requires that this statement be placed conspicuously and prominently on the
agreement.
Proposed law (R.S. 32:726.2(C)) specifies that it is unlawful for any person to transfer
ownership of a motor vehicle previously registered in this state or a motor vehicle used by
a dealer as a demonstrator, unless the transferor employs one of the following actions:
(1) Enters on an electronic form prescribed by the DPS&C, OMV, as prescribed by state
law, the mileage the motor vehicle has been operated. Requires the form be signed
by both the seller and buyer and contain a statement that both parties have viewed
the odometer of the motor vehicle and then attached to the instrument evidencing
transfer of ownership.
(2) Enters upon the form "not the actual mileage" in the event that the odometer mileage
is known to the person to be less than the motor vehicle has actually traveled.
(3) Enters the total cumulative mileage on the form in the event that it is known that the
mileage indicated on the odometer is beyond its designated mechnical limits.
(4) Enters the same information as set forth in proposed law on the owner's title
certification.
(5) The owner of a motor vehicle supplies its mileage upon the annual renewal
registration form supplied by the OMV.
Proposed law (R.S. 32:726.2(D)) requires all electronic odometer disclosures executed in
proposed law comply with the applicable federal laws. Further authorizes the DPS&C,
OMV, to approve electronic systems that meet or exceed the Identity Assurance Level 2
standard outlined pursuant to the National Institute of Standards and Technology under SP
800-63 or any successor federal standard.
Proposed law (R.S. 32:726.2(E)) specifies that it is a violation of proposed law for any
person to give a false statement to a transferee, unless the vehicle has been resold in reliance
on the required statement of the prior owner.
Proposed law (R.S. 32:726.2(F)) prohibits a motor vehicle previously registered in another
state from being registered for use in this state, unless the application for a certificate of title
in La. is accompanied by the prior owner's certificate of title and a form as set for in
proposed law.
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HB NO. 885
Proposed law (R.S. 32:726.2(G)) requires that the certificate of title of the motor vehicle
issued to the new owner by the state of La. must:
(1) Be provided electronically, or printed using a process determined by the
commissioner of the OMV to be the most efficient and effective means of avoiding
unauthorized duplication.
(2) Indicate on its face the mileage required to be disclosed by the transferor under
proposed law.
(3) Contain a space for the transferee to disclose the mileage at the time of any future
transfer and to sign and date the disclosure.
Proposed law (R.S. 32:726.2(H)) specifies that no vehicle registration card can be issued in
this state, unless:
(1) The application for the registration card contains the prior owner's most recent
registration card and the prior owner's title.
(2) The new registration card contains such information as provided on the application.
Proposed law (R.S. 32:726.2(I)) specifics that any form used to transfer a motor vehicle may
be signed electronically and does not need notarization based on present law. Further
specifies that all systems approved under proposed law for electronic signatures and
electronic records must integrate seamlessly with the electronic lien and title system
established under proposed law to create a unified electronic transaction platform.
Additionally requires that electronic signatures, electronic records, and powers of attorney
executed based on proposed law have the same force and effect as written signatures and
paper documents, consistent with the La. Uniform Electronic Transaction Act, the federal
Electronic Signatures in Global and National Commerce Act, and the Remote Online
Notarization Act.
Proposed law (R.S. 32:726.2(J)) specifies that a licensed La. motor vehicle dealer who relies
in good faith on a DPS&C, OMV, approved system for electronic signatures, remote
notarization of power of attorney, electronic records, or electronic odometer disclosures will
be deemed in compliance with the state's requirements governing the form, execution, and
submission of these documents.
Proposed law (R.S. 32:726.2(K)) specifies that a licensed La. motor vehicle dealer using an
approved system in good faith and without actual knowledge of fraud or unauthorized access
is immune from civil liability arising solely from the use of electronic signatures, remote
notarization of powers of attorney or electronic records, including claims alleging improper
execution, authentication, or transmission, provided said dealer complied with the
requirements of proposed law and present law. Further specifies that the immunity provided
for in proposed law does not apply to intentional misconduct or gross negligence.
Proposed law (R.S. 32:726.2(L)) specifies that proposed law applies to all motor vehicles
bought, sold, or transferred within the state.
(Amends R.S. 32:707.2; Adds R.S. 32:705.2 and 726.2)
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