Establishes electronic lien and titling system for New Jersey motor vehicles.

A1301

ASSEMBLY, No. 1301

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Co-Sponsored by:

Assemblyman Hutchison and Assemblywoman Morales

SYNOPSIS

���� Establishes electronic lien and titling system for
New Jersey motor vehicles.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning an electronic lien and titling system for
New Jersey motor vehicles and supplementing Title 39 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� Within 60 days of
the effective date of this act, the Chief Administrator of the New Jersey Motor
Vehicle Commission shall complete a study to determine whether the commission
has the resources and capability to establish and implement, within 12 months
of the effective date of this act, an electronic lien and titling system to
process and administer, in a cost-effective manner, the notification,
recording, and release of security interests and title information by the
lienholders of motor vehicles in lieu of a paper based system used for those
purposes.

���� b.��� If the chief
administrator determines that the commission has the resources and capability
to establish and implement an electronic lien and titling system, the
commission shall establish and implement an electronic lien and titling system
within 12 months of the effective date of this act.

���� c.���� If the chief
administrator determines that the commission does not have the resources and
capability to establish and implement an electronic lien and titling system,
the commission shall contract with a qualified bidder to establish and
implement an electronic lien and titling system for the State.� A contract
entered into pursuant to this subsection shall be offered, advertised, and
awarded in the manner prescribed in chapter 34 of Title 52 of the Revised
Statutes and consistent with the provisions of sections 2 and 3 of this act.

���� 2.��� In addition to the
requirements set forth in chapter 34 of Title 52 of the Revised Statutes,
whenever the chief administrator seeks to contract for the establishment and
implementation of an electronic lien and titling system, the specifications and
invitations for bids shall include, but not be limited to, provisions providing
that the contract:

���� a.���� shall be for a term of
not less than seven years;

���� b.��� shall be a no-cost
contract, ensuring that: (1) the commission shall be assessed no charges by the
successful bidder for establishing and implementing the electronic lien and
titling system; and (2) the successful bidder shall be obligated to reimburse the
commission for all reasonable implementation costs directly associated with the
establishment and implementation of the electronic lien and titling system; and

���� c.���� authorizes the
successful bidder to charge participating lienholders and their agents
reasonable fees for implementing and administering an electronic lien and
titling system.

���� 3.��� In addition to the
provisions of chapter 34 of Title 52 of the Revised Statutes concerning the
qualifications of bidders, an applicant seeking to enter into a contract with
the State to establish and implement an electronic lien and titling system
shall have a demonstrated history of directly providing both electronic lien
services to state motor vehicle departments or agencies and electronic lien
software and services to lienholders.

���� 4.��� Within one year of the
date upon which an electronic lien and titling system established pursuant to
this act becomes operational, all lienholders, except individuals and those
lienholders who are not normally engaged in the business of financing motor vehicles
and are administratively exempted by the chief administrator, shall participate
in the electronic lien and titling system.

���� 5.��� The chief administrator
may adopt, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations to effectuate the purposes of this
act, including, but not necessarily limited to, regulations providing for the
oversight of any successful bidder by the chief administrator and regulations
designating the class or classes of lienholders that are exempt from the
provisions of the act requiring participation by all lienholders within one
year.

���� 6.��� This act shall take
effect immediately.

STATEMENT

���� This bill requires the New
Jersey Motor Vehicle Commission (MVC) to complete a study within 60 days of the
bill�s enactment to determine whether it has the resources and capability to
establish and implement, within 12 months of the bill�s enactment, an
electronic lien and title system to process and administer, in a cost-effective
manner, the notification, recording, and release of security interests and
titling information by the lienholders of motor vehicles in lieu of the current
paper-based system.

���� If the MVC determines it has
the resources and capability to establish and implement the system, it is to
establish and implement the system within 12 months of the bill�s enactment.

���� If the MVC determines it does
not have the resources and capability to establish and implement the system,
the MVC is required to contract with a qualified bidder to establish and
implement the system for the State.� The contract is to be offered, advertised,
and awarded in accordance with the State public contracts law.� In addition,
the bill specifies that the contract is to:

(1)

be for a term of not
less than seven years;

(2)

be a no-cost contract,
ensuring that the MVC is assessed no charges by the successful bidder for
establishing and implementing the electronic lien and titling system and that
the successful bidder is obligated to reimburse the MVC for all reasonable costs
directly associated with the establishment and implementation of the system;
and

(3)

permit the successful
bidder to charge participating lienholders and their agents reasonable fees.

���� Further, the bill requires
contract applicants to have a demonstrated history of directly providing both
electronic lien services to state motor vehicle departments or agencies and
electronic lien software and services to lienholders.

���� The bill mandates that within
one year of the date upon which the electronic lien and titling system becomes
operational, all lienholders in New Jersey are required to participate in the
system, except individuals and those lienholders who are not normally engaged
in the business of financing motor vehicles and who are administratively
exempted by the Chief Administrator of the MVC.