AN ACT EXPANDING THE SCOPE AND DURATION OF THE MOTOR VEHICLE ELECTRONIC RECORD PILOT PROGRAM OF THE DEPARTMENT OF JUSTICE; AMENDING SECTION 61-3-109, MCA, AND SECTION 4, CHAPTER 90, LAWS OF 1997; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.

WHEREAS, under Chapter 90, Laws of 1997, the Department of Justice was authorized and empowered to undertake a pilot program for the electronic filing and perfection of motor vehicle liens; and

WHEREAS, the Department of Justice has established a pilot program and contracted with various parties for electronic and related services with supporting user fees; and

WHEREAS, section 61-3-101(5), MCA, authorizes the Department of Justice to maintain motor vehicle registration by electronic recording and storage; and

WHEREAS, the Legislature recognizes that electronic search, filing and perfection of liens, and registration of title on motor vehicles can result in more efficiency and cost savings; and

WHEREAS, the Legislature desires to expand the scope and duration of the current pilot program to determine feasibility before committing department resources of a more comprehensive and permanent program; and

WHEREAS, the pilot program will be supported by user fees and private capital investment.

THEREFORE, the Legislature of the State of Montana finds it appropriate to expand the scope and extend the duration of the motor vehicle electronic record pilot program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 61-3-109, MCA, is amended to read:

"61-3-109. (Temporary) Electronic search, lien filing, and registration. (1) The department shall implement a pilot program allowing electronic search of motor vehicle titles, electronic filing and perfection of liens on motor vehicles, and electronic registration of motor vehicles.

(2) The department shall adopt rules to implement the pilot program. The rules must include procedures designed to constitute constructive notice of electronically filed and perfected liens and electronically registered titles to subsequent purchasers or encumbrancers from the date of a lien's perfection or title registration. (Terminates June 30, 2008.)"

Section 2. Section 4, Chapter 90, Laws of 1997, is amended to read:

"Section 4. Termination. [This act] terminates June 30, 2008."

Section 3. Effective date. [This act] is effective on passage and approval.

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I hereby certify that the within bill,

SB 0013, originated in the Senate.

Secretary of the Senate

President of the Senate

Signed this	day

of	, .

Speaker of the House

Signed this	day

of	, .

SENATE BILL NO. 13

INTRODUCED BY W. MCNUTT

AN ACT EXPANDING THE SCOPE AND DURATION OF THE MOTOR VEHICLE ELECTRONIC RECORD PILOT PROGRAM OF THE DEPARTMENT OF JUSTICE; AMENDING SECTION 61-3-109, MCA, AND SECTION 4, CHAPTER 90, LAWS OF 1997; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.