ASSEMBLY, No. 2013

STATE OF NEW JERSEY

218th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 


 

Sponsored by:

Assemblyman† CRAIG J. COUGHLIN

District 19 (Middlesex)

Assemblyman† NICHOLAS CHIARAVALLOTI

District 31 (Hudson)

Assemblyman† RAJ MUKHERJI

District 33 (Hudson)

 

Co-Sponsored by:

Assemblywoman Pinkin

 

 

 

 

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 ďAdministrative Procedure Act,Ē 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 to determine whether it has the resources and capability to establish and implement, within 12 months of the billís effective date, an electronic lien and titling 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 required to establish and implement the system within 12 months of the billís effective date.

†††† 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.

†††† In addition, 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.