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tions interstateCOMPATIBILITYJurisdiction Considerationsfor Electronic TitlingWhitepaperJune 2022E-TITLE WORKING GROUPVEHICLE STANDING COMMITTEE

ContentsBackground . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Jurisdiction Considerations for Electronic Titling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Working Group Roster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92022 Copyright All Rights Reserved American Association of Motor Vehicle AdministratorsCover photos credit: iStockphoto.com2

BackgroundIn November 2021, AAMVA published the ElectronicTitling Framework which identifies and describeselements for electronic titling. The framework focuseson defining what electronic titling solutions areand why jurisdictions need to implement a solutionwith standards, which promote interoperability andreciprocity. This information helps jurisdictionsunderstand the basis of electronic titling, whicheliminates paper processes in favor of electronic recordexchange for all persons and entities involved invehicle titling transactions.This Jurisdiction Considerations for Electronic TitlingWhitepaper provides 15 topics for jurisdictions tocontemplate as they begin or continue their journeytowards implementing electronic titling solutions.These considerations build on the ElectronicTitling Framework by providing information,resources, and questions about the electronic titlingelements identified and described. There is nota specified sequence jurisdictions should followwhen developing action plans. Jurisdictions areencouraged to review the entire document andprioritize action items based on the needs andgoals of the jurisdiction. These considerations arefor both an intrastate jurisdiction solution andfor compatibility with an interstate interoperablesolution and provide a starting point or catalyst forplanning and development.Note: Jurisdictions may encounter additional itemswhich need to be addressed throughout the electronictitling research process that may not be identified in thisdocument.AAMVA anticipates continuing to assist jurisdictionsin moving toward electronic titling solutionsby developing guidance and best practices. Thisinformation will aid progress towards identifyingfunctional needs for electronic titling solutions.Background3

Jurisdiction Considerations for Electronic TitlingPreparationUnderstanding Electronic Titlinga. Have you reviewed AAMVA’s Electronic TitlingFramework?a. An electronic titling solution has multiple elementsthat make up the solution to transition from a papertitling process to an electronic titling process. Anelectronic titling solution aims to facilitate a secureelectronic titling process that no longer relies onphysical paper.1. The Electronic Titling Framework provides abaseline of information for electronic titling andcan be found here. The federal rule OdometerDisclosure Requirements (49 CFR Part 580) setsa minimum identification level of certainty forelectronic odometer disclosures.b. Have you reviewed the National Institute ofStandards and Technology (NIST) standards foridentity proofing and authentication (IAL2 andAAL2) found in NIST Special Publication 800-633, Revision 3, Digital Identity Guidelines (includingparts A, B, and C) with a revision date of June2017?1. The NIST standards are the foundation for therequirements to allow an electronic signature forcompletion of the odometer statement.2. The standard is based on NIST SpecialPublication 800-63-3, Revision 3, DigitalIdentity Guidelines (including parts A, B, andC) with a revision date of June 2017. Additionalinformation and resources for the DigitalIdentity Guidelines can be found on the NISTIdentity and Access Management ResourceCenter4Jurisdiction Considerations for Electronic Titlingb. Electronic Title (e-title) – The electronic record(digital data) of vehicle ownership created andmaintained by a jurisdiction.c. Electronic Title Transfer Process – Secure,electronic method to validate ownership andfacilitate the assignment or reassignment of a vehiclewithout reliance on a paper process.d. Ability to Access Title Information – Electronicmethod for an owner or owner’s designee tosecurely access and view title information recordedon the electronic title for the vehicle. This accesswould be used to provide proof of ownership, ifnecessary.e. Electronic Lien and Title (ELT) and ElectronicVehicle Registration (EVR) or ElectronicRegistration and Title (ERT) Versus ElectronicTitling – The functionality of an ELT and EVR orERT program may be an element of the electronictitling solution. More electronic functionality willbe needed to move to completely paperless titletransactions and a fully electronic titling solution.

E-Titling All Elements of the Titling Transaction are ntsMSO/MCODealer/Private/AuctionSalesInter/Intra StateTransactionsCasualSalesOdometerDisclosureFOUR FOUNDATION “PILLARS”1StandardizedData Set2DefinedIdentificationPolicies(NIST 800-63-3Standard)Legislationa. Do your statutes allow for electronic titletransactions?1. Does the statute(s) mandate the use of anelectronic title system on a specific date?b. Are there requirements for wet signatures or paperapplications that need to be made flexible to allowfor paperless transactions?c. Is there flexibility in charging fees for electronic titletransactions where a paper title is not printed?d. Do you have a definition for an electronic title? Ifso, does it align with the definition of electronictitle in the Electronic Titling Framework?e. Who are the stakeholder groups that may haveinterest in the titling statutes and may haveinfluence in the legislative sdictionalOperationalPoliciesf. Do your statutes, rules, or policies require proofof identity before titling a vehicle? Verifyingidentity before completing a titling transaction is afoundational element of electronic titling, regardlessof whether the transaction involves an odometerdisclosure.g. Jurisdictions should consider the following whendeveloping an electronic titling system:1. Compliance with electronic signaturerequirements set by the National Institute ofStandards and Technology (NIST), Sec. 800.63,level 2 or level 3, as required by 49 CFR Sec.580.3 (“Signature”) (10.2.2019);2. Compliance with the Federal Truth-in-MileageAct (TIMA) and 49 CFR 580;3. Compliance with the Uniform ElectronicTransaction Act (UETA);Jurisdiction Considerations for Electronic Titling5

4. Satisfying functional components that subjectthe parties of the electronic transaction to thejurisdiction’s perjury or fraudulent unsworndeclarations/certifications;5. Ensure the identity of the parties conducting thetransactions are validated; and6. Notification given to the parties of the electronictitle transaction that by using the jurisdiction’selectronic titling system, they are subjectingthemselves to the jurisdiction’s laws.Industry Stakeholdersa. Identify the industry stakeholders in yourjurisdiction who are involved in titling processes(dealers, auctions, financial institutions, insurancecompanies, fleets, etc.)1. Industry stakeholders that would benefit fromelectronic titling2. Industry stakeholders that may have concernsabout electronic titling in relation to theirbusiness model ( i.e., title service companies)b. Work with industry stakeholders to understandtheir business processes and how they use the papertitle (Some accommodations may need to be madefor industry, but they may need to be flexible toaccommodate changes in business practices.)c. What is an industry stakeholder’s fundamentalneed? In what ways is a paper title serving a businessneed? Can the same need be satisfied through anelectronic process?1. Example: Wholesale auctions use the paper titleas collateral because many times they will paythe dealer selling the vehicle before the buyingdealer provides payment. The wholesale auction’sbusiness practice places a hold (stop) on a vehicletransfer between the selling and buying dealerpending payment.6Jurisdiction Considerations for Electronic TitlingJurisdiction Agencies and Entitiesa. Will your agency need to work with otherjurisdiction agencies or authorized entities thatprocess vehicle transactions on behalf of the state? Ifso, who are they?1. Example: Will you need to work with yourjurisdiction’s driver licensing agency?b. What kind of impact will a change to your titlingprocess have on other jurisdiction agencies orentities?c. Will you need to coordinate with third-partyentities who also issue titles?d. How will electronic titling affect third-partyentities?e. What will third parties need to do or change toaccommodate customers using electronic titlingprocesses?Title Transaction Inventorya. Inventory all types of title transfers and titlemanagement actions (adding/removing liens orbrands, etc.) performed in your jurisdictionb. What types of vehicles will be included in theelectronic titling transfer functionality?c. What will prevent a certain type of title transferfrom being completed electronically?d. Does your jurisdiction already complete certaintypes of title transactions electronically? (Example:Electronic Lien and Title)e. How will an owner access and/or share their currenttitle information if a paper title is not issued?f. Will current titling practices need to change toaccommodate a paperless electronic titling system?