HB 1086

HLS 26RS-2136  REENGROSSED
 2026 Regular Session
 HOUSE BILL NO. 1086  (Substitute for House Bill No. 885 by Representative Melerine)
 BY REPRESENTATIVE MELERINE
 MOTOR VEHICLES: Provides with respect to electronic titles and registration for motor
  vehicles
1AN ACT
2 To amend and reenact R.S. 32:707.2(A), (C)(1) and (2), and (D), to enact R.S. 32:702(18),
3705(B)(6) and (7), 707.2(I) and (J), 707.2.1, and 707.2.2, and to repeal R.S.
432:707.2(G), relative to electronic lien, titling, and recordation of motor vehicles; to
5provide for system requirements for electronic lien, titling, and recordation of motor
6vehicles; to provide for the duties of the office of motor vehicles; to provide for the
7use of electronic signatures; to provide for civil immunity; to provide for
8effectiveness; to provide for severability; to direct the Louisiana State Law Institute
9to alphabetize and renumber definitions; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11Section 1. R.S. 32:707.2(A), (C)(1) and (2), and (D) are hereby amended and
12 reenacted and R.S. 32:702(18), 705(B)(6) and (7), 707.2(I) and (J), 707.2.1, and 707.2.2 are
13 hereby enacted to read as follows:
14§702. Definitions
15As used in this Chapter:
16*        *  *
17(18) "Certificate of title" means the record that is evidence of ownership of
18a motor vehicle, whether paper or electronic, issued by the department.
19*        *  *
20§705. Acceptance and delivery of certificate
21*        *  *
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1B. For purposes of this Section, an "endorsement" means one of the
2following:
3*        *  *
4(6) The electronic signature of the seller affixed to an electronic record of
5assignment or transfer of title in a manner authorized by the department, consistent
6with the provisions of the Louisiana Uniform Electronic Transaction Act, R.S.
79:2601 et seq. The electronic signatures shall comply with the Identity Assurance
8Level 2 (IAL2) security standard as defined in the National Institute of Standards and
9Technology Special Publication 800-63A.
10(7) An electronic signature of the seller affixed through an electronic titling
11system or other electronic process approved by the department, which shall have the
12same force and effect as a handwritten signature and endorsement executed pursuant
13to Paragraph (1) or (2) of this Subsection.
14*        *  *
15§707.2. Electronic media system for lien recordation and title information; fees;
16required bond; confidentiality of information; rules and regulations
17A.(1) The department shall develop and implement on a statewide basis no
18later than January 1, 2010, a computer system which will permit the electronic
19recording of information concerning the perfection and release of vehicle security
20interests without submitting or receiving paper title documents, including electronic
21lien, electronic titling, and electronic registration. The department may shall allow
22the submission of vehicle title information for new, transferred, and corrected
23certificates of title, including the perfection and release of security interests, through
24electronic media means in a cost-effective manner in lieu of the submission and
25maintenance of paper documents otherwise required by this Chapter. The system
26shall enable the ability to transact, process, record, and transmit certificates of title
27through a completely electronic process for:
28(a) All business entities and their service providers applying for automotive
29titles and registrations, for itself or the customers.
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1(b)   Electronic submission of liens and lien satisfactions by financial
2institutions and its service providers pursuant to R.S. 32:708.
3(2) The electronic lien, electronic titling, and electronic registration system
4shall provide that any lien or security pursuant to R.S. 32:708 shall be electronically
5transmitted to the department based on the following:
6(a) If there are one or more liens or encumbrances on the motor vehicle, the
7department shall electronically transmit the lien to the first lienholder and notify the
8first lienholder of any additional liens, provided that a motor vehicle lien is noted on
9the face of the certificate of title and notwithstanding any other requirements in this
10Chapter.
11(i) Subsequent lien satisfactions shall be electronically transmitted to the
12department and shall include the name and address of the person satisfying the lien.
13(ii) A certificate of title shall not be issued until the last lien is satisfied and
14there is a clear certificate of title that can be issued to the owner of the vehicle. The
15department is not obligated to print a paper title until the final lien is satisfied, except
16where specifically requested by a dealer or financial institution to fulfill its business
17requirements. A paper certificate of title shall be issued only upon request of the
18vehicle owner or lienholder and upon payment of any applicable fees established by
19the department.
20(b)(i) Vehicles subject to an electronic lien shall have the certificate of title
21for the vehicle considered to be physically held by the lienholder for the purpose of
22compliance with state and federal odometer disclosure requirements.
23(ii) A duly certified copy of the office of motor vehicle's electronic record
24of the lien shall be admissible in any civil, criminal, or administrative proceeding in
25this state as evidence of the existence of a lien.
26*        *  *
27C.(1) An approved public license tag agent operating a secured host
28computer system interfacing with the computer system of the Department of Public
29Safety and Corrections, office of motor vehicles, and the computer system of a
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1lending institution or other sales finance company shall be bonded in an amount
2specified by the department. The public license tag agent is hereby authorized to
3charge a fee to customers utilizing this electronic media system.
4(2) Each federally insured depository institution that originates more than
5two hundred fifty twenty-five motor vehicle transactions per year, and each finance
6company, lending institution, or other lender shall designate a public tag agent with
7which such bank, finance company, lending institution, or other lender shall interface
8its computer system for the purpose of receiving electronic confirmation from the
9department, of the receipt and the filing of the security interest on the subject motor
10vehicle. Each federally insured depository institution that originates more than two
11hundred fifty twenty-five motor vehicle transactions per year, and each finance
12company, lending institution, or other lender shall also designate such public tag
13agent when transmitting a release or satisfaction of its lien.
14*        *  *
15D. Notwithstanding any other law to the contrary, a written or printed report
16of an electronic media transaction or recording required under the provisions of this
17Section, if certified as true and correct by the department, shall serve as evidence of
18any signature, acknowledgment, or information which was provided to or by the
19department through electronic means, and the certification shall be admissible in any
20legal proceeding as evidence of the facts stated therein.
21*        *  *
22I. Lienholders shall process electronic lien releases within two business days
23from the date the funds are deemed collected and shall maintain real-time accuracy
24of status information.
25J. Beginning twelve months after the effective date on which the office of
26motor vehicles certifies that the electronic lien, electronic titling, and electronic
27registration functionality is available for use by all licensed motor vehicle dealers
28statewide, each motor vehicle dealer licensed pursuant to R.S. 32:1251 et seq., shall
29submit all applications for certificates of title, registration, and other ownership
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1transfer documents through the electronic lien, electronic titling, and electronic
2registration system, unless contrary to any other provision of law or provided by rule
3of the department.
4§707.2.1. Electronic signatures and records for motor vehicle transactions
5A. Notwithstanding any provision of law to the contrary, any document,
6record, or instrument required in connection with the sale, lease, transfer, titling,
7registration, or financing of a motor vehicle, unless otherwise exempted by this
8Section shall be created, executed, transmitted, and stored electronically, including
9but not limited to the following:
10(1) Titling documents.
11(2) Registration applications.
12(3) Odometer disclosures.
13(4) Secure and limited powers of attorney.
14(5) Electronic attestations.
15B.(1) Any documents used to transfer ownership of a vehicle to an insurance
16company after payment of damages may be signed electronically and reproduced in
17paper form and shall not require notarization. The supporting documents include but
18are not limited to the following:
19(a) Limited powers of attorney.
20(b) Applications for duplicate titles.
21(c) Odometer disclosure forms.
22(2) Electronic signatures shall comply with the Identity Assurance Level 2
23(IAL2) security standard as defined in the National Institute of Standards and
24Technology Special Publication 800-63A.
25C.(1) The Department of Public Safety and Corrections, office of motor
26vehicles, shall accept electronic records and electronic signatures for the documents
27and records identified in Subsection A of this Section and any electronic signature
28or electronic record accepted by the department pursuant to this Section shall have
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1the same force and effect as an original written document or handwritten signature
2and shall satisfy any legal requirement for a written record or signature.
3(2) The department shall promulgate rules and regulations in accordance
4with the Administrative Procedure Act as may be necessary to implement the
5provisions of this Section, including but not limited to rules governing:
6(a) Electronic signatures and authentication standards.
7(b) Security and identity verification procedures.
8D. An electronic signature that is authenticated in a manner approved by the
9department shall satisfy any requirement for a written signature and shall not require
10notarization.
11E. An electronically signed, or a legibly scanned or imaged copy thereof,
12shall have the same force and effect as an original paper document bearing a
13handwritten signature and shall be admissible for all legal and evidentiary purposes
14to the same extent as the original paper document.
15F.(1) A dealer or authorized officer as set forth in R.S. 32:702 using an
16approved system in good faith and without actual knowledge of fraud or
17unauthorized access shall be immune from civil liability arising solely from the use
18of electronic signatures, remote notarization of powers of attorney or electronic
19records, including claims alleging improper execution, authentication, or
20transmission, provided the dealer complied with the requirements of this Section and
21any rules promulgated by the department.
22(2) The immunity provided for in Paragraph (1) of this Subsection shall not
23apply to intentional misconduct or gross negligence.
24§707.2.2. Secure digital motor vehicle titles
25A. The Department of Public Safety and Corrections, office of motor
26vehicles, shall implement a system that offers vehicle title holders a fully paperless,
27secure digital vehicle title that may be issued in lieu of a paper certificate of title.
28B. Once implemented, the secure digital title system shall:
29(1) Include all functions related to title reassignments.
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1(2)      Meet or exceed applicable security requirements as set forth in
2regulations promulgated by the department.
3(3) Provide title holders with online, real-time access to motor vehicle titles
4and status of titles in process.
5C. A secure digital vehicle title produced under this Section shall be regarded
6as an official title from the state of Louisiana and be fully recognized legally for any
7motor vehicle related transactions within the state and all other United States
8jurisdictions.
9D. The secure digital title system shall permit the electronic transfer,
10reassignment, and recording of ownership of a motor vehicle. Ownership transfers
11executed through an approved electronic title system shall have the same legal effect
12as transfers executed through a paper certificate of title. Licensed motor vehicle
13dealers may complete title assignments, reassignments of ownership, and related
14documents through the electronic system without requiring issuance of a paper
15certificate of title.
16E. A duly certified copy of the office of motor vehicle's secure digital title
17shall be admissible in any civil, criminal, or administrative proceeding in this state
18as evidence of the existence of the title.
19F. The commissioner of the office of motor vehicles shall promulgate any
20rules and regulations necessary to implement the provisions of this Section.
21Section 2. R.S. 32:707.2(G) is hereby repealed in its entirety.
22Section 3. The provisions of this Act establishing or requiring the use of electronic
23 lien and title services, electronic registration and titling, secure digital motor vehicle titles,
24 or other electronic titling and registration transactions shall not become effective until the
25 Department of Public Safety and Corrections, office of motor vehicles, certifies that a fully
26 operational statewide electronic lien, electronic titling, and electronic registration system has
27 been implemented.
28Section 4. The provisions of R.S. 32:705(B)(6) and (7) and R.S. 32:707.2.1 shall
29 become effective on January 1, 2028, or when the Department of Public Safety and
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1 Corrections, office of motor vehicles, electronic vehicle and registration system is updated
2 to comply with the statutory provisions contained in this Act, whichever occurs first.
3 Nothing in this Section shall be construed to invalidate or limit any electronic record,
4 electronic signature, or electronic transaction otherwise authorized by law or by policy of
5 the Department of Public Safety and Corrections, office of motor vehicles, prior to the
6 effective date of this Section.
7Section 5. All other provisions shall become effective upon signature by the
8 governor or, if not signed by the governor, upon expiration of the time for bills to become
9 law without signature by the governor, as provided by Article III, Section 18 of the
10 Constitution of Louisiana. If vetoed by the governor and subsequently approved by the
11 legislature, this Act shall become effective on the day following such approval.
12Section 6. If any provision of this Act, or the application thereof, is held invalid,
13 such invalidity shall not affect other provisions, items, or applications of the Act which can
14 be given effect without the invalid provision, item, or application and to this end the
15 provisions of this Act are hereby declared severable.
16Section 7. The Louisiana State Law Institute is hereby authorized and directed to
17 arrange in alphabetical order and renumber the definitions provided in R.S. 32:702.
  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 1086 Reengrossed  2026 Regular Session  Melerine
 Abstract: Establishes certain system requirements for electronic lien, titling, and
 recordation of motor vehicles.
 Present law (R.S. 32:702) provides for definitions.
 Proposed law defines "certificate of title" as the record that is evidence of ownership of a
 vehicle, whether paper or electronic, issued by the Dept. of Public Safety and Corrections
 (DPS&C), office of motor vehicles (OMV).
 Present law (R.S. 32:705(B)) provides for the various meanings of "endorsement".
 Proposed law retains present law and adds the following:
 (1)    Electronic signatures of sellers affixed to an electronic record of assignment or
  transfer of title in a manner authorized by the DPS&C, consistent with the provisions
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    of the La. Uniform Electronic Transaction Act. Further requires the signatures
    comply with the Identity Assurance Level 2 (IAL2) security standard as defined in
    the National Institute of Standards and Technology Special Publication 800-63A.
(2)     Electronic signature of the seller affixed through an electronic titling system or other
    electronic process approved by the DPS&C will have the same force and effect as
    a handwritten signature and endorsement executed pursuant to present law.
Present law (R.S. 32:707.2(A)) requires the DPS&C to develop and implement a statewide
computer system no later than Jan. 1, 2010, 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 DPS&C to allow
submission of title information for new, transferred, and corrected certifications of title,
including the perfection and release of security interests, through electronic media in a
cost-effective manner in lieu of the submission and maintenance of paper documents
required in present law.
Proposed law (R.S. 32:707.2(A)(1)) removes the date to develop and implement the
computer system. Further adds electronic lien, titling, and registration into the computer
system. Further requires the DPS&C to allow submission of title information for new,
transferred, and corrected certifications of title including the perfection and release of
security interests, through electronic means in a cost-effective manner. Further requires the
system enable 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 present law.
Proposed law (R.S. 32:707.2(A)(2)) requires that the electronic lien, electronic titling, and
electronic registration system provide that any lien or security pursuant to present law be
electronically transmitted to the DPS&C based on the following:
(1)     If there are one or more liens or encumbrances on the vehicle, the DPS&C must
    electronically transmit the lien to the first lienholder and notify the first lienholder
    of any additional liens, provided that a vehicle lien is noted on the face of the
    certificate of title and notwithstanding any other requirements in this present law.
    (a)     Requires subsequent lien satisfactions be electronically transmitted to the
  DPS&C and include the name and address of the person satisfying the lien.
    (b)     Prohibits a certificate of title from being issued until the last lien is satisfied
  and there is a clear certificate of title that can be issued to the owner of the
  vehicle. Further specifies that the DPS&C is not obligated to print a paper
  title until the final lien is satisfied, except where specifically requested by a
  dealer or financial institution to fulfill its business requirements. Further
  requires that a paper certificate of title from being issued only upon request
  of the vehicle owner or lienholder and upon payment of any applicable fees
  established by the DPS&C.
(2)     (a)     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.
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   (b)     A duly certified copy of the OMV's electronic record of the lien is admissible
  in any civil, criminal, or administrative proceeding in this state as evidence
  of the existence of a lien.
Present law (R.S. 32:707.2(C)(1)) requires that an approved public license tag agent
operating a secured host computer system interfacing with the computer system of the
DPS&C, OMV, and the computer system of a lending institution or other sales finance
company be bonded in an amount specified by the DPS&C. Further authorizes the public
license tag agent to charge a fee to customers utilizing this electronic media system.
Proposed law changes a term in present law from electronic media system to electronic
system.
Present law (R.S. 32:707.2(C)(2)) requires that each federally insured depository institution
that originates more than 250 vehicle transactions per year, and each finance company,
lending institution, or other lender designate a public tag agent with which such bank,
finance company, lending institution, or other lender must interface its computer system for
the purpose of receiving electronic confirmation from the DPS&C of the receipt and the
filing of the security interest on the subject motor vehicle. Further requires that each
federally insured depository institution that originates more than 250 motor vehicle
transactions per year, and each finance company, lending institution, or other lender must
also designate such public tag agent when transmitting a release or satisfaction of its lien.
Proposed law reduces the number of required vehicle transactions per year from 250 to 25.
Present law (R.S. 32:707.2(D)) requires that a written or printed report of an electronic
media transaction or recording required in present law, if certified as true and correct by the
DPS&C, serve as evidence of any signature, acknowledgment, or information which was
provided to or by the DPS&C through electronic means, and the certification be admissible
in any legal proceeding as evidence of the facts, unless contrary to present law.
Proposed law changes a term in present law from electronic media transaction or recording
to electronic transaction or recording.
Present law (R.S. 32:707.2(G)) authorized the formation of a task force to develop and
implement the electronic media system.
Proposed law repeals present law.
Proposed law (R.S. 32:707.2(I)) 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(J)) specifies that beginning 12 months after the effective date
established by the OMV that certifies the electronic system is available for use by licensed
vehicle dealers statewide, each motor vehicle dealer licensed pursuant to present law must
submit all applications for certificates of title, registration, and other ownership transfer
documents through the electronic registration and titling system, unless contrary to any other
provision of law or provided by rule of the DPS&C.
Proposed law (R.S. 32:707.2.1(A)) specifies that notwithstanding any provision of law to the
contrary, any document, record, or instrument required in connection with the sale, lease,
transfer, titling, registration, or financing of a motor vehicle, unless otherwise exempted by
proposed law must be created, executed, transmitted, and stored electronically, including but
not limited to the following:
(1)    Titling documents.
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(2)    Registration applications.
(3)    Odometer disclosures.
(4)    Secure and limited powers of attorney.
(5)    Electronic attestations.
Proposed law (R.S. 32:707.2.1(B)) specifies that any documents used to transfer ownership
of a vehicle to an insurance company after payment of damages may be signed electronically
and reproduced in paper form and will not require notarization. Further requires the
electronic signatures comply with IAL2. Further specifies the supporting documents include
but are not limited to the following:
(1)    Limited powers of attorney.
(2)    Applications for duplicate titles.
(3)    Odometer disclosure forms.
Proposed law (R.S. 32:707.2.1(C)(1)) requires the DPS&C, OMV, accept electronic records
and electronic signatures for documents and records and any electronic signature or
electronic record accepted by the DPS&C pursuant to proposed law has the same force and
effect as an original written document or handwritten signature and satisfy any legal
requirement for a written record or signature.
Proposed law (R.S. 32:707.2.1(C)(2)) requires the DPS&C, OMV, promulgate rules and
regulations in accordance with the Administrative Procedure Act as may be necessary to
implement the provisions of proposed law, including but not limited to rules governing:
(1)    Electronic signatures and authentication standards.
(2)    Security and identity verification procedures.
Proposed law (R.S. 32:707.2.1(D)) specifies that an electronic signature that is authenticated
in a manner approved by the DPS&C satisfies any requirement for a written signature and
will not require notarization.
Proposed law (R.S. 32:707.2.1(E)) requires that an electronically signed, or a legibly
scanned or imaged copy have the same force and effect as an original paper document
bearing a handwritten signature and be admissible for all legal and evidentiary purposes to
the same extent as the original paper document.
Proposed law (R.S. 32:707.2.1(F)) specifies a dealer or authorized officer as set forth in
present law 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 the dealer complied
with the requirements of proposed law and any rules promulgated by the DPS&C. Further
specifies that the immunity provided for in proposed law does not apply to intentional
misconduct or gross negligence.
Proposed law (R.S. 32:707.2.2(A)) requires the DPS&C, OMV, implement a system that
offers vehicle title holders a fully paperless, secure digital vehicle title that may be issued
in lieu of a paper certificate of title.
Proposed law (R.S. 32:707.2.2(B)) requires that once the system is implemented, the secure
digital title system must:
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(1)        Include all functions related to title re-assignments.
(2)        Meet or exceed applicable security requirements as set forth in regulations
  promulgated by the DPS&C.
(3)        Provide title holders with online, real-time access to vehicle titles and status of titles
  in process.
Proposed law (R.S. 32:707.2.2(C)) requires a secure digital vehicle title produced under
proposed law be regarded as an official title from the state of La. and be fully recognized
legally for any vehicle related transactions within the state and all other U.S. jurisdictions.
Proposed law (R.S. 32:707.2.2(D)) requires the secure digital title system permit the
electronic transfer, reassignment, and recording of ownership of a vehicle. Further requires
that ownership transfers executed through an approved electronic title system have the same
legal effect as transfers executed through a paper certificate of title. Additionally specifies
that licensed vehicle dealers may complete title assignments, reassignment of ownership, and
related documents through the electronic system without requiring issuance of a paper
certificate of title.
Proposed law (R.S. 32:707.2.2(E)) requires a duly certified copy of the OMV's secure digital
title be admissible in any civil, criminal, or administrative proceeding in this state as
evidence of the existence of the title.
Proposed law (R.S. 32:707.2.2(F)) requires the commissioner of the OMV promulgate any
rules and regulations necessary to implement the provisions of proposed law.
Specifies that the provisions of proposed law establishing or requiring the use of electronic
lien and title services, electronic registration and titling, electronic signatures, electronic
odometer disclosures, secure digital motor vehicle titles, or other electronic titling and
registration transactions shall not become effective until the DPS&C, OMV, certifies that
a fully operational statewide electronic lien and title and electronic registration and titling
system has been implemented.
Specifies the certain provisions (R.S. 32:705(B)(6) and (7) and R.S. 32:707.2.1) on Jan. 1,
2028, or when the DPS&C, OMV, electronic vehicle and registration system is updated to
comply with the statutory provisions contained in proposed law, whichever occurs first.
Nothing in proposed law must be construed to invalidate or limit any electronic record,
electronic signature, or electronic transaction otherwise authorized by law or by policy of
the DPS&C, OMV, prior to the effective date of this Section.
Specifies that all other provisions are effective upon signature of the governor or lapse of
time for gubernatorial action.
Provides that the provisions of proposed law are severable.
Authorizes and directs the La. State Law Institute to arrange in alphabetical order and
renumber the definitions provided in present law and proposed law.
(Amends R.S. 32:707.2(A), (C)(1) and (2), and (D); Adds R.S. 32:702(18), 705(B)(6) and
(7), 707.2(I) and (J), 707.2.1, and 707.2.2; Repeals R.S. 32:707.2(G))
Summary of Amendments Adopted by House
  The House Floor Amendments to the engrossed bill:
  1.       Make technical changes.
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   2.     Change proposed law from Authentication Assurance Level 2 (AAL2) security
  standard as defined in the National Institute of Standards and Technology Special
  Publication 800-63-3 to Identity Assurance Level 2 (IAL2) security standard as
  defined in the National Institute of Standards and Technology Special
  Publication 800-63A.
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