LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington, Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7189 NOTE PREPARED: Jan 5, 2022
BILL NUMBER: HB 1258 BILL AMENDED:
SUBJECT: Electronic Lien and Title System.
FIRST AUTHOR: Rep. Pressel BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Pending
DEDICATED
FEDERAL
Summary of Legislation: This bill amends as follows the Indiana Code section requiring the Bureau of
Motor Vehicles (BMV) to implement a statewide electronic lien and title system (system) to process vehicle
titles and transactions involving security interests in vehicles:
(1) Provides that if the BMV elects under the statute to allow qualified electronic lien service providers
(providers) to facilitate the creation of the system, a participating provider may, upon implementation of the
system, recover the provider's proportionate share of the costs associated with the development and ongoing
administration of the system by charging a fee in an amount that is: (a) consistent with market pricing; and
(b) determined by the BMV upon implementation of the system; for each lien notification transaction
provided through the system.
(Current law provides that if the BMV elects under the statute to contract with a vendor to develop the
system, the vendor may recover, upon implementing the system, system development and administration costs
through the imposition of a fee. However, if the BMV elects to allow providers to facilitate the creation of
the system, current law requires each participating provider to remit to the BMV, not later than 30 days after
being notified of the provider's qualification to participate, a payment in the amount of the provider's
proportionate share of the total cost to develop the system.)
(2) Prohibits a provider from charging lienholders or their agents any additional fee for lien releases,
assignments, or transfers (as is provided for in current law with respect to the lien notification fee that a
vendor selected by the BMV is authorized to charge).
(3) Authorizes lienholders or their agents to charge: (A) the borrower in a vehicle loan; or (B) the lessee in
a vehicle lease; an amount equal to any lien notification fee imposed by a provider, plus a fee in an amount
not to exceed $3 for each electronic lien transaction (as is provided for in current law if the BMV elects
under the statute to contract with a vendor to develop the system).
HB 1258 1 (4) Eliminates the requirement that each provider remit to the BMV an annual fee: (A) established by the
BMV; and (B) not exceeding $3,000; for the operation and maintenance of the system.
Effective Date: July 1, 2022.
Explanation of State Expenditures: As of the above date, the fiscal analysis of this bill has not been
completed. Please contact the Office of Fiscal and Management Analysis for an update of this fiscal impact
statement.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1258 2