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 432 Reengrossed 2017 Regular Session Shadoin
Abstract: Requires that certain transactions transferring the certificate of title of certain movable
property be witnessed by an authorized officer of a federally insured financial institution.
Present law provides for definitions.
Proposed law defines the term "authorized officer" as any officer of a federally insured financial
institution operating in La. who is designated to witness the endorsement of a seller, on behalf of a
federally insured financial institution for the purpose of transferring a titled motor vehicle.
Present law enumerates certain circumstances that are deemed "endorsements" for the purposes of
present law regarding the delivery of certificates of title to the purchaser of a vehicle.
Proposed law adds another circumstance to be deemed an "endorsement" for the purposes of present
law. Proposed law provides that the signature of the seller in the presence of an authorized officer,
who shall verify the identity of the seller and who shall subscribe his name as a witness, when the
seller is transferring ownership to a purchaser who is granting a security interest in the vehicle to the
federally insured financial institution that is making a secured loan to the purchaser shall be
considered an "endorsement" for the purposes of present law.
Proposed law requires the federally insured financial institution to provide the Department of Public
Safety and Corrections, office of motor vehicles, with a separate document identifying the name and
job title of the authorized officer for the purpose of verifying that the person signing as a witness is
an authorized officer of that particular financial institution. Proposed law additionally requires this
separate document be attached or included with each title presented for transfer.
Present law prohibits a person from selling, assigning, or transferring a vessel or outboard motor
titled by the Department of Wildlife and Fisheries (DW&F) or documented with the U. S. Coast
Guard without delivering to the new owner or the new owner's designee a certificate of title or a
certificate of documentation with an assignment in the new owner's name.
Proposed law maintains present law. Proposed law further provides that if a person sells, assigns,
or transfers a vessel or outboard motor titled by DW&F to a purchaser who obtains a secured loan
from a federally insured financial institution that takes a security interest in the vessel or outboard
motor, the endorsement or assignment of the certificate of title shall be signed by the seller and witnessed by an authorized officer who must subscribe his name as a witness thereon.
Proposed law requires the federally insured financial institution to provide the DW&F with a
separate document identifying the name and job title of the authorized officer for the purpose of
verifying that the person signing as a witness is an authorized officer of that particular financial
institution.
Proposed law provides that for the purposes of proposed law, "authorized officer" means any officer
of a federally insured financial institution operating in La. who is designated to witness the
endorsement or assignment of a certificate of title of a seller, on behalf of a federally insured
financial institution, for the purpose of executing the transfer of either a vessel or an outboard motor.
Proposed law provides that a federally insured financial institution may designate one or more
officers to serve as authorized officers.
(Amends R.S. 34:852.6(A); Adds R.S. 32:702(17) and 705(B)(4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation, Highways and
Public Works to the original bill:
1. Change the term "authorized signer" to "authorized officer" throughout the bill.
2. Add that an endorsement means the signature of the seller in the presence of an
authorized officer who must verify the identity of the seller and who must subscribe his
name as a witness thereon.
3. Add that an endorsement or assignment of a certificate of title must be signed by the
seller and witnessed by an authorized signer who must subscribe his name as a witness
thereon.
The House Floor Amendments to the engrossed bill:
1. Add that the separate document identifying the authorized signer be attached or included
with each title presented for transfer.