Oklahoma Senate Bill SB1299

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

Certificate of title; providing presumption of validity for certain electronic documents. Effective date.

Impact

The bill is significant in that it presumes the validity of electronic documents and signatures generated via the new program. This includes provisions allowing for the delivery of certificates directly to secured parties instead of record owners, which offers a more streamlined approach to managing vehicle liens. The Tax Commission is tasked with establishing rules and regulations to support this transition while ensuring that the program includes provisions for the use of electronic signatures and interfaces with motor license agents.

Summary

Senate Bill 1299 aims to modernize the process of transferring motor vehicle titles by allowing electronic filing, storage, and delivery of certificates of title. This act amends Section 1105A of Title 47 of the Oklahoma Statutes to facilitate procedures that enable lienholders to perfect, assign, and release liens electronically, thereby reducing reliance on paper documentation. The bill mandates that the Oklahoma Tax Commission implement this electronic system through a competitive contract with a qualified third-party service provider by July 1, 2022.

Contention

Notably, the new system's dependence on electronic documents raises questions about the adequacy of electronic security and the implications for existing laws surrounding document validity and the handling of motor vehicle liens. Stakeholders such as the Oklahoma Automobile Dealers Association and the Oklahoma Bankers Association will need to engage in consultations regarding the setup and operation of this program, highlighting a potential concern around engaging various parties to ensure compliance and reliability of the electronic systems being implemented.