Electronic Lien Title The Louisiana Experience 2011

Electronic Lien & Title The Louisiana Experience 2011 AAMVA Region II Annual Conference Charlotte, NC June 15, 2011

Presenters Michele Giroir Dan Casey Attorney LA Department of Public Safety PO Box 64886 Baton Rouge, LA 70806 (225) 925 -6323 CEO & President Casey & Casey NPS Inc dba Auto Title Express 3939 Veterans Blvd Ste 204 Metairie, LA 70002 (504) 456 – 7438 http: //omv. dps. state. la. us/ Michele. Giroir@dps. la. gov www. autotitle. com dcasey@autotitle. com Electronic Lien & Title The Louisiana Experience

§ Established in 1957 § 3 rd Generation Family Own First Public Tag Agent (PTA) § First On-Line Agency with the LADPS OMV § Largest Licensed PTA & Auto Title Company with 7 Locations § § Authorized ELT Service Provider § Pilot for NI Reinstatement and DL Renewal § Sub-Contractor for ACS – LA IRP

§ § Collect about 48% of the Annual Sales Tax for LADPS OMV 95% of the New Car Dealer Market in Louisiana Developed: § Customized Billing Deal Tracking System § LA Vehicle Application Preprocessing § LA Fee Calculator § Automated Processing for both MVR and Back-End ELT Transactions § Audit System § Inventory Application

Public Tag Agent’s Role Motor Vehicle Title & Registration Transactions: q. License Plates: Issue, Transfer, Convert, Renew, & Cancel q. Collect Sales Tax & Handling Fee (any applicable State fee associated with the transaction) q. Duplicate Titles & Registrations q. Record Liens q. Release Liens q. Convert Electronic to Paper q. Convert Paper to Electronic q. Title Corrections

Public Tag Agent’s Role q. Set Flags on Records (RC, WA, HD, etc. ) q. Void & Special Correction Capabilities q. Sell Temporary Markers to Dealers, Financial Institutions, and Auto Title Companies q. Monthly License Plate Inventory Reports q. Daily State Reports & Deposits q. Reports Fraudulent Files or Activity to State

Public Tag Agent’s Role ELT: Lender Application Process: q Contract Requirements: PTA and…. DPS, Direct to Lender, Indirect to Lender through TMC q Application & Contract submitted to PTA / Authorized Service Provider q PTA issues ELT Code q Lender Communicates ELT Code Internally & Externally to Car Dealers

Louisiana ELT Front-End Process Paper Documents w/Lender’s ELT Lien Code Submitted to a PTA/DMV Lien is Perfected by PTA/OMV with ELT Code END until Release of Lien or Print Title Request LA DPS sends Lien Notification to Contracted PTA Lender Receives Electronic Lien Notification

Louisiana ELT Back-End Process Lender sends Title Request to PTA Mail to: Owner, Lien-holder, or Third Party PTA Completes Request in LA DMV System LA DMV Prints Title LA DMV sends confirmation to PTA Lender Receives RL or PR Electronic Confirmation Release Lien and Print Title Confirmation

Legislation q 1999: Act 1276 Authorized the Department to Implement an ELT Program q 2001: DPS OMV Policy: Section IV # 35. 03 Electronic Lien & Title Program q 2008: Act 698 Mandatory Implementation of ELT January 2010 Electronic Lien &Title: The Louisiana Experience

Legislation q 2009: Attorney General Opinion q 2010: Act 65 Changed Mandatory Requirements ELT Fee / LMVC q 2011: HB 470 HB 680 Expedite Title & Conversion ELT Fee/OFI Electronic Lien &Title: The Louisiana Experience

Challenges § Enforcement of a Mandatory and Non-Mandatory ELT Program § Training of both State and PTA employees § Policies and Procedures: Factoring in all the various scenarios in relation to the ELT Program § Lien Notification Rejections § ELT Fee § Conversions – Charge / N/C Electronic Lien &Title: The Louisiana Experience

Highlights § Switching of ELT Service Providers § Key Adjustments/Changes to Meet Industry Standards § Incorporating the Important Role of the Title Management Company §Paper Lien Release Not Accepted Electronic Lien &Title: The Louisiana Experience

2011 Statistics 69. 69% of Liens Perfected are ELECTRONIC 1243 Lenders as Participants 28 Public Tag Agents as ELT Service Providers Electronic Lien &Title: The Louisiana Experience

Considerations Meet Industry Standards: Input from Industry: AAMVA, NTSF/AFSA, q q Define Requirements - ELT Service Provider: üInsurance: Comprehensive Business Liability Commercial Liability Umbrella Employee Practices Liability/Fiduciary/Crime Professional Liability Policy üSystem Electronic Lien &Title: The Louisiana Experience

Considerations Audit: § Record Retention § Lender Acknowledgement of State Contract § System: DPPA / Safeguard Act Electronic Lien &Title: The Louisiana Experience

Electronic Lien &Title: The Louisiana Experience Questions? ?