ESRA Model Legislative Language: Electronic Signatures for Motor Vehicle Title and Registration Documents
Executive Summary
OVERVIEW
The Electronic Signatures for Motor Vehicle Title and Registration Documents Model Language (model language) aims to provide a legal framework for accepting electronic signatures within the auto title and registration documents process. The model language provides definitions, acceptance, and requirements for such electronic documents.
MODEL LEGISLATION PROVISIONS
Definitions: The model language defines “electronic signature” and “electronic” and reaffirms “physical odometer document” as defined in Part 580 of Title 49 of the United States Code of Federal Regulations.
Acceptance: The model language requires a granted authority (ex., department, division, commission, secretary, etc.) to accept electronic signatures on any motor vehicle document, form, physical odometer document, or record necessary through electronic or physical means.
A granted authority will also accept a physical odometer document converted to electronic records through imaging, scanning, or other means, including an electronic signature.
Requirements: The model language provides the granted authority permission to require:
- An indication that the signature is electronic and
- Certification of authenticity, audit trail, or similar statement.
It does not allow the granted authority:
- To require certification of the electronic signature process or vendor before accepting a document;
- To require an electronic document to be converted to physical format unless required.
- To impose any additional requirements on electronic signatures
The model language requires identity verification through a system that:
- Is securely maintained;
- Captures and retains address of signer, date, and timestamp for up to 5 years
- Information is available to grant authority, other regulatory agencies, or law enforcement upon request.
BENEFITS
STANDARDIZATION: Standardizes electronic motor vehicle documents and signatures to ensure harmony between granted authorities and businesses.
FISCAL IMPACT: Acceptance of electronic signatures through any means may not have an immediate budgetary impact. The model language does not seek to hinder the granted authority on the types of electronic services or systems used for acceptance.
AUTO BUYER ENGAGEMENT: Enhances auto buyer engagement to ensure uniformity in an increasingly digital experience.
CONCLUSION
The Electronic Signatures for Motor Vehicle Title and Registration Documents Model Language represents a crucial step in addressing a complex web of electronic signature acceptance by providing a legal framework that promotes uniformity and clarity between granted authorities, businesses, and consumers, ensuring compliance with requirements.
