June 15, 2011 Electronic Lien & Title The Louisiana Experience

Michele Giroir Attorney LA Department of Public Safety PO Box Baton Rouge, LA (225) Dan Casey CEO & President Casey & Casey NPS Inc dba Auto Title Express 3939 Veterans Blvd Ste 204 Metairie, LA (504) 456 – 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

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

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

ELT: Lender Application Process:  Contract Requirements: PTA and…. DPS, Direct to Lender, Indirect to Lender through TMC  Application & Contract submitted to PTA / Authorized Service Provider  PTA issues ELT Code  Lender Communicates ELT Code Internally & Externally to Car Dealers

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

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

Legislation  1999: Act 1276 Authorized the Department to Implement an ELT Program  2001: DPS OMV Policy: Section IV # Electronic Lien & Title Program  2008: Act 698 Mandatory Implementation of ELT January 2010

Legislation  2009:Attorney General Opinion  2010:Act 65 Changed Mandatory Requirements ELT Fee / LMVC  2011:HB 470 Expedite Title & Conversion HB 680ELT Fee/OFI

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

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

2011 Statistics 69.69% of Liens Perfected are ELECTRONIC 1243 Lenders as Participants 28 Public Tag Agents as ELT Service Providers

 Meet Industry Standards:Input from Industry: AAMVA, NTSF/AFSA,  Define Requirements - ELT Service Provider: Insurance: Comprehensive Business Liability Commercial Liability Umbrella Employee Practices Liability/Fiduciary/Crime Professional Liability Policy System

Audit:  Record Retention  Lender Acknowledgement of State Contract  System: DPPA / Safeguard Act

Questions??