1. John Yarbrough jcyarbrough@pdpgroupinc.com June 2016 Title Processing Committee Legislative Update 1

2. June 2016 Title Processing Committee Trending Legislation Here are active trends in State Jurisdictions: Illinois adjourned its legislature without passing a budget. Anticipate delays Electronic handling of transactions: AZ, CA, CT, IA, SC, NC Salvage to clear title legislation: HI, LA, MO, NJ Self-storage lien notices are electronic: LA, RI, MA 2

3. June 2016 Title Processing Committee Enacted Bills Arizona Effective May 17, 2016, SB 1357 and HB2535, this law allows the DMV greater latitude to make transactions electronic, including applications for title and repossession transactions. Iowa Effective July 1, 2016, SF228 requires the DMV to develop a means to process electronic transactions by January 1, 2018. Effective July 1, 2016, HF2437 defines an autocycle. Kentucky Effective July 9 2016, HB382 allows a dealer to have the transferor sign a notarized statement allowing for the transfer of title. Effective July 13, 2016, HB352 allows for the perfection of a security interest to be filed within 30 days rather an 20, and require the county to complete within five days. 3

4. June 2016 Title Processing Committee Enacted Bills Louisiana Effective June 14, 2016, HB153 requires the state to develop a state database on destroyed and repairable vehicles by Jan 16, 2017. Effective May 19, 2016, SB128 allows for notice to be electronic on a lien being filed on a self-stored vehicle New Jersey AB3395 was signed into law allowing insurers to obtain a salvage or junk certificate with 30 day notice to lenders. A failed response may be problematic for the lender. Effective Date: July 1, 2016 Oklahoma Effective November 1, 2016, HB1511 changes requirements for estate transactions NOT involving a lien South Carolina Effective February 1, 2017, SB5089 and SB0667 mandates electronic liens and adds a series of fees. Bill prohibits extension of lien until 6 months prior to expiration and only allows for a 2 year extension. Bill not signed by Governor but enrolled and sent for signature. 4

5. June 2016 Title Processing Committee Highlighted Active Legislation Most of these bills are in committee and may never make it out of committee… Colorado – SB140 would allow for the perfection of lien when the paper work is submitted and allows for submission of multiple temp tags. Surprisingly enough, this bill has been sent to the Governor. Connecticut-- HB 5412 requires dealers to file registration applications electronically within 7 business days. The bill allows for smaller dealers to ask for an exemption. The intent is to remove dealer transactions from the processing stream and free up public service facilities. Bill was signed as amended by Governor and sent back to Transportation Committee Hawaii – HB1151 allows for the issuance of a salvage certificate for a motor vehicle if there is proof of payment within 30 days and proof of notice. Bill has moved forward and will be effective upon signature. 5

6. June 2016 Title Processing Committee Highlighted Active Legislation Most of these bills are in committee and may never make it out of committee… Illinois – SB3018 redefines a glider kit (for those who title big rigs) SB2974 is still active. Creates lender number and notification of lien release Louisana – HB1013 is enrolled and allows for transfer of ownership by owner’s signature in a total loss and title is not required. Sent to Governor for signature Vermont – HB877 sent to Governor raises title and registration fees. Title fees go from $33 to $35 and notice of security interest from $10 to $11. 6