Electronic Vehicle Titling Proof of Concept Patrice Aasmo

Electronic Vehicle Titling Proof of Concept Patrice Aasmo, AAMVA Staff AAMVA-Official Use Only 1

Background ØE-Titling Working Group requested AAMVA Board consider a member-driven ‘proof of concept’ for electronic vehicle titling August 2011 ØBoard approved staff pursuit of requirements definition, scope and budget for a pilot ØFinal deliverables Ø E-Titling Proof of Concept Definition Ø AAMVA E-Titling Scope and Costs ØBoard approved going forward with a proof of concept pilot AAMVA-Official Use Only 2

Why E-Titling? E-Titling will minimize the following: Ø Paper handling Ø Investigative/Administrative efforts Ø Opportunities for document fraud E-Titling contains opportunities to: Ø Streamline processing and reduce stakeholder burdens (save money) Ø Provide new revenue streams (earn money) AAMVA-Official Use Only 3

Why AAMVA? Ø Request from the members Ø Efficiency through use of existing infrastructure (i. e. , network connectivity, NMVTIS and ELT) Ø Neutral/standardized interstate transacting Ø 2012 -2014 Strategic Plan “sweet spot” AAMVA-Official Use Only 4

Proof of Concept Pilot: Scope Implement paperless process for all stakeholder groups involved in the first-time titling of new motor vehicles*. Stakeholder groups are as follows: Ø Ø Ø Vehicle Manufacturers Vehicle Dealers State Titling Agencies Vehicle Lien Holders Consumers * New motor vehicles defined as: • New passenger vehicles • SUVs and property carrying vehicles with a GVWR of less than 10, 000 lbs. • Motorcycles, trucks (GVWR over 10, 000 pounds), and trailers are not considered in scope for the pilot. • Must be produced by NHTSA approved manufacturers of vehicles available for sale in the U. S. that conform to the federal motor vehicle standard 17 -Digit vehicle identification number. AAMVA-Official Use Only 5

Proof of Concept Pilot: Goal/Approach Goal: Demonstrate cost savings, process efficiencies and reduction in fraud by implementing technology and procedures to use electronic records to track a new vehicle from its manufacturer to its first title issuance. Approach: Ø Remain a state-initiated and state-controlled program Ø To the extent possible, use or adapt existing tools or systems including those: Ø Under direct state control Ø Provided by industry Ø Controlled by the Federal Government Ø Comply with both State and Federal Regulations Ø Collaborate with industry stakeholders to gain their support AAMVA-Official Use Only 6

Data Exchange 1. CREATE MCO 2. SEND MCO TO DEALER 3. REASSIGNMENT 4. VERIFY CONSUMER IDENTITY * 5. TITLE APPLICATION 6. VERIFY DEALER STANDING * 7. VERIFY TITLE INFORMATION 8. CHECK NMVTIS 9. ACKNOWLEDGE LIEN 10. CREATE TITLE 11. NOTIFY CONSUMER * * Optional step AAMVA-Official Use Only 7

Data Exchange AAMVA-Official Use Only 8

Proof of Concept Pilot: Deliverables The E-Titling Proof of Concept will use the definition document and evaluation criteria to execute the Proof of Concept with a limited set of stakeholders. The execution of the Proof of Concept will result in the development of the following deliverables: Ø Project Plan Ø Roadmap for E-Titling Ø Standardized Data Definition of E-Titling Record Ø MCO System Modifications to enable E-Titling Ø AAMVA ELT Service Requirements Ø Return on Investment Analysis Ø Proof of Concept Evaluation Report Ø Best Practices All deliverables will be reviewed and approved by participants in the state ETitling Proof of Concept Task Force. Industry stakeholder groups will be engaged in the Proof of Concept pilot and be given the opportunity to develop and review deliverables. AAMVA-Official Use Only 9

Proof of Concept Pilot: Duration Projections for time frames on a potential pilot include the following: üJuly 2012 through January 2013: ØPrepare infrastructure and data integration standards üJanuary 2013 through September 2013: ØPilot participants implementation üSeptember 2013 through May 2014: ØPilot operation and evaluation AAMVA-Official Use Only 10

Participation Commitment in the form of LOIs have been received from the following as it relates to participation in a proof of concept pilot: Ø States: Seven working group states for pilot, others have shown interest Ø NICB Ø Manufacturers Ø Dealers Ø Lenders AAMVA-Official Use Only 11

APPENDIX AAMVA-Official Use Only 12

AAMVA E-Titling Working Group Ø Debra Hillmer, South Dakota, Chair Ø Monica Blackwell, Texas Ø Karen Grim, Virginia Ø Paul Zelenski, Wisconsin Ø Stacey Stanton, Arizona Ø Kitty Kramer, California Ø Boyd Walden, Florida Ø Andrew Lewis, Iowa Ø Debbie Rogers, Maryland Ø Tom Mc. Cormick, Vermont Ø Lotte Devlin/Sharon Madison, South Carolina Ø Scott Clapper, Delaware Ø Janet Dolan, Pennsylvania* * NOTE: Representative of Vehicle Committee (Chair) and in this role, serves ex-officio on the E-Titling Working Group AAMVA-Official Use Only 13