(1)

(a) The department may establish a system to allow the electronic transmission of registration, lien, and titling information for motor vehicles, off-highway vehicles, or special mobile machinery. Except as provided in subsection

(3) of this section, the department may adopt rules necessary for the implementation of this section, including rules to allow the department to:

(I) Maintain titling information electronically and to produce paper titles only upon request of a party;

(II) Accept electronic signatures on any documents, including title transfers, odometer disclosures, and powers of attorney, required to issue a certificate of title to a new owner;

(III) Eliminate any notarization requirements for document signatures;

(IV) Allow all parties to electronically file and release lien information;

(V) Authorize approved third-party providers to:

(A) Electronically process registration, lien, and titling information and transmit the information to the department as authorized by the department;

(B) Order, manage, and distribute the department's license plate inventory to a client; and

(C) Access, print, and distribute the department's registration information to a client on demand.

(b) The department's approval of a third-party provider to register a vehicle or special mobile machinery, file or release liens, or issue any type of certificate of title must be evidenced by an agreement between the department and the third-party provider.

(c) In registering a vehicle or special mobile machinery, filing or releasing liens, or issuing any type of certificate of title, the third-party provider is acting as an agent of the department. The third-party provider shall collect and remit to the department all taxes and fees imposed by law to issue any type of certificate of title, file or release a lien, or to register the vehicle or special mobile machinery.

(d) A third-party provider may charge its clients a fee for each electronic registration transaction, lien transaction, or titling transaction. The client may charge a consumer the fee the client paid to the third-party provider if the fee charged to the consumer does not exceed the fee charged to the client.

(e) The department shall ensure that the addresses of program participants under part 21 of article 30 of title 24 are not released to third-party providers or the clients of third-party providers.

(2) The department is authorized to seek and accept gifts, grants, or donations from private or public sources, including from third-party providers, for the purposes of this section; except that the department may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with this section or any other law of the state. The department shall ensure that any funds contributed to the department for the implementation of the system for the electronic transmission of registration, lien, and titling information for motor vehicles, off-highway vehicles, and special mobile machinery are tracked separately and used only for the implementation of the system.

(3)

(a) The department need not promulgate rules, under subsection (1) of this section, that implement electronic transactions until the department receives adequate gifts, grants, or donations to implement the promulgated rules. The department may, upon receiving adequate gifts, grants, or donations, phase-in implementation of this section as reasonable. The department shall not use money from the general fund to implement this section.

(b) This subsection (3) does not affect any rules promulgated, or appropriations made, before July 1, 2019.