The Committee on Transportation proposes the following amendment (SR-3856.KM0002S):

Amend the bill, as and if amended, by striking SECTION 12 and inserting:

SECTION X.A. Section 56-1-40(7) of the S.C. Code is amended to read:

 (7) who is not a resident of South Carolina. For purposes of determining eligibility to obtain or renew a South Carolina driver's license, the term "resident of South Carolina" shall expressly include all persons authorized by the United States Department of Justice, the United States Immigration Citizenship and Naturalization Immigration Service, or the United States Department of State to live, work, or study in the United States on a temporary or permanent basis who present documents indicating their intent to live, work, or study in South Carolina. These persons and their dependents are eligible to obtain a motor vehicle driver's license or identification card or have one renewed pursuant to this provision. A driver's license or identification card issued pursuant to this item to a person who is not a lawful permanent resident of the United States shall expire on the later of: (1) the expiration date of the driver's license applicant's authorized period of stay in the United States; or (2) the expiration date of the driver's license applicant's employment authorization document, provided the driver's license or identification card is valid for no more than eight years. However, a driver's license issued pursuant to this item is valid for at least one year but not more than eight years from the date of its issue. Under this provision, a driver's license valid for not more than four years must be issued upon payment of a fee of twelve dollars and fifty cents. A driver's license that is valid for more than four years must be issued upon payment of a fee of twenty-five dollars. The fee for an identification card is pursuant to Section 56-1-3350. In addition, a person pending adjustment of status who presents appropriate documentation to in the discretion of the Department of Motor Vehicles shall be granted a one-year extension of his driver's license or identification card, which is renewable annually;

B. This section is effective on August 6, 2026.

SECTION X. Section 56-3-210(L) of the S.C. Code is amended to read:

 (L) All temporary license plates must be valid for no more than forty-five sixty days and must be affixed at all times to the rear of the item in an unobscured and secure manner.

SECTION X. Section 56-5-2585 of the S.C. Code is repealed.

SECTION X. Section 56-19-10 of the S.C. Code is amended by adding:

 (51) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
 (52) "Physical odometer document" means a physical document as defined in the United States Code of Federal Regulations, Title 49, Part 580, containing an odometer disclosure statement printed on paper by a secure printing process or other secure process by any jurisdiction in compliance. Physical odometer documents, for the purposes of this section, are limited to certificates of title, secure powers of attorney, and reassignment documents. The term does not include any other form or document, even if the document contains a space for an odometer reading.

SECTION X. Section 56-19-265 of the S.C. Code is amended to read:

 Section 56-19-265. (A) All commercial entities located in this State that are engaged in vehicle titling must utilize the Department of Motor Vehicle's electronic title system. The electronic title system must be funded exclusively through transaction fees paid by commercial entities engaged in vehicle titling. The system must enable all commercial entities including, but not limited to, dealers, lenders, and auctions, to:
  (1) transfer vehicle ownership;
  (2) apply for and release liens; and
  (3) perform any other components necessary to perform vehicle titling.
 (A)(B)(1) Any liens or encumbrances on a motor vehicle or titled mobile home must be noted on the printed title or noted electronically through the Department of Motor Vehicles' Electronic Title and Lien System electronic title system.
  (2) The department shall must electronically transmit a motor vehicle title or titled mobile home title and the lien to the first lienholder and notify the first lienholder of additional liens. This The transmittal must be done made electronically for business commercial entities or by paper certificate for nonbusiness entities (persons purchasing vehicles for personal use from persons selling vehicles they have used primarily for personal use). Paper certificates of title may be used or requested for casual sales of automobiles between individuals, or as otherwise directed by department policy. Lien recordings and subsequent lien satisfactions may must be electronically transmitted to the department and shall include the name and address of the person satisfying the lien pursuant to department policy. Electronic transmission of liens and lien satisfaction does not require a certificate of title until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or mobile home. The owner has the option to retain the electronic copy of the title with the department once all liens are satisfied.
 (3) When If a motor vehicle or mobile home is subject to an electronic lien, then the certificate of title for the motor vehicle or mobile home is considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements, and a duly certified copy of the department's electronic record of the lien is admissible in any civil, criminal, or administrative proceeding in this State as evidence of the existence of the lien. The department must electronically transmit to the lienholder a certificate of title and notice of subsequent liens and satisfactions of liens.The lienholder shall have the option to receive a paper certificate of title and to receive notices of subsequent liens and satisfaction of liens by way of the United States Postal Service. Business entities are subject to fees contained in subsection (D).
 (B) The department is authorized to convene a working group chaired by the director of the department or his designee for the purpose of assisting in the development of program specifications governing the transmission of electronic lien information between lienholders and the department, and maximize the use of the program by various lien stakeholders. The working group will be composed of members of the lienholder community, representing applicable industries. The director is authorized to appoint members of the working group to ensure that all stakeholders are represented. The working group will be a standing group convened on a regular basis until all specifications have been developed. The department also is charged with promulgating regulations pursuant to the specifications and standards for lien recording and releasing developed by the working group.
 (C) All entities submitting lien information electronically under this program are required to comply with all regulations.
 (D)(C) The department is authorized to collect a transaction fee from commercial entities who either transmit or retrieve data from the department pursuant to this section for all liens placed or transmitted in the electronic title system. The fee must not exceed five dollars for each transaction and must be agreed to as part of the program specifications developed by the working group. These fees must be placed by the State Treasurer into the State Highway Fund as established by Section 57-11-20, to be distributed as provided in Section 11-43-167.
 (E)(D) Commercial entities and lenders who that either transmit or retrieve data from the department pursuant to this section, notwithstanding Sections 37-2-202 and 37-3-202, may collect transaction fees from owners of the vehicles or mobile homes a transaction fee for all liens placed or transmitted in the electronic title system. The fee must not to exceed a fee of five dollars for each transaction which must be agreed to as part of the program specifications developed by the working group. All feesAny fee charged by the department or its third-party contractors to any party as to a titled motor vehicle, motor home, or mobile home for purposes of transmittal or retrieval of this data is an "official fee" as referenced in Sections 37-2-202 and 37-3-202.
 (F) All businesses and commercial lienholders who are regularly engaged in the business or practice of selling motor vehicles as dealers licensed under Chapter 15 of this title or in the business or practice of financing motor vehicles shall utilize the electronic lien system to transmit and receive electronic lien information as described by subsection (A). The department shall maintain contact information on its website for service providers providing an electronic interface between the department, lienholders and sellers of motor vehicles. The department may establish procedures to ensure businesses comply with use of the electronic lien system and to deal with valid exceptions as determined by the department.
 (G)(E) Any lien upon a vehicle titled by the State, except upon vehicles defined as motor homes, mobile homes, special mobile equipment, or commercial trucks, shall be deemed effective for a period of twelve years from the date the lien was perfected. The effectiveness of the lien lapses at the end of this twelve-year period unless a continuation statement is filed pursuant to this subsection by the entity existing on the current title as lienholder using the application process acceptable by the departmentDepartment of Motor Vehicles. The department shall must publish forms for the purpose of filing a continuation statement. The lienholder shall may not make application for lien continuation until no not more than six months prior to lien expiration. Upon a timely filing of a continuation statement in accordance with this subsection, the lien will be effective for a period of two additional years from the date of the filing of the continuation statement. The responsibility of lien continuation lies with the lender. The twelve-year effective lien period refers to the age of the lien, not the age of the vehicle.

SECTION X. Section 56-19-370(B)(4) of the S.C. Code is amended to read:

 (4) No dealer may be prosecuted for not properly titling or registering a vehicle within forty-five days if the department has placed the title in suspended status or if a financial institution has not released the lien in a timely manner. A dealer may not be prosecuted for improperly titling or registering a vehicle within forty-five days if the department has placed the title in suspended status or if a financial institution has not released the lien pursuant to Section 56-19-680.

SECTION X. Section 56-19-680 of the S.C. Code is amended to read:

 Section 56-19-680. (1) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, he the lienholder shall, within ten days after demand and, in any event, within thirty days, execute a release of his security interest, in the space provided therefor on the certificate or as the Department of Motor Vehicles prescribes, and mail or or electronically deliver the certificate and release to the Department departmentwhich shall file the release and note it upon the record of security interest maintained by the Department pursuant to Section 56-19-660. The Department shall then mail the certificate to the next lienholder or if no other lienholder, then to the owner. No charge shall be made by the lienholder for executing such release.
 (2) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten days after demand, and, in any event, within thirty days execute a release in duplicate in the form the Department prescribes and deliver or mail a copy to the owner and a copy to the Department for notation upon the record of security interests maintained by the Department pursuant to Section 56-19-660.
 (3) Upon failure of the lienholder to forward the certificate to the Department as required by this article he shall be guilty of a misdemeanor and upon conviction thereof, shall be fined not more than one hundred dollars or be imprisoned for not more than thirty days.
 (2) If payment for lien satisfaction is received by paper, then the lienholder shall execute the release within ten business days of receipt of payment. If payment for lien satisfaction is received electronically, then the lienholder shall execute the release within three business days of receipt of payment.
 (3) If the payment is deemed to be cleared by the department, then the department shall electronically transmit the certificate of title to the next lienholder or, if there is no other lienholder, then to the owner. The department shall file the release and note it upon the record of security interest maintained by the department pursuant to Section 56-19-660. The certificate of title shall remain in electronic format unless the owner requests a paper certificate of title pursuant to Section 56-19-265. No charge shall be made by the lienholder for executing such release.
 (4) Failure of the lienholder to forward the certificate of title to the department as required by this article is a misdemeanor punishable by a fine of not more than one hundred dollars or imprisonment of not more than thirty days.

Amend the bill further, by striking SECTION 13, and inserting:

SECTION 13. This act takes effect six months after approval by the Governor. The South Carolina Department of Motor Vehicles shall contract with a third party to implement an electronic title system as described in Section 56-19-265, which shall be operational not later than March 31, 2027.

Renumber sections to conform.

Amend title to conform.