Amends existing law to provide for cancellation or discharge of an encumbrance by an Idaho vehicle dealer and to allow electronic motor vehicle records as evidence of ownership.

This legislation updates Idaho’s vehicle titling statutes to modernize title processing and improve efficiency in lien administration. The bill authorizes the Idaho Transportation Department to accept and treat electronically submitted documents as equivalent to original paper records. The bill also clarifies procedures for lien cancellation and discharge, including requirements for lienholders holding electronic titles to transmit electronic transactions directing issuance of a clear paper title. In addition, the bill establishes expedited timelines for Idaho-licensed vehicle dealers to receive lien releases upon payment with verified funds. These changes are intended to reduce paperwork, improve turnaround times for title issuance and lien releases, enhance customer service for vehicle owners and dealers, and support continued modernization of Idaho’s motor vehicle records system.