(A) The Department of Motor Vehicles or its designated agent may allow licensed motor vehicle dealers to issue first time motor vehicle registrations and license plates directly from the dealership. A dealership shall apply to the department upon forms approved and provided by the department. The department may request information necessary to ensure the integrity of the current licensing system. The department may allow or refuse a dealership the right to issue motor vehicle registrations or license plates based upon criteria established by the department. If a dealership previously is denied the privilege to issue registrations and license plates, upon meeting the established criteria, the dealership may be allowed to issue registrations or license plates. If in the opinion of the department a bond is necessary to ensure the payment of fees associated with the registering and licensing of a vehicle, the department may require a bond not to exceed the estimated value of new license plates and validation stickers held by the dealership or the department’s designated agent.

Text of (A) effective January 18, 2024.

(A) The Department of Motor Vehicles, or its designated agent, shall require licensed motor vehicle dealers to issue temporary motor vehicle registrations and temporary license plates directly from the dealership. Unless disallowed by the department, any dealership that begins a transaction through a third-party vendor pursuant to § 56-3-210(C)(2) that provides a service connection between issuing entities and the department must complete the entire transaction, including titling and registering the vehicle in the same manner. Unless extenuating circumstances apply, at the department’s discretion, dealers may not obtain certificates of title, temporary motor vehicle registrations, or temporary license plates from the department’s branch offices. A dealership must make attempts to apply to the department electronically, including utilizing digital scans of forms approved and provided by the department.

(B) The department may certify third-party providers to process titles, temporary license plates as provided in § 56-3-210, license plates, and vehicle registration transactions on behalf of the department. The department shall develop program standards and specifications that would be required for certification. Third parties requesting certification must agree to the program terms, conditions, standards, and specifications in order to participate.

(C) The department is authorized to collect a transaction fee from entities who either transmit or retrieve data from the department pursuant to this section. The fee must not exceed the fee authorized in § 56-19-265(B) for each transaction. These fees must be placed by the Comptroller General into the State Highway Fund as established by § 57-11-20, to be distributed as provided in § 11-43-167.