AN ACT relating to transportation and declaring an emergency.

Create a new section of KRS Chapter 186A to allow for an electronic record of a motor vehicle title to be stored in AVIS without the production of a paper copy of the title; provide that titles held in the system electronically have the same legal status as paper titles; allow a titled holder to request a paper title at any time; exempt from fees the first paper title for a vehicle if the title was held electronically; amend KRS 186A.035 to outline procedures and forms for transfers of vehicles held in joint ownership; amend KRS 186A.115 to allow a person presenting a vehicle for inspection to present a current operator's license from Kentucky or another state; amend KRS 186A.190 to establish procedures for electronic submission of liens, security interests and satisfactions; allow use of electronic signatures; provide for holding titles in AVIS and not producing paper titles for vehicles for which liens have been filed electronically; allow the Transportation Cabinet to remove any lien from the certificate of title in AVIS if the lien expiries and is not renewed; amend KRS 186A.195 to allow the use of electronic signatures on title lien statements; amend KRS 186A.145 to exempt from the prohibition against transferring a vehicle in cases involving delinquent ad valorem taxes transfers between individuals when the delinquent taxes are owed by a previous owner not party to the transaction; amend KRS 186A.100 to allow the use a temporary motor vehicle tags on vehicles sold in Kentucky that are being transported to another state for registration; allow county clerks to keep an electronic record of temporary tags; amend KRS 186A.017 to set time frames for county clerk processing of title applications filed through the electronic system; amend KRS 186A.220 to allow motor vehicle dealers to dealer assign all-terrain vehicles; amend KRS 235.130 to allow a county clerk to accept an affidavit of ownership to process the application of a boat title; EFFECTIVE, in part, January 1, 2027.