Study Regarding Implementation of a Uniform Statewide System to Allow for Electronic Transactions for the Registration and Titling of Motor Vehicles

LEGISLATIVE STUDY – The 83rd General Assembly of the Iowa Legislature, in Senate File 2273, directed the Iowa Department of Transportation (DOT) to conduct a study of how to implement a uniform statewide system to allow for electronic transactions for the registration and titling of motor vehicles. PARTICIPANTS IN STUDY – As directed by Senate File 2273, the DOT formed a working group to conduct the study that included representatives from the Consumer Protection Division of the Office of the Attorney General, the Department of Public Safety, the Department of Revenue, the Iowa State County Treasurer’s Association, the Iowa Automobile Dealers Association, and the Iowa Independent Automobile Dealers Association. CONDUCT OF THE STUDY – The working group met eight times between June 17, 2010, and October 1, 2010. The group discussed the costs and benefits of electronic titling from the perspectives of new and used motor vehicle dealers, county treasurers, the DOT, lending institutions, consumers and consumer protection, and law enforcement. Security concerns, legislative implications, and implementation timelines were also considered. In the course of the meetings the group: 1. Reviewed the specific goals of S.F. 2273, and viewed a demonstration of Iowa’s current vehicle registration and titling system so participants that were not users of the system could gain an understanding of its current functionality and capabilities. 2. Reviewed the results of a survey of county treasurers conducted by the DOT to determine the extent to which county treasurers had processing backlogs and the extent to which county treasurers limited the number of dealer registration and titling transactions that they would process in a single day and while the dealer waited. Only eight reported placing a limit on the number of dealer transactions that would be processed while the dealer waited (with the number ranging from one to four), and only 11 reported a backlog in processing registration and titling transactions as of June 11, 2010, with most backlogs being reported in the range of one to three days. 3. Conducted conference calls with representatives of the American Association of Motor Vehicle Administrators (AAMVA) and representatives of three states -- Kansas, which has an electronic lien and titling (ELT) program, and Wisconsin and Florida, each of which have both an ELT program and an electronic registration and titling (ERT) program – to assess current and best practices for electronic transactions. In addition, the DOT (through AAMVA) submitted a survey to all U.S. jurisdictions to determine how, if at all, other states implemented electronic transactions for the registration and titling of motor vehicles. Twenty-eight states responded to the survey; of the 28 states that responded, only 13 allowed liens to be added or released electronically, and only five indicated allowing applications for registration and titling to be submitted electronically. DOT staff also heard a presentation from South Dakota on its ERT system at an AAMVA regional meeting. ELT information that emerged suggests a multi-vendor approach, in which vendors that meet state specifications for participation are authorized to interface with the state’s system to serve as a portal between lenders and the state system, will facilitate electronic lien releases and additions by offering lenders more choices and the opportunity to use the same vendor in multiple states. The ERT information that emerged indicates a multi-interface approach that offers an interface with existing dealer management software (DMS) systems and through a separate internet site will facilitate ERT by offering access that meets a variety of business needs and models. In both instances, information that emerged indicates that, in the long-term, adoption rates are positively affected by making participation above a certain minimum threshold mandatory. 4. To assess and compare functions or services that might be offered by or through a vendor, the group heard presentations from vendors that offer products or services that facilitate some aspect of ELT or ERT. 5. To assess the concerns, needs and interest of Iowa motor vehicle dealers, the group surveyed dealers to assess registration and titling difficulties experienced by dealers, the types of DMS systems (if any) used by dealers, and the dealers’ interest and preference in using an electronic interface to submit applications for registration and titling. Overall, 40% of the dealers that responded indicated interest and 57% indicated no interest, but interest was pronounced among new car dealers (75% were interested) and dealers with a high number of monthly transactions (85% of dealers averaging more than 50 sales per month were interested). The majority of dealers responding to the dealer survey ranked delays in processing and problems with daily limits on transaction as ―minor difficulty or ―no difficulty. RECOMMENDATIONS -- At the conclusion of the meetings, the working group discussed possible approaches for implementation of electronic transactions in Iowa and reached a consensus that a phased implementation of electronic titling that addressed first electronic lien and title transactions (ELT) and electronic fund transfers (EFT), and then electronic applications for registration and titling (ERT) is recommended. The recommendation of a phased implementation is based upon recognition that aspects of ELT and EFT are foundational to ERT, and that ELT and EFT solutions are more readily and easily attained than the ERT solution, which will take longer and be somewhat more difficult to develop and will require federal approval of an electronic odometer statement to fully implement. ELT – A multi-vendor approach is proposed for ELT. No direct costs to the state, counties, consumers, or dealers are anticipated under this approach. The vendor charges participating lenders user or transaction fees for the service, and it appears the lenders typically absorb those costs due to the savings offered by ELT. Existing staff can complete the programming necessary to interface the state system with vendors’ systems. The estimated time to implement ELT is six to nine months. Mandatory participation is not recommended initially, but should be considered after ELT has been implemented and a suitable number of vendors have enrolled to provide a fair assessment of participation rates and opportunities. EFT – A previous attempt to implement ELT and EFT was terminated due to concern that it would negatively impact county revenues by reducing interest income earned on state funds collected by the county and held until the monthly transfer to the state. To avoid that problem in this implementation, the EFT solution should remain revenue neutral to the counties, by allowing fees submitted by EFT to be immediately directed to the proper county account. Because ARTS was designed and has the capacity to accommodate EFT, a vendor is not needed to implement EFT. The estimated time to implement EFT is six to nine months. It is expected that EFT development will overlap ELT development. ERT – ERT itself must be developed in phases. It will not be possible to quickly implement a fully functioning, paperless ERT system, because federal law requires that transfer of title be accompanied by a written odometer statement unless approval for an alternate electronic statement is granted by the National Highway Traffic Safety Administration (NHTSA). It is expected that it will take as much as a year or more to obtain NHTSA approval, and that NHTSA approval will require design of a system that requires the seller to electronically confirm the seller’s identity, make the required disclosure to the buyer, and then transfer the disclosure to the buyer, who must also electronically confirm the buyer’s identity and electronically review and accept the disclosure to complete and submit the transaction. Given the time that it will take to develop and gain approval for this solution, initial ERT implementation will focus on completing and submitting applications and issuing registration applied for cards electronically, with the understanding that this process will still require submission of paper documents until an electronic odometer solution is developed. Because continued submission of paper documents undermines the efficiencies sought, ―full‖ ERT – that is, all documents necessary for registration and titling should be capable of approval and/or acceptance by all parties, and should be capable of submission without transmittal or delivery of duplicate paper documents .– should remain the ultimate goal. ERT is not recommended as a means to eliminate review and approval of registration and titling transactions by the county treasurers, or to place registration and titling approval in the hands of the dealers, as county treasurers perform an important role in deterring fraud and promoting accuracy by determining the genuineness and regularity of each application. Authorizing dealers to act as registration agents that approve registration and title applications, issue registration receipts, and maintain and deliver permanent metal license plates is not recommended. Although distribution of permanent plates by dealers is not recommended, it is recommended that dealers participating in ERT generate and print registration applied for cards electronically. Unlike the manually-issued cards currently in use, cards issued in this fashion may be queried by law enforcement and are less susceptible to misuse by customers and dealers. The estimated time to implement the electronic application and registration applied for cards is 12 to 18 months, to begin after ELT and EFT have been implemented. It is recommended that focus during this time be on facilitating transfers through motor vehicle dealers, with initial deployment focused on higher-volume dealers that use DMS systems. In the long term an internet option for access to ERT must also be developed and maintained to allow participation for lower-volume dealers that do not use a DMS system. This option will also lay the ground work for an ERT option for sales between private individuals. Mandatory participation in Iowa is not recommended initially. As with ELT, it is recommended that mandatory participation be considered after at least an initial phase of ERT has been implemented and a suitable number of dealers have enrolled to provide a fair assessment of participation rates and opportunities. The use of vendors to facilitate ERT is not initially proposed because 1) DOT IT support staff is capable of developing a system that will interact with DMS systems and will still have to develop a dealer and public interface regardless of whether a vendor acts as intermediary between the DMS systems, and 2) there is concern that the cost of the vendor-based system, which is funded by transaction-based payments from the dealer to the vendor, will be passed to the consumer in the form of additional documentation or conveyance fees. However, the DOT recommends flexibility on this point, as development and pilot of the system may indicate that a multi-vendor approach similar to that recommended for ELT may increase the adoption rate by larger dealers and may ultimately decrease the user management to be exercised by DOT staff. If vendors are used in the process, additional legislation or administrative rules may be needed to control the fees that may be passed to the consumer. No direct cost to the DOT or county treasurers is expected, as the DOT expects that it may complete necessary programming with existing staff. Use of vendors to facilitate ERT transactions by dealers using DMS systems would result in transaction fees that may ultimately be passed to consumers. LEGISLATION – As a result of the changes implemented in 2004 under Senate File 2070, the only changes to Iowa statutes proposed are to section 321.69 of the Iowa Code, ―Damage disclosure statement,and section 321.71, ―Odometer requirements.‖ In each instance, authority to execute these statements by electronic means would be clarified by authorizing language similar to that used in section 321.20, subsections ―2‖ and ―3,‖ which allows for electronic applications and directs the department to ―adopt rules on the method for providing signatures for applications made by electronic means.‖ In these sections, the authorizing language might read as follows: Notwithstanding contrary provisions of this section, the department may develop and implement a program to allow for any statement required by this section to be made electronically. The department shall adopt rules on the method for providing signatures for statements made by electronic means. Some changes to DOT administrative rules will be useful but only to enable changes to work processes that would be desirable in the long term. Examples of long term work processes that would be enabled by rule changes include allowing for signatures created through electronic means and electronic odometer certifications. The DOT rules, as currently written, do not hinder the ability to proceed with ELT, EFT, and ERT.

Solar Powered Highway Delineator System, HR-367, 1993

Currently, many drivers experience some difficulty in viewing the road ahead of them during times of reduced visibility, such as rain, snow, fog, or the darkness of night- Recent studies done by the National Safety Council provide a detailed contrast between fatal accidents occurring during the day and night. Revealed was that the motor vehicle night death rate (4.41 deaths per 100 million miles driven) was sharply higher than the corresponding death rate during daylight hours (1.21). By providing a delineating system powered by the natural resource of solar power, a constant source of visibility may be maintained throughout the evening. Along with providing enough light to trace the outline of the road, other major goals defined in producing this delineator system are as follows: 1. A strong and durable design that would protect the internal components and survive extreme weather conditions. 2. A low maintenance system where components need few repairs or replacements. 3. A design which makes all components accessible in the event that maintenance is needed, but also prevents vandalism. 4. A design that provides greater visibility to drivers and will not harm a vehicle or its passengers in the event of a collision. This solar powered highway delineator consists of an adjustable solar array, a light fixture, and a standard delineator pole. The solar array houses and protects the solar panels, and can be easily adjusted to obtain a maximum amount of sunlight. The light fixture primarily houses the battery, the circuit and the light assembly. Both components allow for easy accessibility and reduce vandalism using internal connections for bolts and wires. The delineator mounting pole is designed to extensively deform in the event of a collision, therefore reducing any harm caused to the vehicle and/or the passengers. The cost of a single prototype to be produced is approximately $70.00 excluding labor costs. However, these material and labor costs will be greatly reduced if a large number of delineators are produced. It is recommended that the Iowa Department of Transportation take full advantage of the research and development put into this delineator design. The principles used in creating this delineator can be used to provide an outline for drivers to follow, or on a larger scale, provide actual roadway lighting in areas where it was never before possible or economically feasible. In either event, the number of fatal accidents will be decreased due to the improved driver visibility in the evening.

Fast Track Portland Cement Concrete Pavement, HR-538, 1997

In 1987, 1.5 km (0.935 mi.) of Spruce Hill Drive in Bettendorf, Iowa was reconstructed. It is an arteriel street with commercial usage on both termini with single family residential dwellings along most of the project. A portland cement concrete (PCC) pavement design was selected, but a 14 day curing period would have been an undue hardship on the residents and commercial businesses. An Iowa DOT Class F fast track concrete was used so the roadway could be used in 7 to 10 days. The Class F concrete with fly ash was relatively sticky and exhibited early stiffening problems and substantial difficulty in obtaining the target entrained air content of 6.5%. These problems were never completely resolved on the project. Annual visual field reviews were conducted through 1996. In November 1991, severe premature distress was identified on the westbound two lanes of the full width replacement. The most deteriorated section in a sag vertical, 152 m (500 ft.) of the westbound roadway, was replaced in 1996. Premature distress has been identified on a dozen other conventional PCC Iowa pavements constructed between 1983 and 1989, so the deterioration may not be related to the fact that it was fast track pavement.

Production of Asphalt Rubber Concrete by the Dry Process, HR-1062, 1994

Disposal of used tires has been a problem throughout the United States. The 1991 Intermodal Surface Transportation Efficiency Act (ISTEA) requires the use of recycled rubber in asphalt concrete starting in FY94. A moratorium has delayed this requirement until FY95. The Iowa DOT has researched six projects using crumb rubber modifier in asphalt concrete using the wet process. This process involves using a blender-reactor to blend the asphalt cement and crumb rubber. Using the wet process the asphalt cement has to reach a hotter temperature, than is normally required, for reaction to occur. The wet process is also much more expensive than conventional asphalt. This research deals with using a dry process to incorporate crumb rubber into the asphalt concrete mix. The project was constructed by Western Engineering of Harlan, Iowa, on IA 37 between Earling, Iowa and US 59. It was completed in September 1993. Western Engineering used a double drum mixer to produce the crumb rubber modified asphalt concrete by the dry process. The production and construction went well with minor difficulty and the dry process is a less expensive procedure for producing crumb rubber modified asphalt concrete.

Construction of a Bridge Floor Using High Range Water Reducer, Construction Report, HR-192, 1978

The use of a high range water reducer in bridge floors was initiated by an Iowa Highway Research Board project (HR-192) in 1977 for two basic reasons. One was to determine the feasibility of using a high range water reducer (HRWR) in bridge floor concrete using conventional concrete proportioning, transporting and finishing equipment. The second was to determine the performance and protective qualities against chloride intrusion of a dense concrete bridge floor by de-icing agents used on Iowa's highways during winter months. This project was basically intended to overcome some problems that developed in the original research project. The problems alluded to are the time limits from batching to finishing; use of a different type of finishing machine; need for supplemental vibration on the surface of the concrete during the screeding operation and difficulty of texturing. The use of a double oscillating screed finishing machine worked well and supplemental vibration on one of the screeds was not needed. The limit of 45 minutes from batching the concrete to placement on the deck was verified. This is a maximum when the HRWR is introduced at the batch plant. The problem of texturing was not solved completely but is similar to our problems on the dense "Iowa System" overlay used on bridge deck repair projects. This project reinforced some earlier doubts about using truck transit mixers for mixing and transporting concrete containing HRWR when introduced at the batch plant.

Deterioration of Iowa Highway Concrete Pavements: A Petrographic Study, HR-1065, 1999

Major highway concrete pavements in Iowa have exhibited premature deterioration attributed to effects of ettringite formation, alkali-silica expansive reactions, and to frost attack, or some combination of them. These pavements were constructed in the mid- 1980s as non-reinforced, dual-lane, roads ranging in thickness between 200 mm and 300 mm, with skewed joints reinforced with dowels. Deterioration was initially recognized with a darkening of joint regions, which occurred for some pavements as soon as four years after construction. Pavement condition ranges from severe damage to none, and there appeared to be no unequivocal materials or processing variables correlated with failure. Based upon visual examinations, petrographic evaluation, and application of materials models, the deterioration of concrete highway pavements in Iowa appear related to a freeze-thaw failure of the coarse aggregate and the mortar. Crack patterns sub-parallel to the concrete surface transecting the mortar fraction and the coarse aggregate are indicative of freeze-thaw damage of both the mortar and aggregate. The entrained air void system was marginal to substandard, and filling of some of the finer-sized voids by ettringite appears to have further degraded the air void system. The formation of secondary ettringite within the entrained air voids probably reflects a relatively high degree of concrete saturation causing the smaller voids to be filled with pore solution when the concrete freezes. Alkali-silica reaction (ASR) affects some quartz and shale in the fine aggregate, but is not considered to be a significant cause of the deterioration. Delayed ettringite formation was not deemed likely as no evidence of a uniform paste expansion was observed. The lack of field-observed expansion is also evidence against the ASR and DEF modes of deterioration. The utilization of fly ash does not appear to have affected the deterioration as all pavements with or without fly ash exhibiting substantial damage also exhibit significant filling of the entrained air void system, and specimens containing fly ash from sound pavements do not have significant filling. The influence of the mixture design, mixing, and placing must be evaluated with respect to development of an adequate entrained air void system, concrete homogeneity, longterm drying shrinkage, and microcracking. A high-sand mix may have contributed to the difficult mixture characteristics noted upon placement and exacerbate concrete heterogeneity problems, difficulty in developing an adequate entrained air void system, poor consolidation potential, and increased drying shrinkage and cracking. Finally, the availability of moisture must also be considered, as the secondary precipitation of ettringite in entrained air voids indicates they were at least partially filled with pore solution at times. Water availability at the base of the slabs, in joints, and cracks may have provided a means for absorbing water to a point of critical saturation.

Remote Sensing (LIDAR) for Management of Highway Assets for Safety, 2003

The main objective of this study was to utilize light detection and ranging (LIDAR) technology to obtain highway safety-related information. The safety needs of older drivers in terms of prolonged reaction times were taken into consideration. The tasks undertaken in this study were (1) identification of crashes that older drivers are more likely to be involved in, (2) identification of highway geometric features that are important in such crashes, (3) utilization of LIDAR data for obtaining information on the identified highway geometric features, and (4) assessment of the feasibility of using LIDAR data for such applications. A review of previous research indicated that older drivers have difficulty negotiating intersections, and it was recognized that intersection sight triangles were critical to safe intersection negotiation. LIDAR data were utilized to obtain information on potential sight distance obstructions at six selected intersections located on the Iowa Highway 1 corridor by conducting in-office line-of-sight analysis. Crash frequency, older driver involvement, and data availability were considerations in the selection of the six intersections. Results of the in-office analysis were then validated by visiting the intersections in the field. Sixty-six potential sight distance obstructions were identified by the line-of-sight analysis, out of which 62 (89.8%) were confirmed while four (5.8%) were not confirmed by the video. At least three (4.4%) potential sight distance obstructions were discovered in the video that were not detected by the line-of-sight analysis. The intersection with the highest crash frequency involving older drivers was correctly found to have obstructions located within the intersection sight triangles. Based on research results, it is concluded that LIDAR data can be utilized for identifying potential sight distance obstructions at intersections. The safety of older drivers can be enhanced by locating and rectifying intersections with obstructions in sight triangles.

Fast Track and Fast Track II - Cedar Rapids, Iowa, HR-544, Construction Report, 1989

Two lanes of a major four lane arterial street needed to be reconstructed in Cedar Rapids, Iowa. The traffic volumes and difficulty of detouring the traffic necessitated closure for construction be held to an absolute minimum. Closure of the intersections, even for one day, was not politically feasible. Therefore, Fast Track and Fast Track II was specified for the project. Fast Track concrete paving has been used successfully in Iowa since 1986. The mainline portion of the project was specified to be Fast Track and achieved the opening strength of 400 psi in less than twelve hours. The intersections were allowed to be closed between 6 PM and 6 AM. This could occur twice - once to remove the old pavement and place the base and temporary surface and the second time to pave and cure the new concrete. The contractor was able to meet these restrictions. The Fast Track II used in the intersections achieved the opening strength of 350 psi in six to seven hours. Two test sections were selected in the mainline Fast Track and two intersections were chosen to test the Fast Tract II. Both flexural and compression specimens were tested. Pulse velocity tests were conducted on the pavement and test specimens. Maturity curves were developed through monitoring of the temperatures. Correlations were performed between the maturity and pulse velocity and the flexural strengths. The project was successful in establishing the feasibility of construction at night, with no disruption of traffic in the daytime, using fast Track II. Both the Fast Track II pavements were performing well four years after construction.