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.

Sediment Control in Bridge Waterways, February 1990

The objective of this study was to develop guidelines for use of the Iowa Vanes technique for sediment control in bridge waterways. Iowa Vanes are small flow-training structures (foils) designed to modify the near-bed flow pattern and redistribute flow and sediment transport within the channel cross section. The structures are installed at an angleof attack of 15 - 25' with the flow, and their initial height is 0.2 - 0.5 times water depth at design stage. The vanes function by generating secondary circulation in the flow. The circulation alters magnitude and direction of the bed shear stress and causes a reduction in velocity and sediment transport in the vane controlled area. As a result, the river bed aggrades in the vane controlled area and degrades outside. This report summarizes the basic theory, describes results of laboratory and field tests, and presents the resulting design procedure. Design graphs have been developed based on the theory. The graphs are entered with basic flow variables and desired bed topography. The output is vane layout and design. The procedure is illustrated with two numerical examples prepared with data that are typical for many rivers in Iowa and the midwest. The report also discusses vane material. In most applications, the vane height will be between 30% and 50% of bankfull flow depth and the vane length will be two to three times vane height. The vanes will be placed in arrays along the bank of the river. Each array will contain two or more vanes. The vanes in an array will be spaced laterally a distance of two to three times vane height. The streamwise spacing between the arrays will be 15 to 30 times vane height, and the vane-to-bank distance will be three to four times vane height. The study also show that the first (most upstream) array in the vane system must be located a distance of at least three array spacings upstream from the bridge, and there must be at least three arrays in the system for it to be effective at and downstream from the third array.

Response of Iowa Pavements to Heavy Agricultural Loads, HR-1075, 1999

Iowa's county road system includes several thousands of miles of paved roads which consist of Portland cement concrete (PCC) surfaces, asphalt cement concrete (ACC) surfaces, and combinations of thin surface treatments such as seal coats and slurries. These pavements are relatively thin pavements when compared to the state road system and therefore are more susceptible to damage from heavy loads for which they were not designed. As the size of the average farm in Iowa has increased, so have the size and weights of implements of husbandry. These implements typically have fewer axles than a truck hauling the same weight would be required to have; in other words, some farm implements have significantly higher axle weights than would be legal for semi-trailers. Since stresses induced in pavements are related to a vehicle's axle weight, concerns have been raised among county and state engineers regarding the possible damage to roadway surfaces that could result from some of these large implements of husbandry. Implements of husbandry on Iowa's highway system have traditionally not been required to comply with posted weight embargo on bridges or with regulations regarding axle-weight limitations on roadways. In 1999, with House File 651, the Iowa General Assembly initiated a phased program of weight restrictions for implements of husbandry. To help county and state engineers and the Iowa legislature understand the effects of implements of husbandry on Iowa's county roads, the following study was conducted. The study investigated the effects of variously configured grain carts, tank wagons, and fence-line feeders on Iowa's roadways, as well as the possible mitigating effects of flotation tires and tracks on the transfer of axle weights to the roadway. The study was accomplished by conducting limited experimental and analytical research under static loading conditions

Soft Photogrammetry for Highway Engineering, HR-387, 1998

The SoftPlotter, a soft photogrammetric software and Silicon Graphics workstation, was used to evaluate the accuracy of soft photogrammetry and identify applications of this technology to highway engineering. A comparative study showed that SoftPlotter compares well with other software such as Socket and Integraph. The PC software TNTMips is inexpensive but needs further development to be comparable to SoftPlotter. The Campus Project showed that soft photogrammetry is accurate for traditional photogrammetric applications. It is also accurate for producing orthophoto and base maps for Geographic Information Systems (GISs). The Highway Project showed that soft photogrammetry is accurate for highway engineering and that the technical staff at the Iowa Department of Transportation (IA DOT) can be easily trained in this new technology. The research demonstrated that soft photogrammetry can be used with low-flight helicopter photography for large-scale mapping in highway engineering. The researchers recommend that research be conducted to test the use of digital cameras instead of the traditional aerial cameras in helicopter photography. Research that examines the use of soft photogrammetry with video logging imagery for inventory and GIS studies in highway maintenance is also recommended. Research is also warranted into the integration of soft photogrammetry with virtual reality, which can be used in three-dimensional designing and visualization of highways and subdivisions in real time. The IA DOT owns one analytical plotter and two analogue plotters. The analytical plotter is used for aerial triangulation, and the analogue plotters are used for plotting. However, neither is capable of producing orthophotos. Therefore, the researchers recommend that the IA DOT purchase soft photogrammetric workstations for orthophoto production, and if and when required, use it for aerial triangulation and plotting. In the future, the analogue plotters may become obsolete. At that time, the researchers recommend that the analogue plotters be phased out and replaced by soft photogrammetric workstations.

09031-016 Duck Creek Watershed Final Report

The Duck Creek Watershed, the recipient of a 2009 DNR Watershed Management Planning Grant and a focus of an upcoming City of Davenport master plan, is characterized by relatively flat grades and highly impervious areas. Plagued by issues such as high bacteria loads, stream bank erosion and flooding, solving these problems may take generations. The City of Davenport has taken a microwatershed approach to identify the significant contributors to water quality and flooding issues that affect Duck Creek, its tributaries and the surrounding landscape to make inroads into the larger issues. This project is the next phase of a multi-phased project that addresses the microwatershed that includes St Ambrose University. Work here will improve water quality within Duck Creek and address major flooding issues on campus while also reducing downstream flooding. This project will convert an existing parking lot into a green parking area by removing the hard surface and installing below ground facilities for storm water infiltration, detention, and reuse. Permeable pavement, bio­ swales and infiltration areas will be constructed on top of the infiltration facilities. We estimate that this project will capture and treat 1,110,000 gallons (3.5 acre feet) of storm water runoff which accounts to the runoff volume from a 10-year storm event while reducing pollutants by 30-100%.

Issue review : impact on the insurance premium tax rate reduction .

In 2002, Senate File 2318, Insurance Premium Tax Reduction Act, the Iowa General Assembly approved a reduction in the insurance premium tax rate from 2 percent to 1 percent. The reduction was phased in at the rate of 1/4 percent annual increments over a five-year period, beginning with life and health insurance policy payments made on or after January 1st, 2003. Calendar year 2007 was the first year all premiums were taxed at 1 percent and fiscal year 2008 was the first full fiscal year at the 1 percent rate. Insurance premiums tax is paid only by insurance companies. The companies that benefit from the tax reduction are uniquely identified in government employment statistics. This allows for a unique opportunity to evaluate both the revenue impact and the employment impact of the tax rate reduction in Senate File 2318. This issue review focuses on the General Fund revenue impact of the rate reduction and the Iowa employment trends for the insurance industry since the rate reduction legislation was approved.

Insights into the Design and Characteristics of the Sedimentation Process at Multi-Barrel Culverts in Iowa, TR-596, 2010

The present study is an integral part of a broader study focused on the design and implementation of self-cleaning culverts, i.e., configurations that prevent the formation of sediment deposits after culvert construction or cleaning. Sediment deposition at culverts is influenced by many factors, including the size and characteristics of material of which the channel is composed, the hydraulic characteristics generated under different hydrology events, the culvert geometry design, channel transition design, and the vegetation around the channel. The multitude of combinations produced by this set of variables makes the investigation of practical situations a complex undertaking. In addition to the considerations above, the field and analytical observations have revealed flow complexities affecting the flow and sediment transport through culverts that further increase the dimensions of the investigation. The flow complexities investigated in this study entail: flow non-uniformity in the areas of transition to and from the culvert, flow unsteadiness due to the flood wave propagation through the channel, and the asynchronous correlation between the flow and sediment hydrographs resulting from storm events. To date, the literature contains no systematic studies on sediment transport through multi-box culverts or investigations on the adverse effects of sediment deposition at culverts. Moreover, there is limited knowledge about the non-uniform, unsteady sediment transport in channels of variable geometry. Furthermore, there are few readily useable (inexpensive and practical) numerical models that can reliably simulate flow and sediment transport in such complex situations. Given the current state of knowledge, the main goal of the present study is to investigate the above flow complexities in order to provide the needed insights for a series of ongoing culvert studies. The research was phased so that field observations were conducted first to understand the culvert behavior in Iowa landscape. Modeling through complementary hydraulic model and numerical experiments was subsequently carried out to gain the practical knowledge for the development of the self-cleaning culvert designs.

1016-010 Iowa Great Lakes Watershed Final Report

Part of a phased approach, an intensive information and education program, construction of erosion control practices, and sediment control on construction sites is proposed. These proposed practices will manage sediment runoff and nutrient runoff on agricultural and urban areas. Sediment control “structures” such as waterways, wetlands, modified terraces, grade stabilization structures, sediment basins, and rain gardens is proposed and will be combined with nutrient and pesticide management and reduced tillage to reduce non-point source pollution. A reduction of 15% of the sediment and phosphorus delivered to a water body from priority areas will be looked at as a success in this short-term project focused primarily at education within the project area which is also, for the most part, the top 25% sediment load producing sub-watersheds. In addition, four urban areas have been identified as part of this project as needing immediate assistance. A combination of urban and agricultural conservation practices, shoreline revegetation, and education of landowners will be used to achieve these results on both the urban and the agricultural arena.