Rhode Island car paperwork would go digital first for lenders

Rhode Island lawmakers would put the state’s motor vehicle paperwork on a digital track by adding a new chapter to Title 31 of the General Laws. The Electronic Registration and Titling Act would authorize the Division of Motor Vehicles to run an electronic lien and title system, or ELT, and an electronic registration and title system, or ERT, instead of relying so heavily on paper titles.

That shift would matter most when a vehicle is financed or sold. Beginning Oct. 1, 2026, credit unions and financial institutions that record five or more security interests a year would have to use the ELT system. Once the ERT system is available for all licensed motor vehicle dealers, dealers that sell more than 150 vehicles a year would have to use it for title and registration applications.

Paper titles would become optional in more cases

The bill also would let the state issue fully paperless secure digital vehicle titles. Those titles could include title re-assignments, give users online, real-time access to title status and count as official Rhode Island vehicle titles that can be used in other U.S. jurisdictions.

The lien rules change as well. When a vehicle has an electronic lien, the DMV would send the lien electronically to the first lienholder and notify that lender about any additional liens. A paper title would not have to be printed until the last security interest is released, which would keep the record cleaner while the loan is still open.