On Apr. 7, SC LEG enacted bill on electronic auto titles, liens, transfers.
SC LEG enacted HB 3856 on electronic recording of motor vehicle ownership transfers, applications for and releases of liens, and any other component of vehicle titling.
Amends SC LEG 56-19-1-265 (motor vehicle liens), SC LEG 56-19-1-370(B)(4) (dealer titling vehicle where vehicle title was placed in suspended status).
Also amends SC LEG 56-19-1-680 (motor vehicles, satisfaction of security interest for which certificate is in possession of the lienholder; filing release.
Bill Provisions
Mandates use of DMV electronic title system by commercial entities engaged in vehicle titling, including dealers, lenders and auctions; system to be funded by the users.
Electronic titling system must enable users to transfer ownership, apply for and release liens, and perform any other components of the motor vehicle titling process.
Motor vehicle liens must be noted on title to the vehicle or noted electronically through the electronic title system; paper titles acceptable for casual sales between individuals.
DMV must electronically transmit title, notice of subsequent liens, to the lienholder.
Authorizes DMV to collect fee for liens placed/transmitted through electronic system.
Authorizes lienholders to collect fee from vehicle owners for liens placed electronically.
Allows lienholder to deliver release of satisfied security interest electronically to DMV.
Requires execution of release by lienholder within specified deadlines depending on whether satisfaction of the lien is received by the lienholder by paper or electronically.
Failure by lienholder to forward title to the DMV after release is a misdemeanor.
Legislative History
On Jan. 30, 2025, bill introduced in the House; on Apr. 9, 2025, bill passed in House.
On Apr. 9, 2025, bill introduced in the Senate; on Mar. 31, 2026, amended bill passed.
On Apr. 1, 2026, House concurred; on Apr. 7, 2026, bill was approved by the Governor.
Effectiveness
Takes effect six months after Governor approval, so effective Nov. 7, 2026.
Regulators
SC LEG
Entity Types
Bank; CU; Thrift
Reference
Act, Bill H3856, 4/7/2026; Citation: SC LEG 56-19-1;
