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West Virginia to be first state in country to offer certain users a fully digital clearinghouse for vehicle titles

Government and Politics

February 16, 2023

From: West Virginia Governor Jim Justice

CHARLESTON, WV — Gov. Jim Justice announced today that he has signed House Bill 2506, creating a vehicle title clearinghouse for non-resident businesses in West Virginia. 

The bill's purpose is to allow West Virginia licensed non-resident businesses to transfer existing out-of-state titles into a West Virginia title in their name, even when the vehicle is located in another jurisdiction. 

The legislation's passage takes advantage of the advanced title and registration system that the West Virginia Division of Motor Vehicles (WV DMV) enabled in 2022. 

"I am excited about this initiative, which will bring millions of dollars to the state of West Virginia and position us as a leader in innovation, as we have been so many times before," Gov. Justice said. "I'm proud that West Virginia is the first state that's setting the template for others to follow. My thanks go out to the Legislature and to all those involved at the DMV for making this a reality."

To prepare for this groundbreaking and historic legislation, the WV DMV made significant advancements regarding their vehicle titling, registration, and lien processing systems over the past twelve months. 

"These advancements through our team at DMV have enabled West Virginia to be the first state in the country to offer fully digital vehicle services to businesses and consumers and will culminate in the introduction of the first fully digital vehicle title," DMV Commissioner Everett Frazier said.

As a result of West Virginia's Digital Title and Registration System ("DTRS"), the state has seen a reduction in title turnaround times from approximately 45 days to less than one day. 

As a result, West Virginia now intends to allow non-resident businesses to also benefit from West Virginia's successful investment in technology that allows the DMV to operate at the pace expected from private enterprises. 

"We are excited to be the first state to offer these fully digital services and appreciate the partnership with NIC West Virginia and Champ Titles, Inc.," Commissioner Frazier added. We also want to recognize the leadership of Governor Justice and Secretary Wriston in this endeavor. They have always charged us as an agency to make state business more transparent, accessible, and efficient.

"This legislation will help eliminate problems that have troubled national dealers, fleets and insurance carriers and have slowed the realization of evolving consumer preferences. We are very proud to make this long-desired concept a reality here in West Virginia, further establishing our state as a place where government and business work together to make great things happen."

The combination of HB 2506 and West Virginia's industry-leading technology will allow licensed national retailers, fleet operations, and insurance carriers (and their salvage auction partners) to simplify their interstate title transfers and expedite the process of securing a West Virginia title in their name for a vehicle that they own. This fast, fully digital process will allow qualifying participants to lower their costs, increase their efficiencies, and alleviate the traditional title issues inherent in paper-based vehicle titling. For example, qualifying businesses will now be able to submit title transfer requests in a fully digital and secure way without the need for notarization or wet signatures on any title transfer documents.

WV DMV will begin working with early adopters of this clearinghouse in the near future. Plans are underway to build space within DMV Headquarters in Kanawha City, purchase equipment, and hire employees. Tentatively, DMV will begin offering digital title clearinghouse services by Fall 2023.

Please visit the WV DMV website at dmv.wv.gov for additional updates.