Requirements and Limitations for use of Electronic Signature for Paper Titles

Subject to the requirements 540 CMR 5.00, Dealers may use Electronic Signatures on Paper Titles submitted to the Registry for a Dealer Sale or Dealer Assignment of Title, in lieu of traditional signatures on Paper Titles. Dealer Sales and Dealer Assignments of Title must meet the requirements of 540 CMR 5.03 to use Electronic Signature on a Paper Title for the sale or transfer of a Motor Vehicle; provided that in the event that a Vehicle is owned or will be owned by multiple individuals, any applicable requirements of 540 CMR 5.03 apply to each individual owner or potential owner. (1) An Electronic Signature shall not be used for Casual Sales or Dealer Purchases. (2) Electronic Signature shall only be used on Paper Title transactions whereby a Vehicle is sold or transferred as part of a Dealer Sale or on Paper Title transactions whereby a Vehicle is sold as part of a Dealer Assignment of Title. (3) A Paper Title that has been executed with an Electronic Signature in accordance with the requirements contained 540 CMR 5.00 does not have to be converted to physical format by printing for any purpose, except when submission by physical means is necessary and required by the Registrar. (4) Electronic Signature may be used to transfer a Motor Vehicle Paper Title as part of a Dealer Assignment of Title, provided that all of the following requirements are met: (a) The existing Motor Vehicle Paper Title is properly assigned to the Dealer, pursuant to M.G.L. c. 90D, § 16; (b) The Paper Title is free of all encumbrances and liens; and (c) The Dealer is enrolled in EVR. (5) Electronic Signature may be used to transfer a Motor Vehicle Paper Title, as part of a Dealer Sale, provided that all of the following requirements are met: (a) The existing Motor Vehicle Paper Title is issued to the Dealer transferring Title, in the Dealer's name, pursuant to M.G.L. c. 90D, § 15; (b) The Paper Title is free of all encumbrances and liens; and (c) The Dealer is enrolled in EVR. (6) The security requirements for using Electronic Signatures for Paper Title transactions meeting the requirements of 540 CMR 5.03 must comply with the following, or such other standards and controls which may be identified by the Registrar in guidance: (a) The Electronic Signature Platform must meet the standards of NIST SP 800-63-3; (b) The signatory for the Dealer must be authorized to sign Paper Titles on behalf of the Dealer, and supply documentation sufficient to the Registrar supporting and certifying that authorization; (c) The signatory for the Dealer must undergo identity proofing at Identify Authentication Level 2 (IAL2) standards during account enrollment on the Electronic Signature Platform. "IAL2" means identity proofing meeting NIST SP 800-63-3 standards via validated government photo ID and biometric liveness verification; (d) The signatory for the Dealer shall authenticate using multi-factor authentication meeting Authenticator Assurance Level 2 (AAL2) standards to access the Electronic Signature Platform. "AAL2" means multi-factor authentication using at least two different authentication factors as defined by NIST SP 800-63-3 (e.g. username and password plus one-time code); and (e) The buyer must receive a secure, one-time access link from the Electronic Signature Platform via email or SMS and must complete identity verification (validated government ID and biometric liveness check) before signing. This meets AAL1 authentication with IAL2-equivalent identity verification standards, or such standards or controls which may be identified by the Registrar in guidance. (7) A Dealer Sale or Dealer Assignment of Title that includes a transfer of a Paper Title utilizing Electronic Signature must be submitted with the following documentation in a format approved by the Registrar, to be considered valid for sale or transfer purposes: (a) Signed attestation under the pains and penalties of perjury, in a form or manner approved by the Registrar, affirming that the scanned Paper Title is a true and unaltered representation of the original document and any Electronic Signature meets the Registrar's requirements as enumerated in 540 CMR 5.03; (b) Signed attestation under the pains and penalties of perjury, in a form or manner approved by the Registrar, affirming that the Electronic Signature Platform used to obtain the Electronic Signature meets the Registrar's requirements as enumerated in 540 CMR 5.03(6); (c) The Electronically Signed Title Package, in a form and manner approved by the Registrar, consisting of: 1. Digitally signed document bundle containing a scanned Paper Certificate of Title or Manufacturer's Certificate of Origin, fillable Digital Signature Retail Sale Assignment form or Electronic Manufacturer's Certificate of Origin Form, as approved by Registrar, and additional documents as required by law or transaction type; and 2. Electronic Signature Platform generated certificate of completion: a. Signature attestation records for Dealer and customer; b. Audit trail report itemizing the signature history of all signatories; and c. Document integrity verification report. (8) An Electronic Signature on a Paper Title, meeting the requirements of 540 CMR 5.03, shall only be submitted through EVR to the RMV, except when otherwise directed by the RMV. (9) All documents related to the Dealer Sale and Dealer Assignment of Title shall be retained and destroyed in a form and manner as determined by the Registrar. (10) Pursuant to M.G.L. c. 110G, § 5, nothing in 540 CMR 5.00 shall be construed to require a buyer to use E-Signature. (11) Nothing 540 CMR 5.00 shall be construed to require, limit, prohibit, or otherwise hinder the Registrar to provide or issue an "electronic power of attorney" or "electronic title" as those terms are defined in Part 580 of Title 49 United States Code of Federal Regulations, or require the use of or provide an electronic signature process, system, platform, or service. (12) The conveyor of the Vehicle shall maintain or surrender the existing Paper Title or Manufacturer's Certificate of Origin, if applicable, upon completion of the transaction for a Vehicle that is sold, or transferred under 540 CMR 5.03, in a form or manner prescribed by the Registrar. (13) Limited-use Process: The RMV shall develop a Limited-use Process for the Electronic Signatures for Dealer Sales or Dealer Assignments of Title eligible for use of the E-Signature process under 540 CMR 5.03. The Limited-use Process may only be used during a term specified by the Registrar when implementing the Limited-use Process is necessary to meet Registry compliance directives or for limited circumstances as determined by the Registrar, in their sole discretion. For any term that the Limited-use Process is available, it must be made available to all applicable customers under 540 CMR 5.03. Any attempt by a customer or Dealer to utilize the Limited-use Process during a term not specified by the Registrar shall result in the transaction being denied and may be deemed a violation of 540 CMR 5.03, subject to penalties as described in 540 CMR 5.06. (14) Out of State Dealers using Out of State Certificates of Title: (a) For the purposes of 540 CMR 5.03(13), the following definitions shall have the following meanings: 1. Out of State Certificate of Title or Out of State Title. A certificate of title issued by a non-Massachusetts Motor Vehicle Administrator for a Motor Vehicle, certifying the Motor Vehicle's current ownership, issued on paper, including the front and back of each page of said title and all title assignments. An Out of State Certificate of Title shall constitute a "Paper Title" for the purposes of conducting transactions pursuant to 540 CMR 5.03(13) and meeting the requirements of 540 CMR 5.03. 2. Out of State Dealer. Any person who is licensed in another state as a motor vehicle dealer, is eligible to participate in EVR and enrolled in EVR, is engaged principally and substantially in the business of buying, selling or exchanging new or used Motor Vehicles, maintains a facility dedicated to carrying out said business, and is open to the public. Neither a person who sells Motor Vehicles solely on a salvage basis nor a person who sells Motor Vehicles solely on a wholesale basis are considered Out of State Dealers. An Out of State Dealer shall constitute a "Dealer" within the definition of "Dealer Sale" and "Dealer Assignment of Title" under 540 CMR 5.03. (b). Subject to the requirements of 503 CMR 5.03, Out of State Dealers may use Electronic Signatures on Out of State Certificates of Title submitted, through EVR, if eligible and enrolled in EVR, to the Registry for a Dealer Sale or Dealer Assignment of Title only to a Massachusetts resident, in lieu of traditional signatures.