Effective State Changes

CALIFORNIA

California Assembly Bill No. 375 was approved by the Governor on June 28, 2018. The bill enacts the California Consumer Privacy Act of 2018. This bill grants consumers broad rights such as: the right to request a business disclose what information is being collected about the consumer, the identity of third parties to whom the information is sold, and the right to opt out of the sale of personal information by a business. The bill broadly defines "personal information." Effective January 1, 2020.

INDIANA

Indiana published Emergency Rule LSA Document #18-155(E) which implements certain bracket updates, effective July 1, 2018. These bracket adjustments include:

• The minimum credit service charge increases to $51.00.
• The delinquency charge for sales and loans increases to $19.00.
• The minimum finance charge for loans increases to $51.00.
• The maximum loan term for $1,140 to $4,000 is 37 months.

Effective July 1, 2018.

MISSISSIPPI

As a reminder, the Mississippi Credit Availability Act was originally repealed within the 2016 legislation as of July 1, 2018. However, HB 811 was signed by the Governor on March 19, 2018. HB 811 reenacted the Mississippi Credit Availability Act, effective July 1, 2018.

NEW HAMPSHIRE

New Hampshire HB 1687 The bill removes a reference to how interest must be computed based on a 30-day month. Under the bill, small, title or payday lenders may not take a note or agreement in which there are blanks that are left to be filled in after the loan is made.  The bill further specifies disclosure requirements such as the date, schedule or description of the payments to be made, agreed charges or rate of charge, and the amount of the note or maximum credit line. Effective August 7, 2018.

NORTH CAROLINA

North Carolina HB 347 was enacted after overriding the Governor's veto. The bill specifically addresses balloon payments when financing motorcycles (Section 5.(a) G.S. 25A-34). The bill specifies that no scheduled payment may be more than 10% larger than the average of earlier payments, except that the final payment may be 25% larger than the average of earlier scheduled payments. But this provision does not apply to the sale of a motorcycle with a purchase price of $7,500 or more. Effective December 1, 2018.

SB 411 expands the required use of the electronic lien system implemented by the Division of Motor Vehicles. Effective immediately, all individuals and lienholders who conduct at least 5 transactions annually must use the electronic lien system. The bill also addresses perfection of a security interest on a certificate of title, assigning or transferring title, and transfer by owner when a certificate is unavailable. Effective June 22, 2018.