July 2024

 

Effective State Changes

 

CALIFORNIA

SB 1096 requires the following language be disclosed in at least 16-point bold font on the front of an envelope containing physical mail soliciting consumer financial information: “THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.” Effective January 1, 2025.

 

FLORIDA

On June 28, 2024, Florida Governor Ron DeSantis signed House Bill 1347 into law changing provisions in the state’s Consumer Finance Act, specifically under § 516.031. The substantive changes include increasing the bracketed rate structures and tiers. The Consumer Finance Act still covers loans up to $25,000. The new rate structure is as follows:

• 36% per annum on the first $10,000 of the principal amount
• 30% per annum on the part of the principal exceeding $10,000 and up to $20,000
• 24% per annum on that part of the principal amount exceeding $20,000 and up to $25,000

Effective July 1, 2024.

 

INDIANA

On July 1, 2024, the Auto Dealer Services Division of the Indiana Secretary of State increased the allowable Documentation Preparation Fee to $245.28 (from $237.51), based on the federal Bureau of Labor Statistics’ Consumer Price Index. Effective July 1, 2024.

 

NEW JERSEY

On June 28, 2024, AB 4702 was signed into law. It phases out the sales and use tax exemption on zero-emission vehicles. Between October 1, 2024, and before July 1, 2025, sales of zero-emission vehicles will be subject to a tax rate of 3.3125%. Effective July 1, 2025, the rate will increase to the general sales and use tax rate (currently 6.625%). Effective immediately.

 

NORTH CAROLINA

HB 199 was signed by Governor Cooper on July 2, 2024. Among a host of other provisions recommended by the DMV, the new law changes the duration of a motor vehicle dealer's license from one year to two years, effective for licenses issued on or after October 1, 2024. The law does not change the annual license fee for dealers.

 

PENNSYLVANIA

On June 28, 2024, HB 109—the Prohibition of Early Contract Termination Fees Upon Death Act—was signed into law. A provider may not impose a fee for early termination of a service contract if a party to the contract dies before complete performance of the contract and the executor or administrator of the decedent’s estate provides notice. These provisions extend to vehicle leases such that a lessee shall not be liable for charges for the early termination of a lease agreement if the lessee dies before the end of the lease. Effective August 27, 2024.

 

RHODE ISLAND

On June 28, 2024, SB 2500 became law without the signature of Governor McKee. Amending the Commercial Law General Regulatory Provisions, SB 2500 creates a new chapter entitled the Rhode Island Data Transparency and Privacy Protection Act. Amongst other provisions, the law includes restrictions on the collection and processing of personal data, requires data controllers to obtain consumer consent before processing sensitive personal data, and requires controllers to establish a process for consumers to appeal a controller’s refusal to take action on a request regarding personal data. The attorney general has exclusive rights to enforce these new provisions. Effective January 1, 2026.

 

TEXAS

On July 2, 2024, the Texas Office of Consumer Credit Commissioner (“OCCC”) released Bulletin B16-5 describing the requirements for motor vehicle documentary fee filings under Chapter 348 of the Texas Finance Code. Effective July 11, 2024, if an auto dealer charges $225 or less for the Documentary Fee, they do not have to provide a notification and cost analysis to the OCCC. If a dealer wants to charge more than $225 for the Documentary Fee, the dealer must first provide a notification and cost analysis to the OCCC. The Bulletin provides instructions on how to accomplish this submission. Effective July 11, 2024.

 

WEST VIRGINIA

The West Virginia Motor Vehicle Dealers’ Advisory Board approved an increase in the maximum Documentary Fee that can be charged by auto dealers from $499 to $575. Effective July 1, 2024.