March 2021

 

 

ARIZONA

Governor Ducey passed HB 2424 on March 24, 2021. The bill empowers the Director of the Department of Transportation to contract with an association of new motor vehicle dealers to manage a lien recording system at no cost to the state. Effective 90 days after sine die adjournment.

 

ARKANSAS

HB 1042 became Act 146 on February 24, 2021. Act 146 repeals the long-term rental vehicle excise tax. Effective 90 days after sine die adjournment.

SB 184 was approved by Governor Asa Hutchinson on March 25, 2021. The bill repealed the Arkansas Pawnbroker Act. Effective 90 days after sine die adjournment.

SB 225 was signed into law on March 17, 2021. The bill adds a definition of a plug-in electric vehicle and plug-in hybrid electric vehicle under the Arkansas code. Plug-in electric vehicle owners will now pay a fee of $100 to register their vehicle, while the fee for hybrid electric vehicle owners has been reduced to $50. Effective January 1, 2022.

 

ILLINOIS

On March 23, 2021 Governor Pritzker signed SB 1792 which enacts The Predatory Loan Prevention Act. This law goes into effect immediately and will significantly impact the extension of credit in the state of Illinois. Exempt institutions include federally chartered banks, savings banks, savings and loan associations and credit unions. The law replaces existing maximum charge statutory requirements with a 36% Annual Percentage Rate limit computed like the MAPR for the Military Lending Act and extends to consumer loans, motor vehicle sales, and retail installment sales. Effective immediately.

 

IOWA

Republican Governor Reynolds enacted Iowa House File 235 on March 8, 2021. The new law removes the requirement that a consumer credit transaction bear interest in order to collect a service charge. The new law also prohibits a creditor from collecting a minimum charge upon prepayment in-full when a service charge is collected on a non-interest bearing consumer credit transaction. Effective July 1, 2021.

 

MISSISSIPPI

HB 1075 was signed by Governor Reeves on March 17, 2021. The Bill reenacts the Mississippi Credit Availability Act through July 2026. Effective July 1, 2021.

 

NEBRASKA

Governor Rickets signed LB 363 into law on March 17, 2021. The bill is primarily concerned with defining sales finance companies for licensing who offer installment sales contracts. Effective immediately, March 17, 2021.

 

NEW YORK

As a follow up to the recently enacted A10118-A/S05470B, on February 16, 2021 Governor Andrew Cuomo signed SB 898 into law. The law exempts financing transactions of at least $50,000 to auto dealers from the requirements for commercial financing providers to disclose critical information regarding the cost of financing and other terms to commercial borrowers which was recently enacted. Effective January 1, 2022.

 

SOUTH DAKOTA

HB 1053 was signed into law by Governor Noem on March 3, 2021. The new law requires an annual fee of $50 to be charged to the owner of an electric motor vehicle. The new fee will not apply to a motorcycle propelled by an electric motor. Effective July 1, 2021.

SB 8 was signed into law February 10, 2021. The bill concerns supervised banks and credit unions, as well as foreign banks and trusts. The law sets up new definitions for these entities, rules for examinations, and creates a system for the promulgation of rules enforcement and allowed fees. Finally, the law defines which credit service charges banks may instate. Effective July 1, 2021.

 

VIRGINIA

The Virginia Consumer Data Protection Act (“CDPA”) became law on March 2, 2021. The new data privacy law establishes rights for Virginia consumers to control how companies use their personal data. The CDPA dictates how companies must protect personal data in their possession and respond to consumers exercising their rights regarding such personal data. Effective January 1, 2023.

 

WYOMING

Signed into law on February 9, 2021, HB 8 consolidates consumer credit provisions for loans. In addition, the law caps a consumer loan finance charge at 36% per year on the unpaid balance of the principal that is equal or less than $1,000, and 21% on the unpaid balances above $1,000. Effective July 1, 2021.