May 2021

 

 

ARIZONA

On May 10, 2021, Senate Bill 1463 was signed into law which revises Arizona statutes regarding investigations into financial institutions and enterprises by the Arizona Department of Insurance and Financial Institutions. Among mostly technical changes to the Act, the statute establishes new fees for Premium Finance Companies and Advance Fee Loan Brokers. Effective retroactively to June 30, 2020.

 

ARKANSAS

House Bill 1912 provides a reduced sales and use tax rate for certain used motor vehicles, trailers, and semitrailers. Effective January 1, 2022.

House Bill 1893 exempts certain electric and hybrid vehicles from registration fees. Effective retroactively to October 1, 2019.

 

GEORGIA

House Bill 63 was signed into law by Governor Brian Kemp on May 4, 2021. This new law relates to an alternative ad valorem tax on motor vehicles and changes the definition of fair market value to exclude certain interest and financing charges for vehicle leases. Effective January 1, 2022.

House Bill 111 clarifies, updates, and removes language associated with credit unions and banks operating in the State of Georgia. The law also establishes the right of any licensee or borrower under the Georgia Installment Loan Act to contract for a hardship or convenience deferment of an installment loan. A licensee may charge a fee for this deferment. Effective July 1, 2021.

Signed into law on May 10, 2021, House Bill 210 excludes certain motor vehicles from having to disclose the odometer reading on the certificate of title. Vehicles over 16,000 lbs., those vehicles manufactured in 2010 or before which were transferred over 10 years counting from January 1 of the model year, and vehicles manufactured in 2011 or after and were transferred over 20 years counting from January 1 of the model year, are all exempt from the odometer provisions. Effective July 1, 2021.

House Bill 241 defines new coverage areas for property insurance as it relates to motor vehicles. In addition, the new law establishes when certain contracts, agreements, or instruments may be canceled, and the refund method used when the contract is effectively ended. Effective July 1, 2021.

 

ILLINOIS

On May 14, 2021, the Illinois Department of Financial and Professional Regulation (“IDFPR”) released new regulations for commentary on SB 1792 (The Predatory Loan Prevention Act or “PLPA”). These regulations will help implement the changes under the PLPA which limits almost all consumer lending transactions to a rate cap of 36% calculated like the MAPR under the Military Lending Act. Proposed regulations primarily address disclosure notices and reporting requirements, but also removes all references to Small Consumer Loans (including the related document preparation fee), redefines loan terms for Payday Loans, clarifies what are considered “bona fide” fees for computing the IL APR, and the effect these fees would have on the finance charge. Comments accepted until June 28, 2021.

 

INDIANA

House Bill 1168 was signed into law on April 26, 2021. The Act creates the Electric Vehicle Product Commission. The commission is to produce an annual report to the Indiana economic development corporation on electric vehicles, affiliated products and services, and opportunities for the state to promote growth in this industry. Effective July 1, 2021.

 

IOWA

On May 10, 2021, Senate File 366 was signed into law by Governor Kim Reynolds. Among other provisions the Act excludes certain vehicles from vehicle registration and fees. Effective immediately.

 

OKLAHOMA

Governor Kevin Stitt signed House Bill 1149 into law on May 10, 2021. The new law excludes certain individuals from needing to register with the state in order to sell used vehicles among other provisions. Effective November 1, 2021.

Oklahoma has enacted House Bill 2234 which provides an income tax credit in the amount of the new electric vehicle charging taxes. Starting after December 31, 2023, the credit is available in the amount taxes paid by an individual or other entity. Effective November 1, 2021.

Senate Bill 998 was signed into law on May 7, 2021. The law gives powers to the Oklahoma Tax Commission to create a program for filing motor vehicle certificates of title electronically. The program will also electronically allow a lienholder to perfect, assign, and release a lien on a motor vehicle. Effective November 1, 2021.

 

SOUTH CAROLINA

On May 6, 2021 Governor Henry McMaster signed into law Senate Bill 510. This new Act regulates motor vehicle manufacturers, distributors, and dealers. In addition, the law has provisions relating to Warranty Agreements and dealer compensation. Effective August 4, 2021.

 

TEXAS

House Bill 735 allows for Service Contracts to be available for purchase on leased vehicles. Effective September 1, 2021.