May and June 2024

 

Effective State Changes

 

COLORADO

HB 1089 tasks the Department of Revenue to create an electronic communication system for vehicle owners to receive and reply to notifications for registration and license plates and for this system to be in place by March 31, 2026. Effective June 3, 2024.

HB 1380 adds new unfair deceptive acts and practices which debt collectors or collection agencies subject to the Colorado Fair Debt Collection Practices Act must avoid. Effective August 7, 2024.

SB 192 revamps Colorado’s Lemon Law for new vehicles. Manufacturers and dealers are required to make a consumer whole if a vehicle fails to perform and can deduct a reasonable allowance for the consumer’s previous use of the vehicle. Effective August 7, 2024.

 

CONNECTICUT

A new law implementing the Department of Motor Vehicles’ recommended changes to the Connecticut Statutes passed in the form of SB 183. The law concerns the use of the DMV’s electronic title and registration system and other minor revisions to the motor vehicle statutes. Effective May 21, 2024, in part, and October 1, 2024.

 

FLORIDA

SB 902 created the Florida Vehicle Value Protection Agreements Act. Florida now defines a “vehicle value protection agreement” as an agreement that provides for the reduction of some or all of a current loan balance, or towards the purchase or lease of a replacement vehicle when there is a total loss of a vehicle. While GAP is excluded from these provisions, the bill states that neither vehicle value protection agreements nor GAP products are insurance. Additionally, the definition of GAP has been changed and now requires a refund to the consumer for early termination of all unearned portions of the purchase price unless stated within the contract. Effective October 1, 2024.

 

GEORGIA

HB 1100 authorizes the use of electronic notifications by the Department of Revenue regarding motor vehicle insurance coverage and title status. Additionally, the law creates a new system for the electronic storage and transfer of certificates of vehicle title. Effective April 22, 2024.

 

ILLINOIS

HB 4951 establishes the Interchange Fee Prohibition Act which bars companies from charging an interchange fee on the tax amount or gratuity of an electronic payment transaction if the merchant informs the acquirer bank of the tax or as part of the authorization process for a given transaction. Effective July 1, 2024, in part, and July 1, 2025.

 

IOWA

HF 674 allows for any county treasurer to issue certificates of title, registrations, and perfect security interests outside of the county where a citizen resides. Additionally, this law increases various fees for County Retention—including Certificate of Title, Perfection of Security Interest, and New Registration fees—each by an additional $10. Effective January 1, 2025.

HF 2185 mandates that the certificate of title for a motor vehicle will no longer include the previous owner’s name and address. Instead, the county treasurer must maintain this information connected to the title certificate number in their records system. Effective July 1, 2024.

 

KANSAS

HB 2098 allows the purchaser of a new or used vehicle a sales tax deduction due to the previous sale of another vehicle (i.e., treat it like a trade-in), as long as it was sold within 120 days of the subsequent vehicle purchase. Additionally, if the amount of the sale exceeded the price of the vehicle being purchased, the purchaser would not owe any sales or use tax. The bill also provides the mechanics of how to claim the tax deduction. Effective July 1, 2024.

 

LOUISIANA

SB 372 eliminates the registration and renewal fees for providers of motor vehicle service contracts registering with the Secretary of State of Louisiana. Effective August 1, 2024.

SR 79 requires a study by several Louisiana state government entities of the collection of state and local taxes and registration fees for active-duty service members, veterans, and their spouses and to provide a report to the Senate no later than January 8, 2025. Effective August 1, 2024.

 

MAINE

HP 59 and LD 91 adopt the National 2022 Amendments to the Uniform Commercial Code. By and large, the changes modify the language to align with updated definitions and electronic means of transacting. Effective July 1, 2025.

LD 2072 requires the Maine Secretary of State to provide a printed paper certificate of title or salvage if the lienholder participates in the electronic lien titling system and requests the paper version. Additionally, the new law requires all dealers to pay all fines and fees to be licensed and requires dealers to post all document preparation fees on vehicles they are selling. Effective August 9, 2024.

 

MARYLAND

HB 352 and SB 362 raises annual registration fees across the board for all vehicles in Maryland on July 1, 2024, and then again on July 1, 2025. In addition, this bill creates a new surcharge effective July 1, 2024, of $125 for zero-emission vehicles and $100 for plug-in electric vehicles, besides defining these types of vehicles. Finally, the bill increases the maximum dealer processing charge (or doc fee) from $500 to $800 on July 1, 2024. Effective June 1, 2024.

HB 567 and SB 541 establish the Maryland Online Data Privacy Act of 2024. Under this new law, Maryland consumers may request the correction of personal data and a copy of the data in the possession of a controller. Consumers may also opt out of targeted advertising and the sale of their data. Effective October 1, 2025.

HB 1273—cross-filed with SB 1003—increases protections for motor vehicle dealers by requiring vehicle manufacturers, distributors, or their agents to deliver new motor vehicles within a reasonable timeframe after receiving electronic notice from dealers. Effective October 1, 2024.

 

MICHIGAN

HB 4343 and requires the Department of Insurance and Financial Services to submit an annual report to the Michigan state legislature regarding deferred presentment service transactions, including complaints and information on licensees. Effective 90 days after the legislature’s adjournment.

 

MISSISSIPPI

HB 1589 provides that a lienholder must electronically transmit to the Department of Revenue within 14 days of the satisfaction and release of the lien. Additionally, a used motor vehicle dealer or scrap metal processor must verify the absence of any lien using the states Automated Statewide Motor Vehicle Registration System before a motor vehicle may be purchased. Effective January 1, 2025.

SB 2543 increased the maximum amount to $5,100 for loans permitted under the Mississippi Consumer Alternative Installment Loan Act. The Mississippi Department of Banking and Consumer Finance will issue a memo authorizing the new maximum loan size every year which will be calculated by applying any increase or decrease in the United States’ Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) for the previous calendar year to the previous maximum loan amount. Effective July 1, 2024.

 

NEBRASKA

LB 484 establishes a continuing education program for all licensed motor vehicle dealers—excluding franchise dealers—which permits an educational seminar for continuing education credit. Effective July 15, 2024.

Amongst a number of provisions, LB 1317 establishes a fee for registration of a vehicle powered by an alternative fuel of $150, except that for a motorcycle or plug-in hybrid electric vehicle the fee would be $75. The bill also establishes an excise tax of three cents per kilowatt hour on energy used to charge the battery of a motor vehicle at a commercial electric vehicle charging station starting January 1, 2028. Effective April 25, 2024.

 

OKLAHOMA

Following trends seen across the country, HB 3104 creates new protections for franchise motor vehicle dealers. Primarily focused on the termination, cancellation, or nonrenewal of a franchise, the new law also provides for certain actions when a dispute arises between a vehicle manufacturer and a franchise dealer regarding the valuation of the dealership. Effective November 1, 2024.

HB 3618 allows the transfer of a motor vehicle title with an active lien from a commercial lender to an individual's business entity. Effective November 1, 2024.

SB 541 now requires debt waiver and vehicle value protection program administrators to register with the Oklahoma Insurance Department. Effective November 1, 2024.

SB 542 allows licensed vehicle service contract providers to register to sell motor vehicle ancillary protection products under both the Service Warranty Act and the Vehicle Protection Product Act. The law also allows the Insurance Department to require insurers to submit filings, payments or other fees electronically. Effective November 1, 2024.

SB 543 creates the Oklahoma Insurance Data Security Act. The bill establishes definitions, new data security requirements for all licensees—including establishing a modern information security program—and provides for the Commissioner to investigate and enforce these new requirements. Effective July 1, 2024.

 

SOUTH CAROLINA

SB 434 prohibits automatic service contract renewals unless the provider notifies the contract holder no less than 30 days and no more than 60 days from the contracted-for policy deadline. The notification must disclose the cost for renewal and information on how to contact and cancel the policy. Effective May 20, 2024.

 

TENNESSEE

HB 2075 and companion bill SB 1837 create a new statewide electronic lien and title system to be implemented by the Tennessee Department of Revenue by December 31, 2025. Effective May 1, 2024.

SB 1140 will allow motor vehicle dealers to retain 2% of the first $2,500 and 1.15% on anything above $2,500 of sales taxes due to the state—up to a maximum of $25 per report—in order to compensate for costs incurred in accounting for, reporting, and remitting such taxes. Effective May 28, 2024.

 

VERMONT

HB 546 allows a purchaser of an all-terrain vehicle (“ATV”) a sales tax deduction due to the previous sale of another ATV, as long as it was sold within three months of the purchase of the new ATV. Effective January 1, 2025.

 

VIRGINIA

SB 534 and identical bill HB 191 increases protections for vehicle dealers by expanding prohibitions for vehicle manufacturers. The new law changes the deadlines for vehicle manufacturers, factory branches, or distributors to reject the sale or transfer of a dealership. Additionally, the law provides that a franchisor's consent to the relocation of a dealership cannot be unreasonably withheld. Effective July 1, 2024.

 

Reminders

 

MINNESOTA

Passed last year, HF 2887 increases the maximum Documentary fee to the lesser of $275 or an amount equal to ten percent of the value of the sale or lease. Effective July 1, 2024.

The Minnesota Commerce Department published the periodic adjustment in dollar amounts effective July 1, 2024, through June 30, 2026. Effective July 1, 2024.

 

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2024.

 

SOUTH CAROLINA

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2024, through June 30, 2026. Effective July 1, 2024.

 

TEXAS

The Texas Office of Consumer Credit Commissioner published dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code for Retail Installment Sales and Consumer Loans. Effective July 1, 2024.