Compliance Alerts
June 2023
Effective State Changes
ALABAMA
HB 128 was signed into law on May 11, 2023 and authorizes the Calhoun County license commissioner to return and void all motor vehicle license fees, interest, penalties, and sales tax when an individual, company, or other entity makes payment and the deposit is non-collectible. Effective immediately.
Governor Kay Ivey signed SB 15 into law on May 26, 2023. This new bill requires businesses selling motor vehicle value protection products to have insurance in place to cover any contractual obligations. Effective immediately.
SB 259 provides for the Cherokee County Commission to create and levy an additional vehicle license and registration fee on all vehicle registrations, transfers, and renewals. Effective September 1, 2023.
COLORADO
Signed on June 7th, HB 1181 enacts guaranteed asset protection (“GAP”) product provisions into Colorado law. Among other matters, this law establishes the calculation for a deficiency balance, designates responsibility for refund assignment depending on the contractual terms and original creditor, and outlines how a refund is established if the GAP agreement is tied to insurance. HB 1181 does not apply to debt cancellation agreements or GAP agreements included in consumer leases. Effective January 1, 2024.
HB 1229 opts Colorado out of the federal Depository Institutions Deregulation and Monetary Control Act (“DIDMCA”). In addition, the bill amends the rate structure for consumer loans of $1,000 or less in lieu of the finance charges allowed under Colo. Rev. Stat. § 5-2-201.
The changes include decreasing the maximum allowed acquisition charge from 10 to 8 percent of the amount financed and decreasing the monthly installment account handling charge, not to exceed the following:
| Amount Financed | Per Month Charge |
| $100-$300 | $8.50 (previously $12.50) |
| $300.01-$500 | $11.50 (previously $15.00) |
| $500.01-$700 | $14.50 (previously $17.50) |
| $700.01-$1,000 | $17.50 (previously $20.00) |
Effective in part January 1, 2024 and July 1, 2024.
FLORIDA
HB 637 was enacted on June 13 and—following trends seen across the country—establishes new unfair practices for manufacturers and distributors, as well as prohibiting those entities from enforcing conditions for the sales of particular vehicles. Effective July 1, 2023.
Governor Ron DeSantis enacted SB 262, also known as the “Florida Digital Bill of Rights”, as Florida's answer to comprehensive privacy laws being enacted around the country. The law defines terms, establishes data relevant under its provisions, and limits businesses' ability to use that data without consent from consumers. Effective in part July 1, 2023 and July 1, 2024.
GEORGIA
HB 222 was signed by Governor Kemp on May 3 and exempts service contracts or extended warranties for vehicles from insurance regulations and laws. Effective immediately.
ILLINOIS
SB 328 enacts new provisions for sellers of renewable subscriptions in the state of Illinois. The law establishes that the language surrounding such a renewal must be clear and conspicuous, must include information such as the automatic renewal offer terms and cancellation policy, and that a consumer must consent to any renewal. Effective January 1, 2024.
IOWA
HF 143 was signed by Governor Reynolds and creates new protections and penalties for ransomware incidents in the state of Iowa. Effective July 1, 2023.
KANSAS
Governor Kelly signed SB 44—the Kansas Financial Institutions Information Security Act—into law. The bill defines terms, provides requirements for ensuring information security, and establishes penalties for any financial institutions which do not abide by its provisions. Effective July 1, 2023.
LOUISIANA
Governor Edwards signed SB 152 which creates a cybersecurity commission to identify cyber risk, develop a strategy and propose protections for businesses in various industries, including communications, emergency services, and financial services. Effective August 1, 2023.
MINNESOTA
The State of Minnesota's Transportation Appropriations bill—HF 2887—was signed into law on May 5, 2024 and raises the Doc Fee allowed to be charged by Minnesota motor vehicle dealers. For the period of July 1, 2023 through June 30, 2024 the Doc Fee is the lesser of $200 or an amount equal to 10% of the value for sale or lease. For the period of July 1, 2024 through June 30, 2025 the Doc Fee is the lesser of $275 or an amount equal to 10% of the value for sale or lease. For the period after July 1, 2025, the Doc Fee is the lesser of $350 or an amount equal to 10% of the value for sale or lease. Among other provisions, it raises the amount of registration and license fees, as well as creates a new retail delivery fee that can be passed on to the consumer at the businesses' discretion. Effective July 1, 2023.
The state's omnibus bill, SF 2744, was approved by the Governor on May 24, 2023. Within this larger bill, the language includes a rate cap of 36% that applies to payday lenders. Effective January 1, 2024.
MISSOURI
SB 13 expands the role of the Division of Finance and increases licensing and registration fees for financial institutions in Missouri. Effective August 28, 2023.
MONTANA
Governor Gianforte signed HB 668 on May 18th. This law defines vehicle theft protection products and vehicle theft protection product warranties, establishes disclosures for those products, and institutes provisions surrounding reimbursement of said warranties. The law specifically excludes these products from insurance regulations, similar to how GAP waivers are excluded. Effective October 1, 2023.
SB 50 establishes new requirements and duties for state agencies and their third-party contractors in regard to security breaches, including when said breaches rise to the level of jeopardizing information systems. Effective October 1, 2023.
SB 384 creates the Consumer Data Privacy Act in the state of Montana. The new law defines personal data, requires consent from consumers for the sale or sharing of such information, and explicitly exempts certain businesses from its provisions. Effective October 1, 2024.
Montana's governor signed SB 411 on May 2nd. The new law establishes data privacy standards for motor vehicle dealers and manufacturers. The bill also applies to third-party providers who handle dealers' data. Effective immediately.
NEVADA
AB 290 allows for a motor vehicle dealer and a vehicle purchaser to enter into a written agreement to cancel a vehicle sale. Within 15 days of the agreement, the dealer must return to the purchaser all money, taxes, and fees collected at the time of sale. Effective October 1, 2023.
AB 356 prohibits debt collectors, dealers, or any other repossession entities from placing a tracking device on a vehicle without consent from the owner. Effective July 1, 2023.
Signed on June 9th, SB 346 authorizes the Department of Motor Vehicles to conduct certain transactions electronically, such as titling, registration, driver's license renewal, electronic signatures, industry licensure, and the issuance of credentials. Additionally, the new law opens up who may participate in this program. Effective in part June 9, 2023 and January 1, 2024.
OKLAHOMA
SB 836 now will allow the electronic submission of title, transfer, or ownership documentation in electronic form in the state of Oklahoma. Effective June 7, 2023.
SB 984 was signed into law on June 7, 2023 and establishes that for a motor vehicle sale, the gross receipts value of a trade-in shall be calculated based on the difference of the trade-in and the actual sales price of the vehicle being purchased. This applies to the Motor Vehicle Excise Tax and the Oklahoma Sales Tax. Effective November 1, 2023.
SOUTH CAROLINA
Governor McMaster enacted HB 3952 on May 16. This new law creates requirements for the disclosure of vehicle sales closing fees. Effective immediately.
TENNESSEE
HB 1181, passed on May 24, 2023, enacted the Tennessee Information Act. The act extends protections over consumer's personal information. Effective July 1, 2025.
Governor Lee enacted HB 1310—also known as the Genetic Information Privacy Act. This new law defines terms, protected information, and creates new requirements for businesses that hold this information. In addition, the bill requires consent from consumers for said companies to use, share or distribute such information. And finally, this law mandates certain security programs for the companies which maintain this information. Effective July 1, 2023.
TEXAS
HB 2746 creates new requirements for the refund of a terminated GAP product. The new law creates different responsibilities for the holder of a GAP contract and the administrator or seller of the product, institutes new timelines for the refund of a GAP product, and establishes recording requirements for the refund itself. Effective September 1, 2023.
Governor Abbot signed SB 271 into law which changes terms, language, and responsibilities surrounding a cybersecurity breach and ransomware incident in the state of Texas. Effective September 1, 2023.
SB 768 amends the Texas Business and Commerce Code and creates new procedures for instances when a breach of security of computerized data involves at least 250 Texas residents' information. It charges that a business must notify the Attorney General within 30 days of the breach and provides for forms and a publicly accessible website to report these incidents. Effective September 1, 2023.
WASHINGTON
SB 5518 is Washington State's new cybersecurity law. Signed by Governor Inslee, the bill establishes terms, committees, and powers to improve cybersecurity and responses in the case of an attack on the state's infrastructure. Effective July 23, 2023.
Reminders
KENTUCKY
The rate adjustments under SB 165 become effective on June 28, 2023
OKLAHOMA
The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2023.
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, 2023.