May 2025

 

Effective State Changes

 

ARKANSAS

HB 1845 authorizes the Arkansas Department of Finance and Administration to work in coordination with the Office of Motor Vehicle to establish an electronic lien, title, and registration system. Effective upon certification of the electronic system by the Office of Motor Vehicle.

 

FLORIDA

The Florida Department of Financial Services has amended three rules regarding Deferred Presentment transaction repayments (69V-560.903, 69V-560.905, and 69V-560.908), specifically to allow payments made by debit cards and prohibit payments using credit cards. Effective May 21, 2025.

 

INDIANA

HB 1382 provides that if certain persons engage in the buying, selling, or trading of a motor vehicle on a Sunday, it is considered a Class B misdemeanor, amongst other provisions. Effective July 1, 2025.

SB 73 amends definitions governing unfair practices and succession eligibility for franchise dealers’ family members. Additionally, the bill changes certain requirements for dealers who only sell trailers. Effective July 1, 2025.

 

MARYLAND

The Maryland Department of Transportation amended and adopted new regulations requiring owners of an eligible plug-in electric vehicle to pay an annual surcharge in addition to a registration fee. COMAR 11.15.40.05.B.  makes that surcharge subject to annual adjustment using the Consumer Price Index – Urban, rounded to the nearest whole dollar. Effective May 26, 2025.

HB 1046 prohibits a mechanical repair contract from implementing terms that preclude coverage if a technical service bulletin has announced a motor vehicle issue. The bill also prohibits the denial of a service claim for such an issue. Effective October 1, 2025.

HB 1464 creates an alternative registration process for rental fleet vehicles and mandates a distinctive registration plate and a one-time fee for vehicles registered through this alternative process. Effective October 1, 2025.

 

MONTANA

Governor Gianforte signed HB 114 on May 1, 2025. The bill amends the law to allow a person or depository institution to inform consumers that insurance is required to obtain a loan or credit, that approval for such a loan or credit is contingent on having acceptable insurance, and that the person or depository institution has insurance available for such a transaction. Effective January 1, 2026.

SB 341 changes the definition of motor vehicle to include recreational vehicles and allows dealers selling recreational vehicles, boats, or powersport vehicles to advertise and sell such vehicles outside of the county of the primary place of business. Effective October 1, 2025.

 

NEBRASKA

Following trends seen around the country, LB 667 is Nebraska’s attempt to reform the compensation franchisors pay new motor vehicle dealers for diagnostic work performed and parts supplied during warranty repairs. Effective September 9, 2025.

 

NEW JERSEY

SB 3525 will now allow mortgagors to make biweekly and semi-monthly payments, as well as payments to pay-down a mortgage principal without a penalty. Effective six months following enactment.

 

NEW MEXICO

As published in Bulletin 2025-002 in May 2025, the New Mexico Insurance Commissioner adjusted the prima facie credit insurance rates effective July 1, 2025.

Credit life prima facie rates will stay the same:

• Monthly outstanding balance (rates per $1,000 per month):
  • Single Decreasing Life: $0.39
  • Joint Decreasing Life: $0.57
• Single Premium (rates per $100 per annum):
  • Single Decreasing Life: $0.25
  • Joint Decreasing Life: $0.36
  • Single Level Life: $0.45
  • Joint Level Life: $0.67

The A&H rates will decrease. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14 Retro:   $0.63
• 14 Elim:     $0.52
• 30 Retro:  $0.50
• 30 Elim:    $0.40

Effective July 1, 2025.

 

OKLAHOMA

Governor Kevin Stitt signed SB 377 into law on April 28, 2025. The bill regulates business activities between equipment suppliers and their dealers. Amongst other prohibitions, suppliers are prevented from requiring dealers to only sell certain brands or have separate facilities for different brands. Effective November 1, 2025.

 

OREGON

Another bill following trends seen around the country, HB 2127 seeks to establish clearer rules regarding acceptable business practices between motor vehicle manufacturers, their affiliates, and vehicle dealers. These new requirements run the gamut from compensation for warranty work performed by vehicle dealers, to proper allocation of new vehicles for sale, to construction of dealership infrastructure. Effective January 1, 2026.

HB 3178 requires a dealer in a motor vehicle transaction involving a retail or lease agreement to provide a consumer with a disclosure document that includes a right to void the transaction within ten calendar days. Additionally, this bill requires the Attorney General to provide a model contract form with translations in five different languages. Finally, this bill details specific actions a dealer must take in order to void a transaction. Effective January 1, 2026.

 

VIRGINIA

SB 1212 and identical bill HB 2515 prohibit a supplier from advertising or displaying a price for goods or services without clearly and conspicuously displaying the total price, including all mandatory fees or surcharges. However, an exemption exists for fees relating to the purchase or lease of a motor vehicle. Effective July 1, 2025.

 

WASHINGTON

HB 1006 modifies financial responsibility provisions for motor vehicle protection product guarantee providers and service contract providers and requires reimbursement insurance policies used by these providers to pay or provide services to consumers directly within 30 days in the instance of nonperformance. Effective July 27, 2025.

 

WEST VIRGINIA

HB 3089 mandates all financial institutions, vehicle dealers, or anyone recording five or more liens within a calendar year to use the state’s electronic lien and title system. Additionally, no paper title will be issued to a lienholder after the full adoption of the electronic system. Effective July 1, 2025.

 

Reminders

 

MINNESOTA

Passed in 2023, HF 2887 increases the maximum Documentary fee to the lesser of $350 or an amount equal to ten percent of the value of the sale or lease. Effective July 1, 2025.

 

MISSISSIPPI

Mississippi Senate Bill 2495 updates the Mississippi Credit Availability Act. Effective July 1, 2025.

 

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2025.

 

TENNESSEE

SB 694 impacts the state’s Industrial Loan and Thrift Companies Act’s rate structure. Effective July 1, 2025.

 

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, 2025.