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 7^th, 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 2^nd. 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 9^th, 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.

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.

Effective State Changes

ARKANSAS

HB 1579 was signed by Governor Sarah Huckabee Sanders on April 10. This new law amends provisions of the Motor Vehicle Commission Act and requires manufacturers, distributors, or wholesalers to fairly compensate dealers for any repair work initiated remotely. Additionally, these providers must now ensure that vehicles are fairly distributed to dealers and provide consumer disclosures for all accessories and functions that may be maintained remotely and the charge to the consumer for such maintenance. Effective July 30, 2023.

COLORADO

On May 11, 2023, HB 1272 was signed into law by Governor Jared Polis. This bill extends the innovative motor vehicle tax credit for electric and hybrid vehicles to 2028 and extends the same credit for certain trucks until 2032. Effective immediately.

GEORGIA

Signed into law on May 3, 2023, HB 222 makes it clear that service contracts are not considered insurance in the state of Georgia. Effective immediately.

SB 90 now requires certain commercial financing disclosures be provided to businesses—including motor vehicle dealers—for certain commercial loans and other extensions of credit. Effective January 1, 2024.

IOWA

HF 592 was signed into law on April 28, 2023. This bill revises the provisions surrounding a remote vehicle sale by motor vehicle dealers and how they handle when a security interest is discharged on a vehicle. Effective July 1, 2023.

INDIANA

HB 1050 further defines alternative fuel and provides for its taxation for certain motor vehicle carriers, among other provisions. Effective in part on July 1, 2023, and in part on January 1, 2024.

Following a nationwide trend, HB 1236 enacts new protections for motor vehicle dealers in the state of Indiana. Among other protections, the bill establishes the amount a manufacturer must compensate a dealer for a part, prohibits manufacturers from requiring dealers to use certain services or providers, and defines and prohibits certain unfair practices manufacturers can engage in with franchise dealers. Effective in part on May 1, 2023, and in part on July 1, 2023.

SB 5 implements new consumer rights regarding personal data and responsibilities for protecting such data for businesses operating in the state of Indiana. Effective January 1, 2026.

KANSAS

HB 2147 establishes a process for abandoned or towed vehicles to be sold to the public and issued a title. Effective July 1, 2023.

SB 44 creates the Kansas Financial Institutions Information Security Act. Among other items, this bill requires financial institutions to develop and implement a cybersecurity system to protect consumers’ personal information. Effective July 1, 2023.

MARYLAND

HB 913 revises the laws surrounding student loan financing companies and requires them to register with the Commissioner of Financial Regulation. Effective October 1, 2023.

MONTANA

HB 60 creates an additional annual registration fee for electric and hybrid vehicles. Effective July 1, 2023.

On May 2, 2023, Governor Greg Gianforte signed SB 411 into law. The bill establishes new responsibilities for motor vehicle dealers as to their storage and sharing of electronic data and generally revises the licensing and rights of franchise dealers in the state of Montana. Effective immediately.

OKLAHOMA

HB 1443 implements new disclosures in the Oklahoma Student Borrower’s Bill of Rights for student loan borrowers regarding loan forgiveness programs. Effective November 1, 2023.

HB 1543 amends the Oklahoma UCCC provisions. Specifically, the §3-508B loans will now be tied to the Reference Base Index of December 2020—not December 2021—for the Consumer Price Index published by the Bureau of Labor Statistics. These will affect the finance charge thresholds for loans carrying principals of $3,000 ($3,450 effective July 1) or less. The measure also eliminates the 3% cap on adjustments and continues to allow adjustments in increments of 1%. Finally, the bill eliminates the Consumer Credit Advisory Committee. Effective April 28, 2023.

Signed on April 19, 2023, SB 593 prohibits a vehicle manufacturer from denying a vehicle dealer’s claim or implementing a chargeback against a dealer if a consumer does not adequately comply with state title and registration laws. Effective November 1, 2023.

SB 794 was signed by Governor Kevin Stitt on April 24, 2023. This bill adds the federal funds rate to the amount a loan can be financed for on all §3-508A loans. Specifically, the maximum finance charge allowed will be the greater of:

• 32%, plus the federal funds rate, on the part of the balance which is $7,000 or less;
• 23%, plus the federal funds rate, on the part of the balance more than $7,000 up to and including $11,000;
• 20%, plus the federal funds rate, on the part of the balance more than $11,000;

OR

• 25%, plus the federal funds rate, on the balance of the principal.

Effective November 1, 2023.

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2023. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of:  30% of the amount financed up to $1,860; plus

21% of the excess to $6,200; plus

15% of the remainder to $66,400.

OR  21% Simple Interest

The dollar amounts under §3-508(A) remain the same. The allowable closing fee increases to $178.87. (Pursuant to SB 794, the federal funds rate will be added to these applicable rates beginning on November 1, 2023.)

For loans subject to §3-508B of the Oklahoma Code the maximum charge structure is:

Loan Amount	Acquisition Charge	Handling Charge
Up to $186.24		$6.21 per $31.05 of principal
$186.24-$217.35	1/10 of the amount of principal	$18.63 per month
$217.36-$434.70	1/10 of the amount of principal	$21.74 per month
$434.71-$621.00	1/10 of the amount of principal	$24.84 per month
$621.01-$931.50	1/10 of the amount of principal	$27.95 per month
$931.51-$1,242.00	1/10 of the amount of principal	$31.05 per month
$1,242.01-$1,552.50	1/10 of the amount of principal	$34.16 per month
$1,552.51-$1,863.00	1/10 of the amount of principal	$37.26 per month
$1,863.01-$2,300.00	1/10 of the amount of principal	$46.00 per month
$2,300.01-$2,875.00	1/10 of the amount of principal	$57.50 per month
$2,875.01-$3,450.00	1/10 of the amount of principal	$69.00 per month

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $29.00 to $31.00. Effective July 1, 2023.

TENNESSEE

SB 130 requires a financing company to provide a prominent display of their telephone number in all communications with a consumer. Effective July 1, 2023.

TEXAS

SB 505 creates a new additional registration fee for electric vehicles in the state of Texas. The additional fee is $400 for new vehicles registering for a two-year period. Effective September 1, 2023.

WASHINGTON

HB 1823 revises the Washington Student Loan Program as it applies to graduate students. Effective July 23, 2023.

SB 5282 allows motor vehicle dealers to file a report on behalf of a consumer with the state of Washington upon sale of a vehicle. Effective July 23, 2023.

Effective State Changes

CALIFORNIA

The California Privacy Protection Agency published its final rules which went into effect on March 29, 2023.

COLORADO

SB 15/Act 23-015 prohibits conditioning an extension of credit, terms of credit, or purchase price of the related vehicle on the purchase of a vehicle value protection agreement. In addition, the new law establishes that the service provider must notify a consumer of certain obligations and cancelation terms. Effective August 7, 2023.

Following the trend of states nationwide this legislative session, SB 78/Act 23-078 modifies the process of fulfilling and contesting labor rates motor and powersports vehicle manufacturers must pay their dealers. Effective August 7, 2023.

IDAHO

Signed into law on March 23, 2023, HB 128 seeks to update vehicle dealer franchise agreements to protect Idaho’s auto dealers from manufacturers, while also establishing dispute resolution mechanisms and franchise termination terms. Effective immediately.

INDIANA

Indiana published Emergency Rule LSA Document #22-234(E) which implements certain bracket updates, including:

• The graduated rate thresholds for sales and loans increase to $2,400/$4,800 respectively
• The minimum credit service charge increases to $57.00
• The delinquency charge for sales and loans increases to $20.50
• The minimum finance charge for loans increases to $57.00
• The maximum loan term is 37 months for loans with principals of $1,230 to $4,800

Effective January 1, 2023.

IOWA

Governor Kim Reynolds signed HF 133 which requires notice be provided within 30 days to a dealer regarding a refund for debt cancellation coverage by a financial institution holding the retail installment loan. Effective July 1, 2023.

Following the trend of various states, SF 262 enacts new consumer data protection requirements. Effective January 1, 2025.

KENTUCKY

SB 165 became law without the Governor’s signature on March 29, 2023. The statute makes changes to the brackets which consumer loan companies can charge for small loans, clarifies terminology, increases the nonrefundable amount of a loan processing fee from $50 to $75 and allows a $3 fee for providing funds in a manner other than a paper check. Under SB 165, loan companies are allowed to charge:

• 3% per month for loans under $5,000
• 2.42% per month for loans over $5,000 up to and including $10,000
• 2.25% per month for loans over $10,000 up to and including $15,000

This is a modification to each tier threshold and rate, with the third tier being added as a new tier. Effective June 28, 2023.

HB 150 establishes new provisions for franchise vehicle manufacturers and dealers in the Commonwealth of Kentucky. Among other requirements, the new law allows for manufacturers to audit dealers under certain circumstances, provides dealers more time to act upon notice of cancelation and prohibits franchises from requiring a dealer remodel within 10 years of a previous remodel. Effective June 28, 2023.

Governor Beshear signed HB 217 on March 16 which permits the use of an electronic form for vehicle salvage titles. Effective January 1, 2024 and January 1, 2025.

HB 264 establishes the General Regulatory Sandbox Program including a new Advisory Committee and establishes terms and conditions for offering innovative consumer financial products in the Commonwealth. Effective March 15, 2024.

MISSISSIPPI

HB 1170 was signed by Governor Tate Reeves on March 13. This statute requires the Mississippi Department of Revenue to create an electronic title and lien program for motor vehicles. Effective July 1, 2023.

NORTH DAKOTA

SB 2141 excludes the fees for auction services from the purchase price of a motor vehicle for excise tax purposes. Effective July 1, 2023.

OHIO

HB 23 provides, among other provisions, for a registrar or deputy registrar to collect the following additional fees upon application or renewal of registration:

• $100 for a hybrid motor vehicle
• $150 for a plug-in hybrid electric motor vehicle
• $200 for a battery electric motor vehicle

Effective June 30, 2023.

SOUTH DAKOTA

SB 159 revises the laws regarding vehicle warranty claims. Among other provisions regarding compensation and auditing claims, the bill will require a manufacturer to fulfill any warranty agreement and pay a dealer for labor within 30 days of claim approval. Effective July 1, 2023.

TEXAS

Released in February 2023, the dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code will increase as follows:

Consumer Loans – §342.201

(Add-On Rates)

$18 per $100 per annum of the cash advance to $2,550 plus,

$  8 per $100 per annum of the excess to $21,250

—OR—

(Simple Melded Rates)

30% per annum of the cash advance to $4,250 plus,

24% of the excess to $8,925 plus,

18% of the remainder to $21,250

Retail Installment Sales (“Other Goods”) – §345.055

$12 per $100 per annum of the principal balance to $4,250 plus,

$10 per $100 per annum of the excess to $8,500 plus,

$  8 per $100 per annum of the remainder.

Effective July 1, 2023.

UTAH

Governor Spencer Cox enacted SB 216 which establishes the Utah Consumer Protection Division and certain disclosures vehicle value protection agreements must include regarding cancelation and the terms of said products. In addition, the bill provides for civil penalties and fees for violations of the law. Effective December 31, 2023.

HB 194 prohibits a vehicle dealer from including certain additional fees or charges after negotiating the purchase price of a vehicle. Effective July 1, 2023.

SB 14 changes requirements for leased tangible personal property regarding temporary permits and sales and use tax. Effective July 1, 2023.

On March 14^th, SB 90 amended the New Automobile Franchise Act to provide written disclosures from vehicle manufacturers to consumers regarding new vehicle repairs while also addressing labor and parts charges. Effective May 3, 2023.

SB 225 enacts the Utah Commercial Email Act and directs the Division of Consumer Protection to enforce its provisions regarding commercially sent and unsolicited emails. Amongst other provisions, the new law makes it a crime for an advertiser to send to a Utah resident or entity an unauthorized or misleading commercial email. Effective in part on May 3, 2023, and fully on December 31, 2023.

Governor Cox signed SB 172 into law on March 17. This bill modernizes Utah’s vehicle dealer laws so that online purchasing, contracting, and payment no longer require an in-person meeting. Additionally, the statute expressly provides for the delivery of a vehicle to a purchaser’s location. Effective May 3, 2023.

VIRGINIA

HB 1469/Chapter 310 and identical bill SB 871/Chapter 311 modernize Virginia’s motor vehicle franchise laws to prohibit vehicle manufacturers from withholding incentive payments to force a vehicle dealer to enter into a franchise agreement. Among other items, the new law also prohibits a vehicle manufacturer from amending a franchise agreement unilaterally or requiring dealers to offer certain ancillary products. Effective July 1, 2023.

HB 1907/Chapter 287 was signed into law by Governor Youngkin on March 23. The statute mandates licensed consumer finance companies include a question on all loan applications asking potential borrowers if they have been approached to send money for future government or lottery money. Effective January 1, 2024.

HB 1517/Chapter 688 establishes that suppliers of service subscriptions notify consumers of their right to cancel a subscription during a 30-day free trial—and a failure to do so would be a violation of Virginia’s Consumer Protection Act. Effective July 1, 2023.

HB 1661/Chapter 364 will allow an insurance company or its agent to obtain a non-repairable certificate for a vehicle acquired through a claims process prior to obtaining the title or salvage certificate if certain information is submitted to the Department of Motor Vehicles. Effective July 1, 2023.

WEST VIRGINIA

SB 205 creates new specialty plates in the state of West Virginia and establishes the fees for their purchase. Effective June 6, 2023.

Effective State Changes

MASSACHUSETTS

On January 5, 2023, House Bill 5421 was signed into law by Governor Maura Healey. The short bill revised the Small Loan Act requirement for indirect purchasers of motor vehicle contracts to separately license with the state if negative equity was an element of the transaction. Effective April 5, 2023.

MISSISSIPPI

On March 13, 2023, House Bill 1170 was signed into law by Governor Tate Reeves. The bill authorizes the Department of Revenue to issue electronic liens and titles for motor vehicles and manufactured homes. Effective July 1, 2023.

MISSOURI

The document preparation fee in the State of Missouri was increased through emergency rulemaking from $523.50 to $565.38 for 2023. Effective February 14, 2023.

NEW MEXICO

The Director of the Financial Institution Division published regulations for calculating an NM-APR in accordance with House Bill 132 changing the rate cap for small loans in New Mexico to 36%. The regulations specify various types of charges that cannot reasonably be predicted as of the loan contract date and are therefore excluded from the NM-APR calculation. Effective March 29, 2023.

Effective Federal Changes 

CONSUMER FINANCIAL PROTECTION BUREAU

On January 30, 2023, the CFPB published a proposed rule to require certain nonbanks to register and submit information in an online, publicly available database. The public comment period is open on this rulemaking until March 31, 2023.

Effective State Changes

NEW YORK

SB 4104A enacts the “Digital Fair Repair Act.” Signed into law by Governor Kathy Hochul on December 28, 2022, this new bill requires original equipment manufacturers to make diagnostic and repair information for digital electronic parts and equipment available to independent repair providers and consumers if such parts and information are provided to their own authorized repair providers. Effective December 28, 2023.

OHIO

SB 249 was signed into law on December 13, 2022. This bill creates a regulatory sandbox for novel financial services or products in the State of Ohio. Effective March 14, 2023.

Effective Federal Changes 

CONSUMER FINANCIAL PROTECTION BUREAU

Threshold Adjustment for Determining Exempt Transactions Re: Special Appraisal Requirements for Higher-Risk Mortgages under Reg. Z.—The Consumer Financial Protection Bureau and the Federal Reserve Board issued final rules amending the Regulation Z provision implementing Section 129H of the Truth in Lending Act, which establishes special appraisal requirements for higher-risk mortgages, dubbed higher-priced mortgage loans (HPMLs). The threshold for exempting loans from special appraisal requirements for HPMLs increased to $31,000 for 2023, up from $28,500 for 2022. Loans under the threshold amount will not be subject to the special appraisal requirements, such as the creditor obtaining a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. Effective January 1, 2023.

Specific dollar threshold adjustments were announced through the Consumer Protection Financial Bureau. The CPFB is required to make adjustments to dollar thresholds based on annual changes in the Consumer Price Index. Updates to the Ability to Repay/ Qualified Mortgage Rule, (“ATR/QM”) and Home Ownership Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2023.

HOEPA Annual Threshold Adjustments

• The adjusted total amount of the loan threshold will be $24,866, up from $22,969
• The adjusted points and fees trigger will be $1,243, up from $1,148

ATR/QM Threshold Adjustments

To meet qualified mortgage criteria, the combined points and fees cannot exceed the following:

• 8% of total loan amount for loans less than $15,541
• $1,243 for loans greater than or equal to $15,541 but less than $24,866
• 5% of total loan amount for loans greater than or equal to $24,866 but less than $74,599
• $3,730 for loans greater than or equal to $74,599 but less than $124,331
• 3% of total loan amount for loans greater than or equal to $124,331

In Case You Missed It 

ILLINOIS

The document preparation fee in the State of Illinois increased to $347.26. Effective January 1, 2023.

MICHIGAN

The document preparation fee in the State of Michigan has been adjusted to be the lesser of $260 or 5% of the cash price for 2023 and 2024. Effective January 13, 2023.

PENNSYLVANIA

The document preparation fee in the State of Pennsylvania for 2023 increased to $449 for electronic filings and $374 for non-electronic filings. Effective January 1, 2023.

Review of State Changes Effective in 2022

ALABAMA

HB 335 allows a Small Loan licensee to collect a closing fee of $50 or 4% of the loan amount, whichever is less, amongst other provisions. Effective March 29, 2022.

SB 52 revises the language surrounding Alabama’s warranty services for motor vehicle dealers. Effective June 1, 2022.

ARKANSAS

SB 225 updates registration fees for plug-in electric vehicles to $100 and hybrid electric vehicles to $50. Effective January 1, 2022.

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

CALIFORNIA

AB 1221 specifies that a service contract may be offered on a month-to-month or other periodic basis and continued until canceled by the buyer. Effective January 1, 2022.

COLORADO

On May 11, the Colorado Department of Regulatory Agencies, Division of Insurance amended credit insurance regulation 3 CCR 702 Reg. 4-9-2. Effective July 15, 2022.

SB 223 allows motor vehicle dealers to deliver vehicles, documents, and test-drive vehicles away from its principal place of business. Effective August 10, 2022.

DELAWARE

HB 429 clarifies that a GAP waiver is exempt from insurance regulation. Effective October 14, 2022.

FLORIDA

HB 749 allows for canceling the renewal of a service contract in the same manner as the contract was purchased. Effective June 3, 2022.

SB 546 prohibits a licensee from charging a prepayment penalty for paying back all or part of a loan principal before it is due. Effective October 1, 2022.

GEORGIA

HB 63 alters the alternative ad valorem tax on motor vehicles. Effective January 1, 2022.

HB 733 allows property insurance and GAP waivers to provide compensation if there is an accident, loss, or stolen vehicle. Effective July 1, 2022, in part, and January 1, 2023.

HB 891 obligates a new 0.125% fee on the gross loan amount for every new installment loan under the Georgia Installment Loan Act, which shall be paid by the licensee. Effective July 1, 2022.

HAWAII

HB 1192 created a new small dollar installment loan scheme for loans up to $1,500. Bill effective July 1, 2021; licensing requirements effective January 1, 2022.

ILLINOIS

The document preparation fee in the State of Illinois increased from $303.60 to $324.24. Effective January 1, 2022.

SB 58 restores the full sales tax trade-in credit on vehicle trade-ins. Effective January 1, 2022.

INDIANA

Bulletin 262 adjusts the credit life rates. Effective January 1, 2022.

SB 383 requires the retail value for a used motor vehicle be established by a third-party valuation provider to determine GAP coverage. Effective July 1, 2022.

IOWA

Iowa released new regulations increasing the special annual registration fees for electric vehicles. Effective January 1, 2021, and January 1, 2022.

KENTUCKY

SB 91 allows for established motor vehicle dealers to deliver vehicles purchased on the internet to customers at their request. Effective July 14, 2022.

MASSACHUSETTS

On February 10, 2022, the Office of Consumer Affairs and Business Regulation released a letter stating a consumer may not be charged a cancellation fee for GAP waiver products.

MICHIGAN

Bulletin 2022-02-CF stated that the loan processing fee amount will remain at $400 from January 1, 2022 – December 31, 2023.

MINNESOTA

The Commerce Department published their periodic adjustment in dollar brackets, effective July 1, 2022.

NEW JERSEY

AB 5033 authorizes motor vehicle dealers to sell vehicles online provided they meet certain physical requirements for their business premises. Effective January 18, 2022.

NEW YORK

SB 4894 amends the law in New York requiring mail-loan checks to include any transaction fees and interest rates on the check. Effective September 2, 2022.

SB 898 amends A10118-A/S05470B and exempts transactions of at least $50,000 for auto dealers from commercial financing disclosures. Effective January 1, 2022.

NORTH CAROLINA

SB 425 changes current statutes governing GAP waivers. Effective January 1, 2022.

OKLAHOMA

SB 1687 specifically addresses 3-508B dollar bracket adjustments under the UCCC and ties the Consumer Price Index to December 2021. Effective November 1, 2022.

SB 1743 amends current law to allow financial protection products for motor vehicles to be offered, sold, or given to consumers. Effective November 1, 2022.

OREGON

Regulation 125958 establishes a rebate program for zero-emission vehicles in Oregon. Effective May 19, 2022.

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee for 2022 is either $351 or $422 (if electronically filed). Effective January 1, 2022.

RHODE ISLAND

HB 7781 and companion bill SB 2794, revises Title 19 to expand the definition of “Licensed Activities” to include retail installment sales. Effective June 29, 2022.

SOUTH CAROLINA

Orders 2021-02, 2021-03, and 2021-04 were adopted by the Department of Insurance for Prima Facie Credit A&H and Credit Property rates. Effective January 1, 2022.

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2022, through June 30, 2024. Effective July 1, 2022.

SOUTH DAKOTA

SB 160 exempts service contracts from the insurance code and defines theft protection products and items covered under its warranties. Effective July 1, 2022.

HB 1082 extends the motor vehicle excise tax on vehicles leased for more than twenty-eight days to include certain off-road vehicles. Effective July 1, 2022.

TEXAS

Released in January 2022, the dollar brackets and ceilings will increase for Consumer Loans and Retail Installment Contracts. Effective July 1, 2022.

UTAH

SB 183 requires certain financing entities register with the Department of Financial Institutions, amongst other provisions. Effective May 4, 2022.

VIRGINIA

The Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2022, enacts new rates for a 3-year period. Effective January 1, 2022.

HB 1027 mandates that certain commercial financing providers register with the Commonwealth of Virginia’s State Corporation Commission. Effective July 1, 2022.

HB 259 and SB 216 are identical bills that alter the compensation from manufacturers and distributors for recall and warranty parts and service. Effective July 1, 2022.

WASHINGTON

SB 5000 reduces taxes by 50% on fuel-cell powered passenger cars, light duty trucks, and medium duty passenger vehicles powered by a fuel cell. Effective July 1, 2022.

SB 5974 raises the Documentary Service Fee motor vehicle dealers can charge from $150 to $200. Effective July 1, 2022.

WEST VIRGINIA

HB 4567 eliminates the municipal business and occupation or privilege tax for motor vehicle dealers over a three-year period. Effective June 9, 2022.

WYOMING

HB 64 defines theft protection programs, theft protection program warranties, and specifies that they are not insurance. Effective July 1, 2022.

Review of State Changes Effective in 2023 and Beyond

ALABAMA

SB 48 provides that a GAP waiver may offer provisions which waive a certain amount or provide credit towards a replacement vehicle. Effective January 1, 2023.

CALIFORNIA

Proposition 24 expands consumer privacy protections. Effective January 1, 2023.

AB 2001 allows licensees under the California Financing Law to designate employees who work remotely. Effective January 1, 2023.

AB 2956 allows for the suspension of a motor vehicle dealer license for a number of defined reasons. Effective January 1, 2023.

AB 2311 creates a number of new requirements for GAP waiver products under which a seller agrees to cancel or waive amounts due on the buyer’s sale contract. Effective January 1, 2023.

AB 1904 makes it a violation of California law to not present certain disclosures to a consumer of certain financial products. Effective January 1, 2023.

AB 2912 makes a product’s delivery date the starting date for any express warranty offered by a manufacturer, distributor, or retail seller. Effective January 1, 2023.

SB 1311 is the Military and Veteran Consumer Protection Act of 2022 and provides new and enhanced protections to servicemembers. Effective January 1, 2023.

AB 984 authorizes alternative license plates, stickers, tabs, and registration cards. Effective January 1, 2023.

AB 1871 states that vehicle history reports must include information for the vehicle buyer to be able to contact the reporting business or agency. Effective January 1, 2023.

ILLINOIS

The document preparation fee in the State of Illinois increased to $347.26. Effective January 1, 2023.

KENTUCKY

HB 284 allows for the Kentucky Transportation Cabinet to establish an electronic title application and registration system. Effective date January 1, 2024.

HB 8 increases the county registration and renewal fees for electric vehicles to $120 and for hybrid vehicles to $60. Effective January 1, 2023.

LOUISIANA

HB 1031 imposes a road usage fee in the amount of $110 per year for electric vehicles and $60 per year on hybrid vehicles. Effective January 1, 2023.

MICHIGAN

The document preparation fee in the State of Michigan has been adjusted to be $260 or 5% of the cash price for 2023 and 2024. Effective January 13, 2023.

NEW JERSEY

SB 324 directs the New Jersey Motor Vehicle Commission to promulgate rules for electronic registration certificates. Effective May 1, 2023.

SB 902 imposes certain consumer protection requirements on service contract providers. Effective August 1, 2023.

NEW MEXICO

HB 132 enacts a 36% TILA APR rate cap for small dollar loans in New Mexico. Effective January 1, 2023.

PENNSYLVANIA

The document preparation fee in the State of Pennsylvania for 2023 increased to $449 for electronic filings and $374 for non-electronic. Effective January 1, 2023.

SOUTH CAROLINA

South Carolina Department of Insurance adopted Orders confirming Prima Facie Credit A&H and Credit Property insurance rates for 2023. Effective January 1, 2023.

UTAH

HB 186 raises the registration and renewal fees for plug-in hybrid vehicles and hybrid electric vehicles. Effective January 1, 2023.

Review of Federal Changes Effective in 2022

CONSUMER FINANCIAL PROTECTION BUREAU

Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2022.

The CFPB published its annual TILA threshold adjustment, as required by the Dodd-Frank Act. Effective January 1, 2022.

The CFPB delayed the mandatory compliance date for the new qualified mortgage (QM) final rule. The new effective date is October 1, 2022.

Review of Federal Changes Effective in 2023

CONSUMER FINANCIAL PROTECTION BUREAU

The CFPB published TILA threshold adjustments for Regulation M and Z from $61,000 to $66,400. Effective January 1, 2023.

FEDERAL TRADE COMMISSION

The FTC announced on November 15, 2022 that it was extending the compliance deadline for the revised Safeguards Rule by six months. Effective June 9, 2023.

Effective State Changes

CALIFORNIA        

SB 1193 authorizes the California DMV to send electronic notifications to citizens regarding their vehicles. Effective January 1, 2023.

MICHIGAN

SB 1064 was signed into law by Governor Whitmer on October 14, 2022. Among other provisions, the bill requires a new vehicle dealership to meet certain requirements before opening, such as: posting signage of operating hours, not locating within two hundred feet of another licensed dealer, and maintaining all books and records necessary to conduct business on site. Effective January 23, 2023.

WASHINGTON, D.C.

Approved by Mayor Muriel Bowser on July 27, 2022, B24 457/Act 24-0529 was sent for congressional review on August 9th. The bill has a projected enactment date of November 10, 2022. The bill authorizes and regulates remote notarizations. Effective November 10, 2022.

FEDERAL TRADE COMMISSION

The FTC voted and announced on November 15, 2022 that it was extending the compliance deadline for the revised Safeguards Rule by six months. The updated Safeguards Rule addresses the use and protection of customer’s personal data including requiring two-factor authentication and the creation of an incident response plan. The new effective date for compliance will be June 9, 2023.