Effective State Changes

ILLINOIS

House Bill 1796 was signed into law by Governor J B Pritzker on November 16, 2021. This new law introduces the Reimagining Electric Vehicles in Illinois Act. Among other provisions, the Department of Commerce and Economic Opportunity shall provide financial incentives and tax credits to eligible manufacturers of electric vehicles, component parts, and power supply equipment. Effective immediately.

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

INDIANA

Published in Bulletin 262 on November 30, 2021, the Indiana Insurance Commissioner adjusted credit life rates effective January 1, 2022. The discount rate used for credit life is 1.82%. The discount rate used for accident and health is 1.42%.

Credit life prima facie rates for monthly outstanding balance are increased to:

• $0.81 per month per $1000 of outstanding insured debt on single life
• $1.35 per month per $1000 of outstanding insured debt on joint life

The A&H rates will remain the same as the those established in Bulletin 246. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14 Retro:  $1.50
• 14 Elim:    $1.05
• 30 Retro:  $1.03
• 30 Elim:    $0.77

Effective January 1, 2022.

MICHIGAN

House Bill 4117 would allow the Secretary of State to issue vehicle registrations for two years if requested by the vehicle owner. Effective October 1, 2022.

NEW JERSEY

Senate Bill 324 directs the Chief Administrator of the New Jersey Motor Vehicle Commission to promulgate rules and regulations in order to create electronic registration certificates. Effective May 1, 2023.

SOUTH CAROLINA

On October 1, 2021, the South Carolina Department of Insurance adopted Orders 2021-02, 2021-03, and 2021-04 confirming Prima Facie Credit A&H and Credit Property rates for 2022. Under 2021-02, the Credit A&H rates for insurance sold in conjunction with consumer credit transactions in 2022 will decrease from their current rates in 2021. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.38
• 30-day Retro: $1.30

Under Order 2021-03, Credit Property rates for Automobile Fire and Theft, Automobile Collision, and Household Goods – Dual Interest, have decreased. Household Goods – Single Interest remains the same. Under Order 2021-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will decrease to $0.25 per $5.00 of monthly indemnity. Effective January 1, 2022.

CFPB – ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau (“CFPB”) published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2022 the exemption threshold amount for Regulation M and Z will remain the same at $61,000. Effective January 1, 2022.

VIRGINIA

In August, we reported on Virginia’s adjustment of the prima facie rates which were adopted for a three-year period. The Accident & Sickness rates for 2022 were updated. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.56
• 30-day Retro: $1.12

Pursuant to Case No. INS-2021-00023, the credit life insurance rates will be $0.6672 per month per $1,000.00 of outstanding insured indebtedness if premiums are payable on a monthly outstanding balance basis. The rate per $100.00 of initial indebtedness repayable in 12 equal monthly installments is $0.4259. Effective January 1, 2022.

Effective State Changes

CALIFORNIA

Signed into law on October 4, 2021, Assembly Bill 1221 specifies that a service contract may be offered on a month-to-month or other periodic basis and continue until canceled by the buyer The bill also gives service contractors numerous provisions regarding a conspicuous notice and ways to cancel the service contract. Vehicle service contracts are exempted from various provisions. Effective January 1, 2022.

On October 6, 2021, Governor Gavin Newsome signed Assembly Bill 424 into law enacting the Private Student Loan Collections Reform Act. The act would prohibit a private education lender or a private education loan collector from attempting to collect a private education loan unless certain information is provided to the debtor. Additionally, the Private Student Loan Collections Reform Act would require all settlement agreements between a private education lender or loan collector and a debtor to be documented in open court or memorialized in writing. Effective July 1, 2022.

NORTH CAROLINA

Signed by the Governor on October 28, 2021, Senate Bill 425 makes changes to the current statutes governing Guaranteed Asset Protection Waivers. The new language specifies that a GAP waiver may be with or without a separate charge. The language also states that the cost of a GAP waiver shall be considered an authorized charged that may be financed and shall not be considered part of the finance charge or interest. The Act adds a new Article 48 concerning Vehicle Value Protection Agreements and specifies requirements for offering such an agreement, as well as disclosure requirements. Effective January 1, 2022.

CONSUMER FINANCIAL PROTECTION BUREAU

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, 2022.

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $22,969, up from $22,052
• The adjusted points and fees trigger will be $1,148, up from $1,103

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 $14,356
• $1,148 for loans greater than or equal to $14,356 but less than $22,969
• 5% of total loan amount for loans greater than or equal to $22,969 but less than $68,908
• $3,445 for loans greater than or equal to $68,908 but less than $114,847
• 3% of total loan amount for loans greater than or equal to $114,847

Effective State Changes

COLORADO

On August 25, 2021, the emergency filing of the Colorado Student Loan Servicers Act Rules—4 CCR 902-3—were adopted. Effective September 1, 2021.

ILLINOIS

On August 27, 2021, Governor JB Pritzker signed House Bill 2746 the Know Before You Owe Private Education Loan Act into law. The new law affects private education lenders and has a number of requirements to provide information to students before they enter these loans. Additionally, the law requires these lenders to file reports with the Department of Financial and Professional Regulation. Effective immediately.

NEW HAMPSHIRE

Governor John Sununu approved of House Bill 610 on August 10, 2021. Among other provisions, the new law requires retail sellers, sale finance companies, small loan lenders, debt adjusters, and money transmitters to license via the Nationwide Multistate Licensing System and Registry in New Hampshire. Effective October 9, 2021.

NORTH CAROLINA

House Bill 403 was signed into law by Governor Roy Cooper on September 10, 2021. The new law makes several changes to North Carolina’s Motor Vehicle Dealers and Manufacturers Licensing Law. Among other provisions, the bill prohibits conditioning approval of dealership transfers on a dealer’s willingness to renovate, relocate, or other conditions. Additionally, among other provisions the new law:

• Extends conditions for certain manufacturer incentive programs.
• Clarifies changes to existing law regarding warranties.
• Ensures delivery of prepared documents at a customer’s home will not violate salesroom restrictions for vehicle sales.

Effective immediately.

Governor Cooper also enacted House Bill 650 on September 2, 2021. This new law makes a number of changes to the existing motor vehicle and motor vehicle dealer laws. Changes include:

• Clarifies sales representative licensing provisions.
• Modifies the grounds for revoking sales representative licenses.
• Limits the ability to revoke the licenses of vehicle dealers.

Effective October 1, 2021.

Senate Bill 379 requires the North Carolina DMV to issue an unregisterable certificate of title for motor vehicles. In addition, it establishes an application process to apply for an unregistrable certificate of title. Effective October 1, 2021.

OKLAHOMA

Section 3-508A increases the cap on loan finance charges from 27% to 32% per year on unpaid balances of the principal of $7,000 or less, 23% per year on the unpaid balances of the principal more than $7,000 to $11,000, and 20% on the unpaid balances of the principal more than $11,000. The bill also provides for a closing fee upon prepayment in full of up to $28.85 under Section 3-210. Effective November 1, 2021.

CONSUMER FINANCIAL PROTECTION BUREAU

On August 31, 2021, the Consumer Financial Protection Bureau (“CFPB”) released a notice for proposed rulemaking in order to collect and report on credit applications made by small businesses. The focused collection will analyze data from minority and woman owned businesses. Comments will be accepted until November 29, 2021.

Effective State Changes

COLORADO

Senate Bill 076 imposes a per-transaction fee up to $3, set by the Department of Revenue, on third-party providers to issue titles, registrations, and liens. Effective July 7, 2021.

CONNECTICUT

Senate Bill 716 provides additional protections for student loan borrowers and cosigners of private education loans. The bill also presents a new cause of action which can be brought against student loan servicers who engage in abusive acts or practices. Effective July 1, 2021.

Governor Ned Lamont signed Senate Bill 890 requiring federal student loan servicers to register with the Connecticut Department of Banking and comply with record requirements and consumer protection mandates applicable in the state. Effective July 1, 2021.

ILLINOIS

The Motor Vehicle Franchise Act has been amended by House Bill 3940. The new law requires licensed dealers to sell all motor vehicles instead of stating unlicensed dealers should be prevented from these sales. Additionally, this bill alters the manner in which dealers are reimbursed by manufacturers among other changes. Effective January 1, 2022.

Senate Bill 58 restores the full sales tax trade-in credit on vehicle trade-ins. Two years ago, lawmakers capped the sales tax trade-in credit at $10,000 for some passenger vehicles and SUVs. Restoring the full credit will give all motor vehicle customers a tax credit equal to the full value of their vehicles. Effective January 1, 2022.

The Debt Settlement Consumer Protection Act now includes student loan borrowers following the passage of Senate Bill 669. Among other requirements, the bill provides for specified disclosures in advertising and in contracts before signing. Effective Immediately.

MAINE

Governor Janet Mills signed Legislative Document 522 granting to Maine consumer’s the right to void a loan that is fraudulently procured under Maine finance law. The role of this new law is to crackdown on predatory lending in Connecticut. Effective 90 days after adjournment.

Legislative Document 1645 is an act that creates a registry of student loan lenders and implements other protections for private student loan borrowers. Effective 90 days after adjournment.

OREGON

Oregon declared a student loan emergency and enacted Senate Bill 485 in response. The law requires certain student loan servicers to obtain or renew license in Oregon. In addition, the bill details application and renewal procedures, required fees and creates certain exemptions. Finally, the new law allows for civil penalties against an unlicensed servicer and permits the Director of the Department of Consumer and Business Services to participate in multistate examinations. Effective July 1, 2022.

VIRGINIA

On August 10, 2021, the Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2022, Case No. INS-2021-00023 was announced. The Virginia State Corporation Commission’s has enacted new rates for a 3-year period The new rates will be:

Credit Life Rates

Single Life Rate                      $0.6672/$1000/month

Discounted at 3.63% for interest and mortality

Joint Life Rate                        $1.1008/$1000/month

165% of single life rate

Single life rate per $100 @ 12 months         $0.4259

Joint life rate per $100 @ 12 months           $0.7027

Single Level Life per $100 @ 12 months     $0.7792

Joint Level Life per $100 @ 12 months       $1.2856

*Level life rates are derived from the rates per $1000 per month and discounted at 5.5% for interest and mortality.

Credit A&H Rates

14 Day Retro                             $1.56/$100 @ 12 months

30 Day Retro                            $1.12/$100 @ 12 months

14 Day Elim                               $1.25/$100 @ 12 months

30 Day Elim                              $ 0.78/$100 @ 12 months

This most recent change is a decrease in prima A&H facie rates.

Effective January 1, 2022.

Effective State Changes

CONNECTICUT

Among other provisions, Substitute House Bill 6100 modernizes and updates the motor vehicle Lemon Law, lays out procedures for filing a claim, and provides the Department of Consumer Protection increased enforcement mechanisms. Effective October 1, 2021.

HAWAII

House Bill 1192 creates a new small dollar installment loan scheme for loans up to $1,500. These loans must be precomputed. The maximum allowed interest rate is 36% with a maximum total rate for all interest and fees of 50% of the principal amount. A monthly maintenance fee is allowed: $25 on original principal amount up $299.99, $30 on an original principal amount of at least $300, up to $699.99, or $35 on an original principal amount of at least $700 or greater. Bill effective July 1, 2021; licensing requirements effective January 1, 2022.

LOUISIANA

House Bill 147 authorizes public license tag agents to charge a $23 convenience fee for their services. Previously that convenience fee was $18. Effective August 1, 2021.

Senate Bill 67 raises the Documentary Service Fee for the sale of a motor vehicle from $200 to $425. Effective August 1, 2021.

MAINE

Legislative Document 1141 amends the Service Contracts Act to include the replacement of motor vehicle keys or key fobs among other provisions. Effective 90 days after sine die adjournment.

MARYLAND

Signed on May 30, 2021, House Bill 44 creates the Clean Cars Act of 2021. Among other provisions, the bill extends the vehicle excise tax credit for the purchase of certain electric vehicles. Effective July 1, 2021.

NEBRASKA

Legislative Bill 649 establishes the Nebraska Financial Innovation Act to create digital asset depository institutions as a new financial institution to be supervised by the Nebraska Department of Banking and Finance. Effective August 27, 2021.

NEVADA

Assembly Bill 281 requires motor vehicle dealers to share certain records for short-term lessors be with the Department of Taxation, the Department of Motor Vehicles and certain local government employees upon request. Effective October 1, 2021.

Assembly Bill 298 affects motor vehicle leases in the state of Nevada. Among other updates to the law, the bill establishes the conditions under which a default by a lessee may be enforced, sets certain requirements for a lease, and requires certain language in lease contracts. Effective October 1, 2021.

SOUTH CAROLINA

House Bill 3505 applies the infrastructure maintenance fee to vehicle leasees at the time of registration at the Department of Motor Vehicles. Effective May 17, 2021.

TEXAS

House Bill 1698 allows for a county to charge a fee during vehicle registration in order to raise funds for a transportation project. Effective 90 days after sine die adjournment.

House Bill 2152 allows for online vehicle registration renewal. Effective September 1, 2021.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2021.

TENNESSEE

Tennessee House Bill 421 was signed into law on April 7, 2021. This new law increases fees and adds new fees an industrial loan entity may charge. Effective July 1, 2021.

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, 2021.

WYOMING

Signed into law on February 9, 2021, HB 8 consolidates consumer credit provisions for loans. Effective July 1, 2021.

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.

On April 6, 2021 House Bill 2721 was signed into law which requires Arizona motor vehicle dealers to disclose any Document Fee they charge for a motor vehicle transaction in any advertisements. Effective 90 days after sine die adjournment.

ARKANSAS

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

FLORIDA

Senate Bill 50 was signed by Governor Ron DeSantis on April 19, 2021. The new law revises the definition of a “retail sale” to include sales facilitated through an internet marketplace. In addition, the new legislative scheme requires marketplace providers and persons outside of Florida to remit discretionary sales surtax when delivering tangible personal property to a county imposing a surtax and a marketplace seller—rather than the provider—is responsible for sales tax collection and remittance in certain instances. Effective, in part, on July 1, 2021.

INDIANA

Senate Bill 346 makes amendments to the Uniform Consumer Credit Code and first lien mortgage law to remain consistent with federal laws in effect on Dec. 31, 2019, to federal laws in effect on Dec. 31, 2020. Effective July 1, 2021.

Indiana House Bill 1285 was passed on April 23, 2021. Among other provisions, the bill sets up a statewide electronic titling and lien system. Effective, in part, on January 1, 2022.

IOWA

House File 719 creates the Insurance Data Security Act which enacts standards for data security and data breach investigations under the purview of the Commissioner of Insurance. Effective January 1, 2022.

KENTUCKY

Kentucky Governor Andy Beshear signed Senate Bill 71 into law on March 22, 2021. Amongst other provisions, the new law defines automobile clubs, recovery, towing services, and the relationship between a lienholder and the owner of a vehicle. Effective 90 days after sine die adjournment.

MARYLAND

Senate Bill 281 extends the Office of the Commissioner of Financial Regulation’s sunset date to July 1, 2032. Effective Immediately.

NORTH DAKOTA

North Dakota Senate Bill 2103 was signed into law on April 19, 2021. The bill amends money broker loan charges, expands licensing exemptions, and changes deferred presentment service transaction procedures. A money broker licensee cannot contract for a finance charge of more than an annual rate of 36%. Additional charges may be assessed for late payment not to exceed 5% of the payment or if the loan originated is for $50,000 or less, the charges may not exceed $20. Additional restrictions for small loans originated for less than $2,000 include the following: Installment loans must be paid in equal installments, loans may not exceed 36 months, and a balloon payment is prohibited. An existing loan may be refinanced into a new small loan of less than $2,000, but the combination of any refinance fees along with any original loan fees may not exceed $100 per calendar year. Finally, an additional charge of up to $100 may be assessed for a loan extension or deferment of payment. Effective August 1, 2021.

Governor Doug Burgum signed SB 2150 on April 1, 2021. The new law states that vehicle theft protection warranties are not subject to regulation as insurance. Additionally, the bill defines what types of vehicle damage a service contract could cover. Effective August 1, 2021.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2021. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of:

30% of the amount financed up to $1,620; plus

21% of the excess to $5,400; plus

15% of the remainder to $58,300.

OR  21% Simple Interest

The dollar amounts under §3-508(A) remain the same.

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

Loan Amount	Acquisition Charge	Handling Charge
Up to $161.95		$5.40 per $27.00 of principal
$161.95-$189.00	1/10 of the amount of principal	$16.20 per month
$189.01-$378.00	1/10 of the amount of principal	$18.90 per month
$378.01-$540.00	1/10 of the amount of principal	$21.60 per month
$540.01-$810.00	1/10 of the amount of principal	$24.30 per month
$810.01-$1,080.00	1/10 of the amount of principal	$27.00 per month
$1,080.01-$1,350.00	1/10 of the amount of principal	$29.70 per month
$1,350.01-$1,620.00	1/10 of the amount of principal	$32.40 per month

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $26.50 to $27.00. Effective July 1, 2021.

Senate Bill 261 creates an Oklahoma Student Borrower’s Bill of Rights. The new law defines these student’s rights, prohibits certain actions by servicers, and directs the Attorney General to create materials in compliance with its provisions. Effective November 1, 2021.

Senate Bill 796 was signed on April 21, 2021 by Governor Kevin Stitt. The new bill creates amendments to the Oklahoma Uniform Commercial Code, specifically Section 3-508A to increase the cap on loan finance charges from 27% to 32% per year on unpaid balances of the principal of $7,000 or less, 23% per year on the unpaid balances of the principal more than $7,000 to $11,000, and 20% on the unpaid balances of the principal more than $11,000. The bill also provides for a closing fee upon prepayment in full of up to $28.85 under Section 3-210. Effective November 1, 2021.

TENNESSEE

Tennessee House Bill 421 was signed into law on April 7, 2021. This new law increases fees and adds new fees an industrial loan entity may charge. Under the new law, any industrial loan entity may contract for a service charge of 5% on the Total Amount of the Loan (up from 4%). It also modifies the installment maintenance fee structure to a flat $5.00 per month. Finally, new provisions allow a registrant to contract for a closing fee for prepayment at the time of origination. The closing fee may be for an amount of up to 4% of the amount financed but no more than $50.00. Effective July 1, 2021.

TEXAS

Released in February 2021, 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 $2,220 plus,

$  8 per $100 per annum of the excess to $18,550

OR

(Simple Melded Rates)

30% per annum of the cash advance to $3,700 plus,

24% of the excess to $7,770 plus,

18% of the remainder to $18,500

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

$12 per $100 per annum of the principal balance to $3,700 plus

$10 per $100 per annum of the excess to $7,400 plus,

$  8 per $100 per annum of the remainder.

Effective July 1, 2021.

UTAH

House Bill 80 was signed into law on April 11, 2021. The bill creates affirmative defenses for businesses that experience a data security breach. Effective 60 days after sine die adjournment.

VIRGINIA

Virginia House Bill 1979 creates an Electric Vehicle Rebate Program for the purchase or lease of new or used electric vehicles. The bill also adds definitions, funding sources, and enacts logistical changes to create the Electric Vehicle Rebate Program Advisory Council. Effective July 1, 2021.

WASHINGTON

Senate Bill 5000 enacts a 50% reduction in taxes on sales or lease agreements for electric passenger cars, light duty trucks, and medium duty passenger vehicles which are powered by a fuel cell. Effective July 1, 2022.

WYOMING

Wyoming House Bill 190 allows a nonresident person registered as a business entity under the laws of another state and who operates a vehicle in Wyoming for commercial purposes to apply for a Wyoming certificate of title. Effective July 1, 2021.

CONSUMER FINANCIAL PROTECTION BUREAU

The Consumer Financial Protection Bureau (“CFPB”) issued a final rule delaying the mandatory compliance date for the new general qualified mortgage (“QM”) final rule based on an annual percentage rate limit from July 1, 2021 to October 1, 2022. Effective on June 30, 2021.

Effective State Changes

ARIZONA

Governor Ducey passed HB 2424 on March 24, 2021. The bill empowers the Director of the Department of Transportation to contract with an association of new motor vehicle dealers to manage a lien recording system at no cost to the state. Effective 90 days after sine die adjournment.

ARKANSAS

HB 1042 became Act 146 on February 24, 2021. Act 146 repeals the long-term rental vehicle excise tax. Effective 90 days after sine die adjournment.

SB 184 was approved by Governor Asa Hutchinson on March 25, 2021. The bill repealed the Arkansas Pawnbroker Act. Effective 90 days after sine die adjournment.

SB 225 was signed into law on March 17, 2021. The bill adds a definition of a plug-in electric vehicle and plug-in hybrid electric vehicle under the Arkansas code. Plug-in electric vehicle owners will now pay a fee of $100 to register their vehicle, while the fee for hybrid electric vehicle owners has been reduced to $50. Effective January 1, 2022.

ILLINOIS

On March 23, 2021 Governor Pritzker signed SB 1792 which enacts The Predatory Loan Prevention Act. This law goes into effect immediately and will significantly impact the extension of credit in the state of Illinois. Exempt institutions include federally chartered banks, savings banks, savings and loan associations and credit unions. The law replaces existing maximum charge statutory requirements with a 36% Annual Percentage Rate limit computed like the MAPR for the Military Lending Act and extends to consumer loans, motor vehicle sales, and retail installment sales. Effective immediately.

IOWA

Republican Governor Reynolds enacted Iowa House File 235 on March 8, 2021. The new law removes the requirement that a consumer credit transaction bear interest in order to collect a service charge. The new law also prohibits a creditor from collecting a minimum charge upon prepayment in-full when a service charge is collected on a non-interest bearing consumer credit transaction. Effective July 1, 2021.

MISSISSIPPI

HB 1075 was signed by Governor Reeves on March 17, 2021. The Bill reenacts the Mississippi Credit Availability Act through July 2026. Effective July 1, 2021.

NEBRASKA

Governor Rickets signed LB 363 into law on March 17, 2021. The bill is primarily concerned with defining sales finance companies for licensing who offer installment sales contracts. Effective immediately, March 17, 2021.

NEW YORK

As a follow up to the recently enacted A10118-A/S05470B, on February 16, 2021 Governor Andrew Cuomo signed SB 898 into law. The law exempts financing transactions of at least $50,000 to auto dealers from the requirements for commercial financing providers to disclose critical information regarding the cost of financing and other terms to commercial borrowers which was recently enacted. Effective January 1, 2022.

SOUTH DAKOTA

HB 1053 was signed into law by Governor Noem on March 3, 2021. The new law requires an annual fee of $50 to be charged to the owner of an electric motor vehicle. The new fee will not apply to a motorcycle propelled by an electric motor. Effective July 1, 2021.

SB 8 was signed into law February 10, 2021. The bill concerns supervised banks and credit unions, as well as foreign banks and trusts. The law sets up new definitions for these entities, rules for examinations, and creates a system for the promulgation of rules enforcement and allowed fees. Finally, the law defines which credit service charges banks may instate. Effective July 1, 2021.

VIRGINIA

The Virginia Consumer Data Protection Act (“CDPA”) became law on March 2, 2021. The new data privacy law establishes rights for Virginia consumers to control how companies use their personal data. The CDPA dictates how companies must protect personal data in their possession and respond to consumers exercising their rights regarding such personal data. Effective January 1, 2023.

WYOMING

Signed into law on February 9, 2021, HB 8 consolidates consumer credit provisions for loans. In addition, the law caps a consumer loan finance charge at 36% per year on the unpaid balance of the principal that is equal or less than $1,000, and 21% on the unpaid balances above $1,000. Effective July 1, 2021.

MASSACHUSETTS

On January 14, 2021, the Massachusetts Governor signed H5250 into law. Among various other requirements, the bill added a requirement that student loan servicers must be licensed in the state. Effective July 1, 2021.

MICHIGAN

The Michigan Department of Insurance and Financial Services issued Bulletin 2021-04-CF on January 15, 2021. This Bulletin adjusted the documentary preparation fee cap to $230. The fee is the lesser of $230 or 5% of the cash price of the motor vehicle. Effective immediately.

NEW YORK

On December 23, 2020, Governor Cuomo signed into law A10118-A/ S05470B which requires certain disclosures for commercial financing transactions. There are a variety of disclosure requirements, among them is the requirement to disclose an Annual Percentage Rate (“APR”) calculated in accordance with the Truth in Lending Act and Regulation Z. Effective June 21, 2021.

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee depends on whether the motor vehicle dealer provides electronic services for registration, title, license, and tax documents. The fee is adjusted annually subject to increases in the Federal Consumer Price Index. The maximum fee for 2021 has been risen to either $328 or $394, with the latter applying to electronically filed documents. Effective January 1, 2021.

WEST VIRGINIA

Following the meeting of the West Virginia Dealer Advisory Board on December 17, 2020, the Commissioner of West Virginia’s Department of Transportation’s Division of Motor Vehicles raised the amount a motor vehicle dealer could charge for documentary fee to $499. Effective immediately.

CONSUMER FINANCIAL PROTECTION BUREAU

On January 20, 2021, Director Kathleen Kraninger resigned as the Director of the CFPB at the request of President Joe Biden’s Administration. President Biden has nominated FTC Commissioner Rohit Chopra as the next director of the bureau. Chopra had previously served as the assistant director at the CFPB where he focused on student lending. Currently, Daniel Ueijo is the Acting Director until Mr. Chopra’s nomination is confirmed by the U.S. Senate.