Compliance Alerts

April 2023


Effective State Changes



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



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.



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 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.



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.



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.



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.



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



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.



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.



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


(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.



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 14th, 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.



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.



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