Compliance Alerts

March 2020


Effective State Changes  



New Mexico’s Governor Michelle Grisham signed Senate Bill 151 into law on March 4, 2020. The bill allows an electronic signature for the application of a vehicle’s registration and certificate of title. Effective January 1, 2021.

We are still awaiting a Bulletin from the NM Office of Superintendent of Insurance regarding the revised implementation date for the revised Life and A&H insurance rates. At the time publishing this material, the Bulletin has not been published. The expected implementation date is still April 1, 2020.



Governor Henry McMaster approved House Bill 4244 on February 7, 2020. The law seeks to define service contracts and warranties, as well as road hazards, theft protection programs and theft protection program warranties. Effective May 7, 2020.



House Bill 1061 was signed into law February 24, 2020 by Governor Kristi Noem. The new law provides for the waiver of registration fees on motor vehicles owned by improvement districts. These districts join select government and non-profit entities which waive these fees following the payment of the actual cost of license plates. Effective July 1, 2020.  

South Dakota Senate Bill 14 was signed the same day as House Bill 1061 and defines which data must be included with the registration and plates for motorcycles, snowmobiles, passenger vehicles, and trailers. Effective July 1, 2020. 



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 $2,190 plus,

$  8 per $100 per annum of the excess to $18,250


(Simple Melded Rates)

30% per annum of the cash advance to $3,650 plus,

24% of the excess to $7,665 plus,

18% of the remainder to $18,250


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

$12 per $100 per annum of the principal balance to $3,650 plus,

$10 per $100 per annum of the excess to $7,300 plus,

$  8 per $100 per annum of the remainder.


Effective July 1, 2020.



West Virginia joins a trend across state governments to more clearly define motor vehicle warranties, service agreements, and maintenance agreements by defining these provisions more clearly. Governor Jim Justice signed House Bill 4149 on March 7, 2020. Effective June 5, 2020.



Senate Bill 162 was signed by Governor Tony Evers on March 3, 2020. This bill waives the title transfer fee when an application for transfer of a title is being made by a surviving spouse or domestic partner. Effective March 3, 2020.



Effective Federal Changes     



On February 26, 2020 the CFPB published a new Truth in Lending Act (“TILA”) – Real Estate Settlement Procedures Act (“RESPA”) Integrated Disclosures FAQs. This document contains questions and answers regarding the TILA-RESPA Integrated Disclosure Rule, also known as the TRID rules.



The Department of Defense has finally amended the controversial Question #2 in its interpretation of the Military Lending Act (“MLA”). This interpretive rule was originally published on December 14, 2017. Specifically, the rule dealt with the extension of credit to a covered person when purchasing a motor vehicle or personal property where the credit extended is more than the purchase price of the vehicle or property. This interpretative rule has been rescinded, meaning it is as if the rule was never published. Now creditors must return to the original interpretative rule published on August 26, 2016. Although the 2016 interpretative rule does not specifically address credit insurance products, credit insurance and GAP sales associated with the purchase money vehicle financing in dealer-arranged sales to covered persons no longer triggers a “per-se” loss of the exemption under MLA. Effective February 28, 2020.