August 2023

 

Effective State Changes

 

ILLINOIS

On July 28, 2023, Governor J. B. Pritzker signed HB 3236 into law. The bill amends the Sales Finance Agency Act to prohibit a Sales Finance Agency from purchasing retail installment contracts or loans for the purchase of a companion canine or feline. The bill also prohibits secured loans for the purchase of a companion animal and forbids retailers from entering into retail installment contracts for the purchase of a companion animal. Effective January 1, 2024.

On June 30, 2023, HB 2130 created the Insurance Data Security Law. This new law enacts provisions regarding information security programs, the investigation of cybersecurity events, and notifications when cybersecurity events occur. Additionally, the law empowers the Director of the Department of Insurance to investigate any entity found to be in violation of this act. Finally, the law creates carve-outs for Freedom of Information Act requests when private data is possessed by the Department during the course of an investigation. Effective January 1, 2024.

 

INDIANA

On July 25, 2023, new guidance from Indiana’s Secretary of State’s Auto Dealer Services Division raised the maximum documentation preparation fee to $237.51. Previous guidance allowed for Consumer Price Index fluctuations to be taken into account when calculating the previous maximum documentation preparation fee of $200. Effective July 25, 2023.

 

NEBRASKA

Governor Jim Pillen signed LB 92 into law on June 6, 2023, enacting new licensing requirements for small dollar lenders. The law amends the Nebraska Installment Loan Act to specifically require marketers, servicers, and any entity which might purchase the covered loans or any interest in the covered loans to obtain proper licensing from the state. Effective June 7, 2023.

 

OREGON

Signed into law by Governor Tina Kotek on July 27, 2023, HB 2052 addresses the collection of consumer data by data brokers. The new law requires all data brokers who collect, sell, or license personal data to register with the Department of Consumer and Business Services. The bill also provides for civil penalties for the failure to register with the Department. Effective July 27, 2023.

HB 2099 is a transportation bill that was signed into law on July 27, 2023. Among other items, the bill states that the inspection of vehicle dealers by the Department of Transportation should only occur during normal business hours—Monday through Friday—and modifies laws related to dealer certificates and the use of vehicles displaying dealer plates. Effective September 24, 2023.

HB 3080 provides for vehicle dealers or financial institutions to electronically submit title or security interest paperwork to the Department of Transportation. The bill establishes a deadline of January 1, 2027, for rulemaking surrounding this implementation. Effective January 1, 2024.

SB 256 makes it an unlawful trade practice to manufacture, import, distribute, sell, or install counterfeit supplemental restraint systems or airbags in Oregon. Any restraint system or airbag must conform with federal standards for the make, model, and year of the motor vehicle. Effective January 1, 2024.

Signed into law on July 18, 2023, SB 619 addresses the collection and processing of a consumer’s personal data. This new bill provides a definition of a “controller” of consumers’ personal data and establishes the duties a controller has towards that data and its associated consumer. The law also establishes what rights a consumer has to control, alter, or request a controller to delete said personal data. The bill empowers the Attorney General to investigate controllers of personal data for violations of this act and creates civil penalties for such violations. Effective July 1, 2024.

 

TEXAS

Governor Greg Abbott signed HB 4 into law on June 18, 2023. The new law creates the Texas Data Privacy and Security Act to address the collection, use, processing, and treatment of consumers’ personal data. This bill enumerates the rights of consumers, defines the responsibilities of “controllers” of consumer data, and empowers the Texas Office of Attorney General to enforce the provisions of this act. The law applies to persons who conduct business in Texas, or produce products or services consumed by Texas residents, or process or engage in the sale of personal data. The law includes a carve-out for small businesses and certain types of data. Effective July 1, 2024.

 

VERMONT

HB 494 was vetoed by Governor Phil Scott on May 27, 2023. On June 20, 2023, the Vermont legislature passed the transportation appropriations bill, thereby bypassing the Governor’s veto. Among other items, the bill updates fees imposed by the Vermont Department of Motor Vehicles. The annual registration fee for an electric vehicle was raised from $74 to $89. An application for registration as a dealer of either new or used cars or trucks is increasing from $503 to $603. The bill also increases the temporary plate fee from $5 to $6 and the motor vehicle warranty fee from $6 to $8. Other fees updated include title fees and lien fees. Effective January 1, 2024.