2023 Legislative Update - Week One
Week one of the 2023 legislative session has come to a close. In past years the legislature has moved slow and concise when it comes to many controversial issues. Last year the last day of the session ended with a lengthy discussion on trans-gender athletes in Utah schools that took over most of the last day of legislative bill processing. Many of those controversial bills are already moving quickly through the session, with some already half way through the process. This means many bills that previously were held up, should move forward easier. The first week of appropriation meetings are complete and a handful of committee meetings moved forward with many interim committee bills coming out of them.
The governor spoke Thursday to the state with his annual State of the State Address. We are honored to live in such a great state with a great economy as we do here in Utah. The Governor outlined many of his top priorities including the continued issue of water, water conservation, and the Great Salt Lake. He also noted the important of taking care of our teachers, including asking the legislature to pass the largest teacher salary increase we have seen in the state. He also noted how great the economy is doing and that with such a well run government that tax cuts are also an important piece on the table during this year's session. We may see the largest tax cut ever for the people of Utah. Watch for these tax cuts in HB54 from Representative Eliason.
Week one also included some important piece for Motor Vehicle related items.
Motor Vehicle Dealer Requirements (HB194):
The bill prohibits a motor vehicle dealer from requiring a purchaser to pay, as a condition of the sale, a fee or charge in addition to the negotiated purchase, other than sales and use taxes, temporary permit fees, required title fees, and required registration fees. One item among others not initially included in the bill is Dealer Documentary Fees. The original bill language requires the Dealer Doc Fee to be included in the advertised purchase price or not charge it.
We have been working with Representative Jack and the New Car Dealers of Utah, to get the needed changes in this bill for the automotive industry. We are happy to report that the changes need for this bill, including the dealer doc fee as an appropriate and approved additional fee, are being added and we should see them early next week. Once we have reached an agreement, we will see the bill added to a committee in the House for it's initial committee meeting. The discussions we've had will allow the bill to move through committee without any major issue.
Transportation Amendments (SB 27)
Senator Harper's Transportation Amendments bill is a lengthy bill at 73 pages long, and has little to do motor vehicle dealers as initially drafted. A substitute amendment to the bill was presented this week on Thursday that provided the extension and permanent inclusion of a pilot program for towing dispatch. During the 2022 legislative session, a bill was passed allowing for pilot program for Utah Highway Patrol to use a third party vendor for their towing dispatch. The six months since the program has been working has provided good information and intention that the program works well and should continue. In discussions with the Utah Towing Alliance, there were initial concerns with the amount that the third party vendors could charge for the dispatch program. We are now working with the Utah Towing Alliance, Utah Highway Patrol, insurance companies and associations, dispatch for Salt Lake and Weber counties, as well as some of these third party dispatch vendors to create language that will include limits and/or regulations for these dispatch fees. You may ask why this is important to dealers. If you have ever used a tow company for a reposession or other need, know that these dispatch fees will be passed on to you as a dealer if you are the lien hold on a repossessed vehicle. We are working to have a cap or other language that will keep these fees within the cost of the program and not as a profit center for counties or the dispatch centers. We will be finalizing the language next week. The bill initially was in committee on Thursday but the bill sponsor kindly held the bill from advancing until the new language is available. Watch for more details next week.
Automobile Franchise Amendments (SB 90)
New car dealers and manufacturers have been working since last year to come up with some simple changes to the New Automobile Franchise Act to help in warranty work and a few other items. We are please that SB 90 passed out of Senate Business and Labor Committee on Thursday unanimously. The bill will allow warranty work for licensed new car dealers to be paid at their current dealership rates. There are processes also set so that as dealers need to increase these rates the proper process is available. Too often dealers are not getting reimbursed or paid at the proper rate. This bill should take care of this issue. The bill is sitting on the Consent Calendar in the Senate. We expect the bill to be to the House of Representatives by end of next week. The bill applies if you are a new car dealer, or new RV dealer.
Additional Bills
The following is a list of bills we are continually watching. As appropriation meetings finish up in the next two weeks, we will see more movement with these bills.
License Plate Requirements, Designations and Amendments
Emissions Reductions Amendments
Off-Highway Vehicle Registration Bills
Automobile Franchise Amendments
Motor Vehicle Registration Amendments
Road Usage Amendments
Catalytic Converter Amendments
Motor Vehicle Tax Amendments
Towing Amendments
Leased Personal Property Amendments
Electronic Information and Data Privacy Act Amendments
Have you met or talked with your legislator? We want to know. When we are meeting with legislators, we can reference these relations and the power of what we can do increase exponentially. Let us know, who you know, who you have sold a car to, or who lives around the corner from you. There are twenty new legislators. The new legislators are friendly and want to hear from us.
Regards
Adam Jones
Independent Dealer Solutions
801.566.3802