2023 Legislative Update - Week Two
As week two of the legislative session comes to a close, we saw the legislature move fast on some major legislation in the state. This included legislation on two hot topics; schools and teacher salaries, as well as transgender issues. These discussion often took up much floor time and even included the House scheduling floor time during their lunch hour of 12pm-2pm. This is something that I have never seen. What does this mean for the rest of the legislation still to come this year? It means that two of the major topics of leadership are nearly completion, giving ample time for other topics. The remaining large topics include the budget, taxes and tax cuts, as well as water and the Great Salt Lake. Appropriation meetings for money should be coming to an end next week, giving way to the fast and the furious of both House and Senate committee meetings.
Motor Vehicle Dealer Requirements (HB194):
The original bill language 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.
We have worked closely with the New Car Dealers and the Auctions to make changes to allowed items that do not need to be included in the negotiated purchase price. As a negotiated item to allow dealer to keep the dealer documentary fee out of the negotiated purchase price, we agreed to have a transaction disclosure form. Before the sale is finalized, the dealer will be required to provide a form to the purchase that memorializes the negotiated terms and prices of the sale. The form will be created by the tax commission and will include the negotiated sale price; trade in value, if applicable; an itemized list of the legally required taxes and fees, which include the temporary permit fee, titling and registration fees, and dealer documentary fees. The form will also include sales tax, and other state or federal taxes required by law to be paid by the purchaser, and any other option charges negotiated by the dealer and purchaser. This document will be required by July 1, 2023 and should be provided to the purchaser before the sale in finalized.
The bill passed out of the House Business and Labor Committee this week and is currently sitting on the House Third Reading Calendar. We should see a vote on it next week.
Transportation Amendments (SB 27)
IDS along with the Utah Professional Towing Alliance, Utah Highway Patrol, local dispatch companies, and dispatch vendors have come to terms on language for solidifying the dispatch pilot program from last session into a permanent program. The 2022 pilot dispatch towing program has seen success in making the dispatch of tow trucks by the Highway Patrol very efficient. The changes in the language will give counties, cities and others that use dispatch an option to to use these third party dispatch technology companies and keep pricing regulated and fair for all those involved in the process. All those in the discussion agreed that utilizing the technology of a third party dispatch will make the process of clearing roads of vehicles more efficient. The bill passed out of the Senate Transportation Committee this week and is currently on the Senate Second Reading Calendar. It should be heard for the Second Reading this next week, with the possibility of being heard on the Third Reading Calendar near the end of 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. The bill allows 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 was voted on in the Senate and passed unanimously and is now in the House waiting to be assigned a committee.
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.
Registration Bills:
Trailer Registration Amendments
Recreation Vehicle Registration Requirements
Noise Restriction Amendments
Off-Highway Vehicle Registration Bills
Motor Vehicle Registration Amendments
Road Usage Amendments
Recreation Vehicle Registration Amendments
Insurance Bills
Vehicle Liability Policy Limits
Uninsured Motorist Coverage Amendments
Motor Vehicle Insurance Revisions & Amendments
License Plate Bills:
License Plate Requirements, Designations and Amendments
Vintage Vehicle Amendments
Emissions & Electric Vehicle Bills:
Electric Vehicle Charging Network Amendments
Emissions Reductions Amendments
Catalytic Converter Amendments
Motor Vehicle Safety Inspection Advisory Council Amendments
Tax Bills:
Motor Vehicle Rental Tax Modifications
Motor Vehicle Tax Amendments
Transportation Tax Amendments
Property Tax Revisions
Leased Personal Property Amendments
Other Bills:
Towing Amendments
Electronic Information and Data Privacy Act Amendments
State Holiday Modifications
If you have questions or concerns on any of these bills, please contact us.
Adam Jones
Independent Dealer Solutions
801-566-3802