2023 Utah Legislative Session - Week Five
Week five of the 2023 Utah Legislative Session came to a close this week meaning there are only nine working days left of the session. The Legislature will be observing Monday, February 20th, as President’s Day, and will not be meeting on this day. The next two weeks we will see legislative committee meetings going later in the day, and time on the House and Senate floor extended. For this weeks updates, I have provided an update that is italicized and underlined making your reference to the updates easier.
New Legislative Bills for Automotive:
Vehicle Value Protection Agreements (SB 216)
This bill allows an individual to enter into a “vehicle value protection agreement.” The bill details requirements for cancellation of a vehicle value protection agreement; and requires the provider of a benefit under a vehicle value protection agreement to:
obtain contract liability insurance for the vehicle value protection agreement;
provide other security for payment under the vehicle value protection agreement; or
maintain a certain net worth.
A vehicle value protection agreement is an agreement for a separate charge between a provider and purchaser under which the provider agrees to, upon damage, total loss, or unrecovered theft of the purchaser's covered vehicle, provide a benefit to the purchaser that may be applied to:
the cash value of the covered vehicle when traded in for a replacement vehicle;
the finance agreement for a replacement vehicle; or
the purchase or lease price of a replacement vehicle.
A "Vehicle value protection agreement" includes: a vehicle trade-in agreement; a vehicle diminished value agreement; a vehicle cash down payment protection agreement; and a vehicle depreciation benefit agreement. It does not include an insurance contract; a guaranteed asset protection waiver; a debt cancellation agreement, or a debt suspension contract.
This is a potential new product for dealers in Utah. We know there are similar products in other states that we are currently evaluating their effectiveness both with dealers and the consumer.
The bill passed out of the Senate Business and Labor Committee this week. Senator Harper is committed to working with us and others on the bill.
Updates on Automotive Bills:
Vehicle Sales Amendments (SB 172)
This bill allows a licensed vehicle dealer to sell a vehicle to a buyer without the buyer being required to appear in person at the dealer's places of business. It allows the dealer to enter into a purchase contract, collect signatures, and collect payment electronically with the customer, and allows the dealer deliver a purchased vehicle to a buyer at the buyer's home or place of business. This bill helps clarify what the dealer can do in situations where the customer is out of state, communicated via online options to purchase a vehicle.
Update: The bill is on the Senate calendar with a plethora of other bills waiting to be heard by the entire body of the Senate.
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.
Update: The bill is currently circled on the Senate 2nd Reading calendar. A circled bill means there could be changes the bill sponsor is working on or it could mean that when the bill came up for discussion, the sponsor was unavailable. In the case of this bill, the Senate sponsor was not on the floor when it came up. We expect it to be heard soon.
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.
Update: The bill completed the process in the Senate and has been introduced in the House. The bill currently sits in House Rules waiting to be assigned to a House committee.
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.
Update: The bill has completed the legislative process and has been sent for enrolling and signature by the Governor. No further updates will be provided.
Trailer Registration Amendments (HB 340)
This bill amends a provision related to trailers that are exempt from vehicle registration requirements to include a single-axle trailer unless the single-axle trailer is a commercial vehicle, trailer designed, used, and maintained for hire; or a travel trailer, camping trailer, or fifth wheel trailer more than 750 pounds.
Update: The bill was heard in the house and passed out with a vote of 66-2. A Senate committee will be assigned by Senate Rules next week.
License Plate Requirement Amendments (SB 85)
This bill allows a historical support special group license plate to be manufactured with a partially reflective plate face. It also prohibits an individual from obscuring a license plate with a tinted or translucent license plate cover.
Update: The bill has completed the legislative process and has been sent for enrolling and signature by the Governor. No further updates will be provided.
Motor Vehicle Insurance Amendments (SB 131)
This bill increase the minimum motor vehicle insurance coverage limit from $15,000 to $50,000 for property damage in an accident and from $80,000 to $100,000 in any one accident whether arising from bodily injury or death of others, or from property damage.
Update: The bill is assigned to the Senate Business and Labor Committee. No changes.
Motor Vehicle Consumer Date Protection (SB 139)
This bill enacts provisions related to storing, sharing, and accessing motor vehicle consumer data.
Update: The bill is assigned to the Senate Business and Labor Committee. No changes.
Leased Tangible Personal Property Tax (SB 14)
This was an interim bill that addresses the requirement for obtaining a temporary permit for a leased vehicle and provides that the sale of leased tangible personal property from the lessor to the lessee is subject to sale and use tax.
Update: The bill has completed the legislative process and has been sent for enrolling and signature by the Governor.
There have been other bills we have been watching that do not have current bill language and have not seen committees, or even further discussion by legislators. We are talking with these legislators on a regular basis to better identify the problem the potential legislation is trying to address and how we can help them come to solutions with minimal impact to the automotive industry. If you’ve heard from your legislator or you have a great relationship with your legislator, we would appreciate knowing these relationships.
Adam Jones
Independent Dealer Solutions
801-566-3802