2023 Utah Legislative Session - Week Six
There is only one week remaining of the 2023 Utah Legislative Session. Committee meetings end on Tuesday and the floor time for the House and Senate will go later into the evening, with it all ending on next Friday at midnight. Although the session is only forty-five days, the Utah Legislature is able to accomplish a lot. There have already been over 800 bills filed for the session with the anticipation of 500 of those bills being heard and passed. The legislature also made public the near $28 billion dollar budget for the state. It includes nearly $1 billion in ongoing and one-time money for education, more than $400 million for water conservation, with a big focus on the Great Salt Lake, a tax cut package of $400 million, and over $200 million for affordable housing and homelessness in Utah.
The $400 million tax cut plan includes lowering the income rate to 4.65%, which is anticipated to save a family of four making $80,000 a year, approximately $200 a year. Other tax cuts will come from tax benefits, and social security credit eligibility for seniors.
All these spending items were at the forefront of legislators at the beginning of the session and will continue to the last day. Law makers will make final tweaks and adjustments during this last week of the session and then make a final vote this week.
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.
Update: The bill is scheduled to be in the House Transportation committee on Monday at 8:10am.
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 passed out of the House Business and Labor Committee on Friday evening.
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 has completed it’s process in both the House and Senate
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 is sitting on the Senate Concurrence Calendar and should be completed by Monday or Tuesday.
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 is currently on the Senate Second Reading calendar (39).
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, but is being held in rules and will most likely not be heard this session.
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, but is being held in rules and will most likely not be heard this session.
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.
Other Bills we are watching:
Catalytic Converter Amendments (No number)
Motor Vehicle Rental Tax Modifications (No number)
License Plate Amendments - HB26
Motor Vehicle Safety Inspection Advisory Council Amendments - HB49
Off-highway Vehicle Registration Requirements HB55
Noise Pollution Amendments - HB95
Waste Tire Recycling Fund Amendments - HB110
Motor Vehicle Registration Revisions - HB200
Emission Reduction Amendments - HB220
Motor Vehicle Tax Amendments - HB417
Towing Amendments - HB437
Recreation Vehicle Grant Program - HB444
Vehicle Tracking Amendments - HB445
Clean Fuel Vehicle Decal Amendments - HB458
Motor Vehicle Registration Amendments - SB13
Special License Plate Designation - SB92
Motor Vehicle Consumer Date Protection - SB139
Modified Car Emissions Requirements - SB264
Our Dealer Renewal Education Classes will be open for registration next week. Don’t miss our classes where we will go into detail on all these bills, plus some not mentioned here. Just as important as the bills listed and passed, are the bills not heard and not passed that we could see as topics during the interim session or at future legislative sessions. We will want your feedback on them all.
Adam Jones
Independent Dealer Solutions
801-566-3802