2023 Legislative Update - Week Three
Week three of the 2023 Legislative Session comes to a close and we will be approaching a half way point of the session next week. Appropriation meetings will end next week giving way to committee meetings both in the morning and afternoon. The process will begin moving much faster next week. As for this week of automotive legislation, here are the updates.
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: Pass the House this week and is headed to the Senate. The changes we requested were made to the bill on the House floor. The bill has a second substitute.
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 on the Senate Second Reading Calendar. As a reminder the majority of this bill has little to do with the automotive and towing industry. Just one section of a very large transportation bill related. Watching all the bills through the process is important.
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 will be heard in the House Health & Human Services Committee this week.
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.
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.
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.
Motor Vehicle Consumer Date Protection (SB 139)
This bill enacts provisions related to storing, sharing, and accessing motor vehicle consumer data.
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.
We are continuing to watch these bills and others that we have not seen language for yet. If you have questions, please feel free to reach out to us at IDS. We are happy to provide additional details on each of these bills. Watch for details on our upcoming dealer renewal education class schedule and more later this month.
Adam Jones
Independent Dealer Solutions
801-566-3802