Bills That Passed Impacting Dealers

Bills That Passed Impacting Dealer

· HB 669 – Motor Vehicle Excise Tax – Exemption for Returning Military Members effective October 1, 2008, expands the eligibility of the motor vehicle excise tax credit to include a member of the military who returns to Maryland from, or on, active duty.

· HB 717 / SB 274 – Vehicle Laws – Automotive Dismantlers and Recyclers and Scrap Processors – Notice of Vehicle Acquisition, effective June 1, 2008, requires an automotive dismantler and recycler or scrap processor to notify the MVA electronically when it acquires title to a vehicle. Vehicles acquired through a salvage certificate are exempt from this electronic notification requirement.

· HB 1057 – Commercial Law – Automotive Repair Facilities – Invoices, Written Estimates, and Forms for Authorization of Repairs, effective October 1, 2008, adds a statement to the information that must be included on an estimate, a work authorization, and an invoice from an automotive repair facility as currently required by State law. The invoice must state clearly that, while a customerês motor vehicle is on the premises of the repair facility, the repair facility may not be responsible for damage to the customerês vehicle under certain circumstances and that the customer should ask a representative of the facility about the extent of its responsibility.

· SB 297 – Tax Credit for Employer Established Work-Based Learning Programs for Students, effective July 1, 2008, reestablishes the tax credit program for approved work-based learning programs for students.

· SB 568 Motor Vehicles Certificates of Title Rebuilt Salvage, effective October 1, 2008, alters the definition of •salvage vehicleê and creates new requirements on insurance companies for vehicles that have sustained repairable damage in excess of 75% of the fair market value of the vehicle. The bill also requires title branding under certain circumstances.

Bills That Failed

· HB 224 – Vehicle Laws – Electronic Titling and Registration – Temporary Registration requires dealers who use the MVAês electronic titling and registration system to issue temporary registration stickers on permanent registration plates. Paper temporary tags would be disallowed for dealers on the electronic system. As amended by the Senate, dealers would have remained authorized to issue paper temp tags for buyers whose registrations were •flaggedê by the MVA system. Without this ability, dealers would have faced the probability of lost sales as customers would be prevented from completing a purchase transaction for several days waiting for the MVA •flagê to clear. The House disagreed with the Senate amendment and the bill failed on the last day of session. WANADA and MADA will need to work with MVA in the interim to resolve this issue. In the meantime, paper temporary tags should still be authorized.

· HB 338 – Energy Efficiency Tax Credit and Surcharge Act (Tires & Sipper-Guzzler) would have, among other things, provided a $250 tax credit for fuel efficient vehicles and a $250 surcharge for gas-guzzlers. MADA and WANADA testified against the bill, which failed in committee without a vote.

· HB 718 / SB 491 – Task Force to Study the Establishment of Periodic Motor Vehicle Safety Inspections failed in committee.

· HB 843 – Vehicle Laws – Vehicle Emissions Inspection – Test Performed by Dealers would have authorized licensed dealers to conduct an exhaust emissions test required under the Vehicle Emissions Inspection Program, but failed in committee.

· HB 1361 – Vehicle Laws – Advertising Practices – Prohibited Acts would have prohibited a vehicle dealer, dealer agent, or dealer employee from stating in any advertisement a selling price amount that represents the balance that would be owed after deduction of a down payment, trade-in allowance, or other allowance. Violations of the billês provisions are subject to the existing penalties for false, deceptive, or misleading vehicle advertising practices. The bill was opposed by MADA and failed in committee.

· SB 412 – Task Force to Study Changes to the Automotive Warranty Enforcement Act, introduced by Senator Miller, passed both the Senate and the House, but was amended in the House to add representatives of the auto manufacturers and the dealersê association. Due to the last minute changes, the bill failed.