MADA is thrilled to commemorate our 100 years - Media ...

Legislative Update:
New Laws Take Effect in October
The strike of midnight on April 13th brought the 2010
legislative session of the Maryland General Assembly
to a 90-day conclusion. MADA put together another
very successful session, thereby improving your local
business environment. Below is an overview of all new
legistlation going into effect October 1, 2010:
Hand Held Cellphone Ban-SB 321 prohibits the driver of
a moving motor vehicle from using a handheld telephone
except to initiate or terminate a wireless call or to turn on or
off the handheld phone.
Job Tax Credit-SB 106 is a job tax credit bill that provides
a $5000 business income tax credit to any employer that
creates a new position and hires a Maryland resident that
has received unemployment benefits and is not presently
employed full time. The maximum tax credit permissible to
one employer is $250,000.
Unemployment Benefits-SB 107 expands unemployment
benefits for Maryland residents, but it also captures $126.8
Million in Federal stimulus money to provide tax breaks to
businesses that must swallow much higher than usual unemployment
insurance tax bills this year. All employers are
receiving unemployment insurance bills that are sometimes
three times the amount paid last year. Dealers may request
a payment plan or tax deferral.
Balloon Payments-SB 898 marks a significant legislative
victory for all dealers who finance vehicles in excess
of $30,000. Previously, Maryland law did not allow motor
vehicle retail installment contracts to contain a schedule of
payments with a balloon payment at the end. For the first
time, MADA introduced legislation that allows customers
to obtain a finance contract in excess of $30,000 that
contains a balloon payment. Now, Maryland dealers can
remain competitive with dealers in our surrounding states
that permit balloon payments in retail installment contracts.
Electronic Transmission of Temporary Registration-SB 67
requires dealers to electronically transfer to the MVA a record
of all vehicles with temporary tags. At the time of temporary
tag issuance, this gives the vehicle an identity for record keeping
and law enforcement before a metal plate is assigned.
Electronic Transmission of Title Work-SB 85 will reduce
late fees by allowing title work to be submitted electronically
by day 30. This bill creates a dealer incentive to use electronic
title and registration.
HOV Use by Plug-In Vehicles-SB 602 allows all Maryland
titled plug-in vehicles to use HOV lanes for a three year period
with a commencement date of October 1, 2010.
Excise Tax Credit for Plug-In Vehicles-HB 469 allows an
excise tax credit at the time of purchase for any Maryland
resident purchasing a Plug-in Vehicle effective October 1,
2010 through July 1, 2013.
Blue Ribbon Commission to Study Transportation
Funding-HB 710. The excise tax was raised during the 2007
special session of the Maryland General Assembly. The gas
tax has not been raised in more than 15 years. With the average
price of a new vehicle exceeding $27,000, the money
received from excise tax collection is poised to surpass gas
tax receipts. MADA needs to impress upon the commission
that raising the excise tax again is not a viable option.
Furthermore, MADA will dissuade the commission from
considering making automobile service work a taxable item.
Use of Video and Electronic Display Equipment-HB 190
ensures that motor vehicle rear view camera technology is
lawful when the electronic display of the rear view camera is
displayed on the front console.
Limitation on Use of Credit Reports by Employers-HB 175.
MADA worked with other business groups that use credit reports
to screen potential employees to ensure that employers
were not forbidden to use these informative reports.
Limited Speed Vehicles-SB 344 recognizes limited speed
vehicles under Maryland law. These vehicles usually do not
exceed 45 mph. This law allows limited speed vehicles to
operate on roads where the maximum speed of the vehicle is
at least 5 mph greater than the speed limit.
Maryland Automobile Dealers Association 22