MADA is pleased to report the 2016 legislative session of the Maryland General Assembly was another successful 90 days.  MADA prides itself on accomplishing our legislative goals in one year as opposed to most pieces of legislation that take multiple years to become law.  During the Fall of 2016, MADA decided to focus on two main law changes: 1) Customer disclosure of all safety related information made available by a manufacturer and 2) allowing trade-in credit for all lease vehicles being traded.  MADA ushered both of these bills past the Maryland Senate and House before midnight on April 11, 2016.  They now await the Governor's signature to become law on October 1, 2016.  

The disclosure of technical service bulletins [TSB] was presented to the legislature in 2015 with and the legislature showing intent to revisit the issue in 2016.  MADA introduced legislation permitted a dealer to disclose recall and TSB information to customers without adverse action by the manufacturer.  Prior to drafting the original legislation, Volkswagen and Honda initiated major recalls and stop sales on vehicles that placed a financial burden on dealers.  In response to these national stop sale directives, MADA amended the original disclosure bill to require manufacturer compensation to a dealer in the amount of 1% of vehicle inventory subject to a stop sale. Or, in the alternative, the manufacturer must compensate a dealer the same as any nationally established compensation program.    This amended bill drew heavy lobbying opposition from the manufacturers. The lobbying corps for the manufacturers has tripled in the last two years.  Despite this opposition, MADA was successful in passing this important disclosure and compensation law.  Maryland and Virginia are the only states with 1% compensation as a minimum floor for any stop sale directive.  MADA thanks Delegate Pam Beidle and Senator Wayne Norman for their sponsorship of this bill.  MADA will be honoring them in the interim.

Delegate Beidle also introduced legislation to enable the application of trade-in tax credit to apply to all vehicles regardless of prior lease or not.  This law will eliminate any confusion about the applicability of tax credit and/or require a lease vehicle to be bought out before getting the tax credit.  Starting October 1, 2016 all trade-in vehicles are eligible for tax credit.

Other noteworthy bills are below: