SPONSOR: Rep. Baumbach & Sen. Sokola HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE SUBSTITUTE NO. 1 FOR HOUSE BILL NO. 295 AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO DEALER PROCESSING FEES.
SPONSOR: Rep. Baumbach & Sen. Sokola
SPONSOR: Rep. Baumbach & Sen. Sokola
SPONSOR:
Rep. Baumbach & Sen. Sokola
HOUSE OF REPRESENTATIVES
152nd GENERAL ASSEMBLY
HOUSE SUBSTITUTE NO. 1
FOR
HOUSE BILL NO. 295
AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO DEALER PROCESSING FEES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend 6301, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline and redesignating accordingly as follows: 6301. Definitions [For application of this section, see 79 Del. Laws, c. 161, 5]. As used in this chapter: (4) a.Dealer processing fee means an amount charged by a dealer for the dealers costs associated with any of the following: 1. The preparation of written documentation concerning the buying, selling, or exchange of the vehicle. 2. Obtaining the title and license plates for the vehicle. 3. Obtaining a release of lien. 4. Filing title documents with the Department. 5. Retaining documents concerning the buying, selling, or exchange of the vehicle. 6. Complying with federal or State privacy laws. 7. Other administrative services concerning the buying, selling, or exchange of the vehicle. b. Dealer processing fee does not include any fee payable to the Department. Section 2. Amend 6305, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 6305. Bill of sale. (a) Every motor vehicle dealer shall complete, in duplicate, a bill of sale for each sale or exchange of a motor vehicle. All items listed in the bill of sale must be legible and in 10-point font, or larger, if typed. The original shall be retained for a period of 5 years. A duplicate copy shall be delivered to the purchaser at the time of sale or exchange. The bill of sale shall be signed by both buyer and seller. A bill of sale shall include the following: (1) The name and address of the person to whom the vehicle was sold or traded; traded. (2) The date of the sale or trade; trade. (3) The name and address of the motor vehicle dealer selling or trading the vehicle; vehicle. (4) The make, model, year, vehicle identification number and body style of the vehicle; vehicle. (5) The sale price of the vehicle; vehicle. (6) The amount of any deposit made by the buyer; buyer. (7) A description of any Delaware titled vehicle used as a trade-in and the amount credited the buyer for the trade-in ; trade-in. (8) The amount of the document fee, title fee, registration fee , dealer processing fee, or any other fee for which the buyer is responsible and the dealer has collected; each fee shall be individually listed and identified; identified. (9) The amount of any balance due at settlement. (b) A dealer processing fee may not exceed $475.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend 6301, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline and redesignating accordingly as follows:
6301. Definitions [For application of this section, see 79 Del. Laws, c. 161, 5].
As used in this chapter:
(4) a.Dealer processing fee means an amount charged by a dealer for the dealers costs associated with any of the following:
1. The preparation of written documentation concerning the buying, selling, or exchange of the vehicle.
2. Obtaining the title and license plates for the vehicle.
3. Obtaining a release of lien.
4. Filing title documents with the Department.
5. Retaining documents concerning the buying, selling, or exchange of the vehicle.
6. Complying with federal or State privacy laws.
7. Other administrative services concerning the buying, selling, or exchange of the vehicle.
b. Dealer processing fee does not include any fee payable to the Department.
Section 2. Amend 6305, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
6305. Bill of sale.
(a) Every motor vehicle dealer shall complete, in duplicate, a bill of sale for each sale or exchange of a motor vehicle. All items listed in the bill of sale must be legible and in 10-point font, or larger, if typed. The original shall be retained for a period of 5 years. A duplicate copy shall be delivered to the purchaser at the time of sale or exchange. The bill of sale shall be signed by both buyer and seller. A bill of sale shall include the following:
(1) The name and address of the person to whom the vehicle was sold or traded; traded.
(2) The date of the sale or trade; trade.
(3) The name and address of the motor vehicle dealer selling or trading the vehicle; vehicle.
(4) The make, model, year, vehicle identification number and body style of the vehicle; vehicle.
(5) The sale price of the vehicle; vehicle.
(6) The amount of any deposit made by the buyer; buyer.
(7) A description of any Delaware titled vehicle used as a trade-in and the amount credited the buyer for the trade-in ; trade-in.
(8) The amount of the document fee, title fee, registration fee , dealer processing fee, or any other fee for which the buyer is responsible and the dealer has collected; each fee shall be individually listed and identified; identified.
(9) The amount of any balance due at settlement.
(b) A dealer processing fee may not exceed $475.
SYNOPSIS Currently Delaware has no cap on dealer processing fees which permits motor vehicle dealers to arbitrarily charge whatever amounts they wish leading to great discrepancy of these fees among dealers and a lack of protection for consumers. Currently Pennsylvania has a $449 statutory cap on dealer processing fees and Maryland has a $500 statutory cap. This is a Substitute bill that in addition to defining dealer processing fees and setting a statutory cap of $475 on the dealer processing fee also clarifies that the fee does not include any fees payable to the Division of Motor Vehicles. This Substitute bill also adds the requirement that the dealer conspicuously disclose all required items in the bill of sale, in 10-point font or larger, if typed. This Act also makes technical corrections to conform existing law to the Delaware Legislative Drafting Manual.
SYNOPSIS
Currently Delaware has no cap on dealer processing fees which permits motor vehicle dealers to arbitrarily charge whatever amounts they wish leading to great discrepancy of these fees among dealers and a lack of protection for consumers. Currently Pennsylvania has a $449 statutory cap on dealer processing fees and Maryland has a $500 statutory cap. This is a Substitute bill that in addition to defining dealer processing fees and setting a statutory cap of $475 on the dealer processing fee also clarifies that the fee does not include any fees payable to the Division of Motor Vehicles. This Substitute bill also adds the requirement that the dealer conspicuously disclose all required items in the bill of sale, in 10-point font or larger, if typed. This Act also makes technical corrections to conform existing law to the Delaware Legislative Drafting Manual.