Junk Fee Ban Act Update - IADA Works to Preserve Your Doc Fee
HB 4629, the “Junk Fee Ban Act,” has recently passed the House and moves to the Senate for their consideration. This legislation mandates that all costs must be included in the advertised prices of consumer goods, including motor vehicles, to promote greater transparency. Despite the bill's well-meaning intentions, IADA holds concerns that it fails to consider the unique complexities of automotive sales, which are already governed by strict transparency regulations.
One significant issue for dealers is the bill's potential impact on their ability to charge a Documentary Service Fee (DOC fee), which is currently allowed under existing laws to offset compliance costs with state and federal regulations.
During the floor debate, the bill's House sponsor, Rep. Morgan (D-Northbrook), clarified that it was not his intention to include motor vehicle advertising under the bill's purview. However, IADA continues to oppose the bill and is actively working to amend it to clearly exempt motor vehicle sales and protect DOC fees. IADA strives to maintain the existing transparency frameworks, arguing that current regulations are adequate without further legislation.
Sponsored in the Senate by Sen. Aquino, the bill still faces significant opposition from various groups. The IADA anticipates strong opposition to the bill in the Senate and is engaging with legislators to either secure an exemption for motor vehicle sales or to thwart the bill's progression entirely. Updates on IADA’s ongoing efforts to influence this legislation will be provided as developments occur.
Bill To Curb Catalytic Converter Theft Passes The House Chamber
HB 4589, introduced by Rep. Jay Hoffman, aimed at curbing the rampant theft of catalytic converters, has passed the House unanimously. This critical legislation requires buyers and sellers of detached catalytic converters to maintain meticulous records, including the Vehicle Identification Number (VIN) from which the part was removed. It mandates sellers provide a copy of the certificate of title or registration proving ownership of the vehicle.
A significant provision of HB 4589 is the classification of the catalytic converter as an "essential part" within the Illinois Vehicle Code. This classification necessitates including vehicle identification and part numbers in catalytic converter transactions. Furthermore, the bill seeks to ensure the continued enforcement of the Illinois Vehicle Hijacking and Motor Vehicle Theft Prevention and Insurance Verification Act by eliminating the clause that would terminate the Act in January 2025.
The Illinois Automobile Dealers Association (IADA) supports the passage of HB 4589, recognizing it as a strong measure that addresses a specific crime issue and supports broader efforts to enhance vehicle and consumer safety. As this bill progresses through the legislative process, IADA will continue to monitor its development and keep our members informed of updates.
