The Effects of Recent GPS Legislation on Your Business

To our distributors and users of our BHPH GPS tracking devices, we want to make you aware of some recent legislation that came into effect in the states of Nevada and New Jersey. Nevada Senate Bill 350 and New Jersey Assembly Bill 756 went into effect as of July 1, 2017. Here are some highlights of these recent laws.

Nevada Senate Bill 350

How we have responded:

• Our Nevada data collection policy has been updated to ensure data is purged no later than 180 days after being collected.

What you should know:

• Applies to creditors and long-term lessors of consumer contracts (not business purpose)
• GPS tracking use requires eitherOptional use of GPS: Consumer’s agreement to installation of GPS and/or starter interrupt technology (separate from lease/contract); or
• Mandatory use of GPS: Consumer’s written acknowledgement of receipt of written notification which can be retained by consumer, separate from contract or lease, prior to lease/contract signatureNotification must state that GPS is used to:Verify and maintain operational status of GPS
• Service the contract/lease
• Locate the vehicle for repossession
• Consumer cannot be charged for installation or use of device while under contract/lease
• Installation must be done by a certified installer
• Starter Interrupt Disable (SID) use requiresWritten agreement, separate from and prior to signing lease/contract
• Consumer’s written acknowledgement of receipt of copy of agreement which can be retained by consumer
• Agreement must include:Vehicle is equipped with the SID
• Can be remotely disabled if consumer defaults on contract/lease
• Use of SID will occur no sooner than 30 days after due date of missed payment
• Use of SID constitutes constructive repossession
• SID will not be used to –Disable vehicle while in operation
• Turn off engine while running
• Cause an audible warning lasting longer than 20 continuous seconds at engine start or stop
• Consumer must have 48 hours’ actual notice before SID is activated
• If SID is engaged, consumer must be provided ability to start and operate the vehicle not less than 2 times during a payment cycle, and for not less than 24 hours after each time the vehicle is started
• Consumer must be provided with name, address and toll-free number of person authorized to activate, deactivate and reinstate SID.

New Jersey Assembly Bill 756

• Our devices and services are currently equipped to handle these NJ legal requirements.
• Prior to or in conjunction with purchase/lease, consumer must acknowledge, in writing, receipt of written notification of presence of payment assurance device
• Consumer cannot be billed or charged a fee for device installation
• Notice must be at least 10-point boldface type
• Notice must disclose to consumer:Presence of device AND how device can be used to remotely disable vehicle
• Grace period prior to initiating remote disable5+ calendar days past due date on weekly payment plan
• 10+ calendar days past due date for any other financed terms
• Warning notice must be sent via minimum of 2 forms of communication at least 72 hours prior to initiating remote disable
• Name, address and telephone number of creditor
• Consumer has ability to start remotely disabled vehicle and use for at least 48 hrs.

States with laws already in effect –

California –

• Requires written notification at time of saleInforming consumerVehicle is equipped with SID technology and vehicle can be shut down
• Warning of no less than 48 hours prior to engaging SID
• Warning method – consumer’s choice
• If SID is engaged, consumer has ability to start vehicle for no less than 24 hours after initial disable in case of emergency

Connecticut –

• RequiresWritten agreement of SID use
• 15 days’ notice prior to engaging SID
• Prohibits engaging SID knowledge of harm may result
• Party who engages SID is liable to any person sustaining injury or property damage resulting from SID activation
• GPS only to be used after default, not for monitoring

Kansas, Maine, Missouri, Iowa, Maryland & Michigan –

• All have current restrictions and/or compliance requirements for use

Oregon SB 483 – Effective January 1, 2018

• Installing a GPS device on a motor vehicle without the consent of the vehicle owner is considered a crime.

Legislation Pending –

New York SO 2780/AO 3116

• Prohibits dealers/lenders from install starter interrupt devices on purchaser’s or lessee’s motor vehicle.

New York AB 7855

• Prohibits creditors from remotely disabling a vehicle without giving written notice to consumer (notice to be sent registered or certified and postmarked no later than 10 days prior to date of disablement)

We appreciate your confidence in us as your chosen provider of GPS devices and will continue to work toward providing compliant products and services that can support these changing consumer laws. The information provided is not meant to be legal advice, just helpful information. We encourage you to consult your legal team with any questions that may arise that would directly effect your business operations.