PassTime, NIADA, the Montana IADA and the state association president, Chad Randash, owner of Randash Auto Center in Bozeman, successfully worked to amend a recent law enacted in Montana regarding starter interrupt devices.
Montana Governor Greg Gianforte signed the bill into law on May 8.
Montana SB 364, introduced by Montana State Senator Kenneth Bogner earlier this year, focused on establishing legal limits on the remote activation of “kill switches” or starter interrupt devices — technologies that can disable or interfere with the function of personally owned electronic devices or motor vehicles.
The bill quickly caught the attention of PassTime’s Executive Vice President of Compliance & Regulatory Affairs, Corinne Kirkendall. After reading through the proposed legislation, Kirkendall immediately saw the potential impact to the industry.
PassTime, a leading provider of location solutions, GPS and payment technology, has been an industry advocate for decades. As part of this commitment, PassTime continuously monitors and addresses state and federal legislation that may impact the automotive and auto finance industry. As Montana SB 364 was introduced, Kirkendall was quick to react.
PassTime reached out to NIADA and a long-time customer, Randash, to meet with Senator Bogner regarding the bill. Working together, Kirkendall was able to schedule a meeting with the senator and provide insight and education on our industry and how GPS and payment assurance technology are used. Kirkendall explained that the bill, in its original form, would negatively impact the use of this technology in relation to a retail installment contract, or the financing of a vehicle. For decades, automotive financers have used technology, particularly in the subprime finance sector, to help secure loans, allowing for more approvals for applicants. Without the availability of this technology, fewer subprime borrowers would be approved for vehicle financing, resulting in fewer transportation options for that consumer.
NIADA provided testimony on the potential harm to dealers in Montana by the original wording of the bill.
After meeting with Kirkendall and hearing from NIADA and MTIADA representation and understanding the potential issue, Senator Bogner agreed to an addendum to the bill, with a specific exception for motor vehicles that are financed or have a loan associated with them.
The bill, with the addendum, maintains the spirit and the original intended goal, while considering specific instances where personal property may not be owned outright by the consumer in possession of that property, which is the case with a financed vehicle.
Through the dedicated work of PassTime, NIADA, MTIADA and Randash, the group met with Senator Bogner, explained the industry’s position and reached a reasonable outcome. Senator Bogner’s willingness to discuss, learn, and take action in the form of an addendum exemplifies strong leadership and governance.
“Corinne and PassTime did an amazing job of noticing this bill and deftly worked through this with all parties involved in the legislature,” Randash said. “The intent of the bill was not to harm dealers or rental car companies that utilize the devices. But the language was going to have unintended consequences and would have been a major problem if this had gone through without the revisions that Corinne and NIADA were able to provide for us here in Montana. “It was stressful for a while there, but Corrine did such an awesome job that dealers and businesses that utilize starter interrupt systems in Montana should be very grateful for her help, and expertise on how a bill navigates, as well as having the power of NIADA to have our voices heard.”
