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House adopts motor‑vehicle code amendments to curb title/trade‑in fraud; substitute passes
Summary
Representative Don Ibsen’s first substitute to HB 404 cleared the House after clerical corrections and substantive language aimed at reducing fraud in trade‑ins and improving title handling; the substitute passed and will go to the Senate.
The Utah House adopted first substitute House Bill 404, a motor‑vehicle code amendment package aimed at clarifying title and lien procedures, improving protections for dealers, lenders and consumers, and strengthening penalties for certain fraudulent trade‑in practices.
Representative Don Ibsen presented Amendment No. 1 to correct a statute number and clerical errors identified by the Lehi research office; the amendment was adopted on the floor, and Representative Ibsen explained the substitute's policy goals: ensuring trade‑ins are paid off correctly and providing tools for addressing fraudulent transactions (Representative Don Ibsen).
Why it matters: The sponsors said the bill addresses recurring problems in transactions where titles and liens are mishandled during trade‑ins and will add clarity and penalties to reduce fraud. The bill was described as developed with industry stakeholders including the Car Dealers Association and lenders.
Outcome: After floor discussion and summation, the House approved the first substitute by voice and then recorded the passage (72 yes); the measure will be transmitted to the Senate for its consideration.
