HB 139
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
House Bill 139 (Delegate Crosby)
Economic Matters Finance
Consumer Protection - Electronic Transactions - Sale and Lease of Vehicles
This bill alters the Maryland Uniform Electronic Transactions Act (MUETA) to establish
that, generally, only a dealer may contract for the sale and delivery of a vehicle by
electronic means. Further, a consumer is deemed not to have agreed to enter into a
transaction for the sale or lease of a vehicle with a dealer by electronic means unless the
dealer provides the consumer with (1) a clear and readable copy of each document signed
by the consumer and dealer in an electronic or written format and (2) reasonable
opportunity for the consumer to review the documents before providing an electronic
signature. If the vehicle is not delivered to the consumer at the dealership, the dealer must
deliver the vehicle to a physical address provided by the consumer, as specified. Finally,
the bill also authorizes certain non-dealer entities to contract for the sale of a vehicle by
electronic means under similar parameters as vehicle dealers. The bill only applies
prospectively.
Fiscal Summary
State Effect: The bill does not materially affect State finances or operations.
Local Effect: The bill does not materially affect local finances or operations.
Small Business Effect: Minimal.
Analysis
Current Law/Background: MUETA gives legal effect to an electronic record or
signature provided the procedures in the Act are adhered to. Under MUETA, a contract
may not be denied legal effect or enforceability solely because an electronic record was
used in its formation, and if a law requires a record to be in writing, an electronic record
satisfies the law. Similarly, if a law requires a signature, an electronic signature satisfies
the law.
MUETA applies only to transactions in which each party has agreed to conduct transactions
by electronic means. An agreement to conduct a transaction electronically may not be
inferred solely from the fact that a party has used electronic means to pay an account or
register a purchase warranty. Also, a party that agrees to conduct a transaction by electronic
means may refuse to conduct other transactions by electronic means.
Additional Information
Prior Introductions: A bill containing similar provisions, SB 866 of 2018, passed the
Senate and received a hearing in the House Economic Matters Committee, but no further
action was taken.
Designated Cross File: SB 134 (Senator Feldman) - Finance.
Information Source(s): Maryland Department of Transportation; Department of
Legislative Services
Fiscal Note History: First Reader - February 3, 2020
rh/ljm Third Reader - March 17, 2020
Revised - Amendment(s) - March 17, 2020
Enrolled - April 10, 2020
Revised - Amendment(s) - April 10, 2020
Analysis by: Eric F. Pierce Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 139/ Page 2


Statutes affected:
Text - First - Consumer Protection - Electronic Transactions - Sale of Vehicles: 21-101 Commercial Law, 21-104 Commercial Law
Text - Third - Consumer Protection - Electronic Transactions - Sale and Lease of Vehicles: 21-101 Commercial Law, 21-104 Commercial Law
Text - Enrolled - Consumer Protection - Electronic Transactions - Sale and Lease of Vehicles: 21-101 Commercial Law, 21-104 Commercial Law