Extension of REAL ID Deadline

The new deadline is May 3, 2023.

Secretary of Homeland Security Alejandro N. Mayorkas announced the Department of Homeland Security (DHS) is extending the REAL ID full enforcement date by 19 months, from October 1, 2021 to May 3, 2023, due to circumstances resulting from the ongoing COVID-19 pandemic. The pandemic has significantly impacted states’ ability to issue REAL ID-compliant driver’s licenses and identification cards, with many driver’s licensing agencies still operating at limited capacity. DHS will publish an interim final rule in the coming days to effectuate this enforcement date change.

“Protecting the health, safety, and security of our communities is our top priority,” said Secretary Mayorkas. “As our country continues to recover from the COVID-19 pandemic, extending the REAL ID full enforcement deadline will give states needed time to reopen their driver’s licensing operations and ensure their residents can obtain a REAL ID-compliant license or identification card.”

Beginning May 3, 2023, every air traveler 18 years of age and older will need a REAL ID-compliant driver’s license or identification card, state-issued enhanced driver’s license, or another TSA-acceptable form of identification at airport security checkpoints for domestic air travel.

All 50 U.S. states, the District of Columbia, and four of five U.S. territories covered by the REAL ID Act and related regulations are now compliant with REAL ID security standards and are issuing REAL ID-compliant driver’s licenses and identification cards. However, many state licensing agencies have extended the deadline for renewing expiring licenses due to a widespread shift to appointment-only scheduling protocols during the pandemic that has significantly limited states’ capacity to issue REAL ID-compliant driver’s licenses and identification cards. As a result, only 43 percent of all state-issued driver’s licenses and identification cards are currently REAL ID-compliant.  DHS and various states also need time to implement requirements mandated by the REAL ID Modernization Act, including changes that will streamline processing by allowing the electronic submission of certain documents.

DHS continues to work closely with all U.S. states, the District of Columbia, and U.S. territories to implement REAL ID Act requirements. For more information on REAL ID, visit www.dhs.gov/real-id.

Michigan Dealerships Drive the Economy

NADA’s recently released state-by-state retail data shows the auto industry’s impact on the overall U.S. economy, including employment and payroll figures, tax data and more.
Based on 2020 data, Michigan dealerships created 70,725 total jobs (which includes induced jobs) and supported a $2.1 billion payroll. This includes $575 million paid toward state and federal income taxes (based on direct, indirect and induced jobs). Michigan accounted for 3.9 percent of total U.S. new-vehicle registrations, and $2.3 billion in state sales tax paid!
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Zoom Meeting: Fair Credit & Voluntary Protection

MADA dealers and dealership staff are invited to join us for a virtual meeting with Paul Metrey from NADA. Mr. Metrey is the vice president of Regulatory Affairs and chief regulatory counsel, financial services, privacy and tax for NADA. He represents dealer interests before, and educates dealers on regulations promulgated by, federal executive branch agencies that oversee dealer operations.
This special speaker program will be held in conjunction with the MADA board meeting.
Wednesday, May 19, 2021 via Zoom (register)
MADA Board Meeting at 9:30am
We ask our board members to join us at 9:30am for an update on the association, plus a review of current legal and state regulatory issues. You do not need to be a board member to attend, but participation in the board meeting is limited to MADA dealers or a manager designated by the dealer.
NADA Presentation from 10:30-11:30am, with time for Q&A
The meeting will then open to all (including dealership staff) at 10:30am. The presentation from Paul Metrey with NADA will cover two issues that are becoming increasingly important for dealers and staff to understand — fair credit compliance and voluntary protection product rules. NADA has worked with other dealer advocacy groups to develop policy guides that dealers can adopt to maintain compliance. Mr. Metrey will review these guides and help dealers understand their federal responsibilities.
Fair credit compliance
Consumer advocacy groups have long argued that the portion of the APR that dealers earn for originating a credit contract – known as dealer participation or dealer reserve – is charged by dealers in an arbitrary and inconsistent manner that can lead to unlawful credit discrimination against consumers. The Department of Justice has stated that exercising pricing discretion presents this risk, but that there are also ways to manage it.
The optional Fair Credit Compliance Policy & Program adopts and builds on the DOJ approach to both ensure consumers are offered fair access to credit and protect dealers against pricing discrimination claims. As this issue is expected to gain considerably more attention in the months ahead, it is essential that dealers understand this threat and an effective way to address it.
Voluntary protection products
Many consumer advocacy groups have also advanced a series of concerns about voluntary protection products and called on the government to enact new measures to address them. It’s important to understand the threat to voluntary protection products.
The optional Model Dealership Voluntary Protections Products Policy addresses each major area of concern by offering dealerships a series of principles and actions it can adopt to strengthen its selection, offering, presentation, and sale of VPPs. Coupled with any additional requirements at the state or local level, this can foster a better customer experience while helping to protect the dealership.

Reminder That the Driver’s License Extension Has Expired

The Michigan Department of State reminds Michiganders that March 31 was the last day of the state legislature’s expiration extensions for driver’s licenses, state ID cards, temporary instruction permits, and registrations for vehicles, recreational vehicles and trailers that expired on or after March 1, 2020.
Online or self-service renewals. Drivers who haven’t renewed are encouraged to visit Michigan.gov/SOS to renew online or find one of the more than 145 self-service stations across the state
In-person renewals. Customers who are required by law to update the photo on their license or ID are encouraged to book an appointment at Michigan.gov/SOS. Each weekday at 8 am and noon thousands of next-day appointments become available for in-person appointments at branch offices across the state.