Pub. 1 2019-2020 Issue 1

20 What Should Dealers Expect from the California Government in 2019? T o set the stage for 2019, let’s first review what happened at the ballot box last year. It was a historic election for many reasons. First, the election achieved a record amount of spending: $1 billion across all candidate and ballot measure races in the state. Second, we saw many more women get elected to office than ever before, causing some pundits to call the 2018 election “The Year of the Woman”. Third, and probably the most surprising for most Californians, California elected Democratic governors back-to-back for the first time since the 1880s. We saw Californians turn out in record numbers to vote, with more than 60% of registered voters casting ballots. Democrats dominated the Statewide offices again with another sweep of all constitutional offices – Governor, Lieutenant Governor, Secretary of State, Controller, Trea- surer, Attorney General, and Insurance Commissioner. Democrats also gained seats in Congress, the State Sen- ate, and the State Assembly. Most noteworthy is Orange County, once viewed as the safest block of Republican voters in California, where Democrats now control every Congressional seat, something unseen since Franklin Roosevelt was President. In California, these election results are a bitter referendum on President Trump’s style of leadership and his focus on policies relating to immi- gration, health care and environment. While you might personally disagree with the results or what caused them, just remember that those Democrats who got elected believe they have an overwhelming man- date to continue to promote California as the “resistance” to President Trump and his policies. Let’s review what Governor Gavin Newsom said on election night: “It’s been a tough two years, but tonight America’s big- gest state is making the biggest statement in America. We’re saying unmistakably and in unison that its time to roll credits on the politics of chaos and the politics of cruelty. Now is the time for going forward and going together. Now is the time for decency, for facts, for trust and now is the time for truth. Now is time for lead- ers to lead… The arch of history is bending in our di- rection because this is not a just a state of resistance, California is a state of results.” As the new governor made clear, you will continue to see policies from the California Legislature and the Administration that will highlight its differences from the rest of the nation. Californians will see continued efforts to fight climate change, enact health care for all – whether that is a single payer health care system or an expanded Medi-care program – and expand protections for immigrants and those in poverty. We can expect rhetoric will be like the last two years, on top of more aggressive politics and policy in 2019 and beyond. While the swearing in of any new governor brings opti- mism and political opportunity, this must be tempered by the political reality. While Governor Newsom is a businessman and entrepreneur, he is first and foremost a Democratic politician leading the state in “resistance” to whatever comes out of the Trump Administration. We can expect that as the home of Silicon Valley, Technology and evidence-based approaches will be viewed favorably, requiring CNCDA and its member dealers to incorporate these philosophies in our policy decisions. Transition also brings uncertainty. Uncertainty in the leadership of key departments and positions. Who will run the Department of Motor Vehicles? Will Governor Newsom continue with the same individuals as Labor Commissioner or Chair of the Air Resources Board? We are already seeing Governor Newsom start to develop his inner circle. Governor Newsom has announced his first two senior staff appointments, one who has ties to Cliff Costa, Director of Goverment Affairs, CNCDA