Pub. 1 2019-2020 Issue 2

2 BRIAN MAAS, President California New Car Dealers Association President's Message A s the long-time lobbyist for CNCDA for 11 years, I thought I was well prepared to take on the challenge of becoming CNCDA’s president six years ago. We would occasionally update our franchise laws to curb manufacturer abuses, but generally we didn’t confront them aggressively and often worked together to battle CARB or other threats to the retail automotive industry. Things have sure changed in the last 72 months. While we continue to push back against the factories — whether via our franchise bill (AB 179), our petition at the New Motor Vehicle Board challenging Care by Volvo or repeated letters of protest to manufacturers (Cadillac, Lincoln, Jaguar-Land Rover, etc.) — franchise threats are not the only challenge facing California’s new car dealers. Unenforced advertising violations (Tesla) and unlicensed brokering (TrueCar before our settlement) make it more difficult for ethical dealers to compete. But the newest, and perhaps greatest, threat started with Gonzalez v. Downtown LA Motors , which was announced the day I became your President in 2013, and the tsunami of change in wage and hour law has been over- whelming. Through various court decisions and legislative enactments, the vigilance and expense required to employ people at dealerships has grown exponentially. Dealer labor lawyers have memorized the names: Gonzalez, Bluford, Iskanian, Vaquero, Dynamex and many more. The changes have come so fast and furious it is a wonder any dealer can stay compliant, espe- cially with the prospect of continuing Private Attorneys General Act (PAGA) lawsuits facing our members. CNCDA has filed amicus briefs in four separate employment-related cases currently pending at the California Supreme Court alone. To combat this trend, we are undertaking a major research effort to review prospects for wage and hour reform. Much like the fight to stop “shake- down lawsuits” led by dealers with Prop. 64 in 2004, we must do something to prevent the waves of litigation from overwhelming our franchised dealers. Look for more communications from CNCDA in the coming weeks about what reform is possible and how you can help us respond. In the meantime, don’t hesitate to contact me at bmaas@cncda.org. 3 Brian Maas President, CNCDA