Pub. 2 2020-2021 Issue 1

13 1. Proposition 64, (2004). CNCDA raised $5.8 mil- lion in direct dealer contributions and co-led the coalition to support the successful initiative to curb shakedown lawsuits. 2. AB 179, (2019). Overcoming significant manufacturer opposition, the unanimous passage and signature on AB 179 was a major step forward in CNCDA’s commitment to a stronger new motor vehicle fran- chise system. AB 179 has strengthened and updated California’s new motor vehicle franchise laws by enforcing accountability for unlawful treatment by manufacturers, addressing the inappropriate treat- ment of dealers and conforming California franchise laws to recent actions in other states, most notably retail warranty reimbursement. 3. TrueCar Settlement (2017). Two and a half years after the initial lawsuit was filed against TrueCar, CNCDA achieved the most significant legal victory in the history of the association. CNCDA sued TrueCar in 2015, challenging the company’s lack of licensure in the state of California. As a direct result of the law- suit, TrueCar changed its business model and paid CNCDA more than $1.5 million in legal fees. 4. Doc. Fee Increase, EVR Mandate and Title-Brand Notices (2011). There is an increased cap on the doc processing charge from $55/sales and $45/leases to $80 while allowing pass-through of hard costs for the Electronic Vehicle Registration (EVR) mandate. The change requires a check of federal salvage, junk and title-brand database, ensures competition for CarFax, and provides consumer benefits with red notices on vehicles our members don’t want to sell. 5. Petition and DMV Accusation against Chrysler for Downtown LA Factory Store (2011). CNCDA successfully persuaded NMVB to order the DMV to investigate Chrysler for the Village Motors store. The DMV accused Chrysler of violating the law and lying to investigators. The DMV ordered Chrysler to sell its store to an independent dealer and assessed nearly $1 million in penalties. 6. Car Buyer’s Bill of Rights Compromise (2005). This compromise prevented the qualification of a much more onerous initiative measure with a three-day cooling-off period and financing limitations. 7. Contributed over $3.9 million in Direct Contributions to Dealer Friendly Candidates in California (2003-2017). CNCDA PAC — through the generous support of our dealers — helped to elect and retain legislators and state officeholders who share our pro-dealer political philosophy. 8. Franchise Law Improvements (2009, 2011 and 2013). In 2009, the state’s franchise laws were updat- ed to conform California to the rules in the majority of states in the areas of termination assistance, dealing, facility improvements and statutory indemnity. Also, the improvements provided limited relief to Chrysler dealers that terminated in bankruptcy. In 2011, dealer franchise laws were updated to prohibit the waiver of dealer protection rights, reduce unfair competition against dealers by factory-owned stores, and prohibit mandates for the use of factory approved vendors for service contracts and GAP agreements. In 2013, dealer franchise laws were updated to provide a rebuttal presumption for dealers who sold or leased a vehicle that is exported and restrict the expansive and unreasonable performance standards evalu- ated on dealers. Also, it modified warranty repair and incentive rules about an appeal process with a right to cure, a 15-day written notice to changes to the warranty reimbursement schedule, and limits audit requirements of records to nine months. 9. Established Association Standing at the New Motor Vehicle Board (2015-2017). In response to Jaguar Land Rover North America’s (JLRNA) egregious ex- port and sale-for-resale policy, CNCDA was granted the authority by the legislature to bring a first-time- ever protest at the New Motor Vehicle Board on behalf of all their Jaguar Land Rover dealers. In November 2017, the California New Motor Vehicle Board (NMVB) declared that the JLRNA export policy violates California law. The NMVB’s decision marked the conclusion of the first protest CNCDA filed with the NMVB. 10. Twice Stopped a Bill to Impose Burdensome Mandatory Recall Repair Mandate Only on Dealers (2013 and 2014). The bill would have prohibited deal- ers from selling or leasing any vehicle subject to a manufacturer’s recall until repaired, with many other problems including the lack of an operating recall database, absence of liability protections, and an exemption for rental car companies. 11. Struck a Compromise on Temporary License Plate Legislation (2016). Toll-taking agencies sought im- mediate identification of vehicles, but their flawed bill would have imposed burdensome requirements on dealers, the DMV and consumers. CNCDA negotiated a compromise where dealers would get a $5 increase in the doc fee for all vehicles sold in exchange for dealers installing temporary plates on vehicles lack- ing license plates. 3