As we wrap up 2022, we reflect on all the goals we set to accomplish for the year, as well as the insight we gained from new experiences. While we are very proud of the advocacy work on behalf of dealers in 2022, we know the uphill battles we will need to prepare for in 2023 to ensure a thriving business climate for California’s new car dealers.
Some of our top priorities included qualifying the California Fair Pay and Employer Accountability Act (PAGA) for the November 2024 General Election ballot and our work on Senate Bills 986, 1249 and 2311, and Assembly Bill 1311. Due to the extraordinary engagement from our membership, we made significant progress in defeating, amending, and laying the groundwork for future legislative efforts. Below are recaps of CNCDA’s 2022 top legislative priorities.
Senate Bill 986
Nearly a dozen bills were introduced in this legislative session to address catalytic converter theft. CNCDA staunchly opposed SB 986 (Umberg, D-Orange County), which would have mandated dealers – not manufacturers – permanently mark VINs on all vehicles’ catalytic converters before sale.
After months of trying to work with the author on amendments, our team pivoted and called on dealers to ramp up the pressure, encouraging them to contact their State Assembly members to urge them to vote against the bill. Defeating the bill faced steep odds, but dealers helped us secure a major win. We were pleased that the bill eventually FAILED. This is no small feat and could not have been accomplished without the extraordinary engagement of dozens of our members.
Assembly Bill 2311
This summer, the CNCDA team negotiated a compromise with Attorney General’s Office on AB 2311 (Maienschein, D-San Diego). The bill would have placed a strict 2% cap on the amount dealers were able to charge for Guaranteed Asset Protection (GAP) under a conditional sales contract and would have prevented dealers from offering customers the option to purchase GAP if the conditional sales contract loan to value ratio or amount financed at the contracting date exceeded an arbitrary formula.
Attorney General Rob Bonta, a sponsor of the bill, and our team negotiated an increased cap at 4% of the amount financed and secured more favorable loan-to-value ratio terms to allow the sale of GAP for customers needing the protection.
Senate Bill 1311
As introduced, SB 1311 included an egregious provision that would have provided an annual, cost-free 30-day right of return for military service members who purchase or lease a motor vehicle from the date the service member took possession of the vehicle or obtained title to the vehicle.
After working closely with the authors’ offices, the language related to vehicle sales was ultimately removed from the bill, eliminating a potentially costly and unfair mandate for dealers.
Conclusion
We cannot overstate how much we value your continued engagement in this legislative session. Your support has been crucial for our successes, and we look forward to engaging our members and advocating on behalf of California’s new car dealers in 2023.
We hope you had a wonderful time celebrating the holiday season with loved ones, friends, and family. We are so thankful to our Members, Vendors, Sponsors, and Associates for their continued support and participation in our association. We appreciate you all. Cheers!
