12 This month, CNCDA hosted its annual Dealer Day event – back in person – in Sacramento for the first time in over two years. I would like to give a huge “thank you” to everyone that attended and participated in the day’s events – it truly makes a difference and has set the stage for our efforts this year. We’d also like to thank our sponsors, vendors, and partners who helped make this event possible. For those who were able to attend, this year’s event more than made up for lost time. As we continue through the second year of a two-year legislative cycle, lawmakers are running on all cylinders to ensure their legislative priorities are successful. After two years of conversation largely centered around COVID-19, this year promises to be a whirlwind of policy conversations centering primarily around employment laws, homelessness, and crime – just to name a few. CNCDA has taken the opportunity this year to push for one of our long-sought objectives, modernizing the Document Processing Charge (DPC). To that end, CNCDA has proposed a sponsored bill, SB 1249 by Senator Bob Archuleta (D-Pico Rivera), to modernize the DPC to finally secure the compensation dealers deserve for the work they do on behalf of customers every single day. California’s new car dealers provide a wide range of document processing services that benefit customers, saving significant time, money, and hassle while ensuring consumers benefit from the strongest consumer protections anywhere in the nation. Providing these services for consumers requires substantial staff time, training, and technology at each dealership. However, current law only allows California dealers to recover a statutory maximum of $85 of these substantial costs through the DPC, which is well below their actual costs in performing the required services. California’s DPC is the lowest in the nation – roughly ¼ of the national average – despite the fact that California’s car dealerships are subject to the most stringent document processing and compliance requirements in the country. SB 1249 would modernize California’s DPC to more accurately reflect the costs of these important services by gradually increasing the DPC over five years – beginning in 2024 and then adjusting for inflation every year starting in 2030. It would also establish a new fee upon dealers to be deposited in the state Motor Vehicle Account to fund important DMV and CHP operations. This ensures that new car dealers and their employees can continue offering valuable services and protections for consumers. But, as we fight to pass our own legislation, we also face a number of bills targeting dealers directly. AB 2311: SEVERE LIMITATIONS ON GAP PROTECTION As a stand-alone protection, traditional auto insurance does not make a consumer whole financially if their car is wrecked or stolen and they owe more on the auto loan than the vehicle is worth. Insurance companies will pay the consumer for the value of the vehicle, not including any amount they may be upside down on their Dealer Day Legislative Recap By Alisa Reinhardt, Director of Government Affairs
RkJQdWJsaXNoZXIy ODQxMjUw