Pub. 2 2020-2021 Issue 3

14 Since the bill had already passed the Assembly in its previous form, it didn’t receive the scrutiny it should have. It passed out of the Senate Transportation Committee despite many questions raised about the flawed measure by both Democrat and Republican committee members. Senator Ben Allen presented the bill in committee as a necessary measure for the state to meet its electric vehicle goals and claimed dealers and auto manufactur- ers were fighting it because they are anti-innovation and didn’t want the competition in the market from a new vehi- cle manufacturer. Despite some legislators on the com- mittee seeming hesitant to vote yes, the bill was voted out of committee less than two weeks after being gutted and amended into a completely different bill. A handful of legislators said privately that they did not feel comfortable voting against the chair of the committee, Senator Jim Beall, as it was his last committee hearing, and he was recommending an “aye” vote. Other legislators looked at the measure, saw that it was related to electric vehicles, and voted yes without digging any deeper. From there, the bill moved to the Senate Appropriations Committee. The measure originally had a projected fis- cal cost of $300,000 due to the work DMV would have to undertake to implement its licensing and permitting provisions. However, at the last minute, the proponents amended the bill and removed almost all DMV author- ity — essentially creating a wholly unregulated space for themselves in which to retail vehicles. Despite this complete lack of state oversight, the bill moved forward once more and passed out of the Senate Appropriations Committee. At this point, we were up against a long list of proponents who are pro-electric vehicle but did not seem to fully grasp many other aspects of this flawed measure. The automakers had been opposing the bill alongside us but ended up going neutral on the bill at the last minute — leaving the dealers to fight the legislation on our own. After it became clear that the bill would move to the Senate floor, activation efforts were undertaken in earnest. Hundreds of dealers sent letters and emails to legislators, and some even called and texted their local Senators. John Sackrison at the Orange County Auto Dealers Association, Bob Smith at the Greater Los Angeles New Car Dealers Association, Dean Mansfield at the New Car Dealers Association San Diego County, Steve Smith at the Silicon Valley Auto Dealers Association, and Stacey Castle at the Greater Sacramento New Car Dealers Association, provided vital on-the-ground outreach to both dealers and Senators, moving the needle just enough that coupled with many hours of advocacy and negotiations we had with legislators and staff, we were able to kill the bill on the Senate floor. This was especially notable since it took place in the last hours of the 2019-20 legislative session with a vote of 18- 12, with 10 abstentions (the proponents needed 21 votes to pass their bill). Despite the bill being held open on call, meaning legislators could revisit the measure and take another vote before the midnight deadline, the propo- nents realized they didn’t have the support they needed and the bill died with the closing gavel. This was a huge victory for dealers statewide and showed the positive effect our members can have once we co- alesce around an issue. Senators recognize the positive effect dealers have on the communities they serve, from the employment of residents to vehicle service to the gen- eration of tax revenue that funds a region’s services and parks. However, despite our big win, we know this effort will come back again next year, and we will be ready. California Department of Financial Protection and Innovation When Governor Gavin Newsom proposed the creation of the Department of Financial Protection and Innovation (DFPI) in January 2020, all California businesses took no- tice and started mobilizing. Governor Newsom envisioned CONTINUED FROM PAGE 13 In mid-summer, it seemed as if the proposal would be held, as the state had massive issues taking priority — the coronavirus pandemic, out-of-control wildfires throughout Northern California, and a mounting homeless crisis exacerbated by both of the above — not to mention protests advocating for police reform.

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