2025 • Issue 2 Official Publication of the Louisiana Automobile Dealers Association Congratulations, TOMMY McMATH! Dealer of the Year Recipient
10543 South Glenstone Place, Baton Rouge, LA 70810 • 225-769-9923 • theldsgroup.com LADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel Lee Martinez Regional Manager Dan Stowers Territory Manager Curtis Loftin Territory Manager Edward Burnett Territory Manager Alfonso ‘Fons’ Augustine Territory Manager Mustafa ‘Moose’ Mohammad Territory Manager Nick Olsen Territory Manager Brandon Choina Territory Manager
A MESSAGE FROM THE PRESIDENT 5 Legacy, Leadership and Legislation LADA’s Spring Highlights By Coulter McMahen, President/CEO, LADA 8 2025 Regular Legislative Session Recap By Coulter McMahen, President/CEO, LADA 12 Welcome, New Members! A MESSAGE FROM THE NADA CHAIR 14 Protecting Dealers and Their Customers By Tom Castriota, Chair, NADA 16 Congratulations, Tommy McMath! Dealer of the Year Recipient 21 FTC Myths vs. Reality A Cybersecurity Perspective By Robbie Harriman, CISA, Director, IT Advisory Services, OCD Tech 26 Driving Change With Grasstops Advocacy 30 We Want To Hear From You! ©2025 The Louisiana Automobile Dealers Association (LADA) | The newsLINK Group LLC. All rights reserved. Up to Speed is published four times per year by The newsLINK Group LLC for LADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of LADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of LADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 2023-2025 EXECUTIVE COMMITTEE Patton Fritze Red River Chevrolet Chairman Rand Alford Alford Motors Inc. Vice Chairman, District 15 Ryan LeBlanc Sterling Automotive Group Treasurer, District 5 Kristie M. Hebert Arceneaux Ford Immediate Past Chairwoman Lawrence S. Searcy Jr. Walker Automotive District 8 Clint Hixson Hixson Autoplex of Alexandria District 16 Mark A. Hebert Sr. Hebert’s Town & Country Ford Lincoln NADA State Director OUR TEAM Coulter McMahen President/CEO Katherine Carver Director of Events and Communications Alexandra Hughes Director of Membership Cecilia Shahrdar Member Services Coordinator CONTENTS 3
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A MESSAGE FROM THE PRESIDENT Legacy, Leadership and Legislation LADA’s Spring Highlights BY COULTER McMAHEN, PRESIDENT/CEO, LADA It’s been a full and fast-paced year at LADA, and while I know many of you are eager to hear about the 2025 legislative session, I’d like to begin by reflecting on the meaningful spring we’ve shared and the milestones we’ve celebrated together. In May, we hosted a successful Dealer Day at the Capitol, which also included LADA’s annual meeting. Over the course of two days, we met with elected officials at our Legislative Reception, welcomed Governor Jeff Landry as our breakfast keynote speaker, and were recognized on both the House and Senate floors. We also held a NextGen breakout session with Senator Thomas Pressly of Shreveport, who shared meaningful insights on the importance of advocacy among the next generation of dealer leaders. A highlight of the event was honoring Louisiana’s 2025 Dealer of the Year, Mr. Tommy McMath of Arceneaux Ford in New Iberia. Tommy embodies everything this award represents — dealership excellence, deep-rooted community involvement and longstanding service to the association. He has served LADA as a board member and chair and led the LADA Workers’ Compensation Fund as chair for many years. His leadership continues to set a high standard for our industry. We carried that spirit into our annual convention at The Grand Hotel in Point Clear, Alabama — a truly memorable and impactful gathering. For those who attended, I think we’d all agree it offered valuable opportunities to reconnect — with one another and with our LADA-endorsed and associate members. But what made this year’s convention truly unforgettable was the emotion and meaning behind two special moments: the formal passing of the gavel and the unveiling of the Dealer of the Year caricature. 5
Outgoing Chair Kristie McMath Hebert of Arceneaux Ford passed the gavel to incoming Chair Patton Fritze of Red River Chevrolet. While this ceremonial tradition takes place every two years, this particular handoff carried deeper significance. Kristie led LADA with steadiness, clarity and resolve through a pivotal chapter in our history — the search for and transition to a new president and CEO, something our association has only undergone once before. What Kristie accomplished during her tenure was remarkable by any standard. Alongside her responsibilities with LADA, she helped lead her husband, State Representative Troy Hebert, to victory in a hard-fought campaign that unseated an incumbent — all while continuing to run a successful dealership. As her term drew to a close, she faced another personal challenge: her father’s need for a lung transplant. In typical Kristie fashion, she stepped in without hesitation, coordinating his care and supporting him through a successful transplant. And through it all, she remained a devoted wife and loving mother to Mia and Jude — the roles that matter most to her. Kristie never misses a beat. No matter the demands or the pressure, she shows up — fully present, fully committed. Thank you, Kristie, for your extraordinary leadership and unwavering dedication to the association. To me, the passing of the gavel was more than just a tradition this year — it was a powerful reflection of what makes Louisiana’s dealer body and the franchise system so special. Both Kristie and Patton grew up attending LADA conventions, watching their fathers, Tommy and George, serve as chairs of this association while leading their own dealerships. Today, they continue that legacy with pride, guiding their businesses and serving this association with the same spirit of dedication and leadership. I look forward to Patton’s leadership and am confident he will build upon the strong foundation laid by those who came before him. The convention was also unforgettable for another reason: We had the privilege of unveiling the custom caricature LADA commissions each year for Louisiana’s Dealer of the Year, honoring Tommy McMath and capturing his life, legacy and decades of service to our industry. While Tommy and his wife, Janie, joined us virtually from Houston as he continues his recovery, their family was there in person to receive the tribute. Travis, Kristie, their spouses, and Tommy and Janie’s greatest joy — their grandchildren — were all in attendance. Kristie had previously accepted the award on Tommy’s behalf at the annual meeting. But at the convention, watching his family receive the caricature and hearing Tommy’s heartfelt acceptance speech, along with Janie’s words, even from afar, was incredibly moving. It was a moment filled with love, pride and connection. I won’t forget this event, and I know many of you feel the same. Looking ahead, our focus shifts to grassroots advocacy. This fall, we’ll launch the Legislative Roadshow — a statewide tour to meet directly with dealer members and local legislators. These meetings are critical to shaping our 2026 legislative agenda and ensuring your voice is heard at the Capitol. Your input drives everything we do, and I strongly encourage every dealer to attend and share what matters most to your business and your community. We’re also excited to introduce a NextGen Retreat later this year. Modeled after a 20 Group, the retreat will bring together the next generation of Louisiana dealers to connect, learn from each other’s experiences, and deepen their understanding of advocacy’s role in safeguarding our industry’s future. Finally, we’ll participate in the upcoming NADA Legislative Fly-In in Washington, D.C. This event offers a vital opportunity to meet with members of Louisiana’s congressional delegation — the strongest it’s ever been — and engage with them directly on federal issues affecting dealerships nationwide. Thank you for trusting me to lead this association. It’s a responsibility I don’t take lightly, and one I’m honored to carry. We’ve built real momentum together this year — through meaningful wins, strong partnerships and a shared belief in the future of Louisiana’s dealers. I’m proud of the ground we’ve covered, but I’m even more excited about what’s ahead. Let’s keep showing up, speaking out and racking up wins that matter for your business and the communities you serve. 6
2025 BY COULTER McMAHEN, PRESIDENT/CEO, LADA The session has officially come to a close, and LADA was present and engaged at the Capitol every step of the way. This year’s fiscal session saw 944 bills, 24 constitutional amendments and more than 750 resolutions and study requests introduced. Our team actively tracked and engaged on more than 50 measures with potential implications for the retail auto industry. Whether the issue was tax policy, insurance reform, regulatory modernization or franchise protections, our focus was clear: Protect your business, cut through red tape and ensure Louisiana dealers remain strong and competitive. Thanks to your continued support and involvement, we made meaningful progress on legislation that safeguards our industry, strengthens the franchise system and promotes a fair, competitive business environment for Louisiana dealers. Although this was officially a fiscal session, insurance and legal reform quickly emerged as a defining theme — and for good reason. Louisiana continues to rank among the most expensive states in the nation for auto injury claims. This reality has become a competitive disadvantage for employers and insurers operating in the state, prompting lawmakers to pursue bold reforms modeled after successful initiatives in states like Florida. Several key bills were signed into law this session to help restore balance to Louisiana’s legal system and curb abusive claims practices. But meaningful progress didn’t stop there. Lawmakers also advanced critical measures on tax policy, inventory relief, industry modernization and workforce development. What follows is a comprehensive summary of the most impactful legislation — both enacted and defeated — across each of these priority areas. Regular Legislative Session Recap 8
LEGAL AND INSURANCE REFORMS HB 450 HB 450 by Representative Michael Melerine eliminates the “Housley presumption” — a decades-old legal precedent that unfairly favored plaintiffs in auto injury litigation. Previously, if a plaintiff claimed to be in good health before an accident, showed symptoms shortly afterward and had a doctor willing to link the injury to the crash, courts would presume the accident caused the injury. The burden then shifted to the defendant to disprove the claim. This change rebalances the playing field in auto-related lawsuits. HB 434 HB 434 by Representative Jason DeWitt significantly strengthens Louisiana’s “No Pay, No Play” law, raising the bar for uninsured drivers from $15,000 to $100,000. Those claimants without insurance are now barred from recovering the first $100,000 in both bodily injury or property damage claims — drastically reducing the incentive to sue. For example, if a jury awards a plaintiff $105,000, the insurer would only be required to pay the plaintiff $5,000. HB 431 HB 431 by Representative Emily Chenevert reforms the state’s comparative fault rule, barring recovery for plaintiffs found 51% or more at fault in an accident. A late-session amendment in Senate Judiciary A, however, requires juries to be informed of how their fault allocation affects the financial outcome of the case — an unwelcome change that could inject bias into jury deliberations. SB 231 SB 231 by Senator Mike Reese brings long-overdue transparency to medical damages by allowing judges and juries to see both the billed and paid amounts for medical treatment to plaintiffs, capping recovery to what was actually paid when private insurance or Medicare is used. HB 549 HB 549 by Representative Rodney Schamerhorn requires insurers to offer premium discounts to commercial vehicle policyholders who install dashboard cameras and telematics systems, incentivizing proactive safety practices. HB 148 HB 148 by Representative Jeff Wiley enhances insurance rate transparency, mandating disclosure of prior premium amounts on renewal notices. However, the legislation also gives the Insurance Commissioner new authority to block or even retroactively reduce rates deemed excessive or unfair, regardless of market competition. The Insurance Commissioner and insurance companies were against this specific provision, reasoning that it gives the Commissioner too much arbitrary power and could be ripe for future abuse. HB 438 HB 438 by Representative Gabe Firment clarifies insurance law by ensuring that institutional advertising expenses — such as brand-building campaigns not tied to specific products or aimed at informing consumers — cannot be used to justify rate increases. Under the updated definition, only operational expenses directly related to acquiring and servicing policies may be factored into rate-setting. SB 137 SB 137 by Senator Kirk Talbot requires insurers writing auto or property insurance in Louisiana to notify the Department of Insurance within 10 days when they decide to cease, pause or resume writing new policies in any geographic region of the state. Insurers must include the effective date, affected lines of insurance, impacted area and a brief explanation for the action. HB 345 HB 345 by Representative John Wyble increases the notice period for cancellation and nonrenewal to 60 days for most property and casualty insurance policies. It includes the cause for the nonrenewal — giving insureds more time to respond, resolve issues or shop for new coverage. 9
TAX REFORM AND FISCAL POLICY In addition to legal reform, the session also saw significant movement on tax policy — especially around Louisiana’s burdensome and uncompetitive inventory tax. While long-term repeal remains a work in progress, the following measures represent important steps forward: HB 365 and HB 366 HB 365 and HB 366 by Representative Daryl Deshotel, together, lay the groundwork for eventual inventory tax relief. HB 366 proposes a constitutional amendment on the April 2026 ballot to allow parishes to exempt business inventory from property taxes, addressing one of the primary complaints about the defeated March 2024 amendment — that it was too complex. HB 365 provides the enabling legislation for parishes that choose to opt in, including a choice between a one-time lump sum payment from the state or a phased payout. For example, Lafayette Parish would receive $15 million in exchange for opting out of collecting inventory taxes. HB 383 HB 383 by Representative Ken Brass sought to extend the inventory tax credit for C corporations during the transitional period to see if voters approve of the previously mentioned constitutional amendment, and when parishes decide whether to opt out of collecting. The bill originally proposed a 10-year extension, which was reduced to five, then two, before ultimately failing in the Senate. While that outcome was disappointing, the intent remains clear: to provide certainty and continuity for C corporations as the new system takes shape. Pass-Through Entity Protection Importantly, LADA already secured pass-through entity protection for S corporations, LLCs and partnerships during the November 2024 special tax session, ensuring those businesses continue receiving the inventory tax credit — despite some misleading news reporting to the contrary. The decision not to extend the inventory tax credit to C corporations was based on the fact that these businesses benefited from the repeal of the corporate franchise tax during the November 2024 special session, whether we agree or not. SB 65 SB 65 by Senator Franklin Foil changes the inventory tax credit. For C corporations, the credit is limited to ad valorem taxes paid on inventory prior to July 1, 2026, though the carry-forward period is extended from five to ten years. For entities taxed as S corporations for federal income tax purposes, effective July 1, 2026, the credit may only be earned on amounts that flow through to shareholders and must be allocated in proportion to ownership interests, pursuant to R.S. 47:287.732(B). These limitations do not apply to entities taxed as partnerships or disregarded entities for federal purposes (e.g., LLCs not electing S corporation status), which may continue to allocate the credit to owners as provided under existing law. SB 44 SB 44 by Senator Jay Luneau, which would have replaced the refundable Inventory Tax Credit with a nonrefundable 10-year carryforward-only system, was soundly defeated. This was a major win for dealer liquidity and ensures dealers can continue to reinvest in operations, facilities and workforce. HB 578 HB 578 by Representative Julie Emerson reinstates the sales tax exemption for rental vehicles provided under warranty agreements, retroactive to Jan. 1, 2025. This avoids double taxation on a single transaction and allows eligible dealers to seek refunds. SB 112 SB 112 by Senator Katrina Jackson-Andrews restores local vendors’ compensation to dealers processing registrations through the state system. This ensures proper reimbursement for the administrative burden of collecting and remitting local taxes, pursuant to local ordinances. 10
MOTOR VEHICLE INDUSTRY LEGISLATION Several other key measures were enacted that modernize how Louisiana regulates and supports its auto dealers: This session delivered meaningful victories on multiple fronts: We advanced long-overdue legal and insurance reform, laid a path toward inventory tax relief, and modernized industry regulations that directly affect your business. These accomplishments reflect a strategy of both offense and defense, securing the tools needed to compete while protecting the foundational policies that support Louisiana’s dealer network. Long-term goals like full inventory tax repeal and broader market stability remain on the horizon. Thanks to your continued advocacy and engagement, we’re making steady, measurable progress. Thanks to your continued advocacy and engagement, we’re making steady, measurable progress. HB 476 HB 476 by Representative Bryan Fontenot, one of LADA’s top priorities, updates Louisiana’s safe harbor doc fee cap of $425 by indexing it to the Consumer Price Index (CPI-U), with a 3% annual cap. The Division of Administration performs the calculation, verified by the Legislative Auditor and published by the LMVC by Feb. 1 of each year. This structure eliminates the need for constant legislative updates while also helping dealers manage rising compliance costs. The safe harbor doc fee caps remain fully negotiable and must be disclosed on the bill of sale. As always, dealers are encouraged to base their doc fee on their own independent economic circumstances. SB 37 SB 37 by Senator Bob Hensgens enacts a major structural reform of the Louisiana Motor Vehicle Commission, creating an independent three-member legal panel to hear all licensee disputes. This strengthens due process and addresses longstanding concerns about bias and adjudicative fairness. House Concurrent Resolution 69 House Concurrent Resolution 69 by Representative Kim Carver creates a task force to study the potential consolidation of the Louisiana Motor Vehicle Commission and the Used Motor Vehicle Commission. The group will also examine broader issues such as modernization, licensing procedures, fee structures, and advertising rules and regulations. LADA will have a direct voice in this important conversation, with the president and CEO serving as the association’s appointed representative on the task force. HB 580 HB 580 by Representative John Illg seeks to modernize Louisiana’s temporary tag system by: • Requiring temporary tags to be placed on the rear bumper (not the window). • Matching temporary tag numbers with the permanent plate. • Increasing the temporary tag fee from $4 to $20. • Establishing a print-on-demand system, already in use in most other states. The bill also gives rulemaking authority to OMV Commissioner Bryan Adams, who has indicated that implementation will follow the selection of a qualified paper vendor and technology vendor to ensure weather-resistant tags, fraud prevention measures and a more efficient registration process. Dealers are encouraged to begin placing temporary tags on the rear bumper — where the permanent plate will ultimately go — a best practice that many are already following, which helps law enforcement. 11
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SPECIAL DISCOUNT FOR LADA MEMBERS! If these industry leaders trust Crescent Tek, why wouldn’t you? Sign up now and discover the Crescent Tek difference! www.crescenttek.net/contact-us PROTECT YOUR DEALERSHIP FROM CYBER THREATS As an auto dealership, compliance with the FTC Safeguards Rule is a must. Stay ahead of cyber threats with Crescent Tek’s Security Awareness Training. Equip your team to: • Identify & prevent cyberattacks • Protect customer data • Comply with FTC regulations. Trusted by the Best in the Industry “We’ve found a trusted partner in Crescent Tek. Their professionalism, reliability, and proactive approach have been instrumental in our day-to-day operations. We couldn’t ask for a better ally in the competitive world of car sales.” Matt Bowers - MB Auto Crescent Tek has been a game-changer for our dealership. Their lightning-fast response times and technical expertise have ensured our systems run seamlessly. We’ve seen a significant reduction in downtime and a substantial increase in productivity - and that translates directly to our bottom line.” Otis Favre - Lakeshore Auto Group “Crescent Tek has been a catalyst for growth and innovation at our dealership. Their strategic guidance has helped us optimize our technology infrastructure, unlock new revenue streams, and stay ahead of the competition. We’re excited to see what the future holds with Crescent Tek by our side.” Allen Krake - Supreme Auto Sign up today for our Cybersecurity Awareness Training. www.crescenttek.net/training Promo Code: LADA
We have faced uncertainty and tough times before, and I know we will continue to weather any storm that comes our way! A MESSAGE FROM THE NADA CHAIR Protecting Dealers and Their Customers BY TOM CASTRIOTA, CHAIR, NADA 14
Wow, the past few months have been quite interesting! Keeping up with all the challenges shaping the auto industry has been challenging. I genuinely appreciate the resilience, strength and positivity that our NADA Board and dealers embody. We have faced uncertainty and tough times before, and I know we will continue to weather any storm that comes our way! I want to thank the board, the ATAEs’ and especially Mike Stanton and the NADA staff for all that NADA has accomplished since New Orleans. NADA began the year favorably (besides the snow in New Orleans) with a court ruling on Jan. 27, 2025, vacating the FTC’s CARS rule, only to face the Scout/VW and Honda/Sony actions that would prompt NADA to support state franchise laws that protect dealers and their customers. Then the discussion and implementation of the president’s tariffs arrived. I really don’t need to explain in depth the effects this has had on our OEMs and franchises. Like you, I have had many discussions with those affected by the actions and their consequences. Let me assure you, NADA has been on top of the tariff situation since President Trump publicly supported them. We have been in constant contact with dealers, OEMs, other significant auto industry groups, and members of the Administration and Congress. We have also communicated with our membership and the media to educate them on our perspective. While NADA acknowledges the underlying concepts related to the tariffs, as a trade association, it is our responsibility to ensure that the Administration is adequately informed regarding the implications of the decisions being made. NADA aims to ensure that the Administration’s choices are well-informed. In pursuit of this objective, NADA has discussed this with officials from the White House, the Office of the U.S. Trade Representative, the Department of the Treasury, the Department of Commerce, and the Small Business Administration. NADA has also requested meetings with the Office of Management and Budget (OMB) and the National Economic Council. These meetings aim to ensure that the perspectives of America’s franchised new car dealers are represented in Washington and that policymakers know the implications of buying and selling automobiles. Here are a few of the messages that NADA has presented to our policymakers: • The average monthly new car payment is $729; increasing these payments will surely be out of reach for the average American family. • The average cost of a new vehicle would increase from $2,000 to $12,000 (depending on the model). • The affected sales of new vehicles could be reduced by 1.1 million units. • We have partnered with other key auto industry groups to send a message to the Administration. • NADA will continue its efforts to educate Washington on tariff impacts and keep membership informed of its work. Finally, I would like to highlight in my notes the passage of the Congressional Review Act (CRA) resolutions in both the House and the Senate, which currently awaits the President’s signature to formalize the legislation. Among other benefits, this legislation effectively outlaws the California ZEV rule, which was designed to ban internal combustion engine (ICE) vehicles. I want to thank the dealers, ATAEs and staff for their hard work in presenting our concerns to Congress and their unwavering support, along with months of tireless efforts to convey the CRA message to our legislators and federal regulators. As this year’s chairman, I represent your interests and am the voice of NADA, which serves you and all the dealers. Please contact me with any questions, concerns or ideas. I look forward to hearing from you (really)! Semper Fi, Tom Castriota Compliance with all requirements within the FTC Safeguards Rule was due June 9, 2023. FTC SAFEGUARDS COMPLIANCE PACKAGE Cyber attackers have declared war on the auto industry Only 53% of polled auto dealers are confident in their security 17% of dealers experienced a cyber-attack or incident in the past year $740,144 average ransom amount demanded 84% of consumers polled would not purchase another vehicle from a dealership if their data was breached We´ve got you covered of dealers that chose to become compliant with the FTC Safeguards saw significant improvement of their security after those efforts. OCD Tech secures dealerships with services catered to your unique needs. of auto dealers that signed on for a year of our services have renewed for another year. 75% 100% Additional Benefits Meet security best practices Safeguard against a data breach Safeguard against a ransomware attack Ensure you qualify for cyber insurance coverage Reduce cyber insurance premiums Satisfy the majority of local state data protection and privacy laws BE SECURE NOT JUST COMPLIANT ftc@ocd-tech.com 15
Congratulations, Tommy McMath! Dealer of the Year Recipient 16
The Louisiana Dealer of the Year award is the highest individual honor presented by LADA. It’s given to a dealer who exemplifies the very best of our industry — someone who leads with integrity, serves their community and strengthens the reputation of Louisiana’s franchised dealers. Our 2025 Louisiana Dealer of the Year was announced at our Dealer Day at the Capitol last month, but for those of you who were not with us, we are pleased to recognize Tommy McMath of Arceneaux Ford in New Iberia as our 2025 Dealer of the Year. Tommy began his career in the automotive industry as a salesperson at Rivers Ford in Monroe. He admits it was love at first sight, but the hours 17
conflicted with finishing school and getting his degree. His next adventure came in 1973 when his father-in-law was given the opportunity to purchase a small store in South Louisiana. Due to health issues, Tommy and his wife, Janie, were called down to help until he got back on his feet. They loaded everything they owned into a moving truck and moved from North Louisiana. Tommy experienced a major culture shock coming into Cajun Country, where 50% of the business was conducted in French. He, of course, prevailed and moved through the dealership until taking over when his father-in-law passed away. Two of his children are now in the dealership with him, carrying on the family legacy. Tommy was appointed to the LADA board in 1990 and served as chairman of the board in 1997. He was then appointed to the SIF board of trustees, where he served as chairman from 2019-2024. Tommy currently serves on that board as the immediate past chairman. 18
Over the years, he has been involved with his local Rotary Club, the St. Martinville Jaycees, his NADA 20 Group, the Ford Dealer Advertising Fund, the Iberia Dealer Association, Chamber of Commerce Board of Directors, the Better Business Bureau Committee and Kiwanis. He has also been involved with the Coastal Conservation Association, the American Heart Association, First Responder Lunches, St. Jude’s Research Hospital, the Boys and Girls Club, and of course, because he’s a dealer, the local youth baseball teams. Of all the accomplishments in his business life, serving his fellow dealers through LADA outshines them all. He says, “Only the honor of Dealer of the Year eclipses my past experience with LADA and LADA SIF.” 01MK8232 05/25 You’re free to live your life out loud! Because you’ve got the compassion of the cross, the security of the shield, and the comfort of Blue behind you. 19
When you sign up for Put the Brakes on Litter, Keep Louisiana Beautiful will provide the following to participating dealerships free of charge: A roadside litter reduction campaign that is positive and inviting to your customers. A vertical banner and counter sign to display in your dealership showroom. Litter prevention kits for distribution to your customers at the time of vehicle purchase. Kits will include a car litter bag, litter prevention tips, and a coaster with the litter hotline number. A digital toolkit, including a press release template to announce your partnership, digital ads, social media graphics, and sample posts. Questions? Contact info@keeplouisianabeautiful.org. Visit keeplouisianabeautiful.org to learn more about litter prevention. With your help, we can clean up our roadways. Scan to Sign Up! Supplies Are Free! The Put the Brakes on Litter campaign from Keep Louisiana Beautiful offers your automobile dealership an opportunity to help reduce litter along our roadways. Sign Up For Free Today! Why put the brakes on litter? Over 143 million pieces of litter are on Louisiana’s roadways. Over 79% of roadside litter is from motorists. The litter problem costs Louisiana over $91 million each year. 92% of Louisianans believe litter is a problem where they live.
BY ROBBIE HARRIMAN, CISA, DIRECTOR, IT ADVISORY SERVICES, OCD TECH In 2024, many in the automotive retail industry, including dealer associations and industry consultants, speculated that a new presidential administration would bring sweeping deregulation, including a potential slowdown in the enforcement of rules like the FTC Safeguards Rule. That belief was circulated through 20 Groups, dealer forums and vendor channels, prompting some dealers to question whether continued investment in cybersecurity compliance was necessary. However, recent research and enforcement data show that the expectation of lighter federal oversight may be more myth than reality, especially when it comes to the Federal Trade Commission. At OCD Tech, we analyzed FTC enforcement activity across administrations and found that the agency’s actions have been strikingly consistent — regardless of who is in the White House. Let’s look at the data. FTC Myths vs. Reality A Cybersecurity Perspective 21
FTC Enforcement in the Auto Industry (Full Term Comparison) Trump: 19 cases | Biden: 20 cases Nearly identical FTC enforcement in the auto industry. FTC Enforcement Across All Industries (Full Term Comparison) Trump: 925 cases | Biden: 926 cases Virtually no difference in total enforcement. FTC Enforcement in the Auto Industry (First 100 Days) Trump: 2 cases | Biden: 0 cases More FTC auto enforcement in Trump’s first 100 days. FTC Enforcement Across All Industries (First 100 Days) Trump: 49 actions | Biden: 51 Nearly identical enforcement across all industries in their first 100 days. Regardless of change in administration, FTC enforcement remains active and consistent. Auto dealers and all U.S. businesses should continue to take compliance risk seriously, regardless of who’s in the White House. 22
MYTH #1: FTC ENFORCEMENT IS MORE LENIENT TODAY When we compared full-term FTC enforcement activity in the auto industry between the current administration’s first term and the past administration, we found nearly identical numbers: • Current Administration: 19 enforcement cases involving the auto industry. • Past Administration: 20 cases. The same pattern holds when we zoom out to FTC enforcement across all industries: • Current Administration: 925 total FTC enforcement actions. • Past Administration: 926 actions. This shows no meaningful difference in enforcement volume or intensity between administrations. Regardless of changes in leadership, the FTC has remained active in pursuing consumer protection violations — including those tied to cybersecurity and data handling. MYTH #2: A SECOND TRUMP TERM WILL BRING IMMEDIATE DEREGULATION Some in the industry believed that a second Trump term would quickly reduce or delay enforcement of the Safeguards Rule. But enforcement patterns during the first 100 days of each term suggest otherwise. • In the first 100 days of Trump’s second term (2025): 2 enforcement actions in the auto industry. • Biden’s first term (2021): 0 actions in the auto industry. • Across all industries: » Current Administration: 49 FTC enforcement actions. » Past Administration: 51 FTC enforcement actions. Again, the numbers are virtually identical. The FTC has proven to be a nonpartisan enforcement body — continuing its oversight work no matter the political landscape. THE REAL ENFORCEMENT MECHANISM: BREACH REPORTING One reason some dealerships downplayed the risk of FTC enforcement is that, historically, few enforcement actions have directly cited the Safeguards Rule. However, that changed in May 2024, when a new FTC breach notification requirement took effect. This rule mandates that covered entities — including auto dealerships — must notify the FTC within 30 days of discovering certain security breaches involving customer information. This change created a built-in enforcement mechanism. If a dealership suffers a qualifying breach and fails to report it, they are now subject to regulatory scrutiny, not based on a random audit, but due to a failure to comply with a mandatory disclosure requirement. Insult on top of injury for a breached dealership. THE FAQ THAT RAISED EYEBROWS In May 2025, the FTC published a new FAQ addressing common questions about the Safeguards Rule, including which businesses are covered, how to meet encryption standards, and what a written information security program should include. While the agency hasn’t published any formal cases against auto dealerships under the Safeguards Rule, the timing of this FAQ was notable given that we saw several dealerships fall victim to ransomware attacks within the past year. It came almost exactly one year after the CDK Global ransomware attack, which disrupted operations at over 15,000 dealerships nationwide. Though the FTC has not stated that the FAQ was issued in response to events like these, it’s reasonable to interpret the publication as a proactive reminder: Dealerships are still very much subject to the Safeguards Rule, and enforcement may simply be a matter of time. STATE LAWS: THE HIDDEN THREAT TO NONCOMPLIANT DEALERS Even if federal enforcement seemed to pause — again, the data doesn’t support that — it wouldn’t mean dealers are in the clear. As of July 2025, 19 U.S. states have passed comprehensive data privacy or cybersecurity protection laws, with most others having some sort of basic protection laws for residents, and many industry-specific ones at the state level. More states are introducing bills every year, and these laws increasingly apply to businesses that collect consumer or employee data. Just weeks ago, Oregon proposed an amendment targeting cybersecurity and data protection responsibilities within the auto industry, starting with manufacturers but potentially extending accountability to dealers. This is a trend worth watching, especially as many of these state laws carry private right of action provisions, enabling consumers to file lawsuits independently of government enforcement. LITIGATION RISK: CLASS ACTIONS AND RANSOMWARE FALLOUT In several high-profile ransomware cases affecting dealerships over the past year, we’ve seen a sharp rise in class action lawsuits filed not only by consumers but also dealership employees whose personal information (including Social Security numbers) was exposed. Even when regulators don’t act, civil litigation can be financially devastating. Cybercriminals are increasingly aware of Safeguards Rule requirements and use them to their advantage. In some cases, attackers have threatened to report noncompliant victims to authorities if ransom demands aren’t met. While this tactic hasn’t been widely seen in auto retail yet, it’s a known trend in other industries and further underscores the importance of timely breach reporting. A PRACTICAL PATH FORWARD Fortunately, there is good news. Most federal and state data protection rules overlap significantly. The FTC Safeguards Rule, state privacy laws and even consumer litigation risk 23
can all be addressed by adopting foundational cybersecurity practices that protect customer and employee data. At OCD Tech, our approach is rooted in the Center for Internet Security (CIS) Controls — a set of prioritized actions developed by experts to reduce risk. We help dealerships build risk-based, evolving information security programs that align with legal requirements but are also practical and scalable. That means no wasted effort — just smart, defensible security strategies. CONCLUSION: FOCUS ON RISK, NOT RHETORIC Dealers don’t need to obsess over political cycles to make smart decisions about cybersecurity. Enforcement data shows that FTC action has remained steady, regardless of administration. More importantly, the risk landscape — ransomware, litigation, state laws — is growing more complex. Rather than guessing what Washington, D.C. will do next, the safer bet is to treat compliance as a business risk, not a regulatory checkbox. The FTC Safeguards Rule isn’t just about rules — it’s about protecting your dealership, your customers and your employees from real and growing threats. To learn more about OCD TECH — SecurePath, please visit securepath.ocd-tech.com or email Robbie Harriman at rharriman@ocd-tech.com. Robbie is Director, Advisory Services at OCD Tech. Robbie joined the firm in May of 2016. Prior to working at OCD Tech, Robbie worked in IT for other companies, including the heavily regulated casino industry. He currently oversees OCD Tech’s Advisory services, which include security assessments as well as government compliance services, including DFARS, NIST and CMMC for organizations in the Defense Industrial Base. Robbie has a diverse range of experience in the IT field, with a deep background in IT systems administration and control areas. Robbie presents regularly at events and contributes to security-related publications. Dealers don’t need to obsess over political cycles to make smart decisions about cybersecurity. 24
fisherphillips.com | 36 Locations attorneys can help you steer through the labor laws affecting the car ness. Since 1943, we have been the labor lawyers of choice for mobile dealers. Fisher Phillips is dedicated to helping the members e Louisiana Automobile Dealers Association with their labor and oyment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. Timothy H. Scott Partner New Orleans | Boston 504.529.3834 tscott@fisherphillips.com fisherphillips.com | 36 Lo Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com fisherphillips.com 201 St. Charles Avenue | Suite 3710 | New Orleans, LA 70170 FISHER PHILLIPS LLP With almost 600 attorneys in 41 offices across the United States and Mexico, Fisher Phillips is an international labor and employment firm providing practical business solutions for employers’ workplace legal problems.
Driving Change With Grasstops Advocacy 26
There’s no getting around the fact that change is difficult. It’s challenging to change someone’s mind or opinion. Imagine the difficulty in getting a group of legislators to change a law or political stance. Auto dealers have the power to advocate for a better industry. The effects can make a huge difference to your teams, local communities, state or even at times on a national level. In advocacy, especially when it comes to protecting and promoting the interests of auto dealers, two terms often come up: grassroots and grasstops advocacy. They sound similar, but they play very different roles. GRASSTOPS VS. GRASSROOTS Most people have likely heard of grassroots advocacy. This is a method of advocacy that involves recruiting ordinary people to combine their voices. The emphasis here is on the quantity of voices. Maybe you’ve donated to the NADA PAC or signed a petition to fight a bill. These efforts are significant, but sometimes, advocacy needs to go a step further. That’s where grasstops advocacy comes in. Grasstops advocacy involves individuals engaging directly with decision makers. This method relies on the quality of voices to bring about change. Have you ever personally picked up the phone to call a key legislator about an issue affecting our dealerships? Did they answer? That begs the question: How can we do better at engaging at that higher level? Grasstops advocates bring credibility, strategic influence and access — and often help open doors that grassroots advocates can walk through. A grasstops advocacy strategy isn’t just for lobbyists. In fact, as auto dealers, we are uniquely positioned to be grasstop advocates. We are community anchors, employers and, often, well-connected individuals. Grasstops advocacy taps into this influence to help shape policy outcomes from the top down. It’s about using your voice, your relationships and your credibility as an auto dealer to make a direct impact. WHY IT MATTERS A multitude of regulatory or legislative issues affect dealers, such as EV mandates, franchise laws and tax policies. In addition, it’s no secret that legislators have packed inboxes and receive many phone calls. Cultivating a relationship with a legislator can help your chances of having your email opened and your voice heard. Picture this: It’s the legislative session. A legislator is receiving a high volume of emails and calls. Everyone wants to talk to them, meet with them and be heard. The legislator opens his or her email and scrolls through the names. A familiar name stands out. The legislator opens the email from the individual they know — in this case, you — thus marking the winner of the legislator’s attention. This is a classic scenario reflecting a simple truth: The attention of someone in power will be caught first by a familiar 27
name. This is why Grasstops advocacy is so effective. You want the lawmakers to know your name and your story, so your voice can be heard and your cause can be advanced. HOW TO BUILD A GRASSTOPS STRATEGY Knowing where to start when it comes to a grasstops approach to advocacy can be intimidating. You may feel like you don’t have the time to make a difference, or maybe you’re uncomfortable reaching out to lawmakers and afraid of pushback. The easiest approach is to view the process as actionable steps. 1. Map Your Network: Identify any relationships or connections you have with local, state or federal officials. You may have more connections than you think. 2. Grow Your Network: Put yourself in situations to create relationships with individuals in the industry. Visit lawmakers, make connections and let those connections lead to more. 3. Engage Regularly: It’s important to regularly make contact with your network of legislators. You can achieve this by calling them a few times a month, interacting on social media, hosting events or inviting them to visit your dealership. 4. Tell Your Story: When talking to legislators, you want them to remember you and your story. Personalizing the relationship and showing them why you care about your dealership, the industry and what is happening on the legislative front can help them understand your point of view and, in turn, help. CONCLUSION Grasstops advocacy is a powerful tool that more association members need to use. By crafting personal relationships with legislators, we can effectively fight for our industry. Grassroots and grasstops advocacy strategies should be used in tandem to champion our industry effectively. Grassroots efforts provide the quantity through widespread public engagement, while grasstops deliver the quality by leveraging the power of an influential individual to shape decision-maker perspectives. Together, they create a balanced and powerful approach that combines broad support with strategic influence. Remember, it just takes one dealer with the right connection to make all the difference. So, take the first step. Start a conversation, attend a legislative event or contact the association about getting involved. What will tomorrow look like? hubinternational.com Scan the QR code to learn more. It may not be what you expected. With HUB, you have a partner who is committed to supporting and protecting you, assisting to align business and personal goals to protect your profits and drive organizational vitality and resilience. Risk & Insurance | Employee Benefits | Retirement & Private Wealth David W. Alligood, Senior Vice President Office: 225-218-2410 david.alligood@hubinternational.com 28
FIRE PREVENTION & AWARENESS: A SHARED RESPONSIBILITY According to the National Fire Protection Association (NFPA), U.S. fire departments respond to over 6,000 fires annually at vehicle repair or service shops. The NFPA also states that a fire can double in size every 30 seconds, making early detection essential for safety. Many dealership fires are linked to preventable causes such as improper use of power strips, improper storage of flammables, damaged wiring, or poor housekeeping practices. Risk Management Services (RMS) provides extended safety and health support specifically tailored to Louisiana Automobile Dealerships, including on-site assessments, on-site training, and regulatory compliance assistance. If your dealership has Safety & Health or OSHA questions, please feel free to contact our Loss Prevention Department at 1-800-351-RISK(7475) or by email: LossPrevention@RMSLA.com. For Louisiana automobile dealers, maintaining a safe environment requires a shared responsibility between employers and employees. Everyone has a role in identifying and reducing fire hazards. Addressing common risks can help significantly reduce fire incidents and protect the safety and health of employees, customers, and property. EMPLOYEE • Stay Alert: Employees need to immediately report potential fire hazards (e.g., frayed wires, blocked exits, or fuel spills). • Follow Procedures: Employees must follow all safety protocols when handling flammable materials, using equipment, and performing maintenance tasks. • Participate in Training: Employees should attend all required fire safety and emergency response training. Knowing how to use fire extinguishers and understanding evacuation procedures is essential. • Keep Work Areas Clean: Clutter, oily rags, improper fuel storage, flammable chemicals, etc., can all contribute to fire risk. Each employee should keep their area clean and organized. EMPLOYER • Provide Training: Employers must ensure that all staff receive proper training on fire prevention, emergency response, and how to handle flammable materials safely. • Maintain Equipment and Facilities: Electrical systems, fire extinguishers, alarms, and other equipment must be regularly inspected and maintained. • Ensure Safe Storage: The employer is responsible for ensuring that flammable liquids, batteries, and other hazardous materials are stored in compliance with fire codes. • Create an Emergency Plan: A written emergency action plan should be regularly reviewed and practiced with all employees. RESPONSIBILITIES PARTNER WITH RMS FOR WORKPLACE SAFETY
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