Pub. 2 Issue 1

18 www.glancda.org Focused on your: • Accounting • Taxes • Audit • Review • Bookkeeping • Internal procedures • Cash flow • Consulting services Since the 1940’s we have provided a complete range of services to the owners of dealerships and other automotive related businesses. Shelly K. Jackley, CPA Automotive Services Partner shelly.jackley@lslcpas.com Donald G. Slater, CPA Automotive Services Partner donald.slater@lslcpas.com We’re focused on you www.LSLCPAS.com Orange County (714)672-0022 Temecula Val ley (951)304-2728 Si l icon Val ley (408)573-6360 Put our experience to work for you. C E R T I F I E D P U B L I C A C C O U N T A N T S SB 686 (Jackson) – Used Vehicle Recall Repair Mandate The rental car industry has faced scru- tiny in recent years for renting defective vehicles to consumers despite being in- formed of open safety recalls. Bills were introduced in Sacramento and then in Congress to require rental car compa- nies to remove recalled vehicles from their rental f leets until repaired. These bills have failed passage in Sacramento and have not moved in Congress. Rather than focusing on rental cars, SB 686 would prohibit any dealer from displaying, renting, advertising, selling, or leasing any used vehicle subject to a manufacturer’s recall until the defect has been fixed—regardless of howminor the recall is, or whether the part is avail- able. The bill fails to differentiate be- tween minor recalls (stickers on window visors, verbiage in owner’s manuals) and major recalls (those that threaten immi- nent danger to drivers and passengers), nor does it account for the significant disruptions that occur between the time when recalls are “announced” and when parts and repair procedures are made available to dealers. Changing the focus of regulation from rental vehicles to all dealers creates more, not less, compliance issues. While a rental car company is notified directly by the manufacturer when a vehicle it owns is recalled, car dealers receive no such notification (unless franchised to sell that make). A mandate imposed on dealers alone, without rental car com- panies, is insufficient and premature. Wh i le Cong ress and t he Nat iona l Highway Traffic Safety Administration (NHTSA) have made recall information more available on the Internet through the manufacturers’ websites (list of open recalls and whether the repair has been completed), not all manufacturers must provide this recall information. Unless and until all automakers provide the same information, compliance with SB 686 would be highly impractical, if not impossible. CNCDA opposes SB 686 because it would require dealers to determine whether vehicles are subject to recall without providing any clear avenues for dealers to comply. SB 686 is problematic, poorly conceived, and still continues to exempt rental car companies. California should not enact legislation that guar- antees non-compliance and needless litigation. VOTE “NO” ON SB 686 SB 994 (Monning) – Unlimited Third Party Access to Vehicle Data Today’s passenger vehicles are the most technically advanced computers owned by most consumers. The information generated by cars and trucks ranges from wireless connections of mobile devices and applications, to safety technology such as rear-view backup cameras and adaptive cruise control, to turn-by-turn navigation and infotainment systems. Vehicle data - often stored by “black boxes” like those on airplanes - can de 2014 Dealer Day – A Review of the Bills  2014 Dealer Day — continued on page 22