Pub. 1 2019-20 Issue 2

Issue 1 2020 5 WVADA President’s Message W e are now more than halfway through the 2020 legislative session with foster care, greyhound racing, and a stagnant fiscal year becoming the center of issues throughout House and Senate standing committees. The Governor and legislative leadership have both alluded to elim- inating the business inventory, machinery and equipment tax; however, the vehicle that needs to cross the finish line, S.J.R. 9, is still pending in the Senate Finance Committee. This Resolution is aheavy liftbecause itwill take a constitutional amendment to address this issue. Joint Resolutions must pass the House and Senate by a two-thirds majority, signed by the governor, and then approved by the voters in the next general election. WVADA is a member of the Business Industry Council (BIC) and we are working with other industry leaders on the best plan of action for this to pass. In addition to needing bipartisan support to get this through, the legislature must have a plan to fill a potential $140 million hole that this bill would put on counties if all manufacturing and small businesses were to become exempt. WVADA is also monitoring the following bills: • Direct Sales H.B. 4132: Authorizing certain motor vehicle manufacturers to operate as new car dealers. This bill is the No. 1 threat to franchised dealers. That is even more true now, considering the recent settlement Tesla reached with the state of Michigan that will allow them to sell and service its vehicles throughout the state. The bill was introduced in the House and referred to the Small Business and Economic Development Committee. We were able to get ahead of this bill and it has not moved. A special thank you to the dealers thatmade calls and reachedout tomembers of the committee. • Deregulating the Doc Fee H.B. 4479: This bill would remove the authority of the commissioner of the DMV to set documentary charges. The full board met Jan. 24, to discuss WVADA’s position. The board decided that deregulating the doc fee would not be in the best interest of WV dealers. Instead, they decided to keep the current process in place and allow the DMV commissioner to set the cap. WVADA will be working closely with the governor’s office and the DMV dealer advisory board to address an increase in the doc fee in the near future. It is crucial for WV dealers to be competitive with our surrounding states. • Clarifying That Service Contracts Are Not Insurance H.B. 4149: This bill amends the definition of warranty to include a vehicle theft protection program. Also, it amends the existing statutory definition of service contracts by including certain services and clarifying that service contracts are not insurance. • Changing Annual State Inspections to Every Three Years H.B. 4639: This bill was amended in the House Technology and Infrastructure Committee to require state inspections be every two years. Currently, the bill is pending in the House Finance Committee, and we are hoping the bill remains there. WVADA is working with the Trucker’s Association and the State Police. • Creating a Used Car Tax Credit Program H.B. 4547/S.B. 621: Relating to tax credits for providing vehicles to certain persons. This bill establishes a tax credit of half of a vehicle’s fair market value (up to $2,000) per vehicle. The purpose of this bill is to incentivize individuals/dealers to reduce the retail price of vehicles. The purpose is to enable more low-income workers to have transportation to get to and from work. Good News Mountaineer Garage is developing a program that will subsidize both the interest rate charged for the financing and the cost of the vehicle. This program is voluntary and only cars that are certified by the program are eligible. t Legislative Update