Good afternoon OADA Members,

I wanted to share a quick update for you on a federal issue where OADA and NADA worked collaboratively to ward off a serious issue. Sometimes, our best work is handling issues before they become more serious. This is also a great example of why it's important to develop a positive relationship with your State legislators, as some of them end up serving in Congress later in their careers.

Congressman Bob Latta (OH-5) is circulating the "SELF DRIVE Act" which was the subject of House subcommittee hearing on auto-related bills earlier this week. His bill aims to ensure Autonomous Vehicles are regulated at the federal level. He, as well as OEMs and NADA want decisions surrounding AVs made at the federal level so there is not a patchwork of states and municipalities around the country where (as an example) AVs are permitted and not permitted to operate.

That being said, the language in the bill currently has some serious unintended consequences including the preemption of state franchise laws. While this was not the intent, it would be a massive problem around the country and would've thrown dealers and the franchise model into a tailspin.

We worked with NADA to discuss these problems with the Congressman and his staff and, in advance of the hearing, secured a commitment from him to modify the language moving forward. We also asked him to speak at the hearing to the fact that nothing in this language is intended to preempt state franchise laws around the country. While our adversaries (including some OEMs) didn't want to see that happen, he agreed to do it, publicly demonstrating his support for Ohio dealers and making clear his intent is not to adjust, modify or preempt these laws.

NADA is working with his team on corrective language now, but I thought I'd share with you his 3 minute testimony highlighting how your state association and NADA work together to represent you and your dealership investments.

Rep. Latta Preemption:  https://youtu.be/A65w0K2He6c

Thanks and have a great day!

Zach Doran
President