Capitol Hill & Regulatory Updates from NADA
In the last month, the National Automobile Dealers Association (NADA) has put out several updates via email on a variety of legislative and regulatory matters that affect the automobile business. They have been assembled, categorized and reprinted below for ease of reference.
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LIFO Relief
The “Supply Chain Disruptions Relief Act” is expected to be reintroduced next week by Sens. Sherrod Brown (D-Ohio) and Tim Scott (R-S.C.). The legislation is identical to the LIFO relief bill from last Congress, which received overwhelming bipartisan support and passed the Senate without opposition. Reps. Jodey Arrington (R-Texas) and Dan Kildee (D-Mich.) introduced the identical House companion bill (H.R. 700).
Here is a list of Senators who cosponsored S. 4105, the identical bill last Congress and the email NADA sent to these Senators asking for their support. Please see NADA’s LIFO issue brief here and contact Ivette Rivera (irivera@nada.org) if you have questions or would like to discuss LIFO grassroots strategy. Thank you for all your assistance.
FTC Oversight
The NADA legislative office continues to educate House and Senate committees to explain the Federal Trade Commission’s (FTC) proposed “Vehicle Shopping Rule” and its adverse consequences to consumers and dealers. NADA is urging Congress to use its oversight powers to question the agency’s lack of evidence to justify the rule and the absence of consumer testing to verify that the FTC’s proposed solution will benefit consumers.
This week, senior NADA staff met with House Energy and Commerce Committee staff to brief them on how the “Vehicle Shopping Rule” would complicate vehicle sales and harm consumers (issue brief here). The Committee’s new oversight plan is to “conduct oversight of the Federal Trade Commission’s (FTC) management and operations, including the impact of its decisions and actions on the general public and the business community, with a particular focus on how the FTC conducts its business while not creating undue burdens for legitimate businesses, its determination of priorities, and the need, if any, for refinement of its authorities.” NADA is working to ensure that FTC’s egregious “Vehicle Shopping Rule” is a key component of any FTC oversight considered by the Committee. The committee is likely to hold a hearing with FTC Chair Lina Khan in the next few months.
“Right to Repair” Legislation
The so-called “Right to Equitable and Professional Auto Industry Repair (REPAIR) Act” (H.R. 906) was reintroduced yesterday evening by Reps. Neal Dunn (R-Fla.), Brendan Boyle (D-Pa.), Warren Davidson (R-Ohio), and Marie Gluesenkamp Perez (D-Wash.). The bill has little to do with repairing a vehicle. Instead, the legislation would give any third-party access to sensitive consumer data from vehicles, which raises consumer privacy, vehicle security, and automotive safety concerns. Additionally, the bill is overbroad as it regulates heavy-duty vehicles the same as light-duty vehicles. NADA will continue to advocate against this misguided bill which did not receive any traction last year.
Pregnant Workers Fairness Act
Effective June 27, 2023, dealerships with 15 or more employees must determine reasonable workplace accommodations for pregnant applicants and employees with pregnancy- or childbirth-related conditions and must provide such accommodations unless doing so would impose undue hardships. The PWFA makes it an unlawful to:
- Fail to make reasonable accommodations for known limitations related to a qualified employee’s pregnancy, childbirth, or related medical condition.
- Require qualified employees affected by pregnancy, childbirth, or related medical condition to accept accommodations not arrived at through an interactive process.
- Require qualified employees to take a paid or unpaid leave of absence if other reasonable accommodations can be provided.
- Take adverse employment actions (retaliate) against qualified employees based on their request for or use of PWFA-related reasonable accommodations.
The Equal Employment Opportunity Commission is expected to issue rules by December 2023 that include examples of reasonable accommodations.
Providing Urgent Maternal Protections (PUMP) for Nursing Mothers Act
Effective December 29, 2022, dealerships must provide nursing employees with reasonable break time and private locations (other than restrooms) to pump breast milk for up to one year after the birth of a child. The break time need not be paid unless the dealership otherwise compensates employees for breaks. Dealerships with fewer than 50 employees are exempt if they can show an undue hardship. Employees must provide employers with a notice of any alleged failure to comply and wait 10 days for a remedy before initiating an action. This notice period is waived for employees terminated in retaliation for requesting a space to pump breast milk or for opposing a refusal to provide such a space.
Dealership policies and procedures should be evaluated and modified as necessary to address accommodation requests from pregnant and nursing employees and those with childbirth-related medical conditions. Training may be necessary for personnel responsible for fielding and administering such accommodation requests. Note: Many states have pregnancy, childbirth, and/or nursing accommodation laws that may be stricter than federal law. For more information on state laws, please contact your state dealership association. For questions related to the PWFA or PUMP Act, please reach out to regulatoryaffairs@nada.org.
Section 30D Clean Vehicle Credit Eligibility
The Internal Revenue Service has revised how it classifies vehicles potentially eligible for a Section 30D Clean Vehicle Credit. As a result, more new battery electric (BEV), plug-in hybrid electric (PHEV), and fuel cell electric vehicle (FCEV) models/trim levels are now considered “SUVs, vans, and pick-ups” for purposes of the credit’s $80,000 MSRP cap. All other BEV, PHEV, and FCEV make/models (e.g., sedans, coupes, station wagons, etc.) are subject to a $55,000 MSRP cap.
The revised vehicle classifications are based on those in www.fueleconomy.gov, a shopping resource commonly used by both dealers and prospective purchasers, and apply retroactively to January 1, 2023. A listing of which make/models fall under which MSRP cap is available here.
Note: Some BEVs, PHEVs, and FCEVs sold since January 1, 2023, may now be potentially eligible for a Section 30D Credit where they weren’t before. Consequently, selling dealers should be prepared to provide purchaser-taxpayers with a Section 30D Clean Vehicle Credit report form as necessary. See IRS FAQs, Topic B, Questions 7 and 9. A sample Section 30D report form is found on the NADA Regulatory Affairs Alternative Fuel Vehicle and Refueling Incentive EV Incentive Webpage along with materials addressing the Section 30D and other the Inflation Reduction Act EV incentives. Questions may be directed to regulatoryaffairs@nada.org.
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