Maryland & Virginia General Assembly Updates

Maryland Updates from MADA

Last week our friends at the Maryland Automobile Dealers Association (MADA) released the following report on the 2024 session of the Maryland General Assembly:

The 2024 Session of the Maryland General Assembly kicked off on January 10th, 2024. The budget will be the biggest issue facing the General Assembly this Session – Maryland is facing a budget deficit of more than $760 million and the Transportation Trust Fund has more than a $3 billion dollar shortfall.

The Governor’s proposed budget released last week contains no new taxes and relies on one time shifts and some fee increases (none which impact dealers as of yet) to deal with the deficit for this year.

The House of Delegates would like to put together a package of revenue (tax) increases this session to address Maryland’s ongoing structural deficits. The Senate President has indicated that there will be no revenue increases this session. The General Assembly will also be looking at reforms to our Juvenile Justice System.

The number one priority of the Association this session is making changes/modifications to the Clean Cars II EV Sales Mandate which start in the fall of 2026 (43% of what each manufacturer ships to Maryland must be EV).

The MADA Board feels strongly that we must start the conversations about the significant problems with Clean Cars II THIS SESSION. We have introduced legislation which would delay the implementation date and drastically reduce the penalty paid by the manufacturers for failure to meet the sales mandate. The legislators need to recognize/fix the cross border sales issue which will hurt Maryland dealers, our employees and customers.

The Association has also introduced legislation that gives MADA standing which would allow the Association to sue the manufacturer on behalf of dealers for violation of Maryland franchise law.

We are currently following over 40 bills which could impact dealers. The issues created by the EV Sales Mandate are difficult but they need to be discussed and we need solutions that will address the reality of the current market for EV’s. We will keep you updated throughout the session and we will be asking dealers to communicate with their legislators as we get further into the session.


Virginia Updates from VADA

Last week our friends at VADA provided an update on attempts to roll back vehicle emissions laws in the Commonwealth.  Three proposals that would have decoupled Virginia from California’s vehicle emissions standards, reverting the state to federal standards, were voted down this week. Here’s the report from the Virginia Mercury.

As VADA has said: Most auto manufacturers have made it clear they are committed to phasing out gas-powered engines over the next 15 years. Virginia’s new car dealers are embracing the future of EVs along with their manufacturers.

Mass adoption, however, requires government policies that are technologically achievable, maintain affordability, and complement the efforts of the private sector in advancing the vehicle fleet turnover needed to achieve the targeted environmental benefits within a timeframe that helps, not hurts, new vehicle buyers. We appreciate that Senate Agriculture, Conservation and Natural Resources Chairman Sen. Dave Marsden (D-35th/Burke), along with Commerce and Labor Chairman Sen. Creigh Deeds (D-11th/Charlottesville), intend to convene a working group to ensure Virginia’s policies achieve those goals.

“We look forward to working with them as Virginia dealers intend to continue to be leaders in this important transformation of our transportation system,” says VADA’s Don Hall.

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