As the new Congress gears up, NADA is working to ensure that the Federal Trade Commission’s onerous "Vehicle Shopping Rule" as well as its flawed rulemaking process receives much needed congressional oversight. NADA also continues to build support for passage of the recently reintroduced “Supply Chain Disruptions Relief Act” which would give dealers on LIFO relief, and the “Preventing Auto Recycling Theft Act” which would combat rising catalytic converter theft. With Congress facing a full legislative agenda, it is vital that dealers continue their outreach to lawmakers, emphasizing the need for Congress to keep these issues on the front burner and address these dealer priorities as soon as possible.
Congressional Oversight of FTC’s Proposed “Vehicle Shopping Rule” Growing
In the midst of all the drama and chaos at the Federal Trade Commission (FTC), NADA continues to explain to Congress how the FTC’s proposed “Vehicle Shopping Rule” would overwhelm car buyers and small businesses with additional paperwork and needlessly lengthen the sales process. The rule was proposed without credible data-driven analysis or the necessary time for public comment, as the FTC allowed only 60 days for the public to review this rule. NADA is working to ensure that the FTC’s egregious “Vehicle Shopping Rule” is a key component of any FTC oversight by Congress.
On a bipartisan basis, concerns about the impact of the FTC’s proposed rule on consumers and small business dealers is growing on Capitol Hill. For example:
- Kelly Armstrong (R-N.D.) sent a letter to FTC Chair Lina Khan requesting the FTC withdraw its proposed “Vehicle Shopping Rule” and instead issue an Advanced Notice of Proposed Rulemaking. This bipartisan, bicameral letter was signed by 41 House members and six Senators.
- Senior House Financial Services Committee members sent a letter to Federal Reserve Board Chairman Jerome Powell regarding the FTC’s "Vehicle Shopping Rule” expressing their concern that “[t]his broad proposal includes several new and untested consumer disclosures that, if adopted, would come into conflict with existing Truth in Lending Act requirements...”
This anti-consumer, anti-dealer rule could be finalized by the FTC at any time. Congress is expected to hold hearings in the next few months where Chair Khan is likely to testify and answer lawmakers’ questions.
Dealers should reinforce NADA’s message and urge Congress to use its oversight power to question the agency’s lack of evidence to justify the rule and the absence of consumer testing to verify the FTC’s proposed “solutions” will benefit consumers.
Note: The FTC’s proposed “Vehicle Shopping Rule” is unrelated to the FTC’s recently delayed “Safeguards Rule.” For more information on the FTC “Vehicle Shopping Rule,” please contact Michael Harrington (firstname.lastname@example.org).
Congress Renews Bipartisan Effort to Provide LIFO Relief for Dealers
The “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443), legislation that would provide LIFO relief for dealers, has been reintroduced in the House and Senate. The Senate bill (S. 443) is identical to legislation that passed the Senate unanimously on Dec. 22. This bill was reintroduced with nearly half the Senate signing on as original cosponsors. Dealers should thank lead Senators Sherrod Brown (D-Ohio) and Tim Scott (R-S.C.) for reintroducing this pro-dealer legislation. Dealers should also thank the many cosponsors for their support:
Tammy Baldwin (D-Wis.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), John Boozman (R-Ark.), Mike Braun (R-Ind.), Shelly Moore Capito (R-W.Va.), Ben Cardin (D-Md.), Tom Carper (D-Del.), Bill Cassidy (R-La.), Chris Coons (D-Del.), John Cornyn (R-Texas), Catherine Cortez Masto (D-Nev.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Steve Daines (R-Mont.), Tammy Duckworth (D-Ill.), Dianne Feinstein (D-Calif.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Maggie Hassan (D-N.H.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), Mark Kelly (D-Ariz.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), James Lankford (R-Okla.), Cynthia Lummis (R-Wyo.), Joe Manchin (D-W.Va.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Patty Murray (D-Wash.), Alex Padilla (D-Calif.), Gary Peters (D-Mich.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Rick Scott (R-Fla.), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Debbie Stabenow (D-Mich.), Jon Tester (D-Mont.), John Thune (R-S.D.), Thom Tillis (R-N.C.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.) and Roger Wicker (R-Miss.).
While challenges remain with passing tax legislation, congressional leaders have been supportive and securing 60 cosponsors would help gain favorable consideration. NADA urges dealers to contact key Senators who are not yet cosponsors of this non-controversial bill to encourage them to cosponsor S. 443. See the NADA LIFO issue brief here with key talking points.
Senators who want to cosponsor S. 443 should have their staff contact Chad Bolt (Chad_Bolt@brown.senate.gov) with Sen. Sherrod Brown (D-Ohio) or Adam Farris (Adam_Farris@scott.senate.gov) with Sen. Tim Scott (R-S.C.).
Under H.R. 700/S. 443, dealers who have filed their returns for 2021 will still be able to claim relief if this bill passes. The bill will enable dealers to recompute their tax liability retroactively without filing an amended return. Dealers will be permitted to determine tax liability for 2021 as if there were no LIFO recapture. Any LIFO recapture that a dealer has paid to date will be deemed prepaid federal income taxes that can offset future tax liability. (See dealer summary of this legislation).
The Senate bill is currently the top grassroots priority, as the House is getting organized with new House Ways and Means Chairman Jason Smith (R-Mo.). We will soon send out grassroots information urging Representatives to cosponsor H.R. 700 and requesting that Congress pass this bipartisan legislation as soon as possible. As you may recall, the previous LIFO relief bill passed the Senate in December but time ran out before the House could pass the bill.
For more information, please contact Ivette Rivera (email@example.com) or Kerry Feehery (firstname.lastname@example.org).
Catalytic Converter Anti-Theft Legislation Reintroduced
The NADA-backed “Preventing Auto Recycling Theft Act” (PART Act) (issue brief here) was reintroduced in the Senate (S. 154) and House (H.R. 621). The PART Act would help law enforcement combat catalytic converter theft by providing a national framework that would mark catalytic converters, establish federal criminal penalties, and create a more transparent market that deters its theft.
The House bill already has 15 cosponsors and NADA staff is working with a coalition of industry stakeholders and law enforcement groups to gain additional cosponsors and advance this legislation.
As you may have seen, the catalytic converter theft issue gained national headlines when thieves took a bite out of the Oscar Mayer Weinermobile in Las Vegas by stealing its catalytic converter. Please tell your congressional delegation that inaction doesn’t cut the mustard and request that they cosponsor the PART Act (H.R. 621/S. 154).
Senators who want to cosponsor S. 154 should have their staff contact Baz Selassie (email@example.com) with Sen. Amy Klobuchar (D-Minn.). House members who want to cosponsor H.R. 621 should have their staff contact Robert Rische (firstname.lastname@example.org) with Rep. Jim Baird (R-Ind.) or Erin Melody (email@example.com) with Rep. Betty McCollum (D-Minn.).
For more information, please see NADA’s press release here and issue brief here or contact Charlie Dyjak (firstname.lastname@example.org).
NADA Opposes So-Called “Right to Repair” Legislation
The so-called “Right to Equitable and Professional Auto Industry Repair (REPAIR) Act” (H.R. 906) was reintroduced earlier this month. 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 failed to get a vote last year.
For more information on so-called “right-to-repair” legislation please contact Kerry Feehery (email@example.com).