The Coalition to Protect Our Freedom to Drive today praised Gov. Jerry Brown's veto of Senate Bill 956 that threatened to wipe out thousands of independently owner used car dealerships, deny financing to hundreds of thousands of credit-challenged motorists, and cut state and local sales tax revenues by hundreds of millions of dollars a year.

While the Coalition to Protect Our Freedom to Drive aggressively opposed all three bills in a so-called consumer protection package, including Assembly bills 1447 and 1534, which the governor signed into law on the day before his deadline, coalition consultant Larry Grooms said Laguna Beach Democrat Lieu's SB-956 was the greatest threat to both dealers and their customers.

Grooms credited the broadly based coalition's more than 100 active individual citizens, state and local elected officials and chambers of commerce and business associations for winning the fight against SB-956.

Roger Niello, president and CEO of the Sacramento Metro Chamber of Commerce, said, "We're pleased that Gov. Brown vetoed SB 956. This bill would have led to the closure of small businesses in this industry segment, limiting consumer choice. Further, the bill would have done nothing to better educate consumers on the choices available to them. The Sacramento Metro Chamber of Commerce opposed SB 956 on those grounds and we're pleased Gov. Brown vetoed this job-killing bill."

Although the bills were introduced in January, the Coalition to Protect Our Freedom to Drive wasn't formed until late May when all three bills were already passing in their houses of origin after having been promoted in a one-sided crusade by the Los Angeles Times. Coalition research identified and helped to publicize the serious economic and tax revenue losses from the bills that the legislature had overlooked, including state and local sales tax revenue cuts projected to be as much as $337 million a year.

But the coalition pointed to the governor's mildly worded veto message as leaving the door wide open to another attempt by Lieu to attack self-financed used car dealers in 2013.The Coalition to Protect Our Freedom to Drive will continue to monitor the implementation of the two bills signed by Gov. Brown Saturday, with particular attention to unintended consequences that could harm consumers and businesses.

Independent dealers expressed relief at the veto of SB 956, but have concerns about the way new regulatory requirements in AB 1447 and AB 1538 will be imposed.

"At first glance, both these bills look like they will protect consumers. But after careful review they will actually harm the people they are trying to protect as well as the small business owner," said Antelope Valley dealership owner, Gus Camacho.

Camacho credited the Independent Automotive Dealers Association of California, the National Independent Automotive Dealers Association, the Community Auto Finance Association, and the Coalition for their efforts in opposing the legislative package and ultimately persuading Gov. Brown to veto SB 956.

He said that although AB 1447's requirement for a 30-day warranty isn't likely to be an issue for his company, which already offers a three-month warranty to buyers, smaller dealers may be unable to afford or even find state-approved warranty insurance the law requires.

Camacho said AB 1534's mandate that dealers post fair market value of the vehicles they sell offers no real help to consumers, since multiple sources provide constantly changing valuations that don't address the two most important considerations for BHPH cars: history and condition.

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The Coalition to Protect our Freedom to Drive is an organization comprised of concerned small businesses, state and local government officials, automotive associations, consumers, automobile owners, Chambers of Commerce and others eager to promote small businesses and to protect access to vehicles for all Californians - not just the most affluent.  

The Coalition stands in opposition to three bills - AB 1447, AB 1534 and SB 956 - as collectively, the legislation will deny thousands of credit-challenged Californians the freedom to own a vehicle, destroy jobs and drain local government coffers by up to $337 million dollars annually in lost sales tax revenues!

 www.ProtectFreedomtoDrive.com