2nd Quarter 2018, Volume 61, Issue 2PAGE 14CFPB VictoryPAGE 10OC Auto Show Fast FactsTHE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATIONDealers Lobby Hard for New Franchise BillPAGE 8PAGE 30OC Dealers’Economic ImpactServing the Dealer Industry for Over 35 YearsAttorneys at Ferruzzo & Ferruzzo, LLP have represented new vehicle dealerships, collectively for over 160 years - auto dealership related! Buy-Sell Agreements: Tom Ferruzzo - 35 years, Jim Barone - 31 years, Litigation: Jim Ferruzzo - 35 years, Greg Ferruzzo - 23 years, Succession Planning: Jim Leese - 22 years auto, 37 years total, Real Estate Transactions: Gordon Scholte - 16 years auto, 35 years total.Transactions for DealershipsA Limited Liability Partnership, including Professional Corporations 949.608.6900 Negotiating and Drafting Buy-Sell Agreements Estate Planning for Dealers Negotiation of Computer Software, & Hardware agreements Negotiating Capital Loan and Lender Agreements Real Estate Acquisitions and Financing Relocations Negotiation of Executive Compensation Negotiating Government Loans and Incentive Agreements Agreements and Buy-Ins Dealings with ManufacturersLitigation Support Protests before the New Motor Vehicle Board Litigation in all State and Federal Courts Customer Dispute Resolution including lemon law claims Represented Dealerships in seven of the Arbitrations in Hearings Before DMV, AQMD, RWQC, OSHA, California regarding the GM BankruptcyBUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICESOC DEALER is a Publication of the Orange County Automobile Dealers Association3737 Birch St., Suite 220 • Newport Beach, CA 92660Phone: 949-428-5050 • Fax: 949-428-5054CONTENTS6 President’s Message8 OCADA Government Relations10 Auto Show Fast Facts12 Get To Know Your Legislator: Assemblymember Matthew Harper14 CFPB Victory: Orange County Congressional Members Played a Critical Role in National Victory16 OCADA Donates $30,000 in College Scholarships18 54th Annual Golf Tournament22 OCADA Offers Easy Way to Say “Yes” to Student & Team Solicitations 24 OCADA Annual Meeting to Feature John Foley, Former Lead Solo Pilot of the Blue Angels25 Supporting Orange County Law Enforcement26 Ask Alison: Health Care Costs28 Meet Your NADA Leadership Team: Ivette Rivera29 Welcome To Our New Associate Members30 Orange County Franchised Dealers’ Economic ImpactCALENDAROF EVENTSorange countyBOARD OF DIRECTORS PRESIDENT Ben BonfoeyNorm Reeves Acura Mission ViejoVICE PRESIDENTDavid SimpsonSimpson Buick GMCSimpson Chevrolet of Garden GroveSimpson Chevrolet of IrvineTREASURERScott WadeDavid Wilson’s Villa FordAUTO SHOW CHAIRMANK.C. HeidlerTom’s Truck CenterDIRECTORSMiles BrandonCapistrano VolkswagenCapistrano MazdaJared HardinHardin Buick GMCBrad MuggNorm Reeves Honda Superstore IrvineFrank MurphyMiller Toyota of AnaheimJohn OhLexus of WestminsterEXECUTIVEDIRECTOR/SECRETARYJohn SackrisonINTERESTING OC AUTO FACTOrange County dealerships generate over $995 Million in tax revenue of which nearly $94 Million goes directly to OC cities.4Oct 5, 2018 OCADA Annual Meeting at the Auto Show Anaheim Convention CenterOct 4-7, 2018 Orange County International Auto Show Anaheim Convention Center©2018 Orange County Automobile Dealers Associatiion. All rights reserved. OCDealer is published four times each year by OCADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the OCADA, its board of directors, or employees. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OCDealer is a collective work and as such, some articles are submitted by authors that are independent of OCADA. While OCDealer encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission from OCADA. For further information, please contact OCADA.6The most important role our association plays is developing relationships with Orange County’s elected officials and it is time for every Dealer to engage. This spring the state association sponsored a bill to protect and improve our franchise rights. OCADA is actively supporting AB 2107 which will:• Require retail reimbursement on warranty work that will improve your service business revenue significantly,• Create a new facility upgrade standard so that manufacturers cannot require modifications within a 10-year period, and• Address abusive competition by manufacturers against their own franchised dealers by expressly limiting the sale, lease or subscription of vehicles and branded parts by franchisor manufacturers unless those actions are done through a franchised dealer. In an effort to gain the support of our elected officials for AB 2107, OCADA organized five luncheons during April and May with OC representatives to discuss the importance of this legislation to our businesses. Dealer Day was another opportunity to engage Orange County representatives and their legislative staff. I traveled with the OC Delegation to Sacramento and although it was an entire day away from the dealership, we gained more support for the bill. Thanks to the 44 members who attended these events, the bill is moving through the Assembly successfully, but even with a positive outcome in the state Assembly there is a lot of work ahead. The process will start over in the Senate and dealers must have these same conversations with our Senators. If you have not taken part in the legislative process before, I urge you to consider learning more about AB 2107 which will improve the very core of our business – equalizing the franchise agreement and improving our franchise protections. Once you see the benefits, I am sure you will join your fellow dealers in making calls to your legislators to ask them to support the reasonable protections contained in AB 2107. When we have 100% of dealers dedicated to participating in the legislative process we can surely help with the passage of this crucial legislation.President’sMessageBen BonfoeyNorm Reeves Acura of Mission ViejoPolitical crisisin South AfricaPresident JacobZuma,his tenure tainted bycorruption scandals, isgivegivegi ntwo options by hisparty, theAfrican Na-tional Congress: Resignwithin 48 hoursorfacerfacerfdismissal. WORLD,A3WeatherPartlycloudyand cool.Rain is possible.L.A Basin: 64/4964/4964/ . B6Printed with soy inks onpartially recycled paper.paper.paper$2.75 DESIGNATSIGNATSIGNED AREASHIGHER ©2018 WSCElatimes.comTUESDAY,FEBRUARY 13,2018TRUCKEE, Calif. —Inthe SierraNevada, snow-packlevels arerunning be-loweventhe darkest daysofthe drought, with cross-countryski resorts closedand mountain biking be-coming the sportofchoiceuntil the snowreturns.In the Bay Area, citieslikeSan Francisco, SanJoseand SantaRosa areexperi-encing the hottest startstoaoayeyear on record.And Southern Californiaremains in the grip of un-precedented dryand hotconditions, despite aweakeakstorm that movedinMon-day.daydayFebruaryishistorically aawewetmonth, but not this year.ararAndAnd the long-term forecastoffersoffofflittle hope for relief.“If you’re buying rainfallstocks, go short,” said clima-tologist Bill Patzert. “Essen-tially,ttiallytially hat storm we had inMontecitowas the only ma-jojorstorm we’vehad in thelast12months. It stoppedraining in mid-Februaryy2017,and,you know, therehasn’tbeenmuchrainsince.”Southern California isdesperate forrain, but thisweweek’sprecipitation is ex-pected to be so paltryex-perts are loath to even call itan actual storm.“While many places maymayseesome light, showerypre-cipitation this week, it doesnot appear that this eventwiwill bring the kind of wide-sprspreadead sigsignificaicanifnifntnt rainrain andandsnowthatis currentlyentlyneeded,” said UCLA climatescientist Daniel Swain. Atthis rate, by Feb.19,L.A. is ontrack to havehahaafullafafyear withonly one day of significanifnifntrain —the day that broughtdeadly mudslides to Mon-tecito inSanta BarbarabaraBarBarCounty.DowntownL.A.has seenjust 1.96 inches since July 1,less than one-quarterthehistorical average for thistime of year,wararhichis8.54inches.The last time Los An-geles brokethe record for thedriest year waswhen 3.21inches of rain felln fn ffor the rainyear thatendedJune 30,2007.The odds arethat Califor-nia willhave below-avew-aw-a rageCaliCalifofornia isdry, hot anddesperatefatefat oreforefprprecipitationUnlikelast winter,this year’slack of rainand paltrysnowfallhavehaveha revived fearsof anotherdrought.By Paige St. John,Rong-Gong Lin IIand Sarah Parvini[S[Seeee Dry,y, A7]A7]They stroll through Dis-neyland in packsof20ormore, motley crewsthat re-semble across between theHells Angels motorcyclegang and agrown-upMickeyMouse Clubwith their Dis-ney-themed tattoos andtheir matching denim vestsstrewnwith trading pins andlogos.loglogDisneyland social clubs,by most accounts, areharm-less alliances of friends andfamily whomeetupattheparktparpar osharea nerdy obses-sion for all thingsDisney.With clubnames suchasTiggerArmyand NeverlandMermaids, howthreateningcan they be?“It’s all about the sharedloloveve forfor DisDisneyney,”,”neyneyneyney saisaidMdMararkDrop Jr., 39,who founded aaclubcalled Flynn’s Riders,afteafaf racharacterinthe WaltDisney animatedfilmdfdf“Tan-gled.”But acivillawsuit filed inOrangeCountySuperioruperiorCourthas revealed adarkkundercurrent to the pas-time. The head of one clubhas accused another of usingggangster-liketactics to trytocollect “protection”moneyeyfor acharityfunyfyfdraiser atthe park.parparThe lawsuitlalareads likeaeamobmovie setinathemepark. The plot revolvesaroundthe Main StreetFireStation 55 Social Club,whose leaders claim theyyhavehaha been bullied and terror-ized by the head of the WhiteRabbitsSocial Club.The lawsuitlalanames 19RANDYCHAVEZ,HAVEZ,HAleft,left,lef Kelvin Salguero and Victoria Montano catch ashowatDisneyland last month withtheir social club. As twogroups square off in alawsuit, otherssay thatclubrelations generallyare friendly.Photographs byPatrick T. Fallon ForThe TimesAbAbitterfeurfeurf dbetweenDisneyland social clubsSuperfans’rfrfsuit allegesegeg agangster-likes-lik-lik hakedownhakhakBy Hugo Martin[S[Seeee DisneyDisneyland,land, A8]A8]AT CALIFORNIAAdventure, Nathan Andersonshoshowsws atatatattootoo ofof WaWaltlt DisneyDisney andand MickMickeyey Mouse.Mouse.WASHINGTON —Asthe Senateopenedamuch-anticipated immigration de-bateMonday, lawmaklalaersmay be embarkingembarembaron some-thing rarely attempted any-moreinCongress: openlyopenlyand collaboratively legisla-seize this opportunityanddeliver real progress.”Hanging in the balancearethe livelihoodsofnearlyearly700,000 young immigrantswhowho havehavehabeen in the coun-tryillegallysince childhood.President Trump is endingendingthe Obama-era DeferredAc-tion for ChildhoodArrivalsprogram,whichofferedthem temporarypermits toliveand work in the U.S.McConnell waspres-SenatenanahopesforopenmigrantdebatedebadebaGOP leaders promisecollaboration andfairness as lawmaklalaersconsider‘Dreamers’and bordersecurity.tytyBy Lisa Mascaro[S[Seeee ImmigrImmigratation,ion, A6]A6]2018 OLYMPICSPYEONGCHANGgotten humanity.Being homeless wasnotthe life he planned. But therewewere things to be thankfulfor.Lfor.Lfor ikethe warm sun on hisface.And that he had survivedthe night withoutbeingshot.Likeke momostst eveeveryryoneone in thethedom. But it also appearedthe killer was targeting thehomeless, though not exclu-sively.Afour.Afour.Afth victim wasshot and wounded in thetown of Logandaleogandaleog,about anhour outside ofLas Vegas.He wasnot homeless —justalone.Tooafraid to[S[Seeee LaLasVsVegegsVegsVsVegsV asas,, A7A7]]Trump budgetignores deficitdeficitdefThe president proposes aspending plan thatgivesup the longtime Republi-cangoal of abalancedbudgbudget.et. NANATION,TION,NATION,NANATION,NAA5A5ThequestionstumpedJohnDaly.Daly.DalyAmid the usual first-datecon-versation at a Wasa Wasa W hington restau-rant 15 monthsago,the womanhemet online asked what he waspas-sionateabout.Daly didn’t havehavehaan answer.Ner.Ner othing in hislife matched the rush from plunging headfirstdfirstdfdownhill at morethan80mph in the skeleton.AndAnd nothing in his life matched the heart-break he experienced from one of the mostdangdangererdangerdangdangerdang ousous sporsportsts in thethe WiWintnterer OlympOlympics.ics.“It waspart of my past,” Daly said. “IthoughtIwas going to leaveleavelea it there.”But the innocent questiontriggeredhisreturn to the sport he had walked away fromomand started the long journey to thePyeongchang Games.Daly is known for using the #PerfectHairrhashtag on socialmediatotout his hair —whichheonce jokedis“windproof,hoof,hoof elmet-proof and bulletproof”—and making come-dic videos.“He’slikea big,mischievous child whowill makeyou laugh as hardashemakes youworry,” said Jesse Lichtenberg, Daly’sagagententagentagagentag..ADATADATAD EWITH FATEFATEFAJohn Daly thoughthewas done with skeleton,but a woman’soman’soman question rekindledhis passion[S[Seeee DalDaly,y, A9]A9]By Nathan Fennoreporting from pyeongchang, south koreaandandand Saencencencingyeyear onAndremainsmainsprecedentcococonditions,stormday..daydaydaydaydayFeFebrwewetmAndAnd theoffersoffoff“Ifstockockocks,tologisttiallytiallytially,ttiallytiallytiallytiallytiallytiallytiallytiallytiallytiallytiallyMontecitjojojojojorstolast12mraining2017,ahasn’tbsince.”since.”Southerndesperaweweek’sppectedperperperts aran act“Wseesomecipitationnot appearwiwill brsprsprsprspreadeadTheyThey strolloll thrthrthrough Dis-neylandand in packsof20orrmore, motley crewsthat re-sembsembsemblelele acacrororossss betbetbetweweweenen thethetheHells Angels motorcycycyclegang andandand agrown-upMpMpMickeyeyMouseuse Clubwbwbwithith their Dis-ney-themedthemed tattattattototoosos andandandtheirtheirtheir matcmatcmatching denimdenimdenim vevevestsstsstsstrewewewnwnwith trading pins andlogloglogloglogos.os.os.loglogloglogloglogDisneyland sosocicialal cluclubs,bs,bs,by most acaccounts,unts,unts, ararareheharm-less alliances ofofof friends andandandfamifamily whwhomomomeeeeeetututupapattttttheheparktparpar osharea nerdydydy obses-sionsionsion for allallall thingthingthingsDisney.WiWiWith cluclubnamames sucsuchasTiggerArmyandndnd NeNeveverlandrlandMermaidrmaids, howtwthreateningcancan they be?“It“It“It’s allallall aboutaboutabout thethethe sharsharsharededloloveveveveve forfor DisDisneyney,”,”,”neyneyneyneyneyneyneyneyneyneyneyney saisaidMdMdMdMararkDrop JrJr.,., 393939,w,w,who founded aaaclucluclubcbcbcalledalledalled Flynn’s RiderRiders,s,afteafaf racharacharacterinthehe WaWaltDisney animaanimatedfilmdfdf“Tan---gled.”ButBut acacacivillawsuitsuit filedledled inOrangeCeCouountntySuperioruperioruperiorCourthasas revealedaled adadarkkunderundercucucurrrrrrent toto the pas-pas-time.time.time. The headheadhead ofof one cluclubbbhashashas acaccucucusedsed anoanothertherther ofofof usinusingggangststster-liker-liker-liketetetactactacticsics tototo trtrtrytooocococollectllect “p“prorotection”monononeyeyeyfor acharityfunyfyfyfyfyfyfyfdrdraiser atatthe park.k.parparTheTheThe lalawsuitwsuitwsuitlalalareadsadsads likeaeaeamobmbmbmovie setinathemepark. TheTheThe plot revorevolvlvlvesesesarounoundthe Main StreeeetFireStation 5555 Social Club,b,b,whose leaders claim thetheyyhahavehaha bebeen bulliebullied ad ad andnd terror-izedized by thethethe head of the WhWhiteRabbitbitsSocialocial Club.The lalawsuitwsuitlalalanamesnames 19Disneyland social clubsSuperfans’rfrfrfrfrfrfrfrfrfrfrfrfrfsuit allallallegegesesegeg agagangstangster-likes-lik-lik hakedownedownhakhakBy Hugogo Martrtinin[S[S[S[Seeeeeeee DisneyDisneyland,land, A8]A8]A8]AT CACALIFORNIAAdventure,nture,nture, Nathan Andersonshoshoshoshoshoshoshoshowswswswswswswswswswsws atatatattootootootoo ofof WaWaWaltlt DisneyDisney andand MickMickeyey Mouse.Mouse.202020181818 OLYMPIPIPICSCSCSPYPYPYEONGTooaoafrfraid toOrange County,we’ve got you covered. Advertise now! Call Carrie Brown at 213-237-53918orange countyGOVERNMENTRELATIONSOrange County Dealers Engage in the Legislative ProcessTHANK YOU to the many Dealers who met with OC’s elected officials to garner their support of current legislation that will directly affect all California Dealers! Legislative luncheons and Dealer Day are great forums for our Representatives to learn about the economic impact dealerships make in Orange County and the critical role that franchise protection laws play in the success of our businesses.THANK YOU to the OC Assemblymembers who have supported fair franchise laws in California and VOTED YES for AB 2107!Assemblymember Travis AllenAssemblymember Bill BroughAssemblymember Phillip ChenAssemblymember Steven ChoiAssemblymember Tom DalyAssemblymember Matthew HarperAssemblymember Sharon Quirk-Silva9Next >