As I wrestled with what topic to address in this article, I found myself weighing the importance of a myriad of issues that all jostle with each other for being top of mind on any given day.
Tariffs, Right to Repair, tax changes, tax audits, dealer statutes, farm bill, and a host of other policy issues compete daily for what is deemed most critical. What struck me is the ever-expanding scope of issues that dealers must confront, be informed on, and adapt to in order to run a successful business. It is simply staggering.
Issue Expansion
When I joined the association nearly ten years ago, the scope of issues seemed somewhat mundane. I have to confess that I wasn’t even aware that an association existed that represented equipment dealers, and I had run several state and federal campaigns where it was my job to know who the players were. There simply weren’t that many legislative issues at the time that required dealers to get involved. Nonetheless, it was part of my mission to raise the profile of the association in the legislative arena because I knew the day would come when that would change; I didn’t think it would be so soon.
About the same time I joined the association, a bill with a novel idea about how to address consumers’ ability to repair their electronic devices was introduced in a few legislatures. It was quickly coined the “Right to Repair”, and since then, it has been a bad penny that perennially shows up around January every year. In form and character, it has evolved well beyond the original scope of those bills from nearly a decade ago that were spurned by people frustrated with trying to repair their iPhone 6, none of which are probably in use anymore. Last year, we saw over 100 bills introduced across the country attempting to regulate different types of digital electronic devices, which now encompasses nearly every product on the market.
Also, not long into my tenure, Congress took up the mantle of tax reform, and we were thrust into a fly-by-night scenario that had Curt Kleoppel and me on the phone late at night with the House Ways & Means Committee, trying to deter them from eliminating floorplan interest deductions for equipment dealers. Fortunately, we had the data from the Cost of Doing Business Study to support our position, and we went to work crafting language late into the night that was incorporated into a bill that literally passed on the House floor the next day. Seven years later, we successfully lobbied to keep that language intact in the latest round of tax reform that was passed in an eerily similar fashion.
Growing Sphere of Government Influence
Because of these issues and scenarios, I became fond of saying that the intersection of law, business, and government is always increasing. How I wish it weren’t so true, but the reality is that the government’s reach has expanded to an unprecedented level in all facets of our lives. There simply seems to be no end to how far the tentacles of government will reach, and the stakes keep getting higher both politically and economically the more invasive they become.
The legal theorist, Lon Fuller, wrote a book in 1969 titled “The Morality of Law.” I recommend it to anyone curious about what the law is and the moral purposes it serves, both theoretically and practically. Fuller defines the law as the enterprise of subjecting human behavior to rules and regulations. Practically, the creation of laws can be used to serve the necessities of society, better understood as the least common denominator upon which the vast majority of citizens agree. When government passes laws and regulations pertaining to necessities, there is general agreement. Think infrastructure, farm bill, and national defense, all issues that are low on the contentious issues list. On the other end of the spectrum, laws can be created that society, the more likely they are to cause contempt to regulate the aspirations of society. This is where things get dicey because the tapestry of humanity contains multitudes of aspirations. In my mind, the difference is between creating conditions where people can pursue happiness (necessity) versus legislating what happiness people should pursue (aspiration). Fuller asserts that the more government seeks to regulate the aspirations of society, the more likely they are to cause conflict and fail in creating laws that society will follow, leading to the breakdown of the rule of law.
A Strong Association
How do these disparate thoughts tie together? Like the scenarios given, legislation can pose an existential threat to the dealer business model, while other legislation may benefit dealers if done right. With the rise of populist and progressive movements, the principle of limited government is being abandoned as both sides strive to use the vehicle of government to achieve their aspirational view of society. That creates more conflict, less deliberation, and an ever-growing sphere of government influence in trying to legislate how your business should be run.
That is where the association, led by dealers and for dealers, needs to be stronger than ever to represent the voice of the dealer in these turbulent times. Navigating all these issues alone and being able to affect public policy outcomes single-handedly is not realistic. Yet, it is entirely necessary that dealers be involved in these issues and have a strong voice representing their interests. That is the role of the association and the mission of our advocacy efforts. While the issues may change and the list grows longer, we will be here to ensure that we present a clear and consistent government affairs strategy to pursue public policy outcomes that benefit successful dealers.
Article Written By: Eric Wareham
ERIC WAREHAM is Senior Vice President of Government Affairs for NAEDA. He has extensive legal and policy experience in both a trade association and the private sector. Prior to joining the association, he was general counsel for an Oregon-based heavy civil construction company. He also served as the director of government relations and general counsel for an association in the wood products industry, has managed state and national political campaigns and held numerous positions in a state legislature. Wareham is a graduate of the Willamette University College of Law and Augusta University.
