Virginia Senate Screws Up Federal Auto Bailout?!

The Virginia General Assembly is well known nationwide for how badly they can mess things up and make themselves public laughingstocks (abuser fees, anyone?).  Well, it appears they are at it again- on an even bigger scale- this time jeopardizing the entire $25,000,000,000 (BILLION) national auto bailout.

SB1410 doesn't look that harmful on its face.  But dive into the bill, and you will be shocked at what one "Republican" is proposing to do to the free market.  Basically, the bill requires that if an auto manufacturer decides to stop producing a line of cars, they are required to buy back all of the unsold inventory that dealers have.  This bill eliminates all risk for auto dealers- and puts the entire risk on the manufacturers.  Why would anyone want to make any business totally risk free?  This makes no sense.

So, why introduce this bill now in 2009?  That answer is easy.  Car makers just received $25,000,000,000 (BILLION) in cash from the federal government.  The point of this cash outlay was to give them time to reorganize without declaring bankruptcy (i.e. possibly eliminate some lines of under-performing brands).  So this bill is basically a money transfer from the auto makers to the auto dealers should a line of cars be done away with.  If every state did this, the entire federal auto bailout would go to car dealerships instead of the manufacturers!!  But worst of all IT IS YOUR MONEY that went to the manufactures to save the industry that Norment is trying to grab!!!  Will Congress have to pass a SECOND AUTO BAILOUT because greedy state leaders stole the federal cash they got to the manufacturers?

This legislation just stormed through the Senate 40-0 as no one apparently realized what a big deal this was.  Why is Tommy Norment so interested in this issue?  As Jeff Schapiro points out today- he is an auto dealer- and would directly benefit from the cash outlay in this bill.  Norment is literally appropriating money to himself through this new law.  You can even see here where Norment lists his ownership of Grafton Dodge on his old website.

This should be (and might already be) criminal.  Tommy Norment is not only voting for- but he is sponsoring a bill that would directly result in his own enrichment.  What makes it worse is the money he is taking is FEDERAL TAXPAYER FUNDS that have been given to auto manufacturers in efforts to save the industry. 

The FBI ought to come frog-march this SOB out of the Senate and into an orange jumpsuit in a federal prison where the other people who are caught defrauding the government go.

Comments

[t]

Perhaps, sir, you can spend less time worshipping money, and more time working on protections for unborn children threatened with abortion.

Good scoop Ben. Why is Tommy Norment still a Senator after his drunk driving incident?

[Loudoun Insider]

Norment acutally has the gall to say his involvement isn't a conflict becuase it pertains to all dealers! How out of toouch can he be? What an idiot.

Anon. 11:37 -- This is not a "scoop" by Ben. It was an article in today's Richmond Times-Dispatch that everyone has already seen and read. Why is Tommy Norment still a Senator after his drunk driving incident? Because he was reelected in both 2003 and 2007. (The same reason why other elected officials, such as Ted Kennedy, continue to serve after drunk driving incidents -- they are reelected by the people they represent.)

[t]

Two bills amending the Informed Consent legislation have passed the House of Delegate will be sent to the Senate Education & Health Committee.

HB2579, patroned by Delegate Kathy Byron (R-22, Campbelll), would require that every mother shall be given the opportunity to view an ultrasound image of her unborn baby prior to the abortion.

HB2634, patroned by Delegate Ben Cline (R-24, Rockbridge) would require physicians to offer to anesthetize an unborn baby prior to abortion and to include in informational materials a statement an an unborn baby at 20 gestational weeks has a physical structure necessary to feel pain and react to physical stimuli in a manner in in an infant or adult, would be interpreted as a response to pain.

1150am, the scoop I was talking about is how this is actually federal taxpayer money. Obviously I know it was in the RTD, it is linked above in the article I just read and commented on.

...people need to chill on throwing out words like "appropriating" and "scoop" before they lose all meaning. This bill has a heaping enough dose of Stupid hidden in it without the hyperbole or the reductionist forays into microeconomics.

[GOP PHANTOM]

Just look into the lobbyist for the car manufacturers - no other than the Speaker's Chief Bundler VIP Chris Jankowski who failed to convince his GOP clients to vote against the Hometown Car Dealership Protection Bill which passed the House 98-0 and the Senate 40-0. Now Chris feeds info to the RTD after soundingly being defeated in the General Assembly. BTW tell Chris to get a slower car for his wife!

[Bottom line]

"t" brings up an interesting point in a backhanded sort of way. Let's just say some [Democrat] lawmaker happened to work for Planned Parenthood. Now let's just say that said lawmaker sponsored some legislation to benefit that organization. Would you be as fiercely critical of that, Ben? Hello? Ben? Ben?

[GOP PHANTOM]

BTW just look who is the automobile manufacturer's lobbyist- no other than The Speaker's VIP Chief Bundler Chris Jankowski, who was soundly defeated in the House 98-0 and the Senate 40-0. So then he goes to the MSM and the RTD to cut Tommy down. Looks like the Auto Chiefs did not get their money's worth this time. Watch out GOP Delegates when the money bags are distributed- they might be empty. Better tell Chris to get his wife a slower car!

Psst. Bottom line. He wasn't ignoring you. He just can't see what you're typing until you hit the "post" button.

[Johnny_Law]

So he's part owner of a Dodge dealership....big deal!

We should all be feeling sorry for him...it will probably be out of business or bankrupt in a few months.

[Andrew G. Budd]

While it may seem as you say - that is not the whole story.
If GM were to discontinue making Saturns - units remaining in a dealer's inventory would lose their retail appeal to consumers and therefore be worth substantially less. While the dealer may technically own these cars - they are collateral held by the floorplan provider (Bank, GMAC etc). The dealer would end up declaring bankruptcy the bank would sell off the vehicles at a huge loss. The current agreement between the Dealer and the Manufacturer requires the Manufacturer to repurchase the cars if the dealer goes out of business anyway. This bill is to protect the dealer and his bank if the manufacturer discontinues the brand without going out of business.

Well, at least one person -- Andrew Budd -- knows how to read a bill and understands what the word "appropriate" doesn't mean.

Ben:

The provision is being pushed becasue CHRYSLER is very probably going to go out of business sticking Virginia franchisers with stock that will not sell. Viriginia employs more folks at Chrysler DEALERSHIPS than in CHRYSLER MANUFACTURING. Thus, it is in the interest of the Virginia Legislature to support this bill to protect Virginia franchisees. By the way, Senator Norment does not have a Chrysler dealership. Former Democratic Lt. Gov. Don Beyer, a car FRANChISEE HIMSELF is even supporting this bill.

The real reason why Tim "YOU WILL LEARN TO FEAR ME" Kaine is NOT supporting this bill is because the Auto Dealers in Virignia would not go along with Gov. Kaine's demands to throw the House Republicans under the bus over his majesty's Transportation Tax increase in the 2006 session. You remember that one right? This is the same tax increase that his majesity said he wouldn't support just one day prior to the election in 2005.

This is just petty retribution by Tim Kaine to hurt businesses in Virginia....sticking them with non-selling Union made trash from a company that is about to go bankrupt. Another example of Kaine's absoulte failure as Governor.

The National Automobile Dealers Association will probably stop giving to the DNC (and their Chairman) if Tim Kaine refuses to support this bill.

Dear Atticus Finch Sabato:

Please cite one instance of a bill that was passed by a legislative body resulting in criminal charges against its patron.

You are a fool.

[Martin Lomasney]

Given that the manufacturers can require dealerships to accept cars the dealer didn't order, didn't want, and didn't ask for and can't sell, seems this bill balances the equities by preventing manufactures from dumping lousy inventory on dealers to make the makers' balance sheets look better.

[Bottom line]

"Psst. Bottom line. He wasn't ignoring you. He just can't see what you're typing until you hit the "post" button."

Posted by: | February 12, 2009 at 01:17 PM

I know, dear. Maybe they did not have sarcasm where you grew up?

[Church Hill Dem]

Certainly not saying this is a good bill, but Athey is carrying the House companion and I don't think he has any ties to dealers beyond accepting some contributions, but nothing wrong with that.

You throw around terms which you have no clue what they mean. At least do the basic research before you accuse someone of having a legal, as opposed to moral or some other standard, conflict of interest. House Rule 69 and Senate Rule 36 require that the legislator have a "personal interest" in a bill before they are not permitted to vote. A personal interest in a transaction has 2 elements: (1) the legislator's or immediate family member's property or business interest or client is the subject of the bill AND (2) it is affected in a substantially different way than the general public or other recognizable group which the legislator or his cleint is a member. (See the defintion of "personal interest in a transaction" in Va. Code 30-101.) Norment has a personal interest, but it is not affected differently than other members of the affected class, i.e. car dealers. No conflict of interest under the Senate Rules or Va. Code. Even Schapiro points out that this bill is similar to laws in 22 other states. Guess you missed that point since it gets in the way of your over-the-top sensationalism.

[Fairfax Voter]

This should get added to the long list of demands for legal investigations that Ben routinely makes. Hysterical commentary about how the Commonwealth and people will go down the drain if such corruption is allowed to persist. Calls for prosecutors and police to investigate that which is purely political. Usually, he reserves it for routine fund-raising reports, but I guess he is branching out.

I also find it ironic that one of his big targets - Governor Kaine - opposes this bill. It would be too much to ask for to call for an investigation AND criticize the governor at the same time.

[Loudounista]

http://www.freep.com/article/20090213/BUSINESS01/902130336/1002/BUSINESS/Auto+dealers+push+for+laws+to+protect+brands

[Not Herr Rabbit]

Volkswagon is on the run!
with a Technology Breakfast Reception for all the Delegates and Senators on Monday at 8:30 AM.
Since they voted 98-0 and 40-0 - who wiil show up?
Volks Lobbyists have been lobbying hard and fast to catch up to defeat a bill that VA car dealers support stalking GOP members.
Not only was Volks People paid a tidy sum to be here, its employees are burning extra tax dollars every year because each of the 400 employees can have up four vehicles they and their relatives can drive WITHOUT PAYING SALES SALES TAXES or PERSONAL PROPERTY TAXES. Don't get Herr Rabit wrong. I like that Volks People came to Virginia is for Lovers. I don't like being told how lucky we are to overpay - and keep paying for the privilege of paying NO TAXES.

[neoronin]

That's the great part of blogging: you don't even have to pretend to understand your subject! Clearly NotLarrySabato doesn't have any idea what this bill actually does. Not sure who seeded him with this topic (someone who works for a certain European automobile manufacturer, perhaps?), but they completely mislead him. Hope it wasn't a friend; hurts to be lied to by a friend.

[Bad]

There was nothing wrong with abuser fees. They made a small and vocal number of people who deeply wish to occasionally drive like idiots mad, which just so happened to include a lot of the DUI press. Boo hoo.

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