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APRIL 6, 2010
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– Reminder: Online Salesperson Licensing
LEGISLATIVE UPDATE
– All Pinnacol Bills, Except for the Big One, Pass Out of Senate Judiciary
– Wellness Bill Heard by Senate Business, Labor and Technology Committee
– Summary of HB 1049 - CADA's Franchise Bill
UPCOMING SEMINARS
– Tell Us What You Need!
CALENDAR OF EVENTS
– Upcoming Events
– Denver Auto Show
– Green Tie Preview Party
– Unclaimed Property Corporate Compliance and Regulatory Responsibilities
– NADC 6th Annual Member Meeting & Conference
– CADA 2010 Annual Golf Tournament
DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS
–Mini of Loveland Opened Monday!
–The Blueprint - How the Democrats Won Colorado (and why Republicans Everywhere Should Care) by Adam Schrager
–Share Your Accomplishments
THE AFTERFACT
–All the News That's Fit to Email!
ARCHIVES
CLICK HERE for Open Road
e-newsletter archives.
CLICK HERE for an Index of Regulatory
& Legal Articles from the Open
Road e-newsletter.
CLICK HERE for Bulletin archives.
CLICK HERE for Colorado Auto
Outlook archives.
CLICK HERE for Denver Auto
Outlook archives.
ONLINE REGISTRATION
CLICK HERE to register online
for various CADA seminars & events.
MEMBERSHIP RESOURCES
CLICK HERE for details on the
Speaker and Educational
Resources.
CLICK HERE for a list of current
Endorsed Vendors/Programs.
CLICK HERE for a list of current
Allied Members.
CLICK HERE for an order form for
CADA forms.
CLICK HERE for information on all member services.
www.nada.org
CLICK HERE for NADA
Regulatory Affairs information.
STATE GOVERNMENT RESOURCES
CLICK HERE for the Auto Industry
Division of the Colorado Dept.
of Revenue.
CLICK HERE for the Title and
Registration section of the
Colorado Dept. of Revenue,
Motor Vehicles Division.
CLICK HERE for the Colorado
Department of Labor &
Employment website.
Visit us at www.coloradodealers.org.
CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.
CADA STAFF
CLICK HERE for a CADA staff listing
If you have questions
or suggestions regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org
CLICK HERE or scroll to the bottom
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ENDORSED VENDOR/PROGRAMS
CLICK HERE for information about the
Endorsed Vendors/Programs.
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If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.
APRIL 7 - 11!
Colorado Convention Center
AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.
…more news articles are included at the end of this issue.
REMINDER: ONLINE SALESPERSON LICENSING
Auto Industry Division staff (AID) asked us to remind all dealerships using the online salesperson application that the following must still be physically mailed within 10 days of obtaining the temporary license online:
- The signed, original application (DR 2115, WEB-version of this form available from within the application)
- Affidavit of lawful presence (DR 4679, required by state to verify legal status)
- Copy of driver license
Visit: AID Salesperson licensing and information page
If that information is not received, the application could be considered incomplete and be denied.
A reminder that currently the online salesperson licensing is only available for new applicants—it is not yet available for renewals.
Dealerships not utilizing this online application are reminded of its availability.
We strongly encourage more dealerships to take advantage of this online system. This service will enable your dealership to apply for new salesperson licenses online—and receive a temporary license number and letter immediately.
In order to utilize the service, dealerships must first register with Colorado.gov at the following: www.Colorado.gov/registration. You will need to complete the overall Registration Agreement and also the Service Specific Addendum for Auto Industry Sales Licenses. There is a $75 annual fee to be a registered user of all Colorado.gov online services.
Visit the February 14, 2007 issue for an overview of this application
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If you have questions on any legal or regulatory topic, please contact:
DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance
 
ALL PINNACOL BILLS, EXCEPT THE BIG ONE, PASS OUT OF SENATE JUDICIARY
Late into the evening Wednesday, March 31st, the Senate Judiciary committee heard 8 hours of testimony on the 6 bills relative to the state regulation of Pinnacol Assurance, Colorado’s workers’ compensation carrier of last resort. All of the bills before the committee, except for HB 1012 regarding the use of video surveillance on claimants, passed out of the committee on a party-line vote. Arguably HB 1012 is the most contentious of the Pinnacol bills and has been widely and vocally fought by the business community, including CADA. The Senate sponsor of HB 1012, Sen. Morgan Carroll (D-Denver) explained that she wanted to work on amendments to the bill since she did not have political support for the measure in its current form. As a result, Sen. Carroll laid the bill over, a procedural move that allows the bill to be heard by the same committee at a later date. We will continue to fight to kill this bill on behalf of CADA and Colorado businesses.
The other Pinnacol bills that passed out of the committee were HB 1038 regarding a workers compensation claims brochure; SB 13 regarding workers compensation accountability; HB 1009 regarding the Pinnacol board of directors; SB 12 regarding workers compensation benefits and SB 11 regarding conflicts of interest in workers compensation claims.
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WELLNESS BILL HEARD BY SENATE BUSINESS, LABOR AND TECHNOLOGY COMMITTEE
HB 1160 by Rep. Joe Rice (D-Littleton) and Sen. Shawn Mitchell (R-Broomfield) was heard by the Senate Business, Labor and Technology committee on Wednesday. The bill would allow small group and individual insurance companies to offer plans that provide financial incentives for policyholders that commit to healthy lifestyles and are able to provide proof of outcomes of those efforts. For example, an obese employee who committed to a weight loss program and was able to show measureable weight loss results would get a discount in his or her health insurance. If the employer pays 100% of an employee’s health insurance, the employer would receive the rate reduction. The bill is heavily opposed by several consumer and disability groups who believe the measure will unfairly discriminate against people who are unable to participate in a wellness program. To address that issue, the sponsors have added language that allows disabled people to receive a waiver and still get the benefit of the rate reduction. The bill will be up for a final vote on Wednesday, April 16th.
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SUMMARY OF HB-1049 - CADA'S FRANCHISE BILL
Governor Ritter has signed HB 1049, CADA’s Franchise bill for the 2010 Legislative Session. The bill passed out of the House of Representatives by a vote of 60-5 and out of the Senate by a vote of 35-0. The bill had 63 of the 100 members of the General Assembly (almost two-thirds of the entire body) who signed on as co-sponsors. All of the provisions in the bill were effective immediately upon Governor Ritter signing the bill on Monday, March 22, 2010. The summary below reflects current and enforceable law in Colorado. To read the bill in its entirety, please CLICK HERE.
Provisions applicable to ALL Colorado dealers:
- Exporting of motor vehicles: If a dealer sells a vehicle that is ultimately exported outside their AOR, the manufacturer must prove that the dealer knew the vehicle was going to be exported prior to imposing any penalties, including but not limited to, imposing fines and penalties or withholding inventory. Additionally, there is now a presumption in the statute that the dealer did not have knowledge that the vehicle might be exported.
- Warranty and sales incentive audits: Last year SB 91 provided a 15 month submission period for dealers on warranty and sales incentive claims. It also limited the manufacturer’s ability to audit those claims to 15 months. Under HB 1049, we have reduced the submission period AND the audit period to 9 months.
- Facility upgrades: Within 90 days of a manufacturer terminating a dealer’s franchise agreement for any reason other than fraud, misrepresentation or other crimes, a manufacturer must reimburse a dealer for all manufacturer required upgrades to the dealer’s facility made within the previous 5 years.
- Manufacturer operation of a dealership: An existing provision in Colorado law already prevented a manufacturer from operating a dealership so long as they were not franchised dealerships. This statue narrows provision so a manufacturer that has any dealerships in Colorado, whether franchised or not, is prohibited from operating a dealership.
- Future manufacturer bankruptcy: In the event of a future manufacturer bankruptcy in federal court, the manufacturer may not discharge its obligation to pay terminated Colorado dealers the termination assistance and payment provisions provided in Colorado law.
- Definition of the word “franchise”: As a clarifying provision, Colorado law now defines the word franchise to include “the authority to sell or service and repair motor vehicles of a designated line-make granted through a sales, service, and parts agreement with the manufacturer, distributor, or manufacturer representative.”
Provisions applicable to dealers terminated in GM and/or Chrysler bankruptcies:
- Right of First Refusal: All dealers who were terminated in the GM and Chrysler bankruptcies have a right of first refusal in the event that the manufacturer wishes to re-enter the market previously held by the terminated dealer. The right of first refusal is for five (5) years from the date of the termination of the franchise.
- Optional cash payout: In the event that a manufacturer wishes to re-enter the market previously held by a terminated dealer, the dealer has the option to either (1) take back their franchise under the right of first refusal OR (2) instead accept the termination payments required under Colorado law that the manufacturers did not have to honor during their federal bankruptcies.
- Mandatory notice to terminated dealers: In the event a manufacturer wishes to re-enter the markets previously held by a terminated dealer, they must give notice to all dealers, including the terminated dealer, within a 5 mile radius of the point they wish to open. This is a critical provision of the bill as it gives terminated dealers standing to challenge the reassignment of their franchise to other dealers. This will prevent Chrysler and GM from reallocating franchises of terminated dealers to other dealers. This notice provision is for 5 years and it mirrors the right of first refusal time frame.
- Definition of “right of first refusal area”: In an effort to establish the physical boundaries under which a manufacturer must offer the right of first refusal, Colorado law has defined a new term, “right of first refusal area” which means “a five-mile radius extending from the location of where a motor vehicle dealer had a franchise terminated, cancelled or not renewed if the franchise was in a county with a population of more than one hundred fifty thousand or a ten-mile radius if the franchise was in a county with a population of one hundred fifty thousand or less.”
- For dealers whose franchises were already reassigned prior to Federal arbitration and the implementation of HB 1049: The right of first refusal survives the manufacturer reallocating those franchises prior to the implementation of HB 1049. This section of the bill is retroactive. If a dealer does not want their franchise back, they have the option to seek the cash payout indicated in section 2 above.
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Questions or Comments? Please contact:
If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org
| Event Description |
Date/Time |
Location |
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Wednesday, April 7, 2010
thru
Sunday, April 11, 2010 |
Colorado Convention Center
700 14th Street Denver 80202
CLICK HERE for more information. |
Green Tie Preview Party
|
Wednesday, April 7,
4:00pm - 7:00pm |
Colorado Convention Center
700 14th Street Denver 80202
CLICK HERE for more information. |
Unclaimed Property Corporate Compliance and Regulatory Responsibilities
ONESOURCE® PROPERTY TAX
Panel Discussion
|
April 8 & 9, 2010 |
Colorado Division of Gaming Conference Room
1881 Pierce St.
Lakewood, CO 80214
CLICK HERE for registration and information! |
National Association of Dealer Counsel's (NADC) 6th Annual Member Meeting and Conference
Dallas, Texas
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April 11 to 13, 2010
|
CLICK HERE for more information!
Membership in NADC is strongly encouraged for all CADA member dealers’ attorneys. The information shared between attorneys defending dealers around the country is incredibly valuable! |
CADA 2010 Annual Golf Tournament
SAVE THE DATE!
|
Monday, August 9, 2010
11:00am-11:45am Registration/Practice
12:00 Noon – Shotgun Start |
Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO 80214 |
MINI OF LOVELAND OPENED MONDAY!
You know that 'new car smell'? It’s nothing compared to 'new dealership smell.' With subtle, fragrant notes of fresh upholstery and new leather, it’s our newest scent, and it’s coming to a MINI showroom near you.
Visit miniofloveland.com
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THE BLUEPRINT - HOW THE DEMOCRATS WON COLORADO (AND WHY REPUBLICANS EVERYWHERE SHOULD CARE), BY ADAM SCHRAGER
9News political reporter, Adam Schrager, has a book just out: The Blueprint – How the Democrats won Colorado (and why Republicans everywhere should care), co-authored with former state representative, Rob Witwer.
CADA embers can access the book directly from the publisher for 35 percent discount, through Fulcrum books site www.fulcrumbooks.com. The discount code is Blueprint1.
It is a highly recommended reading for anyone interested in the direction of the state and the country.
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LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.
THE AFTERFACT
- Nissan sets pricing for Leaf electric car in Japan
The Detroit News, March 30
Nissan will announce the U.S. price for the zero-emission Leaf today and launch it later this year. The Japanese automaker calls the Leaf "the world's first truly affordable, mass-market, all-electric zero-emission car."
- Lawyers Play Speed-Date in Toyota Suit Tussle
The Wall Street Journal, March 26
It was the legal world's equivalent of speed-dating. Two dozen attorneys crowded into a courtroom here Thursday and made impassioned, two-minute pleas before a panel of judges.
- Donald N. Frey, Designer of the Mustang, Dies at 86
The New York Times, March 28
Donald N. Frey, the engineer who spearheaded the design and development of the Mustang, the spunky, stylish, affordably priced “pony car” that throlled out in the mid-1960s in one of the most successful car introductions in automotive history, died March 5 in Evanston, Ill., where he lived.
- Carbon Corvette Z06 is headed to Barrett-Jackson auction in April
Auto Week, March 25
Carbon Corvette No. 1 will cross the block on April 3 at the Barrett-Jackson auction in Palm Beach, Fla., and like previous limited-run Chevys, this will definitely create a stir.
- U.S. lowers top GM salaries
Detroit Free Press, March 24
The Obama administration said Tuesday it had cut General Motors' proposed 2010 pay for its top 25 workers, while agreeing with Chrysler to freeze the cash salaries of its executives and sharply reducing proposed stock grants by GMAC.
- Luxury Drivers, Beware
The Wall Street Journal, March 24
When BMW AG Chairman Norbert Reithofer declared last week that his company would start making front-wheel-drive BMWs, there were screams from Stuttgart to Sacramento.
- Daimler to pay $185M penalty
The Detroit News, March 24
Daimler AG will pay a $185 million fine to resolve civil and criminal charges that it paid tens of millions of dollars in bribes to at least 22 foreign governments over a 10-year period, The Detroit News has learned.
- Big 3 pressured as Toyota ups rebates
The Detroit News, March 24
Toyota Motor Corp.'s recall woes would seem to be good news for American automakers, but the incentives that it's offering to help overcome a spate of bad publicity could spell trouble for its domestic competitors.
- Chrysler Exec: March sales up 51 pct from Feb.
Forbes, March 24
A top executive at Chrysler Group LLC said Wednesday that retail sales to individual buyers at the automaker are up 51 percent this month compared with February.
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