JUNE 7, 2011

IN THIS ISSUE

DEALER NEWS & INFORMATION

– Auto Industry News at a Glance

REGULATORY & LEGAL UPDATES

– Salesperson Exam Administration: Additional Revisions to Affidavit Form DR2097

LEGISLATIVE UPDATE

– HB Passed Overwhelmingly in Colorado Senate and House

UPCOMING SEMINARS

– Upcoming Seminars

– Colorado Dealer Compliance Guide Roll-Out and Training

CALENDAR OF EVENTS
– Upcoming Events

– CADA Annual Golf Event

DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

–Share Your Accomplishmens

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

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Speaker and Educational
Resources.

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Endorsed Vendors/Programs.

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Allied Members.

CLICK HERE for an order form for
CADA forms.

CLICK HERE for information on all member services.

www.nada.org


www.aiada.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.

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Friday, 7 a.m. to 4 p.m.

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ENDORSED VENDOR/PROGRAMS

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Endorsed Vendors/Programs.

If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.

 AUTO INDUSTRY 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.

SALESPERSON EXAM ADMINISTRATION: ADDITIONAL REVISIONS TO AFFIDAVIT FORM DR2097

The Auto Industry Division has made further revisions to the DR 2097 form, the salesperson exam affidavit.  The latest revision date is 5/20/2011.  Primarily the Division has added boxes at the bottom of the form for their internal use.  Please begin using the newest form as soon as possible.

The revisions to this affidavit form are in response to recent dealer violations where administrative passwords have been unlawfully provided to test-takers, and other factors indicate the exam was not actually administered at the dealership.    It is important for dealership administrators and license applicants realize that they are signing under penalty of perjury that all exam requirements have been met. 

Visit the May 10, 2011 issue of Open Road, Salesperson Exam Administration: Unlawful to Give Out Password and Exam Must be 'Administered’; Recent dealership violations highlighted to the Dealer Board

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If you have questions on any legal or regulatory topic, please contact:

• Tammi McCoy, Vice Pres., tammi.mccoy@coloradodealers.org, 303.282.1449
• Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448

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

HB 1188 PASSED OVERWHELMINGLY IN COLORADO SENATE AND HOUSE

House Bill 1188 was successfully passed on its Third Reading on the Senate floor, Monday, May 9th. The bill passed with a 33-1 vote with one legislator absent.  Two changes were made to the bill prior to its passage in the Senate Business Labor and Technology Committee.

The Colorado House of Representatives concurred with the Senate changes on Tuesday, May 10th and on an overwhelming vote of 61 to 4, HB 1188 was passed.

State Senator and bill sponsor, Linda Newell selected a dealership from within her district for the bill signing.

HB 1188 was officially signed on Friday, May 13th at 4:30pm at John Elway Chevrolet by Governor Hickenlooper (pictured below).

House Bill 1188 – Tightens basic dealer protections and prevents manufacturers from requiring expensive new facility upgrades when expensive facility upgrades have been completed at request of manufacturer in recent years.  More detail on HB-1188 is shown below.

More on HB-1188 – Franchise protections:

• HB 1188 will provide stability for Colorado consumers, auto dealers and their employees by shielding them from unnecessary and costly facility mandates frequently required by auto manufacturers.

• Auto dealers are consistently pressured by manufacturers to significantly upgrade the exterior and interior of their showrooms and service facilities – and all of these improvements are mandated at the expense of the local dealer.

• HB 1188 will provide a "safe haven" for dealers from pressure, coercion and penalties by manufacturers if they have built a new facility, or made upgrades to an existing facility, within the past seven (7) years.

• Other protections in HB 1188 include: 

(1) 90 day notice provision to a dealer by the manufacturer if franchise is going to be terminated;
(2) 90 day notice provision to a dealer by the manufacturer if the dealer's geographic region where they are expected to sell cars is going to change;
(3) Prohibition of a loophole in franchise agreements that allows manufacturers to control the dealer's real estate after there is no longer a franchise agreement in place.
(4) Requires the Executive Director of the Department of Revenue to issue a cease-and-desist order when a dealer complains that a manufacturer is illegally ending a franchise agreement.

· The segment of the bill (HB0-1188) that ensured all provisions of Colorado’s franchise laws apply to all manufacturer/dealer sales and service agreements, regardless of when initiated, was removed from the bill at the sponsor’s request following significant manufacturer pushback and ramped-up opposition lobbyist engagement.

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COLORADO DEALER COMPLIANCE GUIDE ROLL-OUT AND TRAINING!
NEW GUIDE SUMMARIZES, IN ONE PLACE, KEY AREAS OF STATE COMPLIANCE AND ASSEMBLES VALUABLE RESOURCE INFORMATION

Key dealership staff training for overlooked compliance areas and risk:

• Receive the new Colorado Dealer Compliance Guide AND training to review key highlights—for a reduced, bundled price. 
• Compliance is critical in every area of your dealership; minimize exposure to lawsuits

Mulitiple dates and locations see calendar below for more information.

Register Online!

CLICK HERE to fill out a registration form.

New compliance guide developed jointly by CADA and Colorado dealer attorney:
Michael Dommermuth, MCGloin, Davenport, Serverson & Snow, P.C.
AN ATTORNEY WHO SPECIALIZES IN REPRESENTATION OF MOTOR VEHICLE DEALERS.  MICHAEL IS A MEMBER OF NATIONAL ASSOCIATION OF DEALER COUNSEL, A NATIONAL ORGANIZATION OF ATTORNEYS WHO REPRESENT DEALERS.  MICHAEL EARNED A BACHELOR’S DEGREE FROM PURDUE UNIVERSITY IN 1980 AND JURIS DOCTORATE FROM THE UNIVERSITY OF INDIANA AT BLOOMINGTON IN 1983.  MICHAEL HAS 26 YEARS OF EXPERIENCE REPRESENTING DEALERS THROUGHOUT COLORADO AND THE ROCKY MOUNTAIN WEST.  MICHAEL’S FIRM PROVIDES FULL SERVICE REPRESENTATION OF MOTOR VEHICLE DEALERS INCLUDING, BUY/SELL AGREEMENTS,  LITIGATION, FINANCE, FRANCHISE, MANUFACTURER DISPUTES, BANKRUPTCY, DEALER SUCCESSION, CLASS ACTIONS AND FEDERAL AND STATE COMPLIANCE.  MICHAEL HAS SUCCESSFULLY DEFENDED DEALERS IN CLASS ACTIONS CHALLENGING D&H AND THE FOR DAMAGES UNDER THE TELEPHONE CONSUMER PROTECTION ACT.

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TO REGISTER ONLINE FOR ANY CADA SEMINAR OR EVENT, PLEASE VISIT: www.coloradodealers.org/registration

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

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.

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