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– Dealer Participation Needed: NADA Compensation and Benefits Survey
– Unclaimed Property - Audits Have Been Reported by Dealerships – 2009 NHTSA Insurance Booklets Now Available – IRS 2009 Standard Mileage Rates
– SB-091 Signed Into Law by Governor Ritter – HB 1230 Hold Harmless for Dealers – SB-150 Closes Bankruptcy Loophole – SB 273 & SB 281 - State Trying to Take $500 Million From Pinnacol Assurance to Balance the Budget
– Dealer Management and Leadership Summit – CADA Annual Member Golf Event
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DEALER PARTICIPATION NEEDED: NADA COMPENSATION AND BENEFITS Surveys are DUE by April 15th! NADA sponsors an annual dealership compensation survey; we strongly encourage you to participate in this nationwide survey designed to collect compensation and benefits data for key dealership employees. This survey will provide overview information for the Mountain region and also show key compensation metrics in comparison to the rest of the country. In 2007 more than 2,500 dealers from 71 state and local associations participated in this survey and the results were published in the NADA Management Guide “PF15 Paying to Motivate Update ‘07”. The results of this year’s survey, published as “PF16 – Paying to Motivate Update ‘09”, will be mailed to you from NADA for free if you decide to participate!* This publication will also be sold to non-participating members for $150 each and will be available in late summer. Additionally, Colorado state-specific reports will be provided to all participants; CADA will mail those reports when available. To complete the survey online click here: www.nada.org/survey To obtain a paper copy of the survey CLICK HERE Listed here are several articles pertaining to the
UNCLAIMED PROPERTY - AUDITS HAVE BEEN REPORTED BY DEALERSHIPS In these times of tight state and local government budgets, dealerships can expect an increase in audits of all types as there is an attempt to “find” more revenue wherever possible. Aside from sales/use tax audits, one other area of risk for dealerships is “unclaimed property”. For dealerships that are not familiar with this requirement, every business in Colorado is required to annually report “unclaimed property” to the state of Colorado, attempt to reach the actual owner(s), report/track these items, and ultimately turn over such funds to the state if they remain unclaimed. The funds remain with the state and continue to earn interest/income to provide another revenue source for the state. State auditors from the Unclaimed Property department indicate that probably every dealership in Colorado has at least some “unclaimed property”. Annual unclaimed property reports are due to the state each year by November 1st. A few common examples include:
More information can be found on the state department’s web site at the following: www.greatcopayback.com See “Holder Information” on the top menu bar for more specific information on reporting requirements. There are electronic reporting options, forms and free software that is available for tracking purposes. For dealerships that have never reported, the department simply encourages you to begin doing so as soon as possible, voluntarily. Audit risk and potential liabilities can extend back ten years. * * * * * * * * 2009 NHTSA INSURANCE BOOKLETS NOW AVAILABLE The 2009 Relative Collision Insurance Cost Information booklet that all automobile dealers must make available to prospective purchasers, is now available. The publication includes comparative information regarding differences in vehicle collision loss experience that could affect automotive insurance costs. Each year the National Highway Traffic and Safety Administration (NHTSA) publishes a new version of this booklet and mails a copy to each dealer. Dealers who have not received a copy of the booklet should contact NHTSA's Office of International Policy, Fuel Economy, and Consumer Programs at (202) 366-0846 or download and print it by clicking the name of the publication at the beginning of this article. A copy of the guide should be kept readily available and provided to customers on request.. CLICK HERE for the booklet. * * * * * * * * IRS 2009 STANDARD MILEAGE RATES The 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, as issued by the Internal Revenue Service (IRS), are as follows:
CLICK HERE for more information from the IRS. * * * * * * * * If you have questions on any legal or regulatory topic, please contact:
DISCLAIMER: CADA is not authorized to dispense legal advice.
SB-091 SIGNED INTO LAW BY GOVERNOR RITTER
On Thursday, April 2, 2009 at 2:48 p.m., CADA's proposed legislation to reform Colorado's motor vehicle franchise statutes was signed into law. The effective date of the bill is July 1, 2009. SB-091 accomplishes seven main objectives:
1. Warranty and Sales Incentives Autits - Requires dealers to submit warranty and sales incentive claims within 15 months of making sale or providing service. Manufacturer shall have 15 months from the date these claims were submitted to audit the dealer on those claims.
2. Dualing - Protects dealers from manufacturer mandates to build and maintain facilities exclusive to one line-make. Requires dealers to provide 90 day written notice manufacturers of their intent to acquire additional automobile brands in an existing facility.
3. Incentives tied to facilities upgrades - Protects dealers from manufacturer mandates to upgrade existing dealer facilities. If manufacturer offers incentive programs to dealers to upgrade facilities, these programs must be offered to all dealers equally in Colorado.
4. Pricing variances - Requires manufacturers to offer price incentives to all dealers equally in Colorado. For example, the dealer in rural Colorado would be provided with the same low prices or sales incentives offered by the manufacturer that are offered to a dealer in urban Colorado. 5. Termination & Market Withdrawal - If a manufacturer discontinues production of certain lines motor vehicles, they must provide the dealer with payment for 12 months of rent for their facility and the goodwill value of the dealership on the date the announcement is made to terminate the brand. 6. Buy/Sell/Transfer/Change of Management/Relocation - Currently, manufacturers have to approve a buy/sell/transfer/change of management or relocation of a dealership. The law would be amended to require that they provide their approval or disapproval within 80 days, with an inclusionary timeline of 20 days to tell the dealer specifically what documentation it needs to render a decision. 7. “Grandfather-in” existing manufacturer, but prohibit future licenses - There is one truck manufacturer currently selling used trucks in Colorado, and this law would “grandfather” them in, and prohibit any further manufacturers from selling used vehicles. The sale of new vehicles by manufacturers is already prohibited. If you would like to view a copy of SB-091, please click here. * * * * * * * * HB 1230 HOLD HARMLESS FOR DEALERS This bill provides a hold harmless for dealers on address discrepancy and refers sales tax jurisdictional issues to the Transportation Legislation Review Commission for their review over the summer. The bill passed out of House on March 23rd by a vote of 64-0 (with one absent), passed unanimously out of the Senate Transportation committee on Tuesday, March 31, and passed out of the full Senate on Monday, April 6th by a vote of 33-0 with 2 absent. The House must now concur with the Senate amendments and the bill should be on its way to Governor Ritter by the end of this week. * * * * * * * * SB-150 CLOSES BANKRUPTCY LOOPHOLE This bill closes bankruptcy loophole often abused by consumers and protects security interest of dealers and lien holders. We amended this bill to provide 30 day timeline under which dealers can perfect liens and still get benefits of bill which was originally 20 days. It passed out of the House of Representatives on Monday, March 30th by a vote of 64-0-1. The Senate concurred with the House amendments and the bill is headed to Governor Ritter for his signature. * * * * * * * * SB 273 & SB 281 - STATE TRYING TO TAKE $500 MILLION FROM PINNACOL ASSURANCE TO BALANCE THE BUDGET SB 273 & SB 281 - Both of these bills relate to a raid by the State of Colorado on Pinnacol's reserve funds. Pinnacol is a privately run mutual insurance company that, according to Senate Democrats, is a political subdivision of the State. Both of these bills were filed on Monday, April 6th and were heard by the Senate Appropriations committee on Tuesday, April 7th at 7:30 a.m. Senate Bill 273 would draw $500 million from Pinnacol’s reserves to help plug a $1.4 billion shortfall in the state budget and avoid cutting $300 million in higher-education funding. The measure passed by a 7-3 vote, with Sen. Al White, R-Hayden, voting with majority Democrats. Senate Bill 281 effectively makes Pinnacol a state agency again, giving government tighter control of the insurer’s finances. The organization had operated semi-autonomously since the 1990s. Both bills passed out of the Senate Appropriations committee and are now headed to the floor of the Colorado Senate for further consideration. * * * * * * * * Questions or Comments? Please contact: Melissa Kuipers – VP of Government Relations and Communications
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. If you want to be added to our mailing list, please CLICK HERE. To remove yourself from this list, click on this link.
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DEALER NEWS & INFORMATION
