APRIL 30, 2008


IN THIS ISSUE

  DEALER NEWS & INFORMATION

     - April Issue of Bulletin Available

     - Automotive News at a Glance


  LEGISLATIVE UPDATE

     - Under the Gold Dome

     - Colorado Lawmakers Debate

       Changes to Corporate Income Tax

     - Romanoff Pushes Spending-

       Limit Reform

     - New Fuel Economy Standard

       Will Be 31.6 MPG

     - Lawyers Fight Back with

       9 Business Measures


  REGULATORY & LEGAL UPDATES

     - NADC Submits Letter to Judiciary
       
Committee Opposing Federal Bill
       
That Would Preclude Arbitration

     - Spot Delivery - Compliance

       Article Reprint


UPCOMING SEMINARS

     - Section 125 Cafeteria Plans

     - Designated Risk Management

       Seminar Returns to Colorado


  CALENDAR OF EVENTS
     - Upcoming Events


  DEALER MILESTONES,
     HIGHLIGHTS & TRANSITIONS

     - Auto Dealer Shaw Turns
       
Failure into Success

     - Loveland Dealer and Sons to

       Ride for Rotary

     - Let Us Know About YOUR
       
Accomplishments!

 


     ARCHIVES

      
CLICK HERE for Open Road
       e-newsletter archives.

       CLICK HERE for 2008 Regulatory
       & Legal Articles
from the Open
       Road e-newsletter.

       CLICK HERE for 2007 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
.



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.cadaonline.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

President
Tim Jackson
tim.jackson@cadaonline.org
303.282.1448

Vice President
Tammi McCoy
tammi.mccoy@cadaonline.org
303.282.1449  

Vice President -
Public Policy & Communications
Nancy J. Burke
nancy.burke@cadaonline.org
303.457.5115  

Bond Coordinator
Linda Toteve
linda.toteve@cadaonline.org
303.457.5122

F&I Resource Center -
Manager
Chad Julius
chad.julius@cadaonline.org
303.457.5119 

Insurance Services -
Account Manager
Deb Lay
dlay@cadaonline.org
303.282.1453

Insurance Services -
Account Manager
Bob Kogel
bobkogel@cadaonline.org
303.282.1457 

Executive Assistant/Member
Resources Coordinator
Lauren Stadler
lauren.stadler@cadaonline.org
303.457.5123

Services Coordinator
George Billings
george.billings@cadaonline.org 303.457.5117


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Nancy Burke at nancy.burke@cadaonline.org

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     ENDORSED VENDOR/PROGRAMS

        CLICK HERE for a list of current    
        Endorsed Vendors/Programs
.
        Click on any of the logos below to
        to go directly to a vendor's webpage.


REYNOLDS AND REYNOLDS


Merchant Services

 

 

 

 


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 ISSUE OF BULLETIN AVAILABLE

Every month CADA distributes copies of the Bulletin newsletter to our members. Each issue contains industry information, dates of upcoming seminars and events, and timely articles for auto dealers. The April issue was mailed earlier this month, or you can CLICK HERE to download a copy.

* * * * * * * * *

AUTOMOTIVE NEWS AT A GLANCE

Listed here are several articles pertaining to the auto industry that appeared recently in newspapers and other media outlets across the nation.

  • Auto dealer challenge: Selling in this economy
    Sanluisobispo.com, April 27
    With the economy’s growth slowed and oil above $100 a barrel, auto dealers in San Luis Obispo County are finding that selling cars is more difficult than it has been in years.
  • A Volt Out of the Red
    The Wall Street Journal, April 23
    With the administration's waning days coming up, the biggest implication of yesterday's fuel-economy proposals from the Transportation Department is that officials will have some media bouquets to Google at their leisure when they leave office. How fun it will be to read about their boldness in speeding up the already ambitious mileage targets that Congress enacted last year.
  • Auto Fuel-Efficiency Goals Raised
    The Wall Street Journal, April 23
    U.S. auto makers must increase the average fuel efficiency of their cars and trucks to 31.6 miles per gallon from today's 25 by 2015 under new rules issued by the Bush administration.
  • Global warming pollution comes
    at a price

    The Denver Post, April 28
    We all know that global warming pollution comes with a cost to our environment. Now major American businesses are recognizing this by putting an actual price on carbon emissions.
CADA forwards news articles and opinion columns of interest
through the Open Road to inform members of current events. 
These in no way reflect the views, opinions, and/or positions
of CADA or its member dealers. They are sent for
informational and educational purposes only.

 


UNDER THE GOLD DOME

Your CADA lobbyist, Nancy Burke, provides weekly updates on legislative issues relevant to the automotive industry. CLICK HERE to read about the current activities taking place on the state and federal levels.

* * * * * * * * *

LEGISLATORS PUSH BRIDGE FIX
Rocky Mountain News, April 28
State Rep. Joe Rice stood next to a crumbling bridge pillar Sunday at Interstate 25 and Santa Fe Drive and pointed to the narrow metal rings designed to hold off future decay.

"Is this the best we can do . . . to maintain our transportation infrastructure?" the Littleton Democrat asked. "It's like paying to constantly buy Band- Aids and never making the investment to go see a doctor."

Rice held a news conference Sunday afternoon under the bridge to emphasize what he says is a need to increase motorist fees to repair that bridge and 121 others in Colorado that are deemed structurally deficient by the federal government.

CLICK HERE to read the entire article. Listed below is more news coverage on this issue:

  • Vehicle fees would increase under proposal
    The Denver Post, April 28
    Colorado drivers could pay up to $97 more to register their cars under a controversial road-repair plan that today faces its first test at the Capitol.

    The eleventh-hour legislation would generate up to $300 million a year to help bolster the state's most ramshackle roads and bridges, though it still falls short of transportation-panel recommendations.

  • Vehicle fees go up under proposal
    KUSA 9News, April 28
    A plan introduced in the state legislature Friday would raise Colorado's vehicle registration fees to pay for improvements to highways and bridges.

* * * * * * * * *

COLORADO LAWMAKERS DEBATE CHANGES TO CORPORATE INCOME TAX
From Denver Business Journal

Lawmakers are considering major changes in how Colorado taxes corporate income, in the hope of attracting businesses that will build facilities and employ more people here.

CLICK HERE to read the entire article.

* * * * * * * * *

ROMANOFF PUSHES SPENDING-LIMITS REFORM
Rocky Mountain News, April 24

House Speaker Andrew Romanoff said he is determined to
ask Coloradans this November to lift the spending limits in
the Colorado Constitution, even if it means gathering petition signatures instead of lawmakers' votes.

CLICK HERE to read the entire article.

* * * * * * * * *

NEW FUEL ECONOMY STANDARD WILL BE 31.6 MPG
Official release of requirements will come toward end of Bush presidency
MSNBC.com, April 22

The next generation of new cars and trucks will need to meet a fleet average of 31.6 miles per gallon by 2015, the Bush administration proposed Tuesday, seeking more fuel-efficient vehicles in the face of high gasoline prices and concerns over global warming.

CLICK HERE to read the entire article.

* * * * * * * * *

LAWYERS FIGHT BACK WITH 9 BUSINESS MEASURES
Rocky Mountain News, April 24

The latest spate of ballot initiatives aimed at Colorado businesses comes from a group of lawyers that wants voters to back limits on executive pay and real estate commissions.

In an apparent retaliation for an earlier filing to limit attorney fees, the head of the Colorado Trial Lawyers Association has filed with the state to put nine measures on the November ballot.

CLICK HERE to read the entire article.

________________________________________________________

If you have questions on any legislative topic, please contact:



NADC SUBMITS LETTER TO JUDICIARY COMMITTEE OPPOSING FEDERAL BILL THAT WOULD PRECLUDE ARBITRATION

H.R. 5312, misleading titled the “Automobile Arbitration Fairness Act of 2008,” would prohibit pre-dispute arbitration agreements in all motor vehicle consumer sale or lease transactions. The NADC (National Association of Dealer Counsel) Board of Directors felt that it was appropriate for the Association to provide comments to the House Judiciary Committee in opposition to the Automobile Arbitration Fairness Act of 2008 (H.R.5312). The attached letter (CLICK HERE to review) expresses the Association's views and was sent last month by NADC president, Mike Charapp.  While there is not universal agreement among NADC membership on the usefulness of arbitration in retail sales and lease contracts, it was felt that legislation proposed to ban pre-dispute arbitration clauses in motor vehicle sales needed to be challenged.

This is another example of the value of the National Association of Dealer Counsel—CADA reminds all dealerships to encourage their attorneys and outside counsel to join this valuable association. Visit the following web site for more information and how to join: http://www.dealercounsel.com/ One of the many benefits of membership is receipt of Defender, the NADC newsletter; CLICK HERE for a sample issue, February 2008 (also includes an agenda from the 4th Annual Member Conference recently held in St. Louis).   

The National Association of Dealer Counsel (NADC) is a nationwide professional organization of attorneys who represent automobile and other vehicle/vessel dealers.  The NADC provides a forum for members to share information, common experience, advice, help and answers to questions on manufacturer franchise issues, lemon laws, vehicle finance and regulatory complexities, insurance laws, tax laws, multiple regulatory requirements, buy sell agreements, rights of first refusal and employment laws and the many other issues facing dealers and their counsel today

NADC members find common ground at meetings and in on-line communication. With the proliferation of legislation, questions and challenges multiply.  Members can rely on thoughtful answers, creative strategies and solid advice from colleagues who face the same issues.

* * * * * * * * *

SPOT DELIVERY - COMPLIANCE ARTICLE REPRINT

The following article by Emily Marlow Beck, a partner in the Maryland office of Hudson Cook, LLP contains some excellent advice on three aspects of dealership compliance and lawsuit mitigation advice:

Time to Go to Plan B?

  • Take control of your dealership's advertising: I've been surprised lately by the number of dealers who tell me that they entrust their marketing efforts (or a portion of those efforts) to third-party marketing companies, but exercise little to no oversight of the ad content.
  • Consider using an arbitration agreement with a class action waiver - seriously: A well-drafted arbitration agreement with a class action waiver can be one of your dealership's best defenses against potentially lethal class action lawsuits. If something does go wrong, the class action waiver can mean the difference between a one-versus-one situation and a one-versus-"pick a number, any number, and add a lot of zeroes" situation.
  • Consider developing consumer dispute resolution procedures: [C]onsider designating an employee or group of employees that are removed from the sales and finance process to serve as level-headed, and company minded, problem solvers. These folks' primary task wouldn't be to save the deal or cover their rear ends, but to solve the problem and protect the dealership.

CLICK HERE to read the entire article.

Copyright © 2008 CounselorLibrary.com LLC. All rights reserved.

________________________________________________________

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.



SECTION 125 CAFETERIA PLANS:
Maximizing tax savings and compliance review

If you currently have a Section 125 plan...
...Are you maximizing your tax savings?
...Could your cafeteria plan survive an IRS audit and is your plan compliant?

If you do not already have a Section 125 plan...
...You could add to your current benefit package at no additional cost!

Tax savings opportunities are substantial under IRS Tax code Section 125—but you must also keep up with changes in the regulations and requirements. To review the latest information on cafeteria plans, American Fidelity will be conducting a two-hour session covering what every company should know about Section 125 Cafeteria Plans:

  • Advantages (and disadvantages) of having a Cafeteria Plan along with types of plans
  • Legal requirements for setting up and maintaining a Cafeteria Plan
    • Is your plan document current in all respects and on file for IRS review?
    • Is your health insurer listed correctly in your plan document?
    • What are the eligibility rules for employee participation?
    • Have all participating employees made annual elections in writing and are these elections kept on file?
    • What is your corporate tax status and do you understand who can participate in your Section 125 Plan?
  • What the IRS will review in an IRS audit
  • Flexible Spending Accounts (FSA)
    • Options such as grace periods, over the counter meds, debit cards, etc.
    • How amounts are calculated, qualified expenses, forfeitures, and using Health FSA’s to limit risk



CLICK HERE for more information
and the registration flyer.


Presented By KARLA BOLINGER, assistant vice president of American Fidelity 

Karla Bolinger has worked in the insurance industry for over 25 years. She earned her CFC designation and is a member of the Employers Council on Flexible Compensation (ECFC), which was established to create and maintain the most favorable legislative, regulatory and public opinion environment for defined contribution plans, 401(k) plans, cafeteria plans, and other elective compensation plans. American Fidelity is a national leader in providing Section 125 administrative services to employers since 1979 and has over 8,000 Section 125 accounts nationwide. They are the CADA-endorsed Section 125 administrative service provider.

Presented by CADA-endorsed
provider American Fidelity

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Grand Junction

Wednesday,
May 14
Noon to 2 p.m.
lunch included

Double Tree Hotel
743 Horizon Drive,
Grand Junction, 81506
970.241.8888
CLICK HERE to register online.

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Denver

Thursday,
May 15
7:30 to
9:30 a.m.
breakfast included

William D. Barrow Building,
CADA Offices
290 East Speer Blvd., Denver
CLICK HERE to register online.

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Colorado Springs

Thursday,
May 15
11:30 a.m. to 2 p.m.
lunch included
Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs, 80903 719.955.5600
*Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465

* * * * * * * * *

DESIGNATED RISK MANAGEMENT SEMINAR
RETURNS TO COLORADO
Unique Opportunity Presented By
CADA-Endorsed Provider

  • Local opportunity to attend this comprehensive
    risk management seminar
  • Condensed one-day session of a 2 ½-day seminar
    typically held only at Federated headquarters

CADA, in conjunction with Federated, will be hosting a Designated Risk Management Seminar. This comprehensive seminar will be limited to twenty dealers, each of whom, after providing the requisite information, will be provided with comprehensive and customized materials at the seminar in April 2007. 

WHEN:

8 a.m. to 4 p.m., Tuesday, June 17
(breakfast & lunch included)
*Due to customized materials, registration deadline is May 10*

WHERE: William D. Barrow Building, CADA Offices
290 East Speer Blvd., Denver
WHO: Risk Managers (or whoever is designated with that responsibility)

Presented by CADA-endorsed
provider Federated Insurance

CLICK HERE for a registration form and more details.
CLICK HERE
to register online for this event.
CLICK HERE
for a seminar re-cap and testimonials from other CADA members who attended last year’s session (look under “Dealer News”).


TO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.cadaonline.org/registration
Event Description
Date/Time
Location

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Grand Junction

Register SOON
for these seminars...
space is limited!

Wednesday,
May 14
Noon to 2 p.m.
lunch included

Double Tree Hotel
743 Horizon Drive,
Grand Junction, CO  81506
970.241.8888
CLICK HERE for a registration flyer. CLICK HERE to register online.

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Denver

Thursday,
May 15
7:30 to
9:30 a.m.
breakfast included

William D. Barrow Building,
CADA Offices
290 East Speer Blvd., Denver
CLICK HERE for a registration flyer. CLICK HERE to register online.

Section 125/Flexible Spending Accounts presented by Karla Bolinger, American Fidelity Assurance Company
Colorado Springs

Thursday,
May 15
11:30 a.m. to
2 p.m.
lunch included

Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs,  80903 719.955.5600
*Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465

Risk Management Seminar presented by Federated Insurance

*Due to customized
materials, registration deadline is May 10

Tuesday,
June 17
8 a.m. to 4 p.m.
breakfast and lunch included

William D. Barrow Building,
CADA Offices
290 East Speer Blvd., Denver
CLICK HERE for a registration form and more details. CLICK HERE to register online for this event.

CADA Workers Compensation Program
– Quarterly Safety Committee Meeting

June 18

More details coming soon!

William D. Barrow Building,
CADA Offices
290 East Speer Blvd., Denver
CLICK HERE for more information on the CADA workers' compensation program.
ATAE (Automotive Trade Association Executives) Service Directors Meetings July 20-23 St. Julien Hotel, Boulder, CO
CLICK HERE for a registration form. Contact Tammi McCoy for more information or if you are interested in sponsorship information.

New Red Flags Rules and Privacy/Safeguards Re-cap

By Rob Cohen, Auto Advisory Services

Monday and Tuesday,
Aug. 11-12

Times and locations TBD; more details coming soon.

2 hour sessions at various locations

Colorado Dealer Management & Leadership Summit

Wednesday,
Aug. 13
8 a.m. to
7:30 p.m.

Marriott Denver South at Park Meadows
CADA Annual Member Golf Event Monday,
Sept. 8
Columbine Country Club
17 Fairway Lane
Columbine Valley, 80123



AUTO DEALER SHAW TURNS FAILURE INTO SUCCESS
Corpus Christi Caller Times, April 23

When Mike J. Shaw started his entrepreneurial career in Corpus Christi, he failed because of the oil and gas crash of the 1980s.

But from previous experiences, he knew not to give up and slowly became the head of seven successful car dealerships in Colorado. Today he is back in Corpus Christi and will open a $9 million dealership in July.

"There will be a lot of failures in life, but it's what you do with them that counts," Shaw said.

On Tuesday, Shaw passed along that advice to more than 150 students and faculty at Texas A&M University-Corpus Christi's Performing Arts Center. He also accepted the 2008 G. Russell Kirkland Distinguished Visitor's Chair in Business Administration award from the university's College of Business.

CLICK HERE to read the entire article.

* * * * * * * * *

LOVELAND DEALER AND SONS TO RIDE FOR ROTARY

For the next three summers, Ryan Ferrero and his two sons will take a 1,000-mile bike ride across the United States to support the Loveland Rotary Club. Ferrero, owner of Ferrero I-25 Chrysler Jeep Dodge in Loveland, Riley, 9, and Dylan, 7, will ride on a Pino Tour tandem hybrid bike for this event. 

Ridin' for Rotary is a charitable ride to support their dictionary project, with a goal of more than $5,000. The purpose of this bike ride is for every 3rd grader in the Thompson R2-J School District to receive a dictionary courtesy of the Loveland Rotary Club. 

Between June 19 and July 3, 2008, the three "boys" will be dipping the traditional rear-tire in the Pacific in Astoria, Oregon. Then the Ferreros will ride a self-supported 800-mile solo tour through the Oregon Cascade Mountain Range through Boise, completing their first of three legs in Sun Valley, Idaho. Summer 2009 and 2010 will complete the journey in Washington DC where the front wheel will be dipped in the Atlantic.

"We will raise money to ensure that every 3rd grader receives the New Heritage full-color hard-backed dictionary," said Ryan. 

To support Ridin' for Rotary,
CLICK HERE for more information
or visit www.RyanFerrero.com/Rotary.

* * * * * * * * *

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@cadaonline.org.  Also include your contact information for further follow-up.

 


If you want to be added to our mailing list, please CLICK HERE.

 

 
Colorado Automobile Dealers Association
 290 East Speer Boulevard Denver, CO  80203
 Telephone:  303.831.1722  |  Facsimile: 303.831.4205
 www.cadaonline.org