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

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        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

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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.

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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.

• Ford Eyes More Cuts As Recovery Advances
  The Wall Street Journal, April 23
  Ford Motor Co., long considered the sickest of the Big Three U.S. auto makers, is showing signs of a surprise turnaround.
  

• 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.

• Ritter orders reports to keep tabs on Colorado greenhouse gas emissions
  Aspen Times, April 22
  Gov. Bill Ritter wants to force big polluters to report their greenhouse
  gas emissions and draw up a plan to reduce emissions from cars to meet his goal of cutting the state's overall emissions by 20 percent by 2020.

• 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.
  

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.

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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.

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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.

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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.

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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:

• Nancy Burke, Vice President - Public Policy and Communications, nancy.burke@cadaonline.org, 303.457.5115
• Tim Jackson, President, tim.jackson@cadaonline.org,  303.282.1448

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).   

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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:

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

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

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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. 

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

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.

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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.

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

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