DECEMBER 31, 2008


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Reminders: Sales/Use Tax & Minimum Wage Changes Effective January 1, 2009

Guest Column: Disaster Pack

 

UPCOMING SEMINARS

Employment Law Seminar: FMLA and ADA Acts - New Federal Regulations!!

Red Flags Rule Compliance Seminar

Tough Times, Tougher Dealers Webinar


CALENDAR OF EVENTS
Upcoming Events

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

NADA Convention and Exposition

Denver International Auto Show

CADA Annual Member Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

NADA 2009 Convention and Exposition

Share Your Accomplishments


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

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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
.

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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.




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REGISTER NOW!
EMPLOYMENT LAW SEMINAR

FMLA and ADA Acts - New Federal Regulations take effect January 1, 2009

Click here for more information!




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.

  • Less Control for GM, Cerberus as GMAC Changes to Bank
    Washington Post, December 26
    GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors and Cerberus Capital Management.
  • A Global Race to the Bottom Puts Progress at Risk
    Washington Post, December 21
    We were educated to leave New Orleans, not to stay there. We were trained to avoid unions, not to join them. We were taught to do both in pursuit of progress.
  • A Bumper Year for Appointed Senators
    Hawaii Reporter, December 26
    The surprise announcement that Colorado Senator Ken Salazar will leave Congress to join Barack Obama's cabinet as Interior Secretary has completely upended the 2010 Senate race in a highly competitive state.
  • GMAC needs to clear final hurdle for bailout funds
    Detroit Free Press, December 26
    The financing arm of General Motors Corp. had until midnight today to clear a final hurdle in its quest to become a bank holding company, even though it already received the Federal Reserve's stamp of approval earlier in the week.
  • Advice for Ritter in replacing Salazar: 4 letters
    Denver Post, December 26
    Taking advantage of the governor’s offer to have input concerning a replacement for Sen. Ken Salazar, I heartily recommend Angie Paccione.
  • Projected budget gap either bad or REALLY bad
    The Colorado Statesman, December 26
    Is this year’s budget gap in Colorado a whopping $604 million or a manageable $77 million? That depends on which report you read.
  • Buescher wins secretary of state nod
    The Colorado Statesman, December 26
    The morning after Bernie Buescher’s shocking Nov. 4 loss in his Grand Junction legislative district, Gov. Bill Ritter said in his election wrap-up press conference that he had a feeling the defeat did not mean Buescher’s work in state government had ended.
  • Recession tops list of '08 stories in Colorado
    Rocky Mountain News, December 27
    I spent the past week going through 300 or so Rocky Business sections from 2008. I've come up with a list of what I think were the top 10 stories of the year in Colorado.
  • Ritter needs bold choice to replace Salazar
    The Colorado Statesman, December 26
    Colorado’s pundits and politicos are advising Gov. Bill Ritter to replace U.S. Sen. Ken Salazar with someone well-known and well-connected in Democratic circles, someone who can raise the millions of dollars likely to be needed for the 2010 election campaign.
  • The limits of 'science.' Does Obama adviser respect them?
    Rocky Mountain News, December 26
    Stephen Holdren, the former president of the American Academy for the Advancement of Science, will have a direct line to Obama regarding climate change and renewable energy, two of Holdren's major interests.
  • GM calls revamped Equinox ‘Swiss army knife’
    MSNBC, December 21
    General Motors Corp. revealed details Sunday about the redesigned 2010 Chevrolet Equinox crossover sport utility vehicle that will debut at next month's North American International Auto Show in Detroit.
  • Winners and Losers ’08: One Writer’s View
    The New York Times, December 26
    IN its 2008 Car Reliability Study, Consumer Reports ranked the Chrysler Sebring convertible, with a reliability score that was “283 percent worse than average,” dead last among the 357 vehicles covered in the survey of subscribers.
  • Bill Heard falls, Synovus cuts jobs among top business stories
    Ledger Enquirer, December 28
    The struggling economy played into much of the Columbus area’s business news in 2008.
  • Auto rescue package leaves big political challenge for Obama
    Wacotrib, December 28
    Christmas came a little early for the nation’s automakers, thanks to President Bush’s announcement of a last-minute $17.4 billion bailout after fellow Republicans in the Senate defeated a similar rescue package. But like so much expensive holiday giving, the cost won’t be felt till after the holidays.
  • Auto CEOs' trip called a green stunt
    Detroit Free Press, December 28
    The Greenwash Brigade, a group that takes companies and others to task for misleading consumers about their environmental practices, has named the much-ballyhooed trips in hybrids from Detroit to Washington by Detroit's auto CEOs as one of the Greenwashes of the Year.

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REMINDERS: SALES/USE TAX & MINIMUN WAGE CHANGES EFFECTIVE JANUARY 1, 2009

A reminder that the following changes go into effect this week; see the prior Open Road articles below for more information:

JANUARY 1ST, 2009 SALES AND USE TAX CHANGES,

COLORADO MINIMUM WAGE: ANNUAL INCREASE EFFECTIVE JANUARY 1, 2009.

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GUEST COLUMN: DISASTER PACK

By: Ronald C. Smith, Stewart & Irwin, P.C.
Chairman, Automotive Law Practice Group

Given today’s rather radioactive times, the good folks at NADC thought we might develop a dealership advice “disaster pack” in case of one or more catastrophic events. This article could not, of course, be exhaustive, but is simply a compilation of bullet points that, in my opinion and experience, dealer lawyers should consider in advising their clients.

CLICK HERE to review the entire article.

Article summary – make sure you are obtaining legal counsel on these important issues:

  1. Employment. On the employment front, a major issue would seem to be the applicability of the Federal Worker Adjustment and Re-Training Notice Act (WARN). The Warn Act applies to businesses with over 100 employees and requires a 60-day notice if an employer is going to lay off over half of the workforce at a particular location.
         A. Layoffs versus layoffs without recall versus termination. In most states, a layoff      has a connotation that an employer will call people back. This course of action      could be fraught with discrimination claims, depending upon minority mix,      gender, age, etc.
         B. Expect your unemployment compensation rate to increase.
  2. Lending relationships. If your client has a current floorplan, tell them to keep it.
  3. Cash Management Account. Take steps to guard your client’s Cash Management Account. Your client’s Cash Management Account could be an unsecured debt in the event of a manufacturer bankruptcy if it is maintained by a factory division or subsidiary.
  4. Factory Accounts. Advise your clients to keep their factory accounts as lean as possible.
  5. Franchise Alignment. In the event any of the three domestics merge, go Chapter 11 or otherwise, in my opinion those dealers that are properly aligned with product lines will have a higher chance of survival.
  6. Facilities and Upgrades. Clients should resist factory mandated stand-alone facilities and facilities upgrades where it is not economically justifiable for the dealer.
  7. Short-Term Franchises. Resist short-term franchise agreements in case of facilities issues.
  8. Performance and CSI Requirements. Clients should resist stupid franchise performance standards and CSI requirements. Develop a paper trail on behalf of your client, pointing out the statistical flaws in the measurements.
  9. Personal Debt Planning. Advise your dealers to engage in a bit of personal debt planning.

Ronald Smith’s article was published in the December, 2008 issue of The Defender, the bulletin of the National Association of Dealer Counsels (NADC).   We continue to encourage all dealer defense attorneys to join this organization; the information provided in bulletins and publications, the list-serve, and conferences is invaluable. www.dealercounsel.com

* * * * * * * *

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.


EMPLOYMENT LAW SEMINAR: FMLA AND ADA ACTS - NEW FEDERAL REGULATIONS!!

Presented by Todd Fredrickson, top Denver employment attorney

Tuesday, Jaunary 6, 2009 (Denver)
Wednesday, January 7, 2009 (Colorado Springs)

Next month, the federal government will saddle employers with new laws, regulations and obligations under the Americans with Disabilities Act (ADA) and Family Medical Leave Act (FMLA).  Workplace law experts expect these new laws will generate an increase in lawsuits against employers—especially in the current economic downturn as downsizing is occurring.   

  • The U.S. Dept. of Labor announced new FMLA regulations last month, the first significant changes to the regulations since 1995.  Changes are effective January 16, 2009 – key changes include:
    • Implements two new forms of military family leave created earlier this year
    • Expands employer's notice requirements to include a general notice about the FMLA; an eligibility notice; a rights and responsibilities notice; and a designation notice.
    • Defines serious health condition
    • Changes to medical certification process, fitness for duty evaluations, substitution of paid leave
  • The ADA Amendments Act will require almost all human resource professionals, managers, and business owners to adopt new policies and procedures in dealing with accommodation requests, as well as greatly impact employment litigation claims.  
    • Overview of what has changed and how to comply; what is “disabled”
    • What this means to employers and who will be affected
    • The risks and penalties of non-compliance; effective date is  Jan. 1, 2009
A CLICK HERE for more information
on this
training session.

* * * * * * *

RED FLAGS RULE COMPLIANCE SEMINAR

PLUS: Privacy/Safeguard Recap and Overview of Frequently aOverlooked Federal Compliance Obligations

Friday, Jaunary 9, 2009

By Paul Metrey, NADA’s Director of Regulatory Affairs
Make sure you completely understand the new Red Flags compliance obligations:

  • Create and implement a written ID Theft Protection Program with procedures designed to detect and respond to “red flags” indicating potential identity theft.
  • Periodically review and update the written program to reflect changing risks.
  • Train responsible staff members and oversee service providers (i.e., third party vendors).
  • Senior management or owner(s) must approve the program and review/monitor annual reports.

***Opportunity to ask questions, and delve into specific aspects of implementation***

Paul D. Metrey, Esq. is the Director of Regulatory Affairs in the Legal and Regulatory Group of the National Automobile Dealers Association (NADA). He represents dealer interests before, and educates dealers on, regulations promulgated by several federal agencies including the Federal Reserve Board, FTC, FCC, Department of the Treasury, and IRS. He reports on regulatory developments and has authored several NADA publications and frequently speaks to dealers, dealership compliance professionals, and other industry groups on regulatory topics, including recent developments in privacy, ID theft, telemarketing, consumer financing, and tax.

CLICK HERE to register online!

A CLICK HERE for more information
on this
training session.

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TOUGH TIMES, TOUGHER DEALERS: SAVING YOUR DEALERSHIP'S ASSETS

VIRTUAL SEMINAR

Tuesday, Jaunary 13, 2009

Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutler,

This webinar focuses on the issues facing almost every dealer today, such as:

  • Cash Management
  • Expense Control
  • Franchise Rights

Participants will also learn how to deal with bankruptcy—both at the manufacturer and dealership levels—as well as franchise terminations, brand terminations, and the legal ramifications of reducing a workforce.

The registration fee for the virtual seminar is only $50 per computer connection.

"Tough Times, Tougher Dealers" will also be a workshop at the 2009 NADA Convention & Exposition in New Orleans. The workshop will be held twice—11 a.m. on Saturday, Jan. 24, and 8:30 a.m. on Monday, Jan. 26. In addition, the convention will offer more than 40 other workshops, many of which are designed to tackle today’s tough economic issues head-on, such as maintaining dealer profitability, improving cash flow, surviving the credit crunch and driving customers back to dealerships. For more information, visit www.nada.org/convention.

CLICK HERE to register online!

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

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

Family Medical Leave Act & American with Disabilities Act (ADA) Regulatory Updates:

FMLA—new rules are effective January 16, 2009

By Todd Fredrickson, Fisher & Phillips LLP

www.laborlawyers.com

Tuesday, January 6   Denver, 7:30 – 10am  Breakfast Included

Wednesday, Jan 7 – Colorado Springs, Noon-2:30pm Lunch

William D. Barrow Building 290 East Speer Blvd, Denver, 80203 Phone: 303.831.1722

Antlers Hilton Hotel
4 South Cascade Avenue   Colorado Springs, 80903 Phone: 719l955.5600

For more information Click Here

REGISTER ONLINE (DENVER)
Click Here

REGISTER ONLINE (COLORADO SPRINGS)
Click Here

Red Flags Rule Compliance Seminar
Plus: Privacy/Safeguards Recap and Overview of Frequently Overlooked Federal Compliance Obligations

Denver

By Paul Metrey, NADA Regulatory Affairs

Friday, January 9, 2009,

7:30am

Breakfast meeting

William D. Barrow Building (CADA/MDADA Headquarters)
290 E. Speer Blvd
(SW Corner of Grant/Speer)
Phone: 303.831.1722

For more information Click Here

REGISTER ONLINE!

Tough Times, Tougher Dealers: Saving Your Dealership’s Assets

Webinar

Denver

Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutlers

Tuesday, January 13, 2009,

1:00 - 3:00 pm

 

The registration fee for the virtual seminar is only $50 per computer connection.

For more information or to register, visit www.nada.org/seminars!



Event Description
Date/Time
Location

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

This is for attorneys working with dealers and dealer principals.

Friday, January 9, 2009

11:30-1:30

Lunch

Briefing / update on upcoming legislative session, compliance and regulatory matters, and Red Flags/Safeguards overview from Paul Metrey, NADA Regulatory Affairs

Baur’s Restaurant
www.baursdenver.com
1512 Curtis Street , Denver, CO 80202

CLICK HERE to register online!
CLICK HERE for more information!

NADA Convention & Exposition

Jan. 24-27, 2009

New Orleans Morial Convention Center
New Orleans, LA

CLICK HERE for more information from the official website.

Denver International Auto Show

Wednesday, April 1, 2009

thru  

Sunday, April 5, 2009

Colorado Convention Center

700 14th Street Denver 80202

 

CADA Annual Member Golf Event

Monday, August 24, 2009

12:00 Noon Shotgun Start

Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000

www.glenmoorcc.org


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NADA 2009 CONVENTION AND EXPOSITION

aNew Orleans is now the eighth fastest growing metropolitan area in the United States, according to the U.S. Census Bureau. To show support for the rebirth of New Orleans, NADA is headed back to the Big Easy to hold its 92nd annual convention and exposition there Jan. 24-27, 2009.

“The theme for our New Orleans convention is 'Voice of the Dealer® ... Committed to Community.' What better way to show that commitment than for us to be there in full strength at one of NADA's favorite convention cities," said Annette Sykora, 2008 NADA Chairman. NADA has held its convention in New Orleans every few years for the past 30 years.

For more information, visit the following websites:
http://www.nada.org/TrainingEvents/Convention/
http://expo.nada.org/nada2009/public/enter.aspx

CLICK HERE to register!

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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.


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

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