February 2010

Transcription

February 2010
LEGISLATIVE NEWS
2010 Legislative Session Begins
to Pursue Additional
Franchise Protections
The 2010 Legislative Session started February 4th. MADA is
advocating the passage of legislation to, once again, strengthen the
state motor vehicle franchise law.
MADA legislation will allow dealers to make more efficient use
of their dealership facilities, and protect dealers’ rights to contract
voluntarily for the manufacturer’s exclusive use of dealership facilities.
The MADA legislation also seeks to give dealers more control over
performance standards and area of primary responsibility. Finally, the
bill will give rights to terminated GM and Chrysler dealers to future
franchise awards in their market areas.
The bill, HF2902/SF 2663, is being authored by both House and Senate
Commerce Committee chairs, Senator Linda Scheid (DFL – Brooklyn
Park) and Representative Joe Atkins (DFL – Inver Grove Heights).
The bill will need to pass four legislative committees before it can
proceed to debate in the full House and Senate. Manufacturers are also
beefing up their opposition to dealer’s efforts this year with additional
lobbyists. With committee deadlines rumored to be short, clearing four
committees by mid-March will be challenging. Dealers are urged
to contact their own state legislators to ask them to support the
MADA franchise legislation, HF. 2902/SF 2663.
In the bigger picture, Legislators returned to St. Paul to pass a bonding
bill and to tackle a budget shortfall of $1.2 billion. In accordance with
Minnesota’s Constitution, Legislators must balance the state’s budget
before the adjournment date of May 17th.
Nearly two-thirds of the state’s deficit comes from a loss of income
tax receipts, due to significant unemployment and underemployment.
Because the state’s budget is created in two year cycles, or a biennium,
the Legislature has only half of the state’s budget revenue available
to solve the current deficit. Technically, the state has already written
checks for almost half of the state budget cycle, leaving limited pots
of money, and limited solutions.
The Governor delivered his final State of the State Address on February
11th from the House of Representatives chamber in the State Capitol,
and his final budget on February 15th.
February 2010
IN THIS ISSUE
LEGISLATIVE NEWS
MADA to Pursue Additional Franchise
Protections........................................ Cover
MADA to Engage In Multiple Legislative
Battles in 2010 ..........................................2
Tom Horner Begins Quest To Be
Governor...................................................2
MADA NEWS
Last Call - Update your MADA Profile ......8
LEGAL NEWS
U.S. Supreme Court Gives Green Light to
Corporate Campaign Spending ...............4
Thirty-Five GM and Chrysler Dealers Seek
Franchise Arbitration ................................4
INDUSTRY NEWS
DVS Computer Upgrade is Moving
Forward ....................................................3
NADA Convention Report .........................7
CONGRESSIONAL ACTION
Gap in Federal Estate Tax Since
January 1, 2010 ........................................3
AUTO OUTLOOK ...........................5-6
MEMBER NEWS ............................... 8
FAQ ....................................................... 8
UPCOMING EVENTS
Sales Tax
Tuesday, March 9
New to Fleet
Tuesday, March 9
MN Titles and Transfers
Tuesday, March 9
On the Lot - Sales Training
March 10, 2010
Minneapolis/St. Paul Auto Show
March 6-14, 2010
Web-based Training
Ongoing
* All Classes at MADA (200 Lothenbach Avenue
West St. Paul, MN 55118) unless otherwise noted
February 2010 / Page 1
LEGISLATIVE NEWS
MADA to Engage In Multiple Legislative Battles in 2010
Tax issues. With another budget shortfall taking
center stage, legislators continue to propose tax
increases to bridge the gap. Tax on interest income,
Single Plate. MADA will pursue a bill to allow expanding the sales tax to services (including car
the display of a front license plate to be optional. repair), and allowing cities to have new powers of
Currently, only 19 states allow drivers to display a taxation are all proposals we’ve seen in recent years
single license plate, with 31 states requiring both a and expect to oppose again in 2010. Furthermore,
front and a rear plate. This legislative effort is an transportation and transit advocates are rumored
uphill battle with heavy opposition expected from to be asking the legislature to increase the motor
law enforcement as well as interest groups who vehicle sales tax, which MADA would, of course,
gain from producing license plate materials (such oppose.
as 3M).
With four months of the Legislative Session ahead,
RV Manufacturers. MADA is proud to represent there will likely be many more issues on the table.
RV dealers as well as automobile dealers. Since RV MADA will keep you informed of the latest news
dealers are also protected under Minnesota’s motor from the state Capitol as it happens.
Aside from an aggressive franchise bill MADA
will pursue in 2010, other legislative issues will also
require MADA advocacy.
vehicle franchise law, the RV manufacturers have
been lobbying the Legislature for an exemption
to some of the requirements of state law. MADA
has been working to find a compromise with the
RV manufacturers to accommodate some of their
concerns, while protecting the rights of Minnesota’s
RV dealers.
The Minnesota Auto Dealers Association is a
non-profit trade association dedicated to the progress
of the retail auto industry in Minnesota.
President
Bernie Wagnild, Valley Automotive Group, Apple Valley
President-Elect
Don Hilligoss, Ranger Chevrolet Cadillac Buick, Hibbing
Treasurer
Paul Walser, Walser Buick GMC, Bloomington
Secretary
Steve Brimhall, Minnesota Motor Company, Fergus Falls
Executive Vice President
Scott Lambert
200 Lothenbach Avenue • West St. Paul, MN 55118
Metro: 651-291-2400 • Toll Free: 800-652-9029
FAX: 651-291-2894 • Web site: http://www.mada.org
February 2010 / Page 2
visit us online at
www.mada.org
Tom Horner
Begins Quest To
Be Governor
Tom Horner may be familiar
to many MADA members.
During MADA’s sold-out
2009 Annual Luncheon in
Tom Horner, you saw
December, Tom was our
him at MADA first
keynote speaker. Horner
is a noted public affairs specialist who co-owns
Himle Horner Public Affairs and was a regular
commentator on Minnesota Public Radio.
Luncheon attendees will recall Tom spoke of
the inevitable polarization of the state’s two
political parties and their seeming inability to
nominate mainstream candidates. Shortly after his
speech, buzz started to circulate about a possible
Governor’s bid by Tom himself. Now, he has left
his commentator spot on MPR and begun his own
bid as Governor. Tom is seeking the endorsement
of the Independence Party.
CONGRESSIONAL ACTION
Gap in Federal Estate Tax Since January 1, 2010
Sometimes there is an upside to political bickering.
This time, the bickering and indecisiveness in
Washington D.C. led to an unplanned repeal of
the federal estate tax.
Back in 2001, a quirk in the Economic Growth
and Tax Relief Reconciliation Act (EGTRRA)
repealed the federal estate tax from January 1,
2010 to January 1, 2011. Since then, there’ve
been a lot of CPAs jokingly advising their clients
to die in 2010.
while those above that value were subject to a
maximum 45% federal estate tax rate. While
there is currently no federal estate tax in 2010,
the tax is scheduled to return in 2011 at even
higher levels than in 2009, with the exemption
lowered to $1 million estates.
But, even though the U.S. Senate’s failure to act
resulted in an unplanned repeal of the fed estate
tax in 2010, Congress is expected to reinstate the
tax retroactively during the 2010 session.
Under the EGTRRA, estates valued at less than
$3.5 million were exempt from the tax in 2009,
INDUSTRY NEWS
DVS Computer Upgrade is Moving Forward
Minnesota Driver & Vehicle Services (DVS) is in the middle of a four-year project to design and build
a new computer system. The project is called MNLARS - Minnesota Driver’s License and Registration
System – and is funded by a $1.75 technology surcharge imposed on all drivers license and motor vehicle
transactions from July 2008 through June 2012.
MNLARS’ goal is to improve operation, stability, security, and customer service for both the drivers
license and motor vehicle registration systems. Plans include better interfaces for deputy registrars,
dealers, law enforcement and the public to electronically access and retrieve DVS records.
DVS officials have sought input from various interested business and government groups on how
MNLARS might accommodate and enhance existing and future business processes and procedures.
MADA staff and representatives of several new vehicle dealerships were invited to participate
and share their ideas. If you have a special interest in the MNLARS project, email Jim Schutjer
[email protected]. We’ll try and loop you in.
Work on MNLARS will continue through this year and next before new hardware and software is
installed and operational.
February 2010 / Page 3
LEGAL NEWS
U.S. Supreme Court Gives Green Light to Corporate Campaign
Spending
Campaign contributions have been regulated
by state and federal law for over a hundred
years. Minnesota has restricted direct corporate
contributions to Minnesota candidates since 1912,
and the Federal Taft Hartley Act of 1947 prohibited
corporations from using corporate money for
independent expenditures -- that is, any political
activity intended to support or oppose a candidate,
made without the candidate’s cooperation, approval
or direct knowledge. Subsequent state and federal
laws have further restricted campaign spending
over the last few decades.
But a recent decision from the U.S. Supreme
Court in Citizens United v. Federal Election
Commission has turned the ban on corporate
spending in elections upside down. Citizens
United was a conservative organization which
sought to run a video documentary about thenpresidential candidate Hillary Clinton. Citizens
United challenged the federal law prohibiting use
of corporate funds for independent expenditures.
The Supreme Court held in favor of Citizens United,
and ruled laws prohibiting a corporation from
“We use MADA’s
terrific CVR program.
It saves us time and
money, and the
customers love it.”
- Sue Jacobson, Tousley Ford,
White Bear Lake
February 2010 / Page 4
using its own funds to independently advocate for
the election or defeat of a political candidate are an
unconstitutional restraint of free speech.
Although this decision did not overturn the ban on
corporate contributions directly to candidates or to
PACs, it will undoubtedly shift the landscape in this
fall’s election and beyond. The Supreme Court’s
opinion is a dramatic benefit for corporate interests
that will allow their political messages to compete
with what labor unions and trial lawyers have been
able to do for years.
Many questions remain about how corporations can
legally participate in campaign spending this fall,
and what kinds of disclosure requirements will be
required. Senator Ann Rest (DFL – New Hope)
has already introduced a bill in the Minnesota
Legislature to conform Minnesota law to the new
case law. MADA is supporting the MN Chamber
of Commerce which has commenced legal action
to clarify the discrepancies between the current
statutes and the Supreme Court’s decision, in hopes
of eliminating some of the risks of using corporate
funds this fall.
Thirty-Five GM and Chrysler
Dealers Seek Franchise
Arbitration
January 25th was the deadline for current and
former General Motors and Chrysler dealers who
lost franchises as a result of the factory bankruptcies
last year to file paperwork to arbitrate their recovery.
According to MADA counts, 35 of 73 Minnesota
dealers eligible for arbitration actually filed the
paperwork before the deadline. This number includes
16 of 32 total wind-down and 14 of 25 partial winddown GM dealers. Five of 17 terminated Chrysler
dealers are seeking their franchises back.
Federal law requires all the franchise recovery
arbitrations to be concluded and decisions rendered
by July 15th of this year.
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NADA Convention Report
Bad weather and small crowds seemed to be
the common theme at the already disrupted
NADA Annual Convention in Orlando. Before
attendees had a chance to travel to the sunshine
state the event had problems because of GM’s
decision not to attend. The lack of GM “make
meetings” affected pre-registrations, but
nonetheless NADA had expected a strong
attendance. Unfortunately, snowstorms on the
East Coast and South wrecked flight operations
and many dealers were unable to attend the
event. Even MADA’s normally well-attended
Brunch felt the effects of low turnout.
The opening session found outgoing NADA
Chairman McEleny giving his version of events
of the past year, and Lee Carlson did Minnesota
proud as our TMQDA nominee.
NADA announced a dues increase beginning
mid-year 2010, and the Automotive Trade
Association Executives compared notes about
franchise legislation in various states.
Otherwise attendees seemed pleased with
breakout sessions, and the trade
show floor, although smaller than
previous years, kept buzzing with
activity.
Next year’s NADA Convention
is planned for San Francisco,
February 5-7.
February 2010 / Page 7
MEMBER NEWS
Endorsed Service & Vendors
Computerized Vehicle Registration
CVR
F&I Products
Protective
Property & Garage Liability Insurance
Zurich
Group Health Insurance
PreferredOne
Delta Dental
ReliaStar Life
Workers Compensation
Midwest Family Mutual
Star Insurance Company
Westport Insurance Corporation
Technology Insurance Co.
Collections
Springer Collections
Check Guarantee/Credit Card Processing
Certegy
Sales Training
Plan B Consulting
Internet Used Car Listing
CarSoup of MN, Inc.
Disability Income Insurance & Section
125 Cafeteria Plans
American Fidelity Assurance
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
HR Solutions - Background Checks,
Drug Testing, Employee Hotline
Employee Relations
Fleet Fueling Program
SuperAmerica
Office Supplies
Staples Business Advantage
Used Oil Collection & Recycling
Loe’s Oil Company, Inc.
Website Management
Autobase
Uniforms and Linen Services
AmeriPride Linen & Apparel
Services
Hole-In-One Insurance
Hole-In-One-USA
Pre-Paid Legal, Jim Gavin
Identity Theft Shield &
Pre-Paid Legal Services
Kermit Lundeen has passed away. Kermit was the former owner of
Lundeen Brothers Ford in Annandale.
Matt Saxe has just completed the acquisition of Belle Plaine Chevrolet
Buick, Inc. and will be doing business as Saxe Chevy Buick, Inc.
Billy Mauer has purchased the former Denny Hecker Southview
Chevrolet Company and will be doing business as Mauer Chevrolet.
FAQ
Q
What’s the law on selling vehicles with window tinting?
A
It’s illegal to operate a vehicle with prohibited tinting. Also,
effective August 1, 2008, dealers have been prohibited
from selling the vehicles with illegal tinting at retail for
registration in Minnesota.
Tinting or glazing is illegal when:
•the windshield has any treatment that makes it more
reflective or darker;
•any window on the vehicle is treated to make it mirrored
or highly reflective;
•a side or rear window is treated in any way to obstruct
the view of the driver, or to restrict light transmittance
by 50%, or has a luminous reflectance of more than
20%; or
•the window treatment does not have a marking which
clearly indicates the percentage of light transmittance
or luminous reflectance.
OEM window tinting is not subject to this law. Also, the law
does not prohibit window glaze prescribed by a physician,
or window glaze applied to the rear windows of hearses,
limousines, trucks, vans or police vehicles.
MADA NEWS
Last Call – Update your
MADA Services sells a wide variety
of products directly to the dealers
including business forms, clothing
and promotional items. For a full
review of options, contact your sales
representative at 651-291-2400 or go
to www.mada.org
February 2010 / Page 8
Profile
750 MADA email recipients responded to one of our first four
requests to verify their communications interests.
1100 MADA email recipients have not responded.
If you’re in the second group, you’ll receive a “last call” email from
MADA asking you to update your profile.
Even if the communications you’re receiving from MADA are
correct, please take two minutes to verify your continued interest.

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