2013 - OCADA

3rd Quarter 2013, Volume 54, Issue 3
THE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATION
Orange County
Auto Show!
PRESIDENT’S MESSAGE:
BRINGING THE ANNUAL
MEETING TO THE AUTO SHOW!
CAPITALIZE ON THE AUTO
SHOW
OSHA INSPECTION CHEAT
SHEET
FERR UZZ O LL P
FERRUZZO & FERRUZZO
LLP
&
ATTORNEYS AT LAW | Our Practice Is Rooted In Strong Relationships
FERR UZZ O
Purchase and Sale of Dealerships
Ferruzzo & Ferruzzo can provide you with assistance and guidance in the sale or purchase of your
dealership, having participated in the sale and
purchase of dealerships for over 20 years with vast
experience in dealership transactions. Additional
dealership services include:
g
Land Acquisition & Construction of Dealerships
g
Negotiation of computer hardware and software systems
g
g
g
g
g
g
Real estate and flooring loan transactions
Negotiation of Management employment
agreements and Management buy-ins
Customer Dispute Resolution including lemon law claims
Represents Dealers before the DMV & on protests
before the State of California New Motor Vehicle Board
Represented Dealerships in 10% of all Arbitrations in
California after GM & Chrysler Bankruptcies
All Attorney’s are members of National Association of
Dealer Counsel
what’s down the road for your dealership?
When the time arises to talk about dispute
resolution, litigation, or transaction services
TOM FERRUZZO AV PREEMINENT® HEADS THE FIRM’S
BUSINESS group, a 40-year merger and acquisition practice that
has closed automobile dealership transactions exceeding an
aggregate of several billion dollars in sales. The group’s matters
have ranged from the purchase of 31 chemical companies across
North America, to the buy/sell of numerous automobile dealerships, as in the Penske/Crevier deal. Tom is also experienced in
the transfer of time-share management companies, manufacturing and distributing companies, medical practices, and
service/construction businesses.
JIM FERRUZZO AV PREEMINENT® MANAGING PARTNER on the
CIVIL LITIGATION team, has 40 years of complex litigation
experience, including more than 150 trials. Jim’s leadership
continues to produce dynamic results and he has an extraordinary
reputation for successful outcomes. As recently as the past year,
his team has defeated several multimillion-dollar claims against its
automobile dealership clients in real estate, partnership, and
business disputes. He has arbitrated the GM Bankruptcy closures.
call
Ferruzzo & Ferruzzo LLP
JAMES BARONE AV PREEMINENT® has a practice that consists
primarily of acting as general counsel to automobile dealerships who do
not have the luxury of in-house counsel. He provides advice with regard
to a wide variety of legal matters that arise in both sophisticated and
day-to-day business operations. With over 30 years of legal experience,
Jim personally negotiated and successfully closed dealership transactions
with both private and public companies involving an aggregate of $3
billion in sales and an aggregate enterprise value in excess of $1 billion.
GREG FERRUZZO Head of the FIRM’S CIVIL LITIGATION team has been
with Ferruzzo & Ferruzzo since 1993. His primary focus has been civil
litigation and arbitrations for the Firm’s automobile dealership clients.
During this time, he has practiced in the area of civil litigation in both the
state and federal courts, which include successful jury trials, six successful
arbitrations of the GM Bankruptcy closures, as well as protests before the
New Motor Vehicle Board. He represents a variety of business clients in
contract disputes, partnership and corporate dissolutions, fraud and
unfair business competition claims, sexual harassment and wrongful
employment termination cases.
BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | FAMILY LAW
A Limited Liability Partnership, including Professional Corporations
949.608.6900 | ferruzzo.com
CONTENTS
PRESIDENT’S MESSAGE
2013 OCADA PAC HONOR ROLL
GET TO KNOW YOUR
LEGISLATOR: SENATOR LOU CORREA
CAPITALIZE ON THE AUTO SHOW
AUTO SHOW DEALER CHECKLIST
OCADA IN THE DISTRICT
CNCDA LEGISLATIVE UPDATE
DEALER E-TICKET PROGRAM
OCADA 49TH ANNUAL GOLF TOURNAMENT
MANY THANKS TO OUR
49TH ANNUAL OCADA GOLF TOURNAMENT SPONSORS
OSHA INSPECTION CHEAT SHEET
NO MORE ZONES — NEW SET OF BUSINESS INCENTIVES
TAKES SHAPE IN CALIFORNIA
OC DEALER is a Publication of the Orange
County Automobile Dealers Association
3737 Birch St., Suite 220
Newport Beach, CA 92660
www.ocada.org
Phone: 949-428-5050
Fax: 949-428-5054
OCADA
3
BOARD OF DIRECTORS
PRESIDENT
Paul Conant
Norm Reeves Honda Huntington Beach
VICE PRESIDENT
Cliff Allen
Allen Cadillac GMC and Hyundai
TREASURER
Allen Moznett
Newport Lexus
IMMEDIATE PAST PRESIDENT
Bruce Hamlin
Guaranty Chevrolet
DIRECTORS
K.C. Heidler
Kia Depot
Tom’s Truck Center
John Oh
Lexus of Westminster
John Patterson
Huntington Beach Mazda
OC Hyundai
Tustin Mazda
David Simpson
Simpson Buick GMC
Simpson Chevrolet of Garden Grove
EXECUTIVE
DIRECTOR/SECRETARY
John Sackrison
Orange County Automobile
Dealers Association
© 2013 Orange County Automobile Dealers Association | The newsLINK Group, LLC. All
rights reserved. OCDealer is published four times each year by Media Communications
Group, Inc. in collaboration with The newsLINK Group, LLC for the OCADA and is the
official publication for this association. The information contained in this publication
is intended to provide general information for review and consideration. The contents
do not constitute legal advice and should not be relied on as such. If you need legal
advice or assistance, it is strongly recommended that you contact an attorney as to
your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views
of the OCADA, its board of directors, or the publisher. Likewise, the appearance of
advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OCDealer is a collective work and
as such some articles are submitted by authors that are independent of the OCADA.
While OCDealer encour¬ages a first print policy, in cases where this is not possible,
every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission
from OCADA or The newsLINK Group, LLC. For further information, please contact
The newsLINK Group, LLC at: 855-747-4003.
4
OCADA
CALENDAR OF EVENTS
SEPTEMBER 18-19, 2013
NADA Washington Conference
Washington D.C.
OCTOBER 3, 2013
OCADA Annual Meeting &
Auto Show Preview
Anaheim Convention Center
OCTOBER 3-6, 2013
Orange County International Auto Show
Anaheim Convention Center
JANUARY 24-27, 2014
NADA Convention & Expo 2014
New Orleans, LA
Welcome To Our
New Associate Members
Benefit Compass
Insurance Services
Provides consulting services
regarding employee benefits;
measures the real cost of lost
productivity due to employee
health and implements innovative
solutions that increase the bottom
line, contain the cost of healthcare
and create a healthier workplace.
Kho & Patel, CPA
Boutique CPA firm specializing
in the auto dealership niche
market. 18 person firm is one of
the leading providers of these
industry-specific services in
Southern California.
Contact: Roger Rossmeisl at
(909) 440-1437
Contact: Ron Joy at (949) 289-9300
Interesting OC Auto Fact::
23% of car buyers attend the Auto
Show within a year of purchase.
Reach OC car buyers
at every turn.
From print to online to mobile media, our
advertising vehicles fire on all cylinders.
Our network of websites and newspapers
provide the most in-depth coverage relevant to
Orange County communities.
Create a customized package targeting
consumers you want to reach:
t*OOPWBUJWFBEVOJUT
t.PCJMF
t&WFOUBDUJWBUJPO
t$VTUPNQVCMJDBUJPOT
Special Sections
Certified Pre-Owned - Publishes August 14, 2013
New Vehicle Preview - Publishes September 18, 2013
Print network
-PT"OHFMFT5JNFT&BTU;POFo0$
%BJMZ1JMPU/FXQPSU#FBDI$PTUB.FTBFYQBOEFEUP*SWJOFPO4VOEBZT
)VOUJOHUPO#FBDI*OEFQFOEFOU
Laguna Beach Coastline Pilot
To advertise in this section,
contact Kevin Davis at 714.966.7503
or [email protected]
PRESIDENT’S MESSAGE
Bringing the Annual Meeting to
the Auto Show!
We’re excited to be hosting your OCADA Annual Meeting at the
Orange County International Auto Show! The change combines
two great events and is designed to benefit OCADA members by
allowing them to easily attend both. We also hope the change will
enable more manufacturers, legislators and other specialty guests to
attend and learn more about OCADA and our Auto Show. Please mark
your calendars for Thursday, October 3rd and ask your manufacturer
representatives to join you as well. We will be sending more details in
the coming weeks and look for invitations soon as well.
I look forward to having you join us for these two great events!
Paul Conant
2013 OCADA-PAC HONOR ROLL
Join the OCADA-PAC Honor Roll, make your contribution today!
Chairman’s Club
Paul Conant
AJ D’Amato
Mike D’Amato
Tom Ferruzzo
Jon Gray
Matt Gunderson
Bruce Hamlin
Roberta Hardin
K.C. Heidler
Dick Hsu
Mike Kitzmiller
6
OCADA
Paul Lunsford
Pat Lustig
Bob Miller
Al Parajeckas
Leonard Renick
RJ Romero
David Simpson
Paul Swim
Jeff Voechting
David Wilson
Donor
Cliff Allen
Ephraim Barcelo
Miles Brandon
Frank Busal Jr.
Bob Carmendy
David Conant
Mark Dershem
Paul Doddridge
Wayne Doddridge
Aaron Duport
Judy Elmore
Rick Evans
Jim Graham
Eric Hardin
Jared Hardin
Roger Hogan
Robert Longpre
Daniel McKenna
Todd McNitt
Jim Miller
Preston Minor
Mark Parkinson
John Patterson
Bill Piercey
George Saad
Jim Sarvey
Bill Selman
Damon Shelly
Ahmad Soleman
Jim Speck
Penny Spellens
Tim Tauber
Patrick Thomas
Alex Tissot
Jim Trotter
Pete Weseloh
Michael Westbrook
Gary White
Omar Z
From driving operational efficiencies
through navigating the road ahead.
For more than seven decades, we’ve helped auto dealers enhance their operations,
improve their bottom line and navigate changing conditions. Delivering unwavering
commitment, deep industry expertise, financial strength and a full range of
customized solutions to help you succeed.
Bob Ludwig
Senior Client Manager
1.714.269.3011
[email protected]
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other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2013 Bank of America Corporation | ARM6F6A2 | DFS-103-AD
8
OCADA
Get to Know Your
LEGISLATOR:
Senator Lou Correa
34th Senate District:
Biography:
ANAHEIM  BUENA PARK FOUNTAIN VALLEY  FULLERTON
 GARDEN GROVE  HUNTINGTON BEACH  LONG BEACH
 LOS ALAMITOS  SANTA ANA SEAL BEACH  STANTON 
WESTMINSTER  ROSSMOOR
State Senator Lou Correa was elected to the 34th Senate
District in 2006 and reelected for a second and final term in
2010.
Committee Membership:
(Chair) Banking and Financial Institutions
Long active in community affairs, Senator Correa’s passions
include providing healthcare for children and mental
healthcare services for our communities, as well as ensuring
the affordability of higher education for all Californians.
Education
Governmental Organization
Insurance
Veterans Affairs
(Chair) Select Committee on California-Mexico Cooperation
Select Committee on Autism & Related Disorders
Climate Change and AB 32 Implementation
Select Committee on Manufactured Home Communities
Personal:
Long active in community affairs, Senator Correa’s passions
include providing healthcare for children and mental
healthcare services for our communities, as well as ensuring
the affordability of higher education for all Californians.
Senator Correa lives in Santa Ana with his wife and their
four children.
Quote: Education and equal opportunity are passports to
the American Dream.
Mr. Correa is a product of the Anaheim public school
system, where he attended Benjamin Franklin Elementary,
Fremont Junior High and Anaheim High School. He holds
degrees in Economics from California State University,
Fullerton, and a Juris Doctor (JD) and Masters in Business
Administration (MBA) from the University of California, Los
Angeles (UCLA).
Mr. Correa has served on the Board of the Orange County
Community Development Council, the County’s antipoverty council, the California Small Business Board, and
the Orange County Boy Scouts. Prior to serving in the
California State Legislature, he was an investment banker
and real estate broker. Mr. Correa is licensed with the
California Real Estate Board and the California State Bar.
District Office Contact Information:
2323 N. Broadway, Ste. 245
Santa Ana, CA 92706
Phone: (714) 558-4400
Email: [email protected]
OCADA
9
Capitalize
on the Auto Show
T
he Orange County
International Auto Show
has the most influence
on the Orange County
consumer’s decision on which
vehicle to buy. It is more influential
than print, radio, TV and even the
internet!
There are two main reasons
the Auto Show is so
effective:
It is experiential - it is the ability to
see, touch, sit in, and often drive
the vehicles that makes the Auto
Show so influential.
It’s a buyer rich environment 23% of new car buyers attend the
show within a year of purchase.
These attendees are active buyers
investing several hours at the
Auto Show to shop for their next
car, not passive viewers flipping
channels and fast forwarding
through commercials.
So, how do you capitalize on
buyers at the Auto Show?
Make sure your
manufacturer is bringing its
“A Game.”
Hot new products and displays
draw media coverage and
consumers to your brand, exhibit
and more importantly your
vehicles.
10
OCADA
Send E-tickets to Your
Customers for Free!
Every OCADA Member is able to
email tickets to their customer
database for free – we even throw
in a free Motor Trend subscription.
Last year, dealer customers
downloaded more than 18,000
tickets worth more than $450,000.
Don’t miss this opportunity to
invite your customers to see your
latest products.
Come to the Show!
Join your manufacturer,
legislators and fellow dealers
at the OCADA Annual Meeting
on Thursday, October 3rd at
the Auto Show. This is a great
opportunity to see the show
first-hand, check out the
competition and make sure your
manufacturer is making the most
of this opportunity.
The Orange County International
Auto Show is one of the top 10
shows nationally, so make sure
your brand is well represented to
Orange County’s car buyers!

Give your customers free tickets to the Auto Show by email,
Facebook or at your service drive!

Come to the OCADA Annual Meeting on October 3rd from
11:30am to 1:30pm at the Auto Show. Bring your top dealership
managers and your regional district/zone managers!

Let your employees know that they and a guest get in to the
show for free! All kids 12 and under too!
Please call OCADA with questions or
for assistance. (949) 428-5050
OCADA
11
PASSIONATELY SERVING
THE AUTOMOTIVE INDUSTRY
Located in Newport Beach, MLG is Orange County’s
premier boutique business law firm. We offer gifted
legal counsel that is solution-based and designed
to optimize your bottom line.
MLG has become well-known in the automotive
industry for business transactions and automotiverelated disputes. We have litigated cases against
nearly every automotive manufacturer, and have
been involved in structuring some of the most
significant automotive transactions to date.
Whatever your business needs may be, MLG is
uniquely positioned to provide you with exceptional
counsel. We look forward to serving you well.
Jonathan A. Michaels
Michaels Law Group, APLC
2801 W. Coast Highway, Suite 370
Newport Beach, CA 92663
Web: MichaelsLawGroup.com
Phone: 949.581.6900
OCADA
13
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14
OCADA
OCADA
15
OCADA in the District
O
CADA Board members
and Dealers from the 72nd
Assembly district attended
a luncheon to meet the
new Assemblyman, Travis Allen and to
discuss legislative issues. Thank you
to the Dealers that joined us at the
luncheon:
Paul Conant; Norm Reeves Honda
Huntington Beach
Bob Longpre; Lexus of Westminster
Chris Longpre; Lexus of Westminster
Mark McKellop; Huntington Beach
Mazda
John Oh; Lexus of Westminster
Bill Piercey; Honda World
David Simpson; Simpson Chevrolet
Jamie Bishton; Nissan of Garden Grove
/ Toyota Place
Assemblyman, Travis Allen
Bill Demerest; Delillo Chevrolet
Dennis Hardin; Hardin Automotive
16
OCADA
CNCDA Legislative Update
Dealer Franchise Bill
Proceeding through the
Assembly
The Dealer Franchise Bill – SB
155 authored by Senator Alex
Padilla (D-Pacoima) continues to
have success in the Legislature.
The measure contains provisions
prohibiting a fixed percentage
reduction in time allowance
for warranty repair, warranty
and incentive audit procedures
and timelines, easing strict
liability “export” rules, requiring
manufactures to establish
reasonable metrics for performance
standards and allowing dealers to
use local vendors for substantially
similar products needed in facility
updates.
SB 155 has received unanimous
approval by the Senate and
was approved on a 15-0 vote
in the Assembly Transportation
Committee several weeks ago.
CNCDA continues to work with
the manufacturers on a few
minor remaining issues and the
bill will be in Assembly Judiciary
Committee following the
Legislature’s summer recess.
AB 964 authored by Assemblyman
Rob Bonta (D-Oakland) was not
taken up on the Assembly Floor
and cannot be acted upon until
January 2014.
Similarly, dealer lobbying efforts
also recently stalled SB 686
authored by Senator Hannah-Beth
Jackson in Assembly Business,
Professions and Consumer
Protection Committee. Senator
Jackson attempted to pull on
the committee’s heartstrings by
offering a victim who testified about
her family’s tragic auto accident.
Ironically, the family’s auto accident
was not caused by a recalled
vehicle. As the members began
to debate the bill, they openly
used dealer arguments about
why the rental car companies
were excluded and the lack of
a distinction between serious
and minor recalls. The dealer
lobbying effort was so successful
that Senator Jackson did not even
get an opportunity to have a vote
taken. Like AB 964, it is through
dealer efforts that SB 686 cannot
be taken up again until 2014.
Final Recall Bill Stalled in
the Assembly, No Action
Now Taken Until 2014
This year saw the introduction
of two legislative bills – AB 964
(Bonta) and SB 686 (Jackson) –
that sought to prohibit dealers
from selling any used vehicles
subject to a manufacturer’s recall –
regardless of how minor the recall
is or where the dealer has access
to information about the recall.
Following significant dealer
lobbying efforts earlier this year,
Cliff Costa
Earlier this year, Cliff Costa
joined the California New Car
Dealers Association as Director
of Government Affairs, replacing
Brian Maas who was promoted
to President of CNCDA. He
is a graduate of UC Berkeley
and McGeorge School of Law,
University of the Pacific. After
nearly a decade of working in the
California State Assembly and
State Senate, Cliff brings extensive
knowledge and experience to
advocate on behalf of California’s
franchised dealers. If you have any
legislative or political questions,
you can reach him at ccosta@
cncda.org.
Hao Nguyen
The California New Car Dealers
Association is pleased to introduce
Hao Nguyen as the most recent
addition to its robust legal team.
Having clerked for two judges in
the Superior Court of Santa Clara
County, Hao brings with him a strong
understanding of the law and will
bolster CNCDA’s efforts in navigating
through the legal issues it faces on
a daily basis. Hao’s commitment to
excellence and hard work aligns
harmoniously with CNCDA’s vision
in providing the highest level of
service to its members throughout
California.
OCADA
17
18
OCADA
Some things just pair well.
Growing your company. Selling it. Ensuring you’ve provided
for the future of those close to you.
Business and personal plans are often closely intertwined.
That’s why we offer a complementary set of solutions to help
not just businesses but also their owners.
From succession planning to tax and assurance, we deliver
vital insight and expertise. Because we believe your success
goes hand in hand with your company’s.
Certified Public Accountants | Business Consultants
Acumen. Agility. Answers.
Scott Swearingen, Partner
(949) 221-4025 | [email protected]
W W W. M O S S A D A M S . C O M / D E A L E R S E R V I C E S
Assurance, tax, and consulting offered through Moss Adams LLP.
Personal financial planning offered through Moss Adams Wealth Advisors LLC.
T
he 49th Annual OCADA Golf Tournament
was a great day of golf enjoyed by all.
Golfers arrived at the Mesa Verde Golf Course
on a beautiful Monday morning and set off
for a day of golfing, contests, and festivities. Dealers
and guests enjoyed reconnecting with old friends
and participating in all of the sponsored activities
out on the course.
After the tournament was finished, guests gathered
on the green for the much anticipated lawn bowling
and helicopter drop. The dinner and awards
ceremony was action packed. Guests walked away
with over $10,000 in prizes while our emcee and
chairman, Al Parajeckas kept the crowd entertained
as he announced the winners of the tournament.
20
OCADA
OCADA
21
Many Thanks to Our
49th Annual OCADA Golf Tournament Sponsors
Cocktail Reception &
Lawn Bowling Sponsor
Breakfast and Driving Range
Sponsor
Platinum Sponsor
Helicopter Drop Sponsor
Tiki Bar Sponsor
And many other sponsors…
Silver Sponsors
Bank of America Auto Group
Comerica Bank
Fisher & Phillips, LLP
Motor Trend Auto Shows
Sauers Lopez Construction, Inc.
$50,000 Hole-in-One Sponsor
Autobytel, Inc.
Nissan Hole-in-One Sponsor
Nissan North America
$25,000 Hole-in-One Sponsor
MOC Products Co., Inc.
22
OCADA
Dinner on the
Green Sponsor
Golf Cart Sponsor
Luncheon on the
Green Sponsor
Silver Oak Wine Sponsor
Platinum Sponsor
Platinum Sponsor
Margarita Bar Sponsor
Sports Bar & $10K HIO Sponsor
Micro-Brewery Bar Sponsor
Registration Gift Sponsor
American Fidelity Assurance Company
Goodie Bag Sponsor
Automotive Compliance Consultants
Sunscreen Sponsor
CVR - Computerized Vehicle
Registration
Longest Drive Sponsor
Bank of the West
Straightest Drive Sponsor
CNCDA
Closest to the Pin Sponsor
CU Direct Coporation
Tequila Bar Sponsor
Golden Tee Sponsors
Benefit Compass Insurance Services
Edmunds.com
Leedom & Associates, LLP
SC Fuels
Tee Sponsors
Celly Services
Pennzoil - Quaker State
US Bank Dealer Commercial Services
Green Sponsors
MPI
Reynolds & Reynolds
Wells Fargo Dealer Services
Your Success...
Is Our Success
For over 40 years we have been committed to our dealer clients
providing them with the highest quality tax, accounting, consulting,
and management support services in a timely, responsive manner.
With several years of dealership experience at the shareholder level,
our firm’s pro-active outlook, our business management and strategicplanning expertise, and our focus on the importance of tangible
results ensures that you have a partner on your team that will help you
optimize your business operations, minimize exposure to taxes, and
assist you with estate planning and dealer succession opportunities.
Let us be part of your team and see how we can make a difference.
1067 Park View Drive | Covina, CA 91724 | (626) 858-5100 | Fax (626) 332-7012
Dale E. Duncan, CPA
Shareholder
(626) 858-5100, ext. 226
[email protected]
George R. Applebaum, CPA
Shareholder
(626) 858-5100, ext. 215
[email protected]
Scott M. Biehl, CPA
Shareholder
(626) 858-5100, ext. 229
[email protected]
Andy R. Jones, CPA
Shareholder
(626) 858-5100, ext. 237
[email protected]
Michael Stowell
10 years of success with Orange County dealers
Your trusted local CRM resource | Call your local sales rep for more info
888.426.2518 | [email protected] | dealersocket.com
Accelerate Your Dealership Profits
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24
OCADA
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8.5” X 14”
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LETTER
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TEMECULA, CA HONDA DEALER
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8.5” X 14”
BUY BACK
LETTER
2,024
PIECES
MAILED
8.5” X 14”
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LETTER
16,338
PIECES
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RECENT RESULT
INCLUDE ONLY
VEHICLE SALES
SOURCED
DIRECTLY FROM
OUR DIRECT MAIL
CAMPAIGN
RECENT RESULT
INCLUDE ONLY
VEHICLE SALES
SOURCED
DIRECTLY FROM
OUR DIRECT MAIL
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WE HAVE A VARIETY OF SALES CAMPAIGN THEMES TO CHOOSE FROM INCLUDING: BUY BACK, LEASE TERMINATION,
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OCADA
25
OSHA
Inspection
Cheat Sheet
Now that we know what they are
checking for, it is time to get ready
for an inspection!
H
azard Communication
Program (HCP) of OSHA is
one of the most frequently
cited code violations
against automotive dealers. This
program, also known as RightTo-Know in California, requires
employers to provide information to
employees on hazardous chemicals
at the workplace. See http://www.
dir.ca.gov/title8/5194.html and
29CFR1910.1200. We stumbled
upon a checklist that OSHA provides
to their inspectors to audit the HCP
at your workplace. So now that
we know what they are checking
for, it is time to get ready for an
inspection! Questions from the
checklist are in italics below. To
facilitate a quick compliance audit,
we have added a possible short
answer after each question.
1. Has a list of all hazardous chemicals
in the workplace been prepared?
A list of chemicals should be
available in your MSDS (soon to
be SDS) binder. The fact you have
all the MSDS available does not
26
OCADA
mean the list is not required. List
is needed. Retain list in the front
of your MSDS/SDS binder.
2. Does the company have a method
for updating the hazardous
chemical list? The consultant or
the manager of the program must
update the list every 12 months.
An updated list is needed.
3. Has the company obtained or
developed a MSDS for each
chemical used? The MSDS for each
chemical should be available in
hard copy or on the web portal for
each chemical you use under your
facility ID.
4. Has a system been developed to
ensure all incoming hazardous
chemicals have labels and data
sheets? The purchasing manager
aka Parts manager must ensure all
chemicals have labels and MSDS
available.
5. Are procedures in place to
ensure labeling for containers
of hazardous chemicals? Parts
Manager to ensure chemicals
coming in have labels and shop
manager to ensure all secondary
containers have labels too.
6. Are employees aware of the
requirements of the Haz Comm.
Standard and information specific
to their workplace? Do employees
know where the written program
is, where the MSDS is, who to ask
questions about HCP and how to
read and understand labels etc.?
Shop Manager should have all the
answers.
7. Are employees familiar with
hazards of the chemicals in their
workplace? Do the techs know
what is flammable, corrosive, or
combustible? Training should
cover this.
8. Have the employees been informed
of the hazards associated with
performing non-routine tasks?
Employees should have training
in routine tasks and non-routine
tasks such as a spill response.
9. Do employees understand how
to detect the presence or release
of hazardous materials at the
workplace? Train employees on
spill detection and response.
10. Are employees trained about
proper work practices and
personal protective equipment
(PPE) in relation to the hazardous
chemicals in their work area?
Employee must be trained in
proper use of PPE.
11. Does the training provide
information on first aid,
emergency procedures, and the
likely symptoms of overexposure?
Training to include first aid,
emergency procedures and
detection of overexposure.
12. Does the training program include
an explanation of labels and
warning that are used in each
work area? Training on the new
HCP (also referred as Global
Harmonized System) must
include the pictogram from
OSHA and must be completed
by December 1, 2013.
13. Does the training describe where
employees obtain data sheets
and how employees use them?
Employees should have access
to MSDS. If they are accessible
only on web, computer printer
access is a must.
14. Is a system in place to ensure new
employees are trained before
beginning work? Training must
occur during orientation.
15. Is a system in place to identify
new hazardous chemicals before
they are introduced into a work
area? Parts manager must
review the MSDS whenever
new chemicals are purchased
and ensure that PPE is
available as listed in the MSDS
16. Is a system in place to inform
employees of the hazards
associated with newly
introduced chemicals? Review
MSDS for new chemicals
with employees prior to their
introduction in shop.
Note: The author notes that this document
has been prepared on the basis of publicly
available information on OSHA website.
The word “cheat” in the header has been
used merely as an attention-getter and has
no immoral connotations as used herein.
Sam has been helping automobile dealers
comply with EPA & OSHA regulations since
1987. Sam is the past-Chair of the Law
Committee & the Environmental Issues
Committee of the AIHA and currently the
President-elect of the Southern California
AIHA. Sam has a BE & MS in Chemical
Engineering followed by a JD from
Southwestern University School of Law. Send
your comments to [email protected].
OCADA
27
NO MORE ZONES
A NEW SET OF BUSINESS INCENTIVES
TAKES SHAPE IN CALIFORNIA
By Moss Adams
O
n July 11 Governor Brown
signed Assembly Bill 93
and Senate Bill 90 into law,
significantly altering the
tax incentive landscape in the Golden
State. Starting January 1, 2014, there
are no longer designated economic
development areas, including:
continues to be employed by the
taxpayer. However, these employees
may need to be certified prior to
January 1, 2014. The hiring credit will
be fully repealed in December 2019.
(The taxpayer can generate credit
for each employee for five years, so
businesses can earn credit for 2013
hires through 2018.)
• Enterprise zones (EZs)
• Targeted tax areas
• Manufacturing enhancement areas
• Local agency military base
recovery areas
As a result, the following incentives
are being terminated or changed:
• Hiring credits
• Sales tax credits
• Various business-expense
deductions available in these
targeted areas
What can businesses do between
now and the first of the year to take
advantage of the credits before they
expire?
First, it’s important to note that
taxpayers may still claim EZ hiring
credits for employees hired on or
before December 31, 2013, for up to
60 months, assuming the individual
Second, taxpayers are still eligible
for EZ sales tax credits on assets
purchased and placed in service
before January 1, 2014.
And finally, financial institutions may
claim the EZ net interest deduction
for interest received from a business
located in a designated zone before
January 1, 2014. Existing unused
credits after December 31, 2013, will
be eligible for a 10-year carryforward.
Now let’s take a brief look at the new
credits the legislation introduces.
The new hiring credit, starting in
2014 and running for seven years, will
be available for qualified businesses
located in former EZs, local agency
military base recovery areas, or new
areas designated by the California
Department of Finance. Businesses
statutorily prohibited from claiming
the credit include food service and
retail businesses, casinos, temporary
employment agencies, adult live
entertainment businesses, and bars.
For other businesses to claim the
credit, they must:
• Hire employees in one of the these
targeted labor groups:
• Long-term unemployed
• Unemployed veterans separated
from service within 12 months
prior to hire
• Recipients of the federal earned
income credit in the previous tax
year
• Ex-offenders
• Designated welfare recipients
• Hire full-time employees, averaging
at least 35 hours per week, with a
starting wage set at 150 percent of
the California minimum wage or
more (currently $12)
• Report annually a net increase in
full-time employees or equivalents
The new hiring credit will be equal to
35 percent of the qualified wages for
the first 60 months of employment
and can be claimed only on an
original return filed in a timely
manner. Also, a tentative credit
reservation must be made with
the Franchise Tax Board within 30
days of the date the Employment
continued on page 31
28
OCADA
“Running a successful dealership
means understanding every
customer’s needs.
So does insuring one.”
Alan Starling, President & CEO
Starling Automotive Group
With 90 years of automotive industry experience, Zurich is one of the only
carriers that underwrites both Property and Casualty coverage and Finance and
Insurance (F&I) products. Zurich’s total solution lets Starling Automotive Group
avoid gaps and overlaps in insurance coverage, which helps save both time and
money. It also provides them access to Zurich’s extensive F&I sales and training
support. The result? Starling continues to grow its revenue and protect its
legacy while focusing on its top priority – the customer. It’s another example
of how Zurich delivers the help businesses need when it matters most.
Watch the video at zurichna.com/stories9
Call Darin Haag, Regional Sales Manager at 801-376-3338.
For more information visit www.zurichna.com/dealer.
This is intended as a general description of certain types of insurance or non insurance products and services available to qualified customers through the companies of Zurich in North America, provided solely for informational
purposes. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product underwritten by an individual member company of Zurich in North
America, Universal Underwriters Insurance Company. Finance and insurance (F&I) products in Florida are provided or administered by Vehicle Dealer Solutions, Inc. (FL License #60132). Your policy or your F&I product contracts
are the contracts that specifically and fully describes your coverage, terms and conditions of the applicable product. The description of the policy or F&I product contracts’ provisions give a broad overview of coverages and does
not revise or amend the policy or the F&I product contracts. Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability in applicable states.
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30
OCADA
continued from page 28
Development Department’s newhire reporting requirements are
met. Employers must annually
certify continued employment
and wages, and the Franchise
Tax Board will publish on its Web
site the employer’s name, credits
claimed, and number of new
jobs created.
Unused credits may be carried
forward for only four years before
they expire. The new hiring credit
sunsets for employees hired
before 2021. Qualified employees
can generate credits for up to 60
months after sunset date.
The new sales and use tax
exemption will become available
July 1, 2014, for tangible personal
property used in manufacturing or
R&D. It’s effective for eight years.
In addition, there will be a $200
million limit per person on purchases
of qualified property in any calendar
year. The exemption is available
only to businesses classified under
specified NAICS codes 3311–3399
(manufacturing), 541711 (biotech
R&D), and 541712 (physical,
engineering, and life sciences R&D).
Businesses in other industries, such
as banking and financial services,
agriculture, and mining, are ineligible
for the exemption, which expires July
1, 2022.
and $200 million for each fiscal year
through 2017–2018.
Beginning in 2014 the Governor’s
Office of Business and Economic
Development (GO-Biz) will be
authorized to grant income tax
credits for new businesses pursuant
to a written negotiated agreement.
GO-Biz can allocate up to $30 million
in credits for the 2013–2014 fiscal
year, $150 million for 2014–2015,
Now is the time to take advantage of
EZ credits before they disappear. To
secure them, make sure to certify all
hiring-based credits for employees
hired through 2013 by December
31, 2013. For questions or for help
identifying and securing available
credits, please contact your Moss
Adams LLP tax professional.
The entire program is limited to
$750 million, and 25 percent of the
credits must go to small businesses
with less than $2 million in prior-year
sales. Up to 20 percent of the annual
allotment of credits may be allocated
to one taxpayer. Credits can be carried
forward for five years. Select participant
information will be disclosed publicly.
GO-Biz is authorized to negotiate any
terms to recapture credits.
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“If everyone is moving forward together,
then success takes care of itself.”
— Henry Ford
Michael L. Cox & Associates and GYL
Decauwer LLP Combine Practices -
Automotive Industry Wins
Michael L. Cox & Associates, an established accounting firm primarily focused on serving the automotive industry, has strategically
joined forces with GYL Decauwer LLP, a leading tax, assurance and
business advisory firm in Ontario, CA. The combined practices will elevate and expand the exceptional service roster and expertise they
provide to their automotive dealership clients.
The professional firm members of Michael L. Cox & Associates have
specialized in providing accounting and tax services to the automotive
industry since 1995 and are recognized experts in dealership accounting. They guide and provide their clients with sound advice on critical
matters and industry practices impacting the automotive industry.
The collaboration between these two firms will further afford automotive industry clients the benefit of GYL Decauwer’s hallmark approach
to client service. The 14 year-old firm designs customized solutions
for its clients that are unique to each of them - and their industries. Its
business advisory services, along with a host of traditional accounting
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32
OCADA
Through this merger, existing clients of Michael L. Cox & Associates
now have easy access to the formidable resources of CPAmerica International, a national association of independent CPA and consulting
firms. The partners of these CPA firms serve several hundred dealerships across the country and generously share their expertise to
solve complex issues that face automotive dealerships everyday. GYL
Decauwer capitalizes on these relationships so as to best serve its clients. For those organizations requiring international expertise, the firm
is affiliated with Crowe Horwath, the international arm of CPAmerica.
The combined firms will provide an enhanced service offering that affords a superior client experience. Expert service in the form of LIFO
computations and compliance, tax planning and return preparation,
internal control issues and financial statement services for automotive
industry clients remains standard practice. Our clients will benefit from
additional local, national and international resources, in-house knowhow and strategic consulting approaches that result in an impressive
navigation of the constantly evolving automotive industry.
Operating under the name, GYL Decauwer LLP, the newly banded
professionals can be reached at (909) 948-9990 or email us at gyld@
gyldecauwer.com.
E
veryone is new to the rules about social media. However, if your dealership is like many, you have employees
that are eager to hit cyberspace with offers and specials to engage the world via social media.
SEO, proper website maintenance, display ads, reputation management, and mobile marketing may all have
a larger application as being more important that social media when it comes to driving leads and foot traffic
to a dealership – and probably should. The connection between selling cars and social media has not been concretely
made to many dealers as of yet.
Nevertheless, social media marketing efforts – when done correctly – can dramatically improve exposure, lead
potential, foot traffic, and customer communication into a dealership’s online marketing strategy. Social media is not
a shortcut, it isn’t easy and it certainly isn’t something that should be done haphazardly. However, social media, when
done consistently and done well can be extremely rewarding from an ROI perspective. Here’s our shortlist for how to
avoid common mistakes.
Blogging
An important business basic is diversification. You want people to have multiple ways of following your
dealership and contacting you. Although you can do a lot for your dealership through Facebook and Twitter,
you shouldn’t rely on them alone. You need your own place on the Internet for people to visit, one that doesn’t
belong to another company.
Competitors
You know who your competitors are — right? Do you follow what they’re doing when it comes to social media?
You should. Not only can you gain important insights into what customers are looking for from your industry,
you can also see where you need to increase your own efforts.
Personality
An important part of branding is knowing exactly what your dealership is relative to the people you want to
help. The best brands are the ones that don’t have a confused message because of too many people deciding
which direction to go. What does this mean for you in a practical sense? Keep the business side separate from
the personal side.
If you want to put personal information out there on the Internet, make sure it is completely separate from
your business and that the information fits within the brand. Although there may be times when you want to show
a more personal side, be extremely cautious. Decide what’s appropriate and what isn’t — and then follow your own
guidelines.
Effectiveness
The effectiveness of new technologies can be hard to measure, but that doesn’t mean it’s impossible. If you
are spending money or time on something, you ought to be doing whatever you can to find out whether it is
O U R S T R AT E G Y F O R S U C C E S S
BKCG offers outstanding representation to auto dealers and
their owners. In fact, BKCG has the largest jury verdicts in
California for dealers against manufacturers. Legal services
include prosecution and defense of manufacturer disputes,
strategic defense of consumer litigation, dealership
real estate acquisition and sales, and employment law.
Call Alton G. Burkhalter at BKCG today to discuss winning
legal strategies for your business.
S TA R T S M A R T. F I N I S H S T R O N G .
2020 Main Street, Suite 600, Irvine, CA 92614 ■ 949.975.7500 ■ www.bkcglaw.com
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READY TO ACCELERATE YOUR
GROWTH? WE ARE HERE TO HELP.
The Register knows how important the automotive industry is to Orange County and
we want to help you connect with local car buyers.
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ERIC BRUNELLI
[email protected]
714-697-5433
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Contact us and get started today.
In the Service of Orange County
Base: Orange County, CA adults who read the Orange County Register in print or online in the past 7 days.
Source: Scarborough 2012 R2.
18750