February 2010
Transcription
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. ���������������������� ���������������������������������������� ����������������������� ������������ �������������������� ������������������� ������������������������������������������������������ ����������������� �������� ��������� �������� ������� ������ ������ ������ ���� ����� ������ ����� ����� ����� ���� �������������� ���� ������������ ������������ ���� ������� ������ ������ ��������� ���� ������� ������ ������ ������ ������ ������ ������ ���� ������ ������ ������ ������ ��� ���������������� ��������� ���� ���� ���� ���� ���� ���� ���� ���� ��� ��������������� �������������� ���� �������� ����� ����� ����� ����� ����� ����� ����� ����� ���� ����� ����� ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ���� ���� ���� ���� ���� ���� ���� ��� ���� ���� ��� ���� ��������������� ������ ����� ������ ����� ����� ����� ����� ��� ��� ����� ����� ����� ����� ����� ����� ���� ���� ����� ����� ������ ������ ������ ����� ����� ������ ������ ������ ����� ����� ������ ������ ������ ������ ������ ������ ������ ������ ������ ������ ���� ���� ���� ��� ��� ���� ���� ���� ��� ��� ���� ���� ��� ��� ��� ��������������� ���������� ��� �������� ���� ����� ����� ��� ��� ��� �� ��� ����� ��� ��� ��� �� �� ����� ���� ����� ������ ���� ������ ����� ����� ����� ����� ��� ��� ����� ����� ����� ����� ��� ��� ������ ������ ������ ���� ������ ������ ������ ����� ������ ������ ������ ������ ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ���� ��� ���� ���� ��� ����� ����� ����� ����� ���� ���� ��� ��� ��� ������������� ����������������������������������������������������������������������������������������������������������������������������������� ����������������������������������������������������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������������������������������������� ���������������������������������������������������������� �������������������������������� ���������������� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ������������ ����� ��� ���� ����� ��� ���� ���� ���� ���� ������ ����� ���� �� ��� �� �������� ����� ������ ����� �������� �������� �������� ���� ���� ���� ���������������� ���� ������ ���� �� ���� ���� ���� ���� ���� ������������ ����� ���� ����� ��� ����� ����� ����� ��� ������ ������� ������������� �� ��������� ������ ���� �� ���� ���� ������� ������������ ������� ��� ������������ �� ������� �� ������������� ��������� �� ���� �� ����� ���������� �� ������ �������� ���� ������� ������ ��� �� ���������� ������ �� ������������ ��������� ��� ���� ������� ��� ������������ ������� ���� ��������� �� ���� ���������� �� ������ �������� ������ ��� ����� ������������������������������������������������������ 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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