Publication - The newsLINK Group

Dealers’ Choice
SPRING 2013
Volume 53, Issue 1
O F F I C I A L P U B L I C AT I O N O F T H E T E X A S A U T O M O B I L E
D E A L E R S A S S O C I AT I O N
Car Dealer and U.S. Congressman Roger Williams
takes the oath of office from House Speaker John Boehner, R-Ohio,
accompanied by his wife, Patty, and daughters, third generation
Texas dealers, Jaclyn and Sabrina.
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The Path to More Profit
The auto dealer’s world is a
concrete jungle. Negotiating with
customers, competing with the
dealer next door – it’s not a business
for the faint of heart. And today
the Internet has intensified price
competition even further, with
profit margins getting squeezed to
their last breath. Many dealers are
left wondering how to survive in
such a dog-eat-dog world.
,W·V DOO DERXW Ànding the
right path
At Foresight Services Group, we
help dealers do better than survive.
It’s not complicated. We offer an
F&I product set as large as any in
the industry. From vehicle service
contracts to gap coverage to credit
insurance to lost key replacement,
we have it. And if we don’t have
it, we can make it: we offer dealers
the option of creating their own
customized F&I products.
What we don’t offer is a staff of
high-priced sales and income
development trainers and the
mark-ups that come along with
them. Dealers who work with
us know their job, how to sell,
and we know ours. We handle
claims administration and give
our dealer-clients the best possible
prices on F&I products.
The savings will beat
a path straight to the
bottom line!
Let FSG help your dealership find
the path to improved profitability
through lower prices on the F&I
products your dealership sells.
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Dealers’ Choice
O F F I C I A L P U B L I C AT I O N O F T H E T E X A S A U T O M O B I L E
27
D E A L E R S A S S O C I AT I O N
The Dealers’ Choice is a publication of Newsletters Ink and is the official publication of Texas
Automobile Dealers Association. The Dealers’
Choice is published 4 times per year by Media
Communications Group, Inc. The statements and
opinions expressed herein are those of the individual
authors and do not necessarily represent the views
of Dealers’ Choice, or its publisher Media Communications Group, Inc. Any legal advice should be
regarded as general information. It is strongly recommended that one contact an attorney for counsel
regarding specific circumstances. Likewise, the
appearance of advertisers does not constitute an
endorsement of the products or services featured
by Media Communications Group, Inc.
29
13
7 TADA Leadership
10 TADA Board of Directors
13
Car Dealer and Congressman Roger Williams
17 Health Care Reform Q&A
24 Are We Required to Fillout the OSHA 300 Logs?
27 Texas TIME Dealer of the Year Ernesto Ancira, Jr.
29 Linda McNatt, Guardian Angel of Loving Pets
Scan this code with
your smart phone for
a direct link to the
TADA website.
4
33
Celebrate Texas
2013 TADA LEADERSHIP
Rick Cavender
John Zwiacher
Chairman-Elect
Stacey Gillman Wimbish
Chairman
Immediate Past Chairman
2013 TADA EXECUTIVE COMMITTEE
Q
Paul S. Kane Q
Southwest
Q
Craig W. Kinsel Q
East
Bill Wolters
President
2013 SPRING
Q
Mark Daniels Q
Northeast
Q
JimSnell Q
North
Q
Milton S. Greeson, Jr. Q
South
Q
Mike Smith Q
Southeast
Q
Larry Hall Q
West
Q Joe Street Q
Northwest
Q
Bryan Hardeman Q
Central
Brian Bruckner
Texas Truck Dealers Chairman
Karen Phillips
Executive Vice President
General Counsel
7
2013 TADA LEADERSHIP
TADA REGIONS AND DISTRICTS
Chairman, John Zwiacher
Chairman Elect, Stephen Cavender
Immediate Past Chairman, Stacey Gillman Wimbish
Texas Truck Dealers Chairman, Brian M. Bruckner
Q NORTHWEST
Vice Chairman, Joe Street
District Directors
28 Mike Edwards
31 Daniel Bradley
30 John S. Roley
Q NORTH
Vice Chairman, Jim Snell
District Directors
10 Tony Pack
23 Paul Tigrett
22 Charlie Gilchrist
34 Matt Stinson
Q CENTRAL
12 Kimberly Danley
14 Nancy Harper
Q WEST
Vice Chairman, Larry Hall
District Directors
16 Scott T. Wilson
29 Doss Rogers
25 Mike Dunnahoo
32 Dennis R. Neessen
Q NORTHEAST
Vice Chairman, Mark Daniels
District Directors
1 Chance Donaghe
9 Bob Tomes
8 Charles Martin
35 Randy Hiley
Q SOUTHEAST
Vice Chairman, Mike Smith
District Directors
5 W.C. Smith III
15 Marvin Marcell
8
Vice Chairman, Paul S. Kane
District Directors
19 Jon Hill
24 Sean F. Gunn
21 Robert Brown
26 April Ancira
Q EAST
Vice Chairman, Craig W. Kinsel
District Directors
2 Craig Sisk
4 Bryan Case
3
7
Robin T. Mercer
David L. Brinson
Q SOUTH
Vice Chairman, Milton S. Greeson, Jr.
District Directors
17 Cary T. Wilson
20 Phillip Neessen
18 Cliff Weber, III
27 Roland F. Smith
DIRECTORS AT-LARGE
Vice Chairman, Bryan Hardeman
District Directors
11 Tim Light
13 Bill Kliewer
Q SOUTHWEST
6 David Mossy
33 Don A. Buckalew, Jr.
Joe Chastang
Tom Durant
Erik Maund
W.M. “Rusty” Rush
METRO CHAIRMEN
David Alderson
Alfonso Cavazos
Tom Durant
John T. Luciano
James Bagan
Joe Chastang
Jason Gillman
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.
Mike Weidner
Market Executive
1.281.246.1081
[email protected]
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are
performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally
by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional
Clearing Corp., both of which are registered brokerdealers and members of FINRA and SIPC, and, in 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
2013 TADA BOARD OF DIRECTORS
David Alderson
Northwest
Metro Chairman
Southwest
District 26
Central
Metro Chairman
James Bagan
Daniel Bradley
David L. Brinson
Robert Brown
Alfonso Cavazos
Joe Chastang
Kimberly Danley
Chance Donaghe
Mike Dunnahoo
Tom Durant
At-Large
Central
Metro Chairman
Jon Hill
Bill Kliewer
South
Metro Chairman
Charlie Gilchrist
April Ancira
At-Large
Central
District 12
Northeast
District 1
West
District 25
Southwest
District 21
Don A. Buckalew, Jr.
Bryan Case
John R. Eagle
Mike Edwards
Tim Light
John T. Luciano
Southeast
District 33
East
District 4
Northwest
District 28
Southwest
District 24
Sean F. Gunn
Nancy Harper
Central
District 14
Northeast
District 35
Southwest
District 19
Central
District 13
Central
District 11
West
Metro Chairman
Marvin Marcell
Charles Martin
Erik Maund
Robin T. Mercer
David Mossy
Dennis R. Neessen
Phillip Neessen
Tony Pack
Doss Rogers
John S. Roley
W.M. “Rusty” Rush
Matt Stinson
West
District 29
Northeast
District 8
Northwest
District 30
At-Large
Randy Hiley
East
District 7
North
District 22
Southeast
District 15
East
District 3
Southeast
District 6
West
District 32
At-Large
East
District 2
Craig Sisk
Roland F. Smith
W.C. Smith III
Bob Tomes
Cliff Weber III
Cary T. Wilson
Scott T. Wilson
Northeast
District 9
10
Northwest
District 31
South
District 18
South
District 27
South
District 17
Southeast
District 5
West
District 16
South
District 20
North
District 34
North
District 10
Paul Tigrett
North
District 23
2013 SPRING
11
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Mike Zilverberg, Toyota of Rockwall, Rockwall, TX
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Car Dealer and Congressman
Roger Williams
TEXAS’ OWN ROGER WILLIAMS IS ONE OF SEVEN
FRANCHISED AUTOMOBILE DEALERS IN THE UNITED
STATES CONGRESS AND ONE OF THREE WHO
CURRENTLY OWN AND OPERATE A DEALERSHIP.
ball player at TCU. After graduation from TCU and a career
in professional baseball, Williams became head baseball coach
at TCU where today the Horned Frogs baseball team plays on
Roger Williams Field.
W
Congressman Williams’ baseball presence is also apparent
in his current hometown of Weatherford, west of Fort Worth,
where the Weatherford College Coyotes play their baseball at
Roger Williams Ballpark, one of the finest junior college baseball
facilities in the nation.
ith a long history of service to the industry and his
country, Roger Williams is working to bring the culture
and sensibility of American business to Capitol Hill.
The son of legendary Fort Worth Chevrolet dealer, Jack Williams, who started the family business in 1939, Congressman
Williams and his family own Roger Williams Chrysler-DodgeJeep in Weatherford. Patty Williams and their daughters Sabrina
and Jaclyn operate the dealership as they have since Roger began
government service as Texas Secretary of State in 2004.
A true Texan who is driven by family values, a patriotic spirit,
hard work and sacrifice, Congressman Williams graduated from
Fort Worth Arlington Heights High School and was a star base2013 SPRING
Relentless in his pursuit of responsible government, Roger Williams spent many years working behind the scenes for prominent
Texas political leaders before joining those leaders as an elected
official. He served as Regional Finance Chairman for Governor
George W. Bush in his 1994 and 1998 elections. He became
North Texas Chairman for the Bush/Cheney 2000 campaign,
North Texas Finance Chairman in 2004, and National Grassroots
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ROGER WILLIAMS — CONTINUED ON PAGE 14
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ROGER WILLIAMS — CONTINUED FROM PAGE 13
Fundraising Chairman for the 2004 campaign. Williams was
appointed by President George W. Bush in 2001 to be Chairman
of the Republican National Finance Committee’s Eagle Program.
He also served as State Finance Chair for John Cornyn’s U.S.
Senate campaign and as the National Director of the “Patriots”
program for Cornyn.
Williams was appointed by Governor Rick Perry to the Texas
Motor Vehicles Board and he was nominated by Lieutenant Governor Bill Ratliff to the Special Committee on State Employee
Compensation and Benefits.
Governor Perry appointed Williams to be his fourth Secretary
of State of Texas. As secretary of state, Williams was the Chief
Elections Officer for Texas, assisted county election officials and
ensured the uniform application and interpretation of election
laws throughout the state. He oversaw the state’s efforts to comply
with the federal Help America Vote Act.
Reduce Your Costs and
Workplace Injuries.
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to Savings.
The Lone Star Auto Dealers Safety Group combines
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provide workers’ comp premium discounts and
job-specific safety resources. As a member of the
safety group, eligible dealerships may also qualify for
both group and individual dividends and receive a
discount for choosing the health care network option.
Contact your agent or Brad Wicker
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Dividends are based on performance and are not guaranteed.
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14
Williams worked to promote economic development, investment, and job creation in Texas. He was also Perry’s chief liaison
to Mexico and the Border Region of Texas. In this capacity, he
worked with Mexican federal, state and local officials on common issues.
On July 16, 2007, Williams was named chairman of the Texas
Republican Victory 2008 Coordinated Campaign, which assists
candidates up and down the general election ballot. Republicans
again won all statewide offices in 2008. In June 2011, Williams
announced he would run for Texas’ 25th congressional district.
A television campaign ad of Williams’, called “The Donkey
Whisperer” has gone viral after being uploaded to YouTube and
has almost two million views. Filmed on the Williams family
ranch outside of Weatherford where they raise miniature donkeys,
it was named as one of Comedy Central’s 5 Funniest Congressional Ads of 2012.
Roger Williams has taken the dealer community service ethic
to another level where he will not only benefit hard working
Texans but responsible Americans throughout the nation. With
wife Patty and third generation Texas car dealers, Sabrina and
J.J., the Williams family of Weatherford is a shining light for the
future of our country. Z
“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 Mark Brown, Regional Sales Manager in Houston at 512-699-8842 or
Winston M. Tripp, III, Regional Sales Manager in Dallas at 469-767-6262.
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.
Health Care Reform
Q&A
COMPREHENSIVE HEALTH CARE R EFORM LEGISLATION WAS ENACTED IN M ARCH 2010 AND HAS BEEN A
TOPIC OF DISCUSSION EVER SINCE. A MERICAN FIDELITY A SSURANCE COMPANY KNOWS IT ’S CHALLENGING
FOR EMPLOYERS TO UNDERSTAND THE NEW REQUIREMENTS, FIGURE OUT HOW TO COMPLY, AND KEEP UP
WITH THE CHANGING RULES.
T
his Q&A will hopefully answer some common questions
employers have about Health Care Reform and how it could
impact them, particularly between now and 2014.
What are the administrative requirements
employers need to have on their radar screens?
A Health Care Reform imposes a number of new administrative obligations on employers and plan sponsors. The following
are a few key provisions with upcoming effective dates:
• Summary of Benefits and Coverage – Plan sponsors for selffunded plans and insurers for fully insured plans must provide a
Summary of Benefits and Coverage (SBC) and Uniform Glossary to plan participants. An SBC is an eight-page chart that
provides participants and beneficiaries a high-level description
of their available group health coverage. Plan sponsors must
distribute the SBC for enrollments and plan years beginning on
or after September 23, 2012. This is in addition to the ERISA
2013 SPRING
requirement to provide a Summary of Plan Description (SPD).
If the plan is fully insured the plan sponsor shares responsibility
with the insurer for distributing the SBC. Plan sponsors of selffunded plans must fi ll in the government-provided template
with the required information for their plan(s). Distribution is
required with all enrollment materials (including initial, annual, and special enrollments), following a special enrollment
event, and upon request. The Uniform Glossary, however, only
has to be provided upon request.
• W-2 Reporting of Health Costs – Most employers that were
required to fi le 250 or more W-2 Forms in 2011 are required to
report the cost of certain health coverage on employees’ 2012
W-2 Forms (which are generally required to be provided by
January 31, 2013). Employers should be working with their
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HEALTH CARE REFORM — CONTINUED ON PAGE 18
17
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HEALTH CARE REFORM
— CONTINUED FROM PAGE 17
payroll teams now to identify which
health coverage needs to be reported
(the IRS has published a helpful chart),
the amount that has to be reported for
each (both the employer and employee
contributions, similar to the way COBRA premiums are calculated), and
who will be responsible for gathering
the information at the end of the year.
• New Hire Notice - As of March 1,
2013, and for all subsequent new hires,
employers must provide notices to employees that include information about
the state Exchanges. If the actuarial
value of the employer’s plan is less than
60%, the notice must also describe the
availability of a federal premium tax
credit and cost-sharing reductions for
Exchange coverage. The federal agencies are expected to provide a model
document for this purpose.
Is it the employer’s or the
insurer’s responsibility to comply
with the plan design mandates
that take effect in 2014?
Health Care Reform imposes a number of new requirements on the benefits
that must be covered by certain group
health plans, generally those that provide
major medical coverage. Many of these
requirements take effect for plan years
beginning on or after January 1, 2014. For
example, plans may not impose waiting
periods longer than 90 days, and annual
dollar limits and pre-existing conditions
limits will be prohibited. In addition,
non-grand fathered plan deductibles may
not exceed certain amounts and such plans
must include out-of-pocket maximums
(after which the plan must pay 100% of
covered expenses through the end of the
plan year). These are only a few examples
of plan design mandates imposed by
Health Care Reform.
The law requires group health plans
and health insurance companies to comply with the plan design mandates. However, the penalty for non-compliance is
imposed on the employer. The penalty is
generally $100 per day for each affected
18
individual up to the date of correction. From a practical standpoint, there are
many tasks that will likely be performed
by the insurer and or plan administrator.
Because the employer could be assessed a
penalty, it is important for the employer
to take an active role in ensuring the
group health plan’s compliance with
these Health Care Reform mandates.
What is the “employer
responsibility” requirement in
the law?
Eff ective January 1, 2014, a “large
employer” (with 50 or more full-time
equivalent employees) that does not offer
health coverage (to full-time employees
working 30+ hours per week and their
dependents) must pay a monthly Free
Rider Penalty of 1/12th x $2,000 x the
number of full-time employees (after
the fi rst 30 employees) if at least one
full-time employee enrolls in Exchange
coverage and qualifies for a premium tax
credit to buy Exchange coverage.
Alternatively, if a large employer offers
health coverage that is either unaffordable (the premium contribution to receive
health coverage from the employer costs
the employee more than 9.5% of W-2
income) or inadequate (the coverage has
an actuarial value of less than 60%), the
employer must pay a monthly Free Rider
Penalty of 1/12th x $3,000 x each fulltime employee who enrolls in Exchange
coverage and qualifies for a premium tax
credit, capped at the penalty amount the
employer would have paid for not offering coverage.
Do employers have to offer
health coverage to part-time or
seasonal employees?
There is no requirement to offer coverage for any employees. However, large
employers that fail to offer adequate and
affordable coverage to full-time employees
(and their dependents), must pay a Free
Rider Penalty. An employer who wants
to avoid paying the penalty would need to
ensure all full-time employees (working
30 or more hours per week) are eligible
for coverage. The law does not include an
exception for seasonal employees.
How does an employer calculate
whether someone is a full-time or
part-time employee for purposes
of the Free Rider Penalty?
IRS Notice 2012-58 describes a safe
harbor employers may use to determine
whether an existing or newly-hired employee is considered a full-time employee
for purposes of the Free Rider Penalty. In
general, full-time status is determined for
each month, and an employee who averages 30+ hours of service per week is considered a full-time employee. Employers
may use an optional look-back period
(of between 3 and 12 calendar months)
to determine whether an employee averaged 30+ hours of service per week. If
an employee was considered full-time
during this “measurement period,” the
employee must be treated as a full-time
employee for benefits purposes for a subsequent “stability period” regardless of
the employee’s number of hours worked
during the stability period, so long as
the individual remains an employee. If
the employee was considered part-time
during the measurement period, the
employee may be treated as part-time for
benefits purposes throughout the stability period. The stability period must be at
least as long as the measurement period,
and not shorter than six months.
These rules may be used for seasonal
employees and for new employees who
will work variable hours if, based on the
facts and circumstances at the date of
hire, it cannot be determined that the
employee is reasonably expected to work
an average of at least 30 hours per week. The rules may also be used for ongoing
employees who have worked for at least
one complete measurement period.
What are the other significant
changes that take effect in 2014?
While the Health Care Reform provisions have varying effective dates ranging
from 2010 through 2018, arguably the
most significant changes are those designed to increase the availability of health
coverage that take effect January 1, 2014.
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HEALTH CARE REFORM
— CONTINUED ON PAGE 20
American Fidelity Assurance Company
Services You Need
to Manage Health Care Reform.
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We offer Health Care Reform education,
assistance, and communication.
American Fidelity realizes that Health Care Reform comes at a time of budget
constraints and limited resources for many employers across the nation. We
have a package of Health Care Reform services to help employers tackle the
new health care landscape.
Our Health Care Reform Services
t W-2 Reporting Tools
t Enrollment Solutions
t Reporting Tools
We want to be your partner and resource to help you manage your new
responsibilities and choices arising from Health Care Reform. We can provide
a variety of services to educate you on the new requirements, assist with
implementation and on-going compliance, and communicate plan changes
to your employees.
t Nondiscrimination Testing Tools
t Cost Modeling
To learn more about what American Fidelity can do for your organization, contact:
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800-450-3506, ext. 6965
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HEALTH CARE REFORM — CONTINUED FROM PAGE 18
• Health Insurance Exchanges - States must establish Health
Insurance Exchanges to offer private insurance choices to
individuals and small employers (generally with 100 or fewer
employees). If a state chose not to build an Exchange, or didn’t
have HHS approval (or conditional approval) by January 1, 2013,
the federal government will operate an Exchange in that state.
• Individual Mandate - All individuals must obtain minimum
essential coverage or pay a tax. The tax is applied for each
month during which an individual doesn’t have minimum
essential coverage. Exemptions apply for certain individuals,
such as if employer coverage is unaffordable (costs more than
8% of household income), for low income taxpayers, and for
3. Understand Your Choices – After you understand your responsibilities and impact on plan costs, the next step is to
understand your plan options. Generally speaking, there are
four options for providing or not providing health coverage
once all of the Health Care Reform provisions take effect:
» Maintain your current major medical coverage without
significant changes;
» Transition to a lower cost design, like a high deductible
health plan, perhaps with Health Reimbursement Arrangements (HRAs) or Health Savings Accounts (HSAs);
» Sponsor an Exchange plan (state Exchange coverage is
generally available to employers with fewer than 100 employees in 2014); or
You may also want to consider cost management options, such as offering wellness
incentives and performing a dependent verification review to ensure plan dollars are
only being spent on individuals you intended to cover.
short coverage gaps.
• Premium Tax Credit – A federal premium tax credit to purchase Exchange coverage is available for certain individuals
with family income up to 400% of the Federal Poverty Level
(FPL). A credit is not available if the individual is eligible for
certain government-provided coverage (such as Medicare or
Medicaid) or employer-sponsored coverage that is adequate
and affordable.
What steps can an employer take to develop a longterm plan sponsorship strategy?
The following action plan provides a road map for employers who are ready to consider what to do with their plans going
forward:
1. Understanding Your Responsibilities – The law imposes
a long list of new requirements that impact employers and
other plan sponsors. The fi rst step is to understand how each
of those could impact your organization, which could include
identifying which plan provisions may need to be changed to
comply with the plan design mandates, assessing how you’ll
be affected by the Free Rider Penalty, and understanding the
new administrative obligations. 2. Assess Whether Your Health Plan Costs are Sustainable – A
number of the Health Care Reform requirements could increase an employer’s costs, such as the plan design mandates,
Free Rider Penalty, new fees (i.e., the Comparative Effectiveness Research Fee, Exchange Reinsurance Fee, etc.), the
Cadillac tax (a 40% tax imposed on the aggregate value of
specified health coverage that exceeds target thresholds), and
the various administrative obligations. After understanding
your obligations related to each of these, the next step is to
calculate the possible cost impact and then determine whether
it is sustainable for your organization.
20
» Do not sponsor a plan – employees would be able to buy
individual Exchange coverage.
You may also want to consider cost management options,
such as offering wellness incentives, performing a dependent
verification review to ensure plan dollars are only being spent
on individuals you intended to cover, changing plan design
(within the confines of the new plan design mandates), and taking full advantage of tax-favored arrangements (such as Section
125 cafeteria plans that allow employees to pay for health and
welfare benefits on a pre-tax basis, Health Flexible Spending
Arrangements (FSAs), HRAs, and HSAs).
4. Design Implementation Strategy – After selecting the path
to pursue, you need to create a detailed implementation plan
that takes into account all of the following: » Benefit design and eligibility;
» Cost management;
» Administrative obligations;
» Impact on employees;
» Employee communication; and
» Resource availability.
5. Implement Your Plan – Your final step is to implement your
plan. Z
To learn more about everything we can do for you, please visit our informative
website, HCReducation.com. Caution: This is only a high level summary that
reflects our current understanding of select portions of the law, sometimes
in the absence of regulations. All of the interpretations contained herein are
subject to change as the appropriate agencies publish guidance. The most upto-date summary of these rules is available on our website at HCReducation.com.
American Fidelity does not provide tax or legal advice and you are encouraged to
seek the advice of your legal counsel.
F&I Products
Panoptic® Insurance
Automotive Training Academy
Dealership Development Programs
Advertising Opportunity
TADA Annual
2013-2014 Membership Directory
“The TADA Membership Directory is a resource I personally use
regularly to get contact information on fellow Texas dealers, as well
as, TADA staff. The Directory is a valuable resource to keep in your
desk for when you need to locate or contact someone about an issue
or just ask a question. Without the companies that advertise in the
Directory, we would not have access to such a helpful resource.”
— Craig W. Kinsel, Kinsel Motors, Inc., Beaumont, TX
“I think it is nice to have the directory in your desk and be able to call
any dealer in the state, also a good way to support you association at
the same time.”
TADA DIRECTORY AD
— David Alderson, Alderson Enterprises, LP, Lubbock, TX
“As the owner of a Texas dealer group, we always prefer to do
business with companies that support the Texas Automobile Dealers
Association. By advertising in their annual directory, it gives our
managers a quick reference as to which companies support our
organization. We currently do business with 15 companies that
advertised in the 2010 directory and look forward to increasing that
number this year.”
— Mark Daniels, Four Wheels Autogroup, McKinney, TX
Be a part of TADA’s Annual Membership
The directory will be a full color book
Directory. Have your own full-page, half-
(8 1/2” x 11”) distributed to every TADA
page, quarter-page, business card listing,
member new car and truck dealer across
section divider page or even the inside or
Texas to be used as a handy reference
outside cover in this publication.
guide for at least one full year.
Ads must be received no later than May 31, 2013
Contact the TADA office at
[email protected] for details.
2013 SPRING
23
Are We Required to Fillout
the OSHA 300 Logs?
U
nder the OSHA Injury and Illness Recordkeeping and
Reporting Requirements, most employers are required to
record work-related injuries and illnesses using the OSHA
300 Logs. However, many businesses, including car dealerships,
are currently exempt from most of the requirements, dependent
on store’s primary Standard Industrial Classification (SIC) code.
All business activities that generate revenue have been assigned
a SIC code. The primary SIC code of a business is based on the
activity that generates the most revenue. As an example, several
different business activities are conducted at an automobile dealership; however, most of the revenue typically comes from the
selling of automobiles, therefore the SIC code for Automobile
Sales, 5511, is used.
The Exemption for Automobile Dealerships
New and Used Car Dealers (SIC Code 5511), Used Car
Dealers (5521), and Motorcycle Dealers (5571) are exempt from
the requirements to maintain a log and post a summary of all
PROVIDING LEGAL SERVICES
TO AUTOMOBILE DEALERS
Wm. David Coffey, III & Associates has specialized in representing
franchised new motor vehicle dealers in civil and regulatory
proceedings against manufacturers and distributors for over 25 years.
[t] 512.328.6612 | [f] 512.328.7523
e-mail: [email protected] | www.wdcoffeylaw.com
13810 FM 1826 | Austin, TX 78737
work-related injuries
and illnesses. You
must verify with your
accounting department what SIC code
they use to ensure you
are actually exempt. Be aware that OSHA
inspectors are often unfamiliar with this exemption; so you may
need to refer them to 29 CFR 1904.2.
Non-Exempt Facilities
There are several businesses that are associated with the car
industry that are not exempt from the regulation. For example,
if offsite facilities are not clearly linked to the sales area of the
dealership, the off-site locations may have a different SIC code. Other examples of non-exempt businesses are:
• Standalone Collision Centers
• Standalone Auto Repair / Quick lube
• Car Leasing Company
• Truck Centers
• Car Rental Company
• RV Centers • Parts Warehouses
• Boat and/or ATV Sales & Service It is important to find out the SIC code being used for each
location. This is the only way to determine if you are exempt.
All Facilities Must Comply with OSHA’s Basic
Reporting Requirements
All employers regardless of number of employees or the SIC
code are required to report fatalities and multiple hospitalizations
to OSHA. Also, any facility that is asked by OSHA or the Bureau of Labor Statistics (BLS) to complete an Injury and Illness
Survey (usually sent via mail) is required to do so.
Best Practices
Outside of exempt industries, OSHA 300 log usage is quite
common. It is widely considered a useful tool for tracking and
identifying patterns with workplace illnesses and injuries. Accordingly, some dealerships and dealer groups have elected to
maintain OSHA 300 logs, regardless of the exemption, for the
benefits provided as a management tool for loss control. Z
If you are not sure if your facility is exempt, or if you have other questions, please
contact your KPA Engineer. OSHA 300 log reporting forms can be found at: http://
www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf.
24
H OW D EALERS TAKE C ONTROL
Own your own program.
If you want control, you need to own your own
program -100%. True control means 100% ownership, not some is theirs and some is yours.
You know this.
Portfolio delivers this to you. By setting you up in
a company that you own 100%, we enable you to
control your destiny- both as a dealership owner, and
as a human being with personal goals. Like taking
care of your family’s future. Like creating a very profitable personal wealth asset outside your dealership
that no one can take from you.
It’s about your future.
With Portfolio you own 100% of the underwriting
profits and investment income from selling and
delivering on the promises of Vehicle Service
Contracts and any other F&I products that help
your customers protect their vehicles. Your
customers expect this protection, and you
need to control the means to provide it.
Q UESTION: Did you ever ask yourself why
all these outside companies
want your F&I business under
their control?
ANSWER:
There’s good money on the table
that’s got to go to someone.
100% O WN ERSH I P
E QUALS T RU E C ONTROL .
To take control of your future, contact Michael Hall.
office [405] 285.5988 mobile [214] 578.8541
Profit Concepts is a full-service F&I agency serving dealers
throughout the Southwest since 1990.
Create even more personal wealth by earning
the underwriting profits and investment income
from even more F&I products:
• Dealer CPO and limited warranties
• GAP insurance
• Customized Maintenance programs
• Appearance Protection products
• Tire and Wheel products
• Anti-Theft and Key Replacment products
• and more...
Take advantage of our income development
and training programs that make your dealership successful on both the front end and the
back end.
www.Profit-Concepts.com
2013 TADA Annual Conference
April 7-8, 2013
The Houstonian Hotel, Club & Spa | 111 North Post Oak Lane | Houston, Texas
26
Texas TIME Dealer of the Year
Ernesto Ancira, Jr.
THE 2013 TEXAS TIME DEALER OF THE YEAR, SPONSORED BY TIME M AGAZINE AND A LLY FINANCIAL,
IS ERNESTO A NCIRA, JR. OF SAN A NTONIO.
A
leader in his industry
and his community,
Er nesto is a past
Chairman of the Board
of the Texas Automobile
Dealers Association and a
member of the TADA Hall
of Legends, one of only
twelve franchised Texas
dealers to earn this distinction. His daughter, April,
continues the family legacy
of leadership, serving on
the TADA Board of Directors and many community
service endeavors in San
Antonio. Son-in-law, Jason Thompson, operates
Ancira Kia in San Antonio
and is a rising star in the
industry. He and April
have just welcomed their
second child to the family
as daughter, Hope, along
with son, three-year-old
Gunnar, represent the third
generation of this great
dealer family.
Ernesto Ancira, Jr.
2013
TADA Winner
TIME MAGAZINE
QUALITY DEALER AWARD
Ancira, Jr. who started
his career outside of the automotive industry, is a 1961 graduate
of St. Joseph’s High School in Laredo, Texas. He earned a BBA
in marketing from St. Edward’s University in Austin, Texas, in
1964 and then worked for Gillette and Kimberly-Clark in Mexico
City before deciding to settle in San Antonio in 1972.
“There was an auto dealership that was available,” he explained.
“It had been run by the staff since the death of the owner a year
before.” Although there were about 80 candidates vying for the
dealership, he relied on his business acumen to negotiate with
the heirs and Chevrolet to acquire it. From that first dealership
established in 1972, Ancira has grown to nine franchised dealerships in four Texas cities and has become one of the largest retail
motor home operators in the country.
2013 SPRING
Ancira, Jr. has served
the state of Texas as commissioner of the governor’s Hispanic Advisory
Committee and member
of the Strategic Planning
Commission. He was also
on the executive board for
the Greater San Antonio
Chamber of Commerce;
advisor y committee for
Crime Stoppers of San
A nton io; boa rd member for the Boy Scouts of
America and the United
Way, among other leadership positions. He was
campaign chair for Golf
San Antonio and tournament chairman for the
Southwestern Bell Dominion Senior PGA Tour
for 15 years.
His most impor tant
civ ic ach ievement was
working with the Greater
San Antonio Chamber
of Commerce to develop
Cibolo Canyons – TPC
Golf Resort. “Th is brought new tourism and energy to our
city, and with that, brought more jobs and money to our community,” he said.
Of the many distinguished awards earned by Ancira, Jr.
through the years, the most meaningful he ever received is a glass
plaque given to him by his staff. “It helped me realize how I was
able to enhance the quality of their lives,” he said.
Ernesto and his wife, Robin, have spent a lifetime working
on behalf of Texas and Texans and they reflect everything that
is good about being a franchised dealer and the TIME Dealer
of the Year. Z
27
Linda McNatt
Guardian Angel of Loving Pets
IN RECENT YEARS DENTON, TEXAS WAS DESPERATELY IN NEED OF A
NEW FACILITY FOR ANIMAL RESCUE AND ADOPTION, BUT WITHOUT
SUFFICIENT CITY FUNDING THEY NEEDED SOMEONE FROM THE
COMMUNITY TO STEP FORWARD AND MAKE THE INITIAL COMMITMENT
TO LAUNCH THE PROJECT.
A
s is the case in so many Texas
communities, that commitment
came from a car dealer family, the
McNatts – Jim and Linda.
With a contribution including matching funds and a generous donation from
Toyota, the McNatt initiative generated
over one million dollars toward a state
of the art facility that would serve North
Texas families for years to come. Loving
pets would be placed with families and
thrill children in a way that was never possible until the McNatts raised their hand
and said this is the right thing to do for
our hometown.
Jim and Linda McNatt are third
generation Texas dealers who have a
family history of community service and
industry leadership. Jim’s grandfather,
Alvin McNatt and his brother, J.P.,
2013 SPRING
came from the cotton fields to open a
Chrysler dealership in Greenville, Texas
in 1932.
Jim McNatt’s father, Leon, worked for
the family business in Greenville until
he opened his own Oldsmobile Cadillac
GMC dealership in Denton in 1961.
Eighty one years in the new car business,
all in North Texas and almost all of it in
two counties. An amazing history for a
family that is part of the bedrock of the
automotive industry and of Texas itself.
The McNatts have dealerships in
Sanger, Gainesville and in Jackson, Mississippi where Lock McNatt, the son of
Jim’s brother Al McNatt is carrying the
family legacy in the new car business into
the fourth generation.
Dealer families such as the McNatts
not only provide needed transportation to
their communities but are essential to the
quality of life to all within their realm of
influence. The new Linda McNatt Animal
Care and Adoption Center is a perfect
example of dealer families making a difference for Texas.
When Linda McNatt sat with her
friend, respected Texas State Representative Myra Crownover at the dedication
ceremony for the adoption center you
could tell how joyful it was for her to be
able to give her community the gift of life
for deserving pets and to bring happiness
to the caring families of Denton County.
Here is the story of how a dealer family came through for their hometown in
a very important way.
Z
GUARDIAN ANGEL — CONTINUED ON PAGE 30
29
Z
GUARDIAN ANGEL — CONTINUED FROM PAGE 29
Jim and Linda McNatt are making a huge community impact
in Denton, Texas. McNatt owns Jim McNatt Auto Group and
has been a Toyota Dealer for many years. The McNatts are
well-known in the Denton community for their frequent sponsorship of many local charities. Recently, Jim decided to honor
Linda for her dedication to animal rescue, especially cats. The
opportunity arose when he was approached by Denton Animal
Shelter Foundation, Inc. (DASF) Chairwoman Bette Sherman
concerning the need for a new municipal animal shelter.
The current Denton city shelter is 34 years old, outdated and
out of capacity. It has a service area of approximately 200,000
people and yet holds only 114 animals. The city is not under
obligation to provide adoption services; therefore taxpayer funding was not available for an updated adoption and care facility.
However, DASF obtained a public/private partnership agreement
with the city to build a new 15,300 square foot animal control
municipal facility which includes a state-of-the art-shelter and
on-site veterinary clinic. The city agreed to purchase six acres of
park land and match private funds raised by DASF. Of the $5.0
million total cost, DASF raised $2.0 million specifically for the
shelter and clinic areas. Due to Jim’s efforts, $30,000 in matching
grants were received from Toyota Corporation.
As a surprise to Linda, Jim generously agreed to donate
$500,000 for the entire new building to be named the Linda
McNatt Animal Care and Adoption Center. Groundbreaking
was held in September, 2012; and the facility construction will
begin early in 2013. Architect Larry Connolly of Austin, Texas
is an expert in animal shelter design. The new building is surrounded by park and recreation land which will include walking
trails and playgrounds. The building itself will be a significant
addition to the Denton community and will be a model of modern
shelter design which emphasizes healthy and attractive animal
habitats. Many pet play areas and get-acquainted rooms are
planned, as well as an enclosed porch for cats. The on-site vet
clinic will serve only shelter animals and will provide maximum
care for abandoned pets which have a high incidence of veterinary
needs due to their previous neglect. All of these components will
accomplish the goal of making shelter pets more adoptable and
thus saving more lives.
Thanks to Jim and Linda McNatt, a major community need is
being fulfi lled which will enhance the quality of life in Denton.
The Denton City Council has recognized the enormous contribution of the McNatts as well as that of DASF. The foundation
board has noted that Jim played a key role in the success of the
capital campaign by being a lead donor early in the process. His
generosity allowed DASF to attract other major donors and
complete the campaign early.
Additionally, the McNatts provide on-going support to DASF
and to the current shelter on programs that increase adoptions.
Recently, their support in the national ASPCA $100,000 Rachael
Ray Challenge was integral to DASF/ Denton shelter’s fi nal
ranking of 6th in the nation.
Th roughout Texas there are essential institutions named
for automobile and truck dealers and their families. There are
schools, stadiums, libraries, parks, hospitals…and soon there
will be the Linda McNatt Animal Care and Adoption Center
in Denton to confirm once again that franchised dealers more
than any other group of Texans are essential to the fabric of the
state and the communities in which they live. Z
30
2013 SPRING
31
Your First Choice in Automotive Dealership
Construction Services
375 Sawdust Rd Spring, Texas 77380
(936) 760-2600
www.StrattonDC.com
Stratton Development & Construction has
the experience and team to provide the
best in new commercial construction and
facility image upgrade. We actively manage
daily operations and pay close attention to
our clients needs to minimize down time
for their project.
Too Busy To Protect Your Business?
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prevention strategies, designed to help prevent your profits from being stolen.
Visit www.federatedinsurance.com to find a representative near you.
)HGHUDWHG0XWXDO,QVXUDQFH&RPSDQ\‡)HGHUDWHG6HUYLFH,QVXUDQFH&RPSDQ\ ‡)HGHUDWHG/LIH,QVXUDQFH&RPSDQ\
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*Not licensed in the states of NH, NJ, RI, and VT.
32
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Celebrate Texas
2013 NADA Convention
Orlando, Florida
2013 SPRING
33
TADA Advertiser Index Spring 2013
Attorney
Johnson, Deluca, Kurisky & Gould, P.C. ..............................................Page 31
Wm. David Coffey, III & Associates.......................................................Page 24
Automobile Training
First Innovations, Inc. ..............................................................................Page 15
Banking/Finance
Bank of America/Merrill Lynch................................................................Page 9
Construction Management
Pletz Construction, LLC. .........................................................................Page 28
Stratton Development & Construction.................................................Page 32
Teal Construction Company.....................................................................Page 6
The Ratliff Group, LLC ...............................................................................Page 5
Dealership Buy-Sells
Dick Nokes Consulting, LLC...................................................................Page 31
Dealer Services/Consulting
Reynolds & Reynolds ............................................................................... Page 11
Dealership Management Systems
Internet Lead Response
Better Car People .....................................................................................Page 26
Insurance
American Fidelity Assurance .................................................................Page 19
Federated Insurance ................................................................................Page 32
Sentry Insurance ......................................................................................Page 21
Texas Auto Dealers Self Insurers Group .............................................. Page 11
Texas Mutual Insurance Co. ...................................................................Page 14
Zurich American Insurance Company .................................................Page 16
Key Control
Supra...........................................................................................................Page 12
Sales Leads
voisys ..........................................................................................................Page 30
Sales Training
Foresight Services Group .........................................................................Page 3
Service Contract
Auto/Mate Dealership Solutions .........................................................Page 34
First Innovations, Inc. ..............................................................................Page 15
Dealership Valuations
Transportation/Internet
®
Richard W. Nokes, P.C., CPA,ABV ........................................................Page 31
MyPlates.com............................................................................................Page 36
Finance & Insurance Development
Uniforms & Facility Services
First Innovations, Inc. ..............................................................................Page 15
Profit Concepts Management, Inc. .......................................................Page 25
UniFirst .......................................................................................................Page 31
Utility Consultant
F&I Training/Products
APPI ..............................................................................................................Page 2
American Financial & Automotive Services, Inc. ............Page 22 & Page 35
Foresight Services Group .........................................................................Page 3
34
Your Next Stop - New Profit
“Turn-Key” Personal Lines Insurance Agency
New Profit CentertIncrease Your CSItMaximize Customer Loyalty
Texas Automobile Dealers Association
1108 Lavaca, Suite #800
Austin, TX 78701
PRSRT STD
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PERMIT NO. 508
THIS MAGAZINE IS DESIGNED AND PUBLISHED BY MEDIA COMMUNICATIONS GROUP | 801.746.4003