GNYADA June 2019 Newsletter

To read these stories and get the latest news online, visit the GNYADA website at www.gnyada.com

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

JUNE 2019 Volume 29, Issue 3

1 Attendees Start Their Car-Buying Journey In Huge Numbers at this Year’s Show Over 50 New and Innovative Product Launches in 2019

HIGHLIGHTS

Broker Bill Priority for 2019 Legislative Session page 2 DMV Upholds NY Franchise Law page 3 Dealer Employees Steal More Than $10 Million Plus page 4 Avoid DMV Violations – Only Collect Lien Fees from Lenders page 6

NY Rules for Interns & Hiring Minors page 8

Turn Your Roof or Lot into a Solar Profit Center page 9 Questions from the Field page 11

Highlighted by a strong lineup of over 50 world and North American debuts across just about every segment during the New York Auto Show Press Preview, the continuing trend of domi- nance from the powerful crossover and SUV categories garnered much of the public and media’s attention. Following the Show’s press and industry days, more than one million visitors started their car-buying journey at the 2019 New York Automobile Show. The Show was offi- cially opened by New York State Governor Andrew Cuomo, acting DMV Commissioner Mark Schroeder, and members of the GNYADA Board of Directors.

Showroom-Ready Crossovers and SUVs Dominate; While Luxury Looms Large

While the larger models may have been a big draw at this year’s Press Preview, the Show had an exciting lineup of debuts including a range of new sedans, sports cars, electric vehicles and hot new concept cars. The impressive list of product reveals and the amount of media coverage had consumers excited about visiting the Show and checking out all the latest cars, trucks and crossovers for themselves. (continued on page 2)

NYC Says “Shut the Front Door” page 12

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York 11357

Dealer Hotline 718.746.5900

www.gnyada.com

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Greater New York Automobile Dealers Association • www.gnyada.com

Attendees Start Their Car-Buying Journey

(continued from cover)

Auto Forum Shines Spotlight on Retail Sector The 2019 Automotive Forum, co-hosted by NYIAS, JD Power and NADA, featured more manufacturer CEOs than ever before in its 12-year history. Scott Keogh of Volkswagen; Toyota’s Bob Carter; Anders Gustafsson, President and CEO of Volvo; Fred Diaz, President and CEO, Mitsubishi; and Genesis’ Erwin Raphael headlined the program. Held at the Grand Hyatt hotel, more than 500 attendees representing manufacturers, dealers, analysts, suppliers and Wall Street had the opportunity to hear auto industry leaders discuss everything from how dealers can prepare for the arrival of automated vehicles to trends that will influence the automotive marketplace. GNYADA Chairman Lee Certilman and GNYADA President Mark Schienberg were both featured speakers at the event. The conference covered a wide-range of topics including cutting the time it takes to buy a car. According to car dealer Paul Walser of the Walser Automotive Group in Minneapolis, “We need to cut transactions down to 25 minutes,” noting protracted transaction times are a cus- tomer turnoff often cited on satisfaction surveys.

Other Industry Events In addition to the Automotive Forum, the New York Auto Show hosted a series of important industry events includ- ing the World Car Awards, CEO Hypercar Summit, MediaPost Automotive Marketing Conference, Mobility Tech Talks Series, Wards 10 Best Interiors Awards and the World Traffic Safety Symposium. These events bring the entire industry together and help solidify the NYIAS as the premier event of its kind in the world.

Broker Bill Priority for 2019 Legislative Session BILL APPROVED BY SENATE TRANSPORTATION COMMITTEE 2

make numerous consumer disclo- sures. In fact, GNYADA has found that no broker company is fully com- plying with New York’s existing advertising rules. This year’s bill addresses these prob- lems by clarifying DMV’s authority to enforce registration requirements and requiring brokers to obtain writ- ten consent from new vehicle manu- facturers prior to selling or leasing that brand. It also allows dealers to bring their own legal actions to enforce the law. Additional enhance- ments provide further protections for consumers and New York’s fran- chised new car dealers, including pro- hibiting brokers from handling sensi- tive consumer information.

work achieved significant results. Nearly 60 legislators in the Senate and Assembly signed on as sponsors. And, on Thursday, May 30th, the Senate Transportation Committee approved the bill and referred it on to the Finance Committee for further consideration. GNYADA expects additional legislative progress to be made in the coming days and weeks as Session is scheduled to end on June 19th. Despite legislative victories in previ- ous years increasing broker regula- tions, these businesses continue to evade enforcement. Brokers and leas- ing companies flout existing laws that require them to register with DMV, adhere to clear advertising rules and

GNYADA and a broad coalition, including dealers, UAW 259 and the Teamsters, are continuing to push for enhancements to existing State Broker Laws. GNYADA has made several visits to Albany to meet with key legislators to demonstrate the importance of a bill currently before the State Legislature (S.4364- A/A.6655-A). The goal for this legislation is to enhance consumer protection and pro- tect dealers’ enormous investments. The prime sponsors are Brooklyn Assemblyman Robert Carroll (D) and Senator Kevin Thomas (D) of Nassau County. As of the end of May, the coalition’s

2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019

DMV Upholds NY Franchise Law NEW DEALER AGREEMENT/INCENTIVE PROGRAM UNFAIR MODIFICATIONS

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reflecting the parties shared interest in vehicle sales.” This important case demonstrates that New York’s Franchise Law covers not only changes to the Dealer Agreement itself, but also extends to all aspects of the franchise relation- ship, including the all-important incentive programs. This case also demonstrates that mediation through DMV under the Franchise Law, con- tinues to be a successful venue for dealers to resolve their disputes with manufacturers. Wide World Maserati was represented by Russell McRory, James Westerlind, Mike McMahan, and Charles Gallaer of Arent Fox LLP, together with co-counsel, Jonathan P. Harvey of the Jonathan P. Harvey Law Firm PLLC of Albany, New York. GNYADA congratulates Arent Fox on this victory and thanks them for this article. procedures the dealership will adopt to ensure the VPP policy is implemented and maintained; and a series of actions the dealership will take throughout the lifecycle of VPPs, including those related to product selection, pricing, adver- tisement, presentation, sale, can- cellation and, when they arise, customer complaints. The guide, including an editable Microsoft Word version of the policy template, is available to NADA members at www.nada.org/volun- taryprotectionproducts n n

earn incentives included image and facility requirements, training requirements, CPO sales and off- lease purchase objectives, and parts purchase objectives that would increase substantially each successive quarter. The DMV Appeals Board found that these changes to the dealer agreement and the incentive program, “… taken separately and as a whole, appear to be adverse to the interest of the deal- erships, and in several instances, vio- late the Dealer Act.” In a lengthy and sweeping decision, the DMV Appeals Board found that “the pricing and payment structure, including terms and conditions upon which MNA sells vehicles to Wide World at wholesale and the policies and practices by which Wide World purchases and resells Maserati vehi- cles, including a dealer’s margin and wholesale pricing policy, may be deemed to be integral, constituent parts of the franchise arrangement, NADA has released the new, optional NADA/NAMAD/AIADA Model Dealership Voluntary Protection Products Policy to car and light-truck dealer members. This new resource, prepared in consultation with volun- tary protection product (VPP) experts throughout the industry, provides fran- chised dealers an optional policy tem- plate they can use to help ensure that their VPPs are marketed and offered to customers in a compliant, profes- sional and consumer-friendly manner. The template generally sets forth: n the dealership’s commitment to a transparent and professional VPP process;

In April, the DMV Appeals Board affirmed Wide World Maserati’s win in a precedent-setting opinion upholding New York’s franchise law. Following a trial in November, the Administrative Law Judge ruled that Maserati’s changes to the dealer agreement and their incentive pro- gram were unfair and therefore pro- hibited under the law. Among other things, Maserati’s new dealer agreement would have removed electric and hybrid vehicles from the franchise, changed the sales effectiveness standard, and required the dealer to release all claims that it currently has against Maserati. Maserati’s new incentive program would have reduced trading margins and replaced guaranteed holdback through a variable incentive program. Under the program, the dealer would have to earn incentive money by meeting various subjective and ever- changing objectives set unilaterally by Maserati. Some of the criteria to

NADA Releases Model Dealership Voluntary Protection Products Policy

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • June 2019

5 Dealer Employees Steal More than $10 Million Plus

independent audits, background checks, vendor audits, and reconcile records regularly and segregate duties.

Ultimately, a bank officer alerted the dealership that an employee was using dealership checks to pay personal bills, including credit card and mortgage payments. The employee has been indicted on more than 100 counts of grand larceny and other charges. The dealer has also filed a civil suit against the employee. Both cases are pending. Best Practices Internal controls and an accountant who knows your business are critical to preventing similar theft in your dealership. Dealers should conduct

A judge has ruled that a local dealer can seek to recover $10 million dollars from their accounting firm which is alleged to have committed malpractice when it failed to detect that employees were embezzling from the dealership. The accounting firm is accused of failure to perform their duties and the dealership may not have suffered the loss if the accountants had properly performed their jobs. According to the story, an office manager and other employees allegedly stole millions over years.

6 New York Launches Nation’s First Recovery Tax Credit EMPLOYERS WHO HIRE INDIVIDUALS IN RECOVERY FROM DRUG, ALCOHOL ADDICTION ARE ELIGIBLE

Hoping to boost employment and reduce stigma, legislative leaders included a Recovery Tax Credit Program as part of the state budget, allocating $2 million a year for employers who hire individuals with a substance use disorder in their past. “As the opioid epidemic continues to impact families and communities across the state, we remain commit- ted to ensuring individuals who are in recovery have the support they need to lead healthy lives,” Gov. Andrew M. Cuomo said in a statement. “This tax incentive will help remove the stigma surrounding addiction and ensure those battling this disease can create a stable and sustainable path to recovery.” Starting in 2020, eligible employers can receive up to $2,000 in tax cred- its for every eligible person they hire

who has worked a minimum of 500 hours. Credits are available for both part- and full-time employees. The state Office of Alcoholism and Substance Abuse Services (OASAS) will administer the program in con- junction with the Department of Taxation and Finance. An employer that provides a recov-

ery-supportive environment and otherwise meets the program’s requirements must apply annually to OASAS to claim the credit for eligi- ble individuals employed during the preceding calendar year. Applications for the first year of the program will be due by January 15, 2021, for eligible individuals employed during the 2020 tax year.

4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019

7 4 Tips on Improving Your Cyber Strength

account using a domain address exact to the selling dealership. 2. Cybersecurity Training – Could cybersecurity training have helped in this case? Short answer: Definitely. There is email software which helps filter and alert users that incoming email is from an outside organization. It can emphasize in the alert message that the user confirms the email address before opening or responding. In this instance, the buying dealership would have noticed that the selling dealership email address domain was perfect, except for the gmail.com extension. 3. Purchase domains exact and similar to yours – Have you pur- chased or taken the exact or similar domains to your official domains with various email extensions? If you have, then you needn’t worry as much about impostures taking over similar email extensions unless the registering com- pany is breached. Compare: jric- cie@withum.com jriccie@gmail.com and jrriccie@gmail.com or jriccie@withunn.com. 4. Invest in Cyber Insurance – Taking risks is part of running any business. If you haven’t looked into cybersecurity insurance, now is the

time to do it. Companies with inade- quate insurance coverage (i.e. Damage limits and/or covered events) or no coverage, are at a big disadvan- tage. It is not a matter of if, but of when, a cyber breach will occur and your customer’s information, your important data, and your brand are at risk if you don’t have the business covered appropriately. When it comes to keeping your deal- ership secure, there is a lot to consid- er. Monitoring services by forensic professionals, third-party contract review, email configuration changes monitored by IT, adding new software to monitor and training for your pro- fessionals regularly are all key to cre- ating and implementing a defensive strategy for any possible phishing attempts. White collar crime and rogue employee actions can happen every day. Discussing your cyber- security options and level of prepared- ness are the first steps to ensuring your business and team are ready. GNYADA thanks Joe Riccie, CPA, who oversees the Cyber and Information Services Team at Withum for his contributions to this article. Should you have any questions or need any insight in your cybersecurity process, he can be reached at jriccie@withum.com.

Who is at fault when a hacker breach- es an automotive dealership by imper- sonating the sales manager, control- ling its email traffic, and instructing another dealership to buy 20 SUVs with multiple wire transfers to a bank account not previously used? Both dealerships are at fault here and both risk losing a lot. Cybercrimes like this can be prevent- ed or even stopped early on, if you and your dealership have a strategy and know what to do. Here are 4 tips to increase your cyber strength: 1. Invest in advanced forensic monitoring – Whether your email software is managed internally or externally by a third party, someone needs to monitor your software when configuration settings change. In this case, the hacker was able to phish a person, obtain credentials and sit inside the network undetected, reading emails and performing recon- naissance when it was time to attack. The attacker was able to do this by changing the dealerships email con- figurations. Email rules, something you likely don’t check regularly, if ever, were established by the attacker to auto-forward all emails received from the buying dealership to a Gmail

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • June 2019

8 Avoid DMV Violations – Only Collect Lien Fees from Lenders

“The fee for filing a notice of security interest shall be paid by the party secured and such a fee shall not be charged to the owner in any manner.” While the $5.00 may seem insignificant, dealers must deduct the $5.00 lien filing fee from fees charged to the customer, when this fee is included in the calculated registration amount.

Lien fees are paid by lending institutions directly to dealers as part of the proceeds. From time-to-time, dealers mistakenly include the $5.00 fee in the customer’s registration. If your dealership mistakenly collects the fee from a customer, the dealership must refund the fee to the customer within 60 days. According to DMV, Vehicle and Traffic Law, Section 2125(c) states:

Best Practice Train your staff to review registration fees to ensure that the customer registration fees do not include lien fees. If the fee was collected from a customer, quickly correct the error by

sending a refund of the fee. DMV-DIRECT is available at 718.747.0400 to assist with registration issues.

Closed or Sold a Dealership Lately? DMV Needs to Know 9

local Vehicle Safety Field Services Office. Closing dealers must turn in the following items: n Facility licenses n MV-50 books n Temporary Certificates of Registration (TCRs) (MV-53) n Dealer plates n In-transit permits n Inspection stickers

If you have sold your dealership, DMV requires you to notify them of this change. Dealerships must inform DMV of a permanent closure by submitting a Facility Out of Business Attestation form (VS-20). Dealers who temporarily shut-down a particular location must contact their

n Secure Power of Attorney Forms (MV-93) GNYADA suggests you send these items via overnight mail to ensure you have a copy of the receipt for shipment to the Department of Motor Vehicles. The Out of Business Attestation form specifies the overnight mailing address for the items above.

Required Paid Time Off to Vote

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two working days before the day of the election that he or she requires time off to vote. Dealers remain obligated to post a notice about these rights at least ten working days before any election. Included in this Newsletter is the required poster. Dealers employee handbooks also need to be updated to include the Paid Time Off to Vote rules.

The 2019-2020 State budget amended the New York Election Law to allow employees paid time off to vote. Employees in New York who are registered to vote can take up to three hours of paid time off to vote in any election. Dealers may require that this paid time off to vote be taken at the beginning or end of an employee’s shift. Under the new law, an employee must notify the dealer not less than

Dealers that subscribe to GNYADA’s ERP, your model employee handbooks have been updated to reflect this rule change.

6 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019

Westchester Earned Sick Leave Goes into Effect 11

As of April 10, 2019, Westchester businesses with five or more employees are required to provide paid sick leave. The law covers employees that work within Westchester County for more than 80 hours in a calendar year. Employees will accrue one leave hour for every 30 hours worked. Accrual will start when employment begins or 90 days after the law goes into effect, whichever is later. Employees will be entitled to use up to 40 accrued paid leave hours in a year, unless the employer allows a higher limit.

of the absence. For absences that span more than three consecutive workdays, employees may be required to provide reasonable documentation that the time off was used for a covered purpose. All employees must be given a copy of the law and written notice of how it applies to them within 90 days of the law’s effective date, and all new hires must be given the same documentation upon hire. Employers must post a copy of the law and a poster conspicuously for employees. These must be in English, Spanish and any other language deemed appropriate by the county. An employer that willfully violates the notice and posting requirements may be subject to a fine of up to $500. permission to disclose the information or a law requires disclosure. Moreover, employers must keep health or safety information on a separate form in a separate file from other personnel information. Employer Notice Requirements Employers must provide employees with a copy of the law and written notice of how it applies to them within 90 days of the law’s effective date or at the time of hire, whichever is later. Additionally, at the time the law goes into effect, employers must conspicuously display a copy of the law and a poster in English, Spanish, and any other language the county deems appropriate. Employers that willfully violate the notice and posting requirements may be fined up to $500 for each separate offense.

n the care of an employee or family member when public health authorities determine that the employee’s or family member’s presence in the community may jeopardize the health of others because of his or her exposure to a communicable disease; the closure of an employee’s place of business due to a public health emergency; or the closure of day care, elementary, or secondary school attended by an employee’s child due to a public health emergency. When the use of earned sick time is foreseeable, employees should provide advanced notice that does not unduly disrupt an employer’s operation. If possible, the request should include the expected duration n n the paid safe time law does not allow employers to set a minimum increment of use, so employees solely determine how much leave they will use for a covered absence. Employee Notice and Documentation Requirements To take paid safe time, an employee must make a request verbally, in writing, via electronic means, or by any other means acceptable to an employer. Regardless of the duration of leave, an employer may require an employee to provide reasonable documentation that leave was used for a covered purpose, which may include a court appearance ticket. Employers must keep confidential the information they receive unless the employee provides written

Leave may be taken for:

the employee’s or a family member’s mental or physical illness, injury or health condition, or preventative medical care;

n

Westchester Enacts Paid “Safe” Time Ordinance

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Westchester County has enacted a new ordinance, the “Safe Time Leave Law,” that, beginning October 30, 2019, will require all private employers to provide up to 40 hours of paid leave for victims of domestic violence and human trafficking. Covered Uses The law allows eligible employees who are victims of domestic violence or human trafficking to use up to 40 hours of paid safe time in a year (calendar year or any consecutive 12- month period defined by an employer) to: attend or testify in criminal or civil court proceedings related to domestic violence or human trafficking; or move to a safe location. Unlike the paid sick leave ordinance, n n

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The Newsletter • June 2019

13 NY Rules for Interns

14 Hiring Minors

The U.S. Department of Labor (DOL) test to determine whether workers are interns or employees is more favorable to employers. New York has its own standards that are stricter than the federal standard. To be a valid internship under NY law, make sure: 1. The internship is similar to training that would be given in an educational environment. 2. The internship experience is for the benefit of the intern (such as earning school credit). 3. The intern does not displace regular employees and works under supervision, beyond ordinary staff supervision. 4. The employer that provides the training derives no immediate advantage from the activities of the intern. 5. The intern is not necessarily entitled to a job at the conclusion of the internship. An internship should run for a fixed, preset period; if it is treated as a trial period that will lead to employment, the intern will likely be considered an employee. 6. The intern is notified in writing, before the internship starts, that they are not entitled to wages. 7. Anyone supervising or directing an intern’s hands-on work must have sufficient industry experience and knowledge. 8. The intern does not receive employee benefits. 9. The training is general and gives the intern skills that are transferable to any similar employer in the field. 10. The intern screening program is not the same as that for new employees; it only uses criteria relevant to an independent educational program. 11. Any advertisements, positions, or solicitations clearly discuss education or training. A dealership that satisfies all of these factors with their unpaid interns is likely to be compliant. Partnering with schools, colleges, or programs where the intern receives course credit and works with a professional mentor, is also likely to satisfy the exemption requirements. n Put the terms of the internship in writing. n Do not guarantee that the intern will transition to a job. n Teach skills that are broader than on-the-job training that new employees receive. n Supervise the intern to ensure they are learning new skills. n Ensure the internship provides more educational benefit to the intern than it provides service to the dealership. How to avoid violations:

Federal and State Department of Labor guidelines: Individuals under 14 cannot work at a dealership; those under 18 must have working papers and are subject to the following hours restrictions when school is not in session:

Department of Labor Guidelines

Age

Permitted Hours

Max hours, days/week Max days per week

14-15

7am-9pm (June 21-Labor Day) 8/40

6

16-17

6am-midnight

8/40

6

Minors cannot perform certain tasks at a dealership, such as handling hazardous materials, operating certain power- driven machinery (like a hoisting apparatus), or act as a helper on a motor vehicle. These prohibitions do not apply to minors enrolled in an apprentice program registered with the DOL, such as the GNYADA-sponsored school- to-work Automotive Youth Educational Systems program. Employers must make a schedule for all minors, setting forth the hours each minor starts and ends work and the time allotted for meals. This schedule, and any changes made to it, must be posted conspicuously in the workplace. n 16-year-old licensed drivers may drive dealer vehicles on dealership property only. n 17-year-old licensed drivers, who have completed a drivers’ education course and have no record of moving violations, may drive on public roads within a 30-mile radius of the dealership, during daylight hours, in vehicles that weigh no more than 6,000 lbs GVW. They are limited to two trips per day when transporting non-employee passengers and may not transport more than three passengers (including employees) at a time. Minors are also subject to driving restrictions:

8 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019

Turn Your Roof or Lot into a Solar Profit Center

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Solar offers the unique ability to move the traditionally fixed cost of energy to a variable expense, giving dealer principals a way to reduce overhead, enhance their marketing strategy and gain a new competitive edge. According to SunPower, dealerships use on average 18% more electricity than typical office buildings. These untapped energy savings can improve a dealership’s bottom line. Due to technological advances and declining equipment prices, the cost to install solar systems has fallen 53% over the last five years. Depending on design, the energy produced on a rooftop or parking lot system can offset up to 100% of electricity costs. Regardless of the size of your group, from a major multi-store environment to a single store, you can benefit from outsourcing the scanning of your dealership’s documents while addressing compliance with federal, state & manufacturer regulations, rules and requirements. The checklist below lists the key reasons for dealers to pay careful attention. 1. Compliance & Required Records Retention: Retaining files too long or not long enough creates cost liabilities and security risks. Federal, State, and manufacturer fines, penalties, and charge-backs are often the result of lacking best practices. 2. Security: Qualified document scanning services provide secure hosting with encryption. Storage of A Compelling Case for NY Solar Consider the cost of energy in New 16

York: approximately 16 cents per kilowatt hour, which is 20-50% higher than most states in the U.S. This makes an investment in solar attractive to NY auto dealers, since the system will pay for itself more rapidly than in other states. New York is one of the fastest growing markets for solar, as the state sets its sights on a more sustainable future. The state’s goal to produce 22.5% of its energy from renewable sources by 2020 has led to local utilities creating solar incentives for businesses and homeowners alike. New York has also established an aggressive rebate program for solar of $1,750 per installed kilowatt hour up to $12,500 or 40% of the installed cost of your solar project. And business owners who purchase solar may qualify for the Federal Investment Tax Credit valued at 30% customers’ personal information on- site at your dealership is high risk for breach. Documents should be stored securely in a SAS 70 certified environment offered by qualified document scanning services. 3. Cost: On-site storage is extremely expensive. Having documents picked up and scanned by an off-site document scanning service provider represents a cost effective alternative. 4. Access: Easily retrieve your documents from encrypted environments. A qualified service bureau will offer secured user access controls. Eliminate the rummaging through boxes and paper to satisfy requests. Scanning software allows for finding documents by many different indexes based on your needs and requirements.

of the total cost of the installed solar project through 2019. (Check with your dealership accountant.) Get the Facts If you’re interested in exploring solar, the first step is to take a look at your energy use, local utility rate structure, and energy rebates to determine how quickly solar could produce a return on investment for your dealership. A reputable solar company in your area can help with this, and will prepare a solar proposal that should include a feasibility analysis, complete with information on how your facility consumes energy, the savings that solar could yield, as well as local, state and federal incentives. This article was contributed by SunPower, a GNYADA Allied Member. For more info, contact Ryan Ferrero at 970.214.4433. 5. Verification: Are all of the doc- uments you have scanned in-house or with a service bureau indexed correctly and capable of being retrieved? Best practices ensuring validity and accuracy of processes should be in place with outsourced document scanning. Software-based verification processes along with exception reporting are essentials to seeing to it that all your documents are present and accounted for. This article has been provided by GNYADA DDC vendor AutoTrieve. AutoTrieve specializes in secure Private Cloud-based Document Scanning as a Service (DSaaS) for the Automotive Industry. For more information about AutoTrieve visit www.AutoTrieve.com

Key Reasons for Outsourcing Document Scanning

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • June 2019

Join us at this year’s 14th Annual GNYADA Charity Golf Outing!

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Due to eight consecutive sellouts & overwhelming demand, this year GNYADA will be welcoming our guests at 2 new courses. Held at Fresh Meadow Country Club (host club) named a Platinum Club of America from 2016-2018 & the recipient of the Metropolitan Golf Writers Association 2018 Club of the Year Award, along with North Hills Country Club established in 1927 with a recent (2016) freshening. North Hills is viewed as one of the top private courses on Long Island. Enjoy a great day of Golf, a lavish dinner and our Dessert and Awards reception; all while raising scholar-

ship money for promising individuals who are pursuing automotive training at GNYADA’s Center for Automotive Education & Training. One of GNYADA’s primary education goals is training next- generation technicians to meet dealership demands. Funds raised at this event are used to award scholar- ships to promising automotive technician students pursuing their education in automotive technology. Over the past 14 years, the GNYADA Charity Golf Outing has raised nearly $1 million dollars in support of this cause thanks to your continued support.

Additionally, there are thousands of dollars in raffle prizes to be won… this year will be even better, but you can’t win if you don’t attend! Contact Jennifer at the Association for more information or to register for this fun event which includes camaraderie and charity at 718-746- 5900 or Jennifer@gnayda.com . Portions of your donation are tax deductible. Consult your tax advisor for more information. Thank you to our current sponsors. This event would not be the great success it is without you.

Thank You 2019 GNYADA Charity Golf Outing Sponsors

Photography n

Hole n

Platinum n

Registration / Gift Packet n

Cox Automotive

Richards, Witt & Charles LLP

Bethpage Federal Credit Union/CU Direct GNYADA Services Corp.

Ally Auto Finance

Apel Spero

n

Leaderboard n Freeman Entertainment/ Course Refreshments n

Wrist Bands n

Arrowhead General Insurance Agency Auto/Mate Dealership Systems AutoTrieve by MGIS Brown & Brown of New York, Inc. DP Sales Distributors, Inc. East Side House, Inc. CDK Global

n

n

Mancini Mui Architecture, PLLC

Tote Bag n

n

Butler Associates, Strategic Communications End of Night Refreshments n Aboyoun Dobbs, LLC n BMW of Brooklyn n Reynolds & Reynolds n Santander Bank/Chrysler Capital n Situation Interactive Greens n Citadel Security Agency n Davidoff Hutcher & Citron, LLP n GrooveCar/CU Xpress Lease Hole-In-One n Koeppel Auto Group In-Kind n Enterprise Truck Rental n Freeman n KVL

Contests n

n

Automotive Mastermind Toyota Financial Services & Eastern Region Office

Adesa Long Island/Trade Rev

n

Bass Sox Mercer, P.A. Spectrum Reach

n

n

n

n

TACA, LTD

n

Brunch n

n

Wells Fargo Auto

n

n

Arent Fox, LLP Capital One, N.A

Zurich

Entercom

n

n

n

Fineline by Rich

n

Carfax

Nines n

n

Frankie M’s Auto Body Granite Automotive Services

n

Gundermann & Gundermann Insurance

Putney, Twombly Hall & Hirson, LLP

n

n

Harco Industries

n

JLR Long Island GSFS Group

n

Liftnow

Dinner Reception n ACV Auctions n

n

n

Net Essentials Group Rosenfield & Co., PLLC

n

Metrolube Newsday

n

Chase Auto Finance

n

n

Sams Crispe

Rosenblatt,Levittan,Vulpis, Goetz & Co. CPA’s Shenker Russo & Clark, LLP Toyota New York Region

n

United Dealer Services, an AJ Gallagher Company

n

n

Siegel Distributing

n

The First National Bank of Long Island

n

Valley Bank

n

n

n

Withum

Shirts n

n

Xenex Payment Systems

Golf Carts n

Bank of America

n

Uptempo

LaBonte Law Group, PLLC

n

10 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019

Questions from the Field

1)

How do I make sure my dealership's email marketing campaigns are compliant?

be masked as a personal correspondence, in the hope that more people will open/read it. n Include your physical address. This means your postal address (or P.O. box) registered with the U.S. Postal Service, or a private mailbox you've registered under Postal Service regulations. n Provide easy opt-outs. There must be an explanation of how the recipient can unsubscribe from your email list. The opt-out must be easy to recognize, read, and fol- low. You must honor unsubscribe requests within 10 business days and be able to process them for at least 30 days after sending your message. n Monitor what contractors do on your behalf. You are responsible for any violations within commercial emails that advertise your dealership, even if you use an outside company to do your electronic marketing.

New York State specifically exempts certain transactions from the waste tire tax. Sales to an exempt organization is NOT one of the specified exemptions, therefore, waste tire tax fees must be collected. The following sales of new tires are not subject to the waste tire tax: n Sales to New York State, its agencies, instrumentalities and political subdivisions; n Sales to the U.S., its agencies, and instrumentalities; n Sales to limited dividend housing companies (exempt under section 93(1) of the Private Housing Finance Law) ; n Sales to nonprofit property and casualty insurance companies (exempt under section 6707 of the Insurance Law) ; All email messages sent from your dealership must comply with the federal law that establishes rules for commercial email, known as the CAN-SPAM Act. This Act applies to any email with the primary purpose of advertising or promoting a product or service. The FTC can enforce penalties of up to $16,000 for each separate email in violation of the CAN-SPAM Act. Here are the primary requirements: n Avoid false/misleading “From” info. This means no phony email addresses. The “From” field must identify the person or business initiating the message. n No deceptive subject lines. The subject line must accurately reflect the message's content. n Identify the message as an advertisement. Disclose this clearly and conspicuously. The communication cannot 2)

If a customer’s transaction is exempt from sales tax, is the buyer still required to pay the waste tire tax?

Sales of tires for resale; and

n

n Sales of tires for exempt vehicles including: n electric wheelchairs n go-carts n golf carts n go-peds (skateboards and scooters that have a motor and a handle for a standing rider) n mini-bikes n motor-assisted bicycles n vehicles that run only on rails or tracks. If the sale is not covered by one of the exemptions above, the waste tire tax is due.

GNYADA Membership Services: GNYADA’s Field Services representatives Len Telvi & Aaron Brown keep dealers aware of current and pending issues. They assist dealers daily, keeping them updated with the information they need to run their businesses. This personal contact helps ensure our programs are relevant to dealers and their employees. During visits, members stock up on labor, service, and shop posters. DMV forms, seminar registration materials, and other items are available through the field team. Representatives may also complete a walk-through of the dealership, inspecting each area for potential EPA, OSHA, and Privacy Act violations as well as proper signage. If you would like to schedule an appointment with our Field Services team, please call GNYADA at 718.746.5900.

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • June 2019

NYC Says “Shut the Front Door”

Make Full Use of Your GNYADA Benefits

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For over a century, GNYADA has committed to ensuring the success and profitability of its members with services that refine and enhance dealers’ operations. We encourage you to utilize each of our benefits and programs for your business. Below are some of the crucial services GNYADA provides to its members:

As the weather heats up, and dealers crank up the A/C – the New York City Department of Consumer Affairs (DCA) reminds you to “Shut the Front Door.” A 2015 New York City law imposes energy conservation requirements upon commercial establishments in NYC, and requires all businesses, regard- less of size, to keep doors and windows shut while the air conditioning is running. This law has been in effect since 2016. Enforceable Penalties The DCA can fine first-violators of this provision of the law $250 for each open door or window. For a second violation (within an eighteen-month period), the penalty will be $500 per open door/window. (Note: Doors are allowed to be open during deliveries.) If you have any questions about this or other provisions of Local Law 92, please call the Association at 718.746.5900.

The GNYADA Insurance Brokerage covers all of your deal- ership’s insurance needs, including health and dental coverage, workers’ comp, disability, life insurance, Medicare and flexible spending accounts. The Brokerage also consults dealers on mandated changes to their insurance offerings and helps them stay compliant with IRS form filing. Learn more at gnyada.com/dealers/insurance/overview . DMV-DIRECT processes titles and registrations for dealers and can handle rush duplicate titles in as little as three days. In addition to helping dealers with plate transfers, renewals, and VIN searches, DMV-DIRECT is also the only partner outside of Connecticut that can issue Connecticut plates. Visit gnyada.com/dealers/registration/overview . The Association’s Bond Program secures required bonds for dealers throughout our region. In addition to offering members the lowest rates on new car dealer surety bonds ($300 for a two-year, $50,000 bond), the Association helps dealers with Permit Bonds, Utility Bonds, and many others. To learn more, email jennifer@gnyada.com . Each year, GNYADA holds more than 60 specialized Workshops & Seminars for dealers. Trainings are conducted by expert instructors and are designed to improve dealership operations and enhance profitability. To review upcoming courses at GNYADA’s Center for Automotive Education & Training, visit gnyada.com/dealers/professional/overview.

PROGRAM OND A AD GNY B

Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY 11357

Dealer Hotline: 800.245.4640 Headquarters: 718.746.5900 email: assistance@gnyada.com DMV-DIRECT: 718.747.0400

GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Auto Show: 718.746.5300 Center for Automotive Education & Training: 718.640.2000

The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals.

Printed on FSC certified material. All original material except where noted. © GNYADA 2019

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • June 2019