GNYADA July 2015 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

CFPB Continues to Target Auto Industry 1

JULY 2015 Volume 25, Issue 4

HIGHLIGHTS

The Consumer Financial Protection Bureau (CFPB) is continuing to increase its influence upon the consumer financial transactions of car dealerships. Most recently, a final rule was passed by the CFPB extending their supervisory authori- ty to large lenders in the auto industry, including most captive financing sources. The CFPB will be assessing potential risks to consumers and gauging whether auto finance companies are complying with federal consumer financial requirements. During the original Wall Street Reform negotiations, Congress specifically exempted dealers from CFPB jurisdiction because auto dealers are retailers, not banks, with the primary business of selling and servicing cars and trucks. The new CFPB rule continues to observe this exemption, though they continue to exert pressure to regulate dealers through banks and captives. According to the CFPB’s release, they will target the practices of large lenders to ensure compliance with federal consumer financial laws, including the Equal Credit Opportunity Act, the Truth in Lending Act,

the Consumer Leasing Act, and unfair, deceptive or abusive acts or practices.

6,000 lb. Pickups Allowed on Parkways page 3 GNYADA Succeeds In Excluding Dealers from Costly State DFS Oversight page 4 Connecticut Franchise Law Attacked page 6 GMs Sales Performance Standard Under Review page 7

The CFPB's regulation of this new group of lenders results in further intrusion into dealership business practices, through pressure by lenders and captives on dealers. The new rule covering large participants in the auto industry is expected to go into effect 60 days after publication in the Federal Register. The Association contin- ues to monitor activity by Congress and the CFPB, while making the dealer exemption a high priority. GNYADA continues working with NADA to defeat legislation proposed by Senator Elizabeth Warren that would include auto dealers under the CFPB’s authority. The Association’s relationship with key legisla- tors, like Senator Chuck Schumer have helped stop sponsorship of such legisla- tion. Dealers were also extremely helpful in convincing Schumer not to cosponsor Senator Warren’s bill. Efforts to Eliminate Dealer Exemption Fail

Hiring Teen Workers page 8

New NADA Retirement Program page 11

Employment Corner 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

NEW DATE: August 3, 2015

Dealer Hotline 718.746.5900 www.gnyada.com

(more on p.2)

The Newsletter • July 2015 1

GNYADA Reschedules Annual Meeting & Charity Golf Outing 2

NEW DATE: AUGUST 3, 2015

When: August 3, 2015 I Time: 10:00am-11:30am I Where: Old Westbury Golf & Country Club

On May 27, 2015 the U.S. Department of Labor (DOL) released new Family and Medical Leave Act (FMLA) notices and medical certifi- cation forms which employers should now be using. The new model forms are valid through May 31, 2018. The new FMLA forms incorporate the requirements of employers and healthcare providers under the Genetic Information Nondiscrimination Act (GINA) of 2008. This makes it illegal for an employer to discriminate against employees on the basis of genetic information. For the first time in more than 20 years of membership golfing events, the Association had to cancel its GNYADA Golf Charity Outing due to heavy rain conditions. Over the last several years, this has become a sold out event, and a great many people were looking forward to enjoying a day of great golf, spectac- ular food and loads of prizes and gifts to finish the day. Not to Fret We have been able to secure a new date, Monday, August 3rd. We hope you’ll be able to join your fellow Association members for breakfast and the Annual GNYADA Meeting at Old Westbury Golf & Country

GINA also prohibits requesting, requiring or purchasing genetic infor- mation and strictly limits its disclo- sure. Updated Forms Consistent with GINA, the new forms also include language that is designed to protect employers from inadvertent disclosure of genetic information. FMLA rules and forms can be found at http://www.dol.gov/whd/fmla/ The new forms are: WH-380-E Certification of Health Care Provider for Employee’s Serious Health Condition Club on Long Island. You’ll also be able to hear some of the important news impacting new car dealers and support the new Board of Directors, who will be sworn in that morning. Please feel free to contact the Association if you have any ques- tions regarding this meeting. Dinner tickets are still available. Attendees are eligible to win a wide selection of great prizes, including an Apple Watch Sport and, the grand prize, a new Breitling Watch. To register for the meeting, contact Phyllis Aguilar at 718.746.5900 or email her at phyllisA@gnyada.com .

NEW DATE!

GNYADA ANNUAL BUSINESS MEETING MONDAY, AUGUST 3, 2015

10:00 AM - 11:30 AM OLD WESTBURY GOLF & COUNTRY CLUB 270 Wheatley Road, Old Westbury, NY 11568 Join us

for our Annual Meeting and Brunch in this beautiful setting

AGENDA

All attendees willbe eligible towin anApple sportwatch!

Q Hear about the Association’s progress Q relating to:

Government regulatory impact

CFPB: Dealer exemption at risk

Recalls

Subprime lending practices

Q Learn about new DMV rules for dealers

Q Installation of Officers and Directors

Q Visit the Vendor Trade Show

RSVP: TO REGISTER CALL 718.746.5900 OR EMAIL PHYLLISA@GNYADA.COM

New Family and Medical Leave Act Forms 3

WH-380-F Certification of Health Care Provider for Family Member’s Serious Health Condition WH-385 Certification for Serious Injury or Illness of a Current Servicemember, for Military Family Leave WH-385-V Certification for Serious Injury or Illness of a Veteran, for Military Caregiver Leave Takeaway for Dealers Dealers must use these updated FMLA forms reflecting the DOL changes for any employee on FMLA leave. n n n

n

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

The Newsletter • July 2015

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4 6,000 lb Pickups Allowed on Parkways New DMV regulations recently increased the weight limit for a pickup truck to be registered as a passenger-class vehicle from 5,500 lbs to 6,000 lbs. Unladen weight of 6,000 pounds or less and exclusively used for non-commercial purposes no business advertising n n

GNYADA thanks DMV for working with us in allowing a wider range of pickups to be sold and driven as pas- senger vehicles.

A pickup may now be registered as passenger vehicle, at the customer’s option, if it meets the following criteria:

The rule will also apply to leased or rented pickups, as long as the customer certifies that the truck will be used for non-commercial purposes only.

NYC Council Bars Criminal Background Checks

5

On June 10, the New York City Council passed a bill barring busi- nesses from questioning job appli- cants about their criminal history before a job is offered . This bill, referred to as the Fair Chance Act or the Ban the Box Act will become effective at the end of October. The bill does not require employers to hire people with criminal back- grounds or prohibit employers from

running background checks. Under the bill, an employer may only inquire about an applicant’s criminal history after extending a conditional job offer. Once the conditional job offer is made, the employer can request and review this information. Written Statement Required If after reviewing a background check, the employer no longer wishes to employ the appli-

cant, the employer must provide a written statement explaining why, along with a copy of the criminal record(s) in question. At that time, the employer must give the applicant at least three days to respond before hir- ing anyone else for the position. The three-day requirement is intended to give the applicant enough time to challenge any inaccuracies on the record, and to engage in a discussion with the employer.

6 GNYADAWins Credit Check Exemption For Dealers The New York City Council recently passed legislation making it unlawful for employers to use credit checks as a hiring factor for its applicants. the hiring process could have a dis- parate impact on certain minority and other protected groups, a subject of recent focus by the Equal Employ- ment Opportunity Commission.

these requested exceptions. The bill now includes an exemption allowing auto dealers and other NYC busi- nesses to perform credit background checks on employees that will have access to assets that value $10,000 or more. Basically, this exemption means that dealerships can continue performing their usual credit background checks for employees, provided they still comply with the various notice and consent requirements of the federal , and state Fair Credit Reporting Acts. In addition, dealers should continue to be mindful that use of credit reports in

When initially introduced over a year ago, the bill completely banned the use of individuals’ consumer credit histories for hiring and other employ- ment purposes, except when required by law. During Council hearings GNYADA and other organizations advocated for additional exceptions, including employees in sensitive posi- tions in retailing sectors.

Given the increased scrutiny on the use of consumer credit history in employment decisions, this is a good opportunity for employers in New York to revisit their credit check prac- tices to determine whether they serve a legitimate business purpose and to ensure that they are legally compliant.

Ultimately, the Council agreed to

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

The Newsletter • July 2015 3

GNYADA Succeeds In Excluding Dealers from Costly State DFS Oversight

7

Dealertrack’s products, such as their online credit application network and software solutions for auto dealers, are expected to compliment Cox‘s inventory of automobile related serv- ices which include: Kelley Blue Book, AutoTrader and Manheim. GNYADA and Dealertrack work together on several services for members, including: online registration services Connecticut title and registrations DMS and website services through all DOC programs n n n $100,000. While the bill sponsor indi- cated to us that this was meant to deal with some of the fly-by-night inde- pendent used car dealers, the bill could have also required new car dealers with separate used car lots to also secure these bonds. The bill would have stretched how bonds could be used and could unrea- sonably add to the costs for our mem- bers. As a result of our efforts, dealers whose used car facility is covered by their new car license will not need to obtain a separate $100,000 bond. GNYADA and RADA Lobby Albany Earlier in the month, two bills that were part of the same Senate IDC Subprime Auto Lending package (S. 5489 and S.5490-A) were also removed from the Banking Committee agenda. This followed a flurry of meetings held by GNYADA and the Rochester Automobile Dealers Association (RADA), imme- diately prior to the bills' removal.

Dealertrack has also been a generous sponsor of many GNYADA events, such as The Automotive Forum, Dealer Preview and the annual Charity Golf Outing. The Association also relies on Dealertrack for expert speakers on numerous regulatory and compliance issues impacting dealers. GNYADA anticipates that current programs with Dealertrack will con- tinue without interruption. The Association looks forward to continuing our relationship with Dealertrack as part of the Cox Automotive Group. GNYADA President Mark Schienberg joined with RADA President Brad McAreavy in a series of meetings with Senate and Assembly members on the subprime auto lending and automotive recall bills currently being deliberated in both houses. GNYADA and RADA explained to the bills’ Senate sponsors – IDC Conference Leader Jeff Klein and Banking Committee Chair Diane Savino – that the bills, while well intentioned to deal with illegal and predatory actions by used car dealers, were far too broad and risked damaging the entire automotive sales market. Session Ends As the legislative session concludes, neither of these bills have been passed. The Association anticipates that these bills will return to the agen- da during the next session – our lob- bying efforts are ongoing in this area.

GNYADA was recently successful in convincing bill sponsors to amend two Subprime Auto Lending bills to address our concerns. Independent Democratic Conference (IDC) mem- ber Senator Diane Savino is the spon- sor of the first bill – S.5506-A. This legislation, would have given the Department of Financial Services (DFS) oversight to set regulations over automobile dealers’ sales and lending practices. As you well know, the purchase of motor vehicles is already subject to extensive State and Federal regulation. We are pleased to report that the bill has been amended to remove the sec- tions that would grant DFS dealer oversight. We are grateful to Senator Savino for working with us to make these changes. The second bill that was also a con- cern – S. 5485-A, would have required used car and truck dealers to secure surety bonds as high as

Cox Automotive Buys Dealertrack Technologies

8

Dealertrack Technologies provides a wide variety of services for our members and frequently assists us with numerous Association projects. Cox Automotive also provides many services to dealers, through their cur- rent holdings in the auto industry. It was announced earlier this month that Cox is buying Dealertrack, in a deal expected to close later this year.

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

The Newsletter • July 2015

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9 NY AG Charges Dealers Selling Credit Repair Services Credit Forget It Shut Down

The New York Attorney General’s Office has obtained a consent order permanently shutting down the credit repair service, Credit Forget It, Inc . AG Eric Schneiderman has taken the position that selling such credit repair products violates state laws. His office has also charged dealers who sold this product to be in violation themselves. Attorney General Settles with Large Dealer Group The AG’s investigation into dealer- ships selling Credit Forget It products has led to costly settlements with numerous dealers, mostly in the metro New York region; it appears the AG will bring lawsuits against at Department for alleged violations of the Office of Foreign Assets Control (OFAC) rules. While the size of this penalty is significant, the relatively small number of violations that gen- erated the fine is also worth mention- ing; over four years, there were 486 problematic transactions. Treasury alleges that up until 2013 PayPal did not implement adequate screening technology and procedures to block prohibited transactions. When PayPal eventually did start screening properly, it identified potential matches for OFAC’s List of Specially Designated Nationals (SDN List); however, they continued to process the transactions of these 10 PayPal, Inc. has agreed to pay $7,658,300 to the Treasury

least eleven additional dealers for violating New York General Business Law (GBL) relating to the sale of credit services. One dealership group named in the AG’s press release will pay more than $13.5 million to approximately 15,000 consumers for failing to disclose the addition of fees to retail contracts and leases in viola- tion of the GBL. New York State Law Under State law, only certain types of nonprofits and licensed attorneys can charge or collect any fee prior to per- forming those services. Federal Law The Credit Repair Organizations Act OFAC found PayPal’s conduct “egre- gious” and initially assessed liability at more than $17 million. That deter- mination was made, in part, because PayPal’s supervisors and managers supposedly knew of the deficient processes and did not correct them. Takeaway for dealers OFAC compliance is not optional – if your screening program is not robust, you could face severe penalties. It is worth noting that most OFAC enforcement actions in the past have involved banks. This incident could signal that Treasury will start looking at other industries. Now is the time to make sure your OFAC compliance program is bulletproof. individuals, whom the US blocks doing business with.

similarly prohibits advance fees and requires specific disclosures. It also requires a three-day right-of-cancella- tion window. Takeaway for dealers The Attorney General continues to actively investigate the auto indus- try’s sales practices, targeting decep- tive advertising and after-market sales. Dealers should review all after- market products offered, and the sales practices used when selling all items, making sure all proper disclosures are made to consumers. Further, dealers should stop selling any credit repair programs and products.

PayPal Charged $7.6 Million for OFAC Violations

For more details on the Treasury Department’s OFAC rules, visit www.gnyada.com/files/pages/deal- ers/OFAC.pdf . This item is intended as information only; for specific advice, contact your attorney. This article was provided by Stuart A. Rosenthal, Esq. He can be reached at 914.205.7700 or Stuart@Rosenthal.Lawyer.

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

The Newsletter • July 2015 5

DCA Grants GNYADA's Extension Request Recall Subpoena Deadline Delayed Until September 16th 11

The subpoenas followed the agency’s reinterpretation of existing “deceptive practice” rules that came without notice to dealers. GNYADA’s efforts have resulted in multiple extensions from DCA since the subpoenas were first issued, and the Association appreciates the Department’s cooper- ation and their continuing discussions in finding a workable solution. GNYADA has also engaged the NYC Council regarding proposed legisla- tion that would limit a dealer’s ability to sell used cars. This legislation is in-state competitor (i.e. another manufacturer) or otherwise had any different impact upon com- merce within Connecticut. As to the Contract Clause The Appeals Court affirmed the trial judge’s ruling that it was not unfore- seen that the state would step in and regulate warranty reimburse- ment, as the relationship between the manufacturers and dealers has been the subject of state regulation since 1982. As to the Due Process Clause Again, the Appeals Court agreed with the trial court’s ruling that the law was rational and could accomplish its intended benefit of increasing reimbursement to dealers, while benefitting citizens by preventing dealers from having to increase non-warranty repair costs to subsi- dize dealers’ cost to perform war- ranty work. How Does This Impact NY Dealers? Why does this matter to dealers in

still pending. GNYADA has success- fully given City Council members the full story on recalls and the sales of motor vehicles and will continue to advocate for dealers on this issue in the days ahead.

Last summer, the New York City Department of Consumer Affairs (DCA) issued subpoenas to more than 200 new and used car dealers request- ing documents pertaining to the sales of secondhand automobiles subject to open recalls. At GNYADA’s request, and to allow negotiations over the scope and the necessity of the investigations to con- tinue, the subpoena deadline has been extended several times. DCA recently informed GNYADA that the new deadline is now September 16, 2015. Last month, the United States Second Circuit Court of Appeals affirmed the trial court’s dismissal of the Alliance of Manufacturers’ complaint, which asserted the unconstitutionality of cer- tain Connecticut motor vehicle fran- chise laws. The Alliance attacked a provision put into law in 2009 requiring manufac- turers to reimburse dealers for war- ranty work at rates equivalent to retail rates; the provision also prohibits manufacturers from levying a sur- charge against dealers to recall the increased reimbursement amounts. The Alliance argued that the warranty reimbursement mandates violated three separate clauses in the U.S. Constitution – the Commerce Clause, the Contract Clause and the Due Process Clause. As to the Commerce Clause The Appeals Court affirmed the trial judge’s ruling that the Alliance failed to show that the warranty reim- bursement provisions favored an

12 Connecticut Franchise Law Attacked

New York? Because the claims brought by the Alliance attacking the Connecticut franchise laws could be brought against franchise laws in any other state. For example, the Alliance filed a similar lawsuit attacking sever- al Florida franchise laws, prior to the Connecticut lawsuit. The Alliance has been using these suits as scare tactics in attempts to block franchise protec- tions in other states. Several state dealer associations have witnessed firsthand the Alliance representatives threatening legislators with a similar lawsuit, if new franchise laws are passed. GNYADA will continue to be vigilant in improving franchise laws for members. Richard Sox and Jason Allen of Bass, Sox, Mercer, a motor vehicle franchise law firm, represented the Connecticut Automotive Retailers Association in the case. This information is provided for educational purposes only and is not to be construed or interpreted as legal advice. GNYADA thanks Richard Sox, Esq., of Bass, Sox, Mercer for this article.

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

The Newsletter • July 2015

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13 Rise of Chipped Credit Cards Will Impact Dealers As credit card companies add new security technology, including chip- embedded security, businesses are responsible for upgrading their point of sale equipment, or they risk an embedded card transaction will shift from the credit card company/ issuing bank to the retailer. card processing vendor to ask about the process and cost of converting to EMV-compliant readers.

DDC Is Here to Help Need a hand upgrading your credit card system? You can find help through our Dealers Discount Club , specifically the payment technology provider Xenex . Also, starting October 2015, Merchant Lynx Services , an Allied Partner, will be offering to equip clients with embed- ded card readers; visit their website for information on setup costs.

Several factors are driving this initia- tive: Centrally, chip-embedded cards are issued virtually everywhere in the world except the U.S., and the vast increase in credit card-related fraud has prompted insurance compa- nies and other interested parties to push for increased protection. While there is currently no govern- ment mandate to move from magnetic strip cards to chip-embedded cards (or to replace card readers at retail- ers), that hands-off approach may not last long. When merchant agreements are updated later this year, dealers are encouraged to contact their credit- sequently ruled that GM could not terminate the franchise. Decisions from other jurisdictions have found General Motors’ statewide standards to be unreasonable: That several ALJs who routinely consider disputes between fran- chisors and franchisees have con- cluded that statewide averages are not reasonable performance indica- tors gives us pause. It seems sensible enough to conclude that car dealers located in different parts of a single state would face different barriers to success, including variations in local brand preferences. Ultimately, however, the New York Court of Appeals has been asked to rule on this issue because it involves an interpretation of New York’s Dealer Franchise Law. Accordingly, the New York Court of Appeals is to answer whether a statewide sales per-

14 increased liability for any resulting fraud. This is a reality that naturally affects auto dealerships. An international, private consortium, the EMV Coalition – representing Europay, Mastercard and Visa – has decided that, by October of this year, they will amend their merchant agree- ments to reflect this issue. The updates will basically specify that if a retailer does not upgrade their point of sale equipment to be compliant with chip-embedded cards, liability for any fraud associated with A federal Appeals Court has asked the New York Court of Appeals to weigh in on General Motors’ statewide sales performance stan- dard. The issue is whether or not this principle violates New York’s Dealer Franchise Law, by not adjusting for local market conditions. rejected the dealers’ argument that the GM standard (Retail Sales Index, or “RSI”) was “unreasonable, arbi- trary or unfair” and violated New York’s Franchised Motor Vehicle Dealer Act. However, in a separate proceeding, Beck challenged GM’s attempt to terminate their franchise; a DMV administrative law judge found it was unreasonable for GM to hold downstate dealers to a statewide stan- dard that doesn't realistically reflect the unique challenges of operating in the downstate market. The judge sub- The lower court in the Beck Chevrolet case had previously

GM’s Sales Performance Standard Under Review

formance standard like GM’s is “unreasonable, arbitrary, or unfair” when it disregards local market con- ditions and consumer preferences. Manufacturers use statewide and regional averages not only to termi- nate dealers, but also to justify add- points, impose facility capacity requirements, and set sales objectives in monetary incentive programs. Therefore, the New York Court of Appeals’ determination will have a profound effect on the franchised motor vehicle industry in New York and throughout the United States. GNYADA worked hard to create a Franchise Law protecting dealers throughout this state. The Association will be filing an Amicus Brief.

GNYADA thanks Russell P. McRory of Arent Fox for this article.

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

The Newsletter • July 2015 7

Hiring TeenWorkers 15

adhered to; if they are present at other times, or if there is no posted schedule, this violates child labor law.

Every summer, the number of minors (17 or younger) seeking employment skyrockets. Hiring minors makes business sense to many dealerships. However, when hiring minors, dealers must pay close attention to The New York State Department of Labor’s rules and restrictions, regarding their employment. In NYS, any applicant under 18 must show an employment certificate (“working papers") before they begin work. Minors are also prohibited from performing certain tasks while employed at a dealership, including handling haz- ardous chemicals or toxins. Minors cannot operate car hoisting power lifts, use heavy machinery, or act as a helper on a motor vehicle. These prohibitions do not apply to minors who are enrolled in an apprentice program registered with DOL such as the GNYADA-sponsored school-to-work AYES program). Employers must make a schedule for all minors, including their daily working hours and allotted meal times, and post it where workers can see it. An employer can change the hours of work, as long as they post those changes on the schedule. Minors’ posted work hours should be strictly

Driving Restrictions for Minors Minors are also subject to driving restrictions while employed by a dealership:

16-year-old licensed drivers May drive dealer vehicles on dealership property only. n

17-year-old licensed drivers (with completed drivers education course and no moving violations) May drive within a 30-mile radius of the dealership during daylight hours in vehicles that weigh no more than 6,000 lbs GVW. Are limited to two trips per day, when transporting non- employee passengers and may not transport more than three passengers (including the employee) at any time. n n

Dealers must remind minors to wear seatbelts at all times, as with all employees.

Workers’ Compensation: Minors are Eligible If a minor employee is injured under circumstances in violation of the NYS child labor laws or Industrial Code rules, the compensation will be doubled.

PERMITTED WORKING SUMMER HOURS FOR MINORS

When School IS NOT in Session

Age

Max. Daily Hours.

Max. Weekly Hours

Max. Days per Week

Permitted Hrs.

14-15

8 hours

40 hours

6

7:00am-9:00pm

16-17

8 hours

48 hours

6

6:00am-12:00am

When School IS in Session

Age

Max. Daily Hours.

Max. Weekly Hours

Max. Days per Week

Permitted Hrs.

14-15 3 hours on school days

18 hours 18 hours

6 6

7:00am-7:00pm 7:00am-7:00pm

8 hours on school days

16-17 4 hours on weekdays preceding school days (Mon-Thur)

28 hours

6

6:00am-12:00am

8 hours on Fri, Sat, Sun, holidays

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

The Newsletter • July 2015

8

New DMV Requirement

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Fees Dealers must order the New Secure Power of Attorney Forms (MV-93) directly from DMV. The forms cost $125.00 for a package of 25. Dealers may pass along the $5 fee for a Secure Power of Attorney Form to a customer who is trading in a vehicle or to a customer buying a trade-in. The $5 charge must be listed sepa- rately on the invoice, with the disclaimer “THIS IS NOT A DMV FEE.”

place your order by mail. Or you can place your order at DMV’s website: dmv.ny.gov/forms?query=MV-93 . Please call Sue Bieber at the Association or email her at susan@gnyada.com with any questions relating to the new Secure Power of Attorney Form.

DMV is requiring dealers to use a new Secure Power of Attorney Form. After accepting a vehicle trade-in without a title, it can be difficult get- ting the customer to return to sign over a duplicate title. In light of this, dealers used a variety of hand-crafted Power of Attorney forms which do not comply with federal and state rules. The New Secure Power of Attorney Form contains four Parts, and has a unique serial number. DMV will reject the old form submitted with DMV paperwork.

’15 Market Forecast: 573,000

18

Enclosed is a set of instructions and an order form which may be used to

After getting off to a bit of a sluggish start early this year, the New York Metro Area new vehi- cle market has started to warm up along with the weather. Area sales grew 4% in May compared with 2014, leading to a predicted annual total of 573,000 – the best in nine years – according to figures highlighted in the latest issue of GNYADA’s New York Auto Outlook . Other highlights include: Light trucks sales grow 9% year-to-date through May versus a year earlier. 2015 new vehicle market forecast of 573,000 units; an improvement of 3.5% from 2014 to 2015. Metro New York sales out- pace U.S. 3.7% to 3.0% in the first five months of 2015. n n n

#1 DMV Violation: 5-Day Rule

17

Dealers are required to submit regis- tration and title paperwork within five calendar days (not business days) of the temporary registration issuance date. Within those five days, they must deliver the complet- ed paperwork, along with all fees, to the DMV. The following documentation is required for a complete application: MCO/MSO or Title (and MV-901 lien release if applicable) MV-50 (retail certificate of sale) MV-82 (registration/title application) Current Insurance Card (FS-20) n n n n

trations on site – operate under a Memorandum of Understanding with the DMV. Paperwork submit- ted by a dealership to DMV- DIRECT is considered equivalent to submitting to the Department of Motor Vehicles itself. A Private Service Bureau (such as a “runner” service which drops paper- work off at a local DMV or county clerk’s office) is not considered an agent of DMV. Paperwork is not considered officially submitted to the Department until it reaches an issuing office or a county clerk’s office. Until that point, the dealer- ship is still on the hook for all paperwork. If you have questions regarding the 5-day rule, please contact DMV-DIRECT at 718.747.0400.

Detroit Three continue to grow market share in the New York Metro Area.

n

Proof of ID (NYS driver’s license or six points of ID)

n

Please visit www.gnyada.com for the full Auto Outlook report.

Private sector partners – such as DMV-DIRECT , which issues regis-

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

The Newsletter • July 2015 9

New York Requires Lunch Breaks 19

meal breaks, to ensure compliance with New York Labor Law.

wich. If you allow this at your dealer- ship, you may end up paying over- time wages for hours worked during lunch! Are time records for meal breaks required? Yes. Dealers should track all hours worked by their employees, including meal periods. Employees should be instructed to clock out and in, to and from lunch, to properly record actual hours worked. Dealership managers should discipline employees who fail to follow these rules. GNYADA suggests dealership man- agers instruct all employees to step away from their work stations for

New York Labor Law states that all employers, including automobile dealers, must provide employees who work six or more hours per day with an uninterrupted meal period of at least 30 minutes between the hours of 11am and 2pm. Employees who work longer shifts that begin before 11am and continue past 7pm are entitled to an additional meal period of at least 20 minutes between 5 and 7pm. Is it ok for employees to eat lunch at their desks? No. Managers sometimes permit staff to take lunch at their desks so that they can answer the phone, catch up on paperwork, take an “up” or com- plete a buyer’s order over a sand-

Take advantage of this great program for members only, as well as the other valuable vendor discounts available through the Dealer Discount Club program (DDC). Look for the DDC logo in Association publications for money- saving opportunities. And if you have any questions about Quill.com or any other DDC vendor program, contact Jennifer at the Association: 718.746.5900 or jennifer@gnyada.com . Other breaks Neither the New York nor the U.S. Department of Labor require employ- ers to provide other breaks, such as rest periods or coffee breaks. But, if an employer does permit a break (of up to 20 minutes), they should pay it as work time. If your dealership has a CBA, check to determine rules for union employees. For questions, contact Sue Bieber at 718.746.5900 or by email at susan@gnyada.com .

GNYADA Members Save on Office Supplies 20 Quill.com offers over 1,000,000 prod- ucts including office supplies, paper, ink and toner, furniture, janitorial equipment, food, beverage, technolo- gy and more. A dedicated account manager – one person to answer your questions and help maximize savings (See special member pricing, at www.Quill.com/GNYADA ) n

Quill.com has everything you need to run your dealership. For more infor- mation, contact your Quill.com Account Manager: Mimi Boysen

As a GNYADA member, you're entitled to exclusive benefits, such as these found at Quill.com : End-column pricing on products and office supplies Fast, free shipping – no minimum purchase required n n

800.789.7020 Ext. 1480 Mimi.Boysen@quill.com

Dealer Preview Night Thank you to our Dealer Preview sponsors for making the Dealer Preview Reception at the 2015 New York International Auto Show a huge success!

Sponsors:

Title sponsor:

ersions tical v erv

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

The Newsletter • July 2015

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21 New NADA Retirement Program from Empower

NADA is confident that the new NADA Retirement Program from Empower will provide a competitive and attractive program that NADA, and state and metro dealer associa- tions, can be proud of. To learn more, please visit https://dcprovider.com/ NADAWR/index.html. You will need the following password for access: NADA@Empower2015. About NADA The National Automobile Dealers Association (NADA) represents near- ly 16,000 new car and truck dealer- ships, with 32,000 domestic and international franchises. For more information, visit www.nada.org . About Empower Retirement Empower Retirement, a division of Great West Life & Annuity Company, is the second largest 401(k) provider in the country. It provides retirement services for 7 million participants, and has 30,000 plans and over $400 billion in assets administered. Visit www.empower-retirement.com . greater control over its proprietary metrics and prevents distribution of data a dealership may not wish to share. Not only is data the valuable property of the dealership, but any statistics containing customer information must be protected in agreement with federal and state law. The dealership will ultimately be responsible for any data breaches. The foregoing information is provided for educational purposes only and is not to be construed or interpreted as legal advice.

NADA is excited about its all-new retirement program from Empower Retirement. Because NADA remains committed to providing its dealer members and their employees with a high quality retirement program, the NADA board decided to phase-out the current NADART retirement pro- gram and replace it with a more enhanced offering. The new program will offer signifi- cantly lower fees while still providing top-shelf service and class-leading investment options. Meanwhile, NADART is healthy and operating well and during the transition – it’s business as usual. NADA’s name and excellent reputa- tion. NADA has secured important long-term contractual commitments from Empower, and will maintain a fulltime quality-control staff to moni- tor the new program. Highlights of the new program include: The plans and services offered to dealers by Empower will bear

A “Favored Program” Provision All investment options available through the NADA Retirement Program will be offered on pricing terms equal or superior to identical options in the Empower portfolio. Dedicated Assistance The establishing and maintaining of a dealer-dedicated service and call center will supply dealer plan sponsors with a single point of contact for all plan needs. Empower has actually hired a number of former NADART employees to work on this new team. This dedicated team adds to the vast compliance, plan design, testing and other capabilities Empower features. Robust Fiduciary Services The new NADA program (like the outgoing NADART program) will include: a 3(16) Plan Administrator, to review and exe- cute Form 5500; a Plan Trustee; and a 3(38) Investment Manager, to select and monitor investment options. agreement. Among other things, deal- ers should ensure that the agreement limits the extraction of data without notifying the dealership, provides a warranty of confidentiality and nondisclosure, and contains an indemnification clause allowing the dealership to terminate the agree- ment, if necessary. The ideal data sharing agreement is one that allows the dealership to “push” any requested data to a manu- facturer or vendor, rather than giving them access to all data in your sys- tem. This gives the dealership much

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Data Sharing Agreement Precautions by Richard Sox, Esq. 22

Dealers being presented with new data sharing agreements from their manufacturers should take the oppor- tunity to negotiate the terms of that

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

The Newsletter • July 2015 11

EMPLOYMENT CORNER

Devoted Longtime Employee Retires

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GNYADA’s Employment Corner is a free recruiting and job placement service that lists qualified candidates for positions at dealerships. If you have a position to fill, call 718.640.2012 .

POSITION

RESIDES IN

FILE #

OFFICE

Biller/Bookkeeper

Brooklyn

145

SALES

General Manager

Sayville

146

Marylou LaForte-Peluso has worked for GNYADA Health and Welfare Trust and the GNYADA Insurance Brokerage since 1992. With bittersweet delight, we’d like to share the news that Marylou will be retiring this summer, after 23 years of committed service. A Brooklyn native of what was then known as Cypress Hills, Marylou graduated Bushwick High School 1958. Her first job was with the Federal Reserve Bank of New York, which she left in 1961 to raise her family – she now has four children, seven grandchildren and two great-grandchildren. Prior to joining the Association, Marylou held positions at Columbia Savings Bank, as a teller, and Bennett Brothers in Millstone, New Jersey, in customer service. Marylou has been an invaluable asset to our organization and to all the dealerships with whom she’s worked as a customer service rep- resentative. Her dedication and loy- alty to all of our GNYADA mem- bers will be greatly missed. We wish her a very happy and healthy retirement in her relocation to sunny Florida.

SERVICE

Parts Manager

Yonkers

147

Service Manager

Valley Cottage

148

Warranty Administrator/ Service Advisor

Bellerose

149

Contact Us: 18-10 Whitestone Expressway | Whitestone, NY | 11357 Dealer Hotline: 800.245.4640 GNYADA Headquarters: 718.746.5900 E-Mail: assistance@gnyada.com DMV-DIRECT: 718.747.0400 GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Automobile Show: 718.746.5300 Center for Automotive Education and 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 2015

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

The Newsletter • July 2015

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