GNYADA September 2017 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

Certilman Takes the Chairman’s Gavel

SEPTEMBER 2017 Volume 27, Issue 5

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Directors since 2006 and has been part of the Executive Committee since 2014. “Lee has been a dedicated advocate for dealers and the important role they play in creating jobs and providing economic development to towns and villages through- out our area,” said GNYADA President Mark Schienberg. “I look forward to work- ing with him on the Association’s many important grassroots initiatives.” To his role as Chairman, Certilman brings knowledge and experience from the many Association Committees on which he has served over the past decade. During his time on the GNYADA Board, his Committee Memberships have included stints on the Auto Show and Government Relations Committees, in addition to Chairing the Employee Relations Plan and Political Action Committees. Certilman’s passion for training dealership employees made (continued on page 2)

HIGHLIGHTS

GNYADA Donates $100K in Hurricane Harvey Relief page 2 Dealers Produce Significant Impact on NY’s Economy page 4 GNYADA Forms New PAC to Protect NYC Dealers page 5 GNYADA Offers Used Car Recall-Check Decals page 7 Above Ground Storage Tank Inspection Alert page 9

Lee Certilman, owner of Nardy Honda in Smithtown, NY, was confirmed as Chairman of the Greater New York Automobile Dealers Association at the Association’s Annual Meeting on August 28. Taking over for outgoing Chairman Nick Toomey, Certilman is a third-genera- tion dealer who has served on the Board of

Frequently Asked DMV Questions page 10

2 GNYADA's Golf Outing Raises $125K

With a day of perfect weather, fun golf, great food, and over $125,000 raised in support of automotive education in metro New York, GNYADA’s 12th Annual Charity Golf Outing was yet another outstandingly successful sell- out event. “Events like today, which allow us to help local automotive students pay for

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

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www.gnyada.com The Newsletter • September 2017

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Meet Your New Chairman (continued from cover)

him an ideal fit for the Association’s Education Committee, which he joined in 2008, helping to develop the Center for Automotive Education & Training’s industry-leading automo- tive curriculum. He has also been highly involved in efforts to increase electric and hybrid training at the Center. Established in 1971, Nardy Honda is the oldest Honda dealership on Long Island. Certilman’s family, which has owned dealerships in New York going back to the 1950s, has a long history of giving back to the community. A TIME Dealer of the Year recipient in 2016, Certilman is currently a gen- erous supporter of the Alzheimer Association, American Cancer Society, the Juvenile Diabetes Foundation, as well as Syracuse and

Tulane Universities. Through Nardy Honda’s outreach program, he donates time and funds to 32 local educational and charity organizations. “It is a great honor to be nominated for this position by my peers,” said Certilman. “My family and our deal-

erships have a long history in New York of contributing to the communi- ties we serve. I’m now excited to be able to take this message of commu- nity investment to a much wider audi- ence and to represent an industry that, in Greater New York alone, sustains a workforce of over 68,000 people.”

GNYADA Donates $100K in Hurricane Harvey Relief 3

The Board of Directors of GNYADA approved a contribution of $50,000 to NADA’s Emergency Relief Fund and $50,000 to the American Red Cross to aid in the recovery efforts in the wake of Hurricane Harvey. NADA called on nationwide dealers and dealer associations to donate to its Emergency Relief Fund to help dealership employees who experienced property damage caused by the storm and severe flooding. In response, GNYADA Chairman Lee Certilman announced that the Association would be making the donations, to assist with the much-needed recovery efforts. Some reports estimate that as many as 500,000 homes have been flooded by the storm. According to NADA, somewhere between 30,000 and 35,000 dealership employees in the greater Houston area may have had their homes impacted. Some dealerships, located in areas inundated by as much as ten feet of water, experienced a total loss of their vehicle inventory. GNYADA has a long history of doing its part to provide relief to disaster victims. Following the 9/11 attacks, the

Association made a $50,000 donation to the American Red Cross and coordinated member-donated vehicles to assist recovery. In the aftermaths of both Hurricane Katrina and Superstorm Sandy, GNYADA sent $100,000 in relief donations. GNYADA also sent $50,000 to help victims of the 2010 Haiti earthquake and donated $10,000 to aid victims of the 2016 Louisiana floods. To contribute to the NADA Emergency Relief Fund, please visit www.nada.org/EmergencyRelief/ . To donate to the American Red Cross, visit www.redcross.org/ and click the "DONATE NOW" button.

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

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4 GNYADA’s 107th Annual Meeting Navigating the road ahead

The Association’s 107th Annual Meeting took place on August 28, at Old Westbury Golf and Country Club. New slates of Officers and Directors were confirmed to begin their terms on GNYADA’s Board. The morning also highlighted key projects from the previous year, previewed important initiatives to come, and included special acknowledgments in honor of past Association leaders. Outgoing Chairman Nick Toomey took the podium early in the meeting to swear in the 2017-2018 Executive Committee. “This is a great organization that does truly invalu- able work,” said Toomey in his parting address to members. “I know that the Association’s commitment to serving Metro New York’s franchised new car dealers will only deepen in the months and years to come.” After being sworn in as the new Chairman of GNYADA, Lee Certilman thanked Toomey for his work on behalf of dealers across New York. He also thanked and recognized five additional Directors — Tom Coughlin, Tony Mazza, John LaSorsa, Robert Penn, and Paul Conte — who, like Toomey, came off the Board this year. In his first address as Chairman, Certilman looked ahead at

GNYADA’s ongoing efforts to preserve New York State’s Franchise Law. He also spoke about the results from GNYADA’s latest Economic Impact Study, which was released at the Annual Meeting and revealed that area dealerships pumped an astounding $48.5 billion into the economy in 2016. “I greatly look forward to my upcoming term as Chairman of this remarkable Association,” said Certilman. “As the tech world and the automotive world move forward NEW OFFICERS SWORN IN CHAIRMAN : Lee Certilman Nardy Honda VICE CHAIRS : Jane Millman Riverhead Dodge Gary Brown Brown’s Jeep Chrysler Dodge Larry Orlando Tower Ford

together, I consider this an extremely exciting time to be part of the auto industry.” GNYADA President Mark Schienberg updated members on the legislative activities of the Association. He specifically highlighted the passage of GNYADA’s Broker Bill in the State Legislature, and the NYC DCA’s withdrawal of 200+ subpoenas that were issued to dealers in 2014, as big legislative wins. He also announced the formation of GNYADA’s NYC Political Action Committee. TREASURER : Melanie Spare-Oswalt Sayville Ford SECRETARY : Oliver Brodlieb East Hills Chrysler Jeep Dodge IMMEDIATE PAST CHAIRMAN : Bob Vail Vail Buick GMC

In Memoriam The final presentation honored men who served as Chairman or President of GNYADA who passed away since 2016’s Annual Meeting. These included: Irwin Garsten (Apple Honda / Chairman from 2000- 2001): A financial donation and a CPR training manikin were presented to the Northwell Peconic Bay Medical Center.

Leon Geller (Beck Chevrolet / Chairman in 1989): A donation was announced to the Alzheimer’s Association. Irwin Katz (Kayson Chevrolet Oldsmobile Jeep / Chairman from 1982-1983): A donation was announced to the American Cancer Society. Walter Heingartner (Kinney Motors President from 1957 to 1958): GNYADA created a NADA Foundation Ambassador Grant in Walter’s name.

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The Newsletter • September 2017 3

Dealers Produce Significant Impact on New York’s Economy 5

The Association’s 2017 Economic Impact Report, released at the Annual Meeting, revealed the enormous impact auto dealers have on jobs, tax revenues, and philanthropic endeavors in across metro New York. According to the comprehensive research study, dealerships pumped an astounding $48.5 billion into the economy, provided 68,600 direct and indirect jobs, and collected $2.4 bil- lion in state and local taxes. In addition to illustrating the impor- tance of franchised new car dealers to metro New York’s economic health, the study also showed the tremendous investment dealers have in their local communities. Dealers invested $265 million in capital improvements to facilities and contributed $20.7 million to community organizations. This report clearly proves that fran- chised new car dealerships provide a robust marketplace. Dealers have cre- ated a record numbers of jobs, gener- ated opportunity and economic

2017 NEW YORK METROPOLITAN FRANCHISED NEW CAR DEALERSHIPS’ ECONOMIC IMPACT

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growth, and returned tax dollars to help support the localities in which they operate. The Association will use the results of this report to inform leg- islators and the media that the dealer business model is worth protecting. The 2017 New York Metropolitan Franchised New Car Dealership Economic Impact study was commis-

sioned by the Greater New York Automobile Dealers Association and conducted by Auto Outlook, an inde- pendent automotive market research firm providing comprehensive market analysis services for automotive trade associations and dealers. The Association thanks all dealers who completed the survey.

OMS Plate Registrations Expire This Month Dealerships that offer rental vehicles, also known as OMS vehicles, must renew these registrations by effective date of 10/01/2017 and an expiration date of 09/30/2018. 6

notice should complete an MV-82, sign it, and attach a copy of the OMS registration and the insurance card before submitting to DMV. The Association recommends that dealers submit OMS plate renewals as a “Same Day Rush”, to assure that their registrations don’t expire before new ones are obtained. (This is also a good time to make sure that the inspection sticker isn’t expired.) For further information, contact DMV-DIRECT at 718.747.0400

September 30th. It doesn’t matter when the vehicle was first registered — all expire annually, on this date. GNYADA's DMV-DIRECT service can process your OMS renewals. Each renewal must be submitted to DMV-DIRECT (or whoever handles the dealership's DMV work) with an insurance card attached.

Contact your provider as soon as possible in order to receive insurance cards before September 30th — providers will likely be busy providing these for other clients with OMS registrations. Dealers who have received their renewal notice simply need to sign it and then attach it to the insurance card before submitting it for renewal. Those who did not receive a renewal

The insurance card must have an

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7 Dealers Take Advantage of NYS ZEV Rebates

since the launch of the program.

player within New York City politics.” NYC lobbying group, Davidoff Hutcher & Citron, retained as legal counsel by GNYADA a year ago, pro- vides valuable knowledge of and insight into regulatory issues facing businesses operating in New York City. The firm will play a key role in guiding GNYADA through the City’s political processes. GNYADA’s New York City PAC will consist of at least one dealer represen- tative from each of the five boroughs. Committee activities will be funded by donations from New York City dealers who are members of GNYADA. who sell ZEVs to register for the rebate program by visiting www.nyserda.ny.gov/ All-Programs/Programs/Drive-Clean- Rebate/Dealers or contact the Association for assistance. Even prior to the start of this pro- gram, the Association contributed to public adoption of clean vehicle tech- nology on numerous fronts. This included building a clean-technology vehicle exhibition outside Governor Cuomo’s 2016 State-of-the-State address, as well as lobbying the California Air Resources Board to only give manufacturers credit for an EV sale when a car is sold or leased to a retail customer, not simply deliv- ered to a dealership.

8 The New York City Council and Department of Consumer Affairs are repeatedly attempting to overregulate, and often restrict, auto sales in NYC. Some of the regulatory measures being considered include: Requiring dealers to provide cus- tomers with a two-day cooling-off period after a vehicle is delivered; Drastically increasing dealers’ financial disclosure requirements, well beyond what state and federal laws already require; Restricting the sale of any used car subject to an open recall, even if the customer is fully aware of the defect; Creating increasingly onerous and complicated signage requirements. n n n n Results from the first five months of New York State’s “Drive Clean” electric vehicle rebate program are very encouraging for franchised new car dealers. Since the launch of the program in March, franchised dealers in New York have delivered more than 2,100 rebate eligible ZEVs to customers. 68.7% of ZEV sales have taken place in the metro area, compared to the rest of the state. So far, roughly $2.4 million, of the total $55 million allocated for this program by the State, has been paid out in ZEV rebates. Statewide, franchised new car dealerships have accounted for more than 96% of electric vehicle rebate applications,

In response, GNYADA has formed a New York City Political Action Committee. Its goal is to assure that harmful measures such as the above are effectively opposed and that City dealers' concerns are heard and addressed. GNYADA’s New York City PAC will identify, support, and maintain dialogues with local legisla- tors who are receptive to dealer issues and understand the important role dealers play in communities through- out the five boroughs. “Dealers must navigate a maze of regulations on top of those they already face on the state and federal levels, and these can take a serious toll on their costs to conduct busi- ness,” said GNYADA President Mark Schienberg. “We are creating this local PAC so that the dealer, through GNYADA, will be a more effective GNYADA at the Green-Initiative Forefront To help the State meet its clean ener- gy goals, GNYADA worked with the Governor’s Office and the New York State Energy Research and Development Authority to launch this ZEV incentive program. With hundreds of dealers throughout greater New York now actively par- ticipating in the State’s rebate pro- gram, results thus far are proving — as GNYADA has long maintained — that franchised new car dealers are the best way to get green vehicles on the road in New York. GNYADA encourages all dealers

GNYADA Forms New PAC to Protect NYC Dealers

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The Newsletter • September 2017 5

AlliedMember Memo

Speeding the Wholesale-to-Retail Process 9

Since 2009, the gap between list price and transaction price has steadily declined. Here are some ways dealers can overcome this margin compres- sion by infusing speed and efficiency into their wholesale-to-retail process: Inventory Acquisition Technology can provide dealers with specific stocking recommendations based on their market demand, sales volume, and profit goals while factor- ing in reconditioning, transportation, and other costs. For example, vAuto’s Stockwave can aggregate listings from auction houses across the coun- try, displaying profit potential and maximum recommended bids for each vehicle. Buying inventory online, via simul- cast auctions and digital wholesale marketplaces, can expand a dealer’s

radius to provide fast and convenient access to a larger pool of vehicles. Floor Planning To fund vehicles that have been sourced, consider partnering with a vendor that can offer the capital and expertise needed to make inventory available without spending dealer capital. A floor-planning provider that offers integration with auction plat- forms can provide the agility needed to get sought-after vehicles to market quickly. Transportation Logistics Consider centralizing with an insured transportation provider that special- izes in smaller loads and can match the best carriers to your specific loads, location, and budget. Also look for guaranteed prices, transportation routes, and schedules. skills in this ever-changing environment, dealers can turn to the Association’s 2017-2018 Workshops & Seminars booklet. In addition to our workshops and courses, GNYADA is also offering four Dealer Essentials Seminars , addressing the complex regulatory and legal issues dealers face on a daily basis. New for 2017-2018, the Association will conduct webinars on a number of topics relevant to franchised new car dealers in metro New York, allowing you to experience GNYADA’s educational offerings from the comfort and convenience of your dealership. As always, each GNYADA Education and Training program features skilled

Rapid Merchandising Getting Vehicle Detail Pages (VDPs) online before they leave the auction can significantly improve the chances of moving inventory quickly. When possible, photos can be taken, acquired from a wholesale listing, and posted online while the vehicle is in transit. This article was provided by Cox Automotive, a GNYADA Allied Member offering dealers industry-leading digital marketing, software, financial, wholesale, and e-commerce solutions. The Cox Automotive family includes vendors who can assist with each of the above whole- sale-to-retail steps, such as Manheim®, NextGear Capital®, vAuto®, and others. For more information, visit www.coxautoinc.com . speakers with hands-on dealership experience. You can identify the educational programs that meet your dealership needs by reviewing the 50+ options in the course catalogue, which has been sent to your dealership, or by visiting www.gnyada.com/education . Pricing is $120 for a half day class, $175, for a full day class, and $199 for 2 day seminars, a slight increase from last year. For more information about GNYADA’s educational offerings, or to reserve a seat at a seminar, call 718.640.2012.

GNYADA’s 2017-2018 Workshops & Seminars 10

A dealership’s need for education and training is never-ending. Necessities evolve, new challenges arise, and priorities shift. To continually enhance their staff’s knowledge and

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GNYADA’s Golf Outing Raises $125K (continued from cover) their education, make me feel espe- cially proud to be leading such a great and charitable organization,” said newly elected Chairman of the Board, Wireless Speakers, a Sony 65-inch Smart TV, and much more. The grand prize was a Chronomat Breitling watch worth $25,000.

Schimmerling and the GNYADA Activities Committee for their work in producing this important event, which continues to be the most prominent demonstration of local dealers’ com- mitment to automotive education and training.

Lee Certilman, during the evening banquet at the Old Westbury Golf & Country Club. Certilman went on to award four GNYADAAutomotive Education Scholarships to military veterans enrolled at Lincoln Technical Institute. Each student received a scholarship for $5,000, as well as a rousing standing ovation from more than 415 dinner guests in attendance. To learn more about these 2017 schol- arship recipients, visit gnyada.com/education/winners . The night’s program concluded with forty-thousand dollars’ worth of prizes being handed out among the day’s raf- fle winners; prizes included New York Mets tickets, Apple iPad Pros, Bose

The Association thanks all attendees who participated in this event. A very special thanks goes to Gary

GNYADA Offers Used Car Recall-Check Decals 11

The New York State Attorney General resolved deceptive practice actions against dealers, related to advertising and selling preowned vehicles with open recalls. The AG’s resolution requires dealers to disclose, in advertisements and on vehicles, that consumers can check a vehicle’s recall status on SaferCar.gov. To help dealers keep customers informed, GNYADA has created recall disclosure decals for dealers to display on their preowned inventory. The decal tells customers that used cars may be subject to open recalls and provides information about how to look on SaferCar.gov to find out if a particular car is subject to any open recalls. While the settlement terms apply only to dealers who have signed the AG’s resolution, ensuring that all customers are aware of potential recalls is a best practice for avoiding future deceptive practice claims. GNYADA encourages dealers to place one of these decals in the window of each used car they display for sale and to include a link to SaferCar.gov on any dealer website page advertising a used vehicle and to include similar information in print ads.

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DMV Updates Window-Tint Inspection Rules

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DMV has issued a clarification that a vehicle should only be rejected if any part of the windshield below the top six inches, or the AS-1 line (whichev- er is lower) allows less than the required light transmittance. The AS-1 line extends across the windshield, starting from the AS-1 indicator, which is typically printed on the pas- senger side of the windshield. DMV’s message about this rule change can be reviewed at: https://www.nyvip.org/PublicSite/Pag es/NewsViewer.aspx?ID=36 Customers May Fix Too-Dark Tint Prior to Inspection: NYVIP2 Message 233 states that dealers and safety inspectors may

DMV recently distributed two mes- sages to vehicle inspection stations in New York State, regarding updates to window-tint testing requirements. Each of these updates represents helpful clarifications for dealers: Windshield Shade-Band Confusion Addressed: NYVIP2 Message 227 updates DMV’s original testing instructions, which stated that a vehicle must fail inspection if any part of the wind- shield below the top six inches allows less than the required light transmit- tance. However, some manufacturers affix vehicles with shade bands that extend more than six inches down from the top of the windshield, and this created an issue for inspectors.

now advise customers that their vehicle’s windows may be too dark to pass inspection and recommend that they have the tint removed before the inspection. DMV announced this revision to its vehicle inspection pro- cedures to reduce customer inconven- ience and complaints. DMV’s message about this rule change can be reviewed at: https://www.nyvip.org/PublicSite/Pag es/NewsViewer.aspx?ID=42 The Association thanks DMV for listening to dealers’ concerns and adjusting tint-inspection requirements for both dealers and customers.

Termination for Illegal Conduct Off-the-Clock GNYADA’s Employee Relations Plan (ERP) was recently presented with a question regarding how to handle a valet who had been caught stealing car parts outside the workplace and out- side of work hours. Upon reviewing the facts, it was determined that termi- nating the employee would be lawful, because the nature of this off-the-job crime made the valet a clear on-the- job liability. However, dealers are still advised to exercise caution before ter- minating an employee who allegedly commits a crime outside of work. Illegal Off-Hours Activity To be a terminable offense, the crime should be directly related to the work- er’s essential job functions, as in the case of the valet. If the crime is unre- lated to the employee’s duties, termi- nation may violate rehabilitation laws or civil rights laws. On the matter of criminal convictions, New York law requires employers to consider several additional factors when determining whether a convicted Access to employment law experts is the number one benefit of ERP membership. If your dealership is not an ERP member, contact Sue Bieber, Susan@gnyada.com , to join. Find out more about proper discipline and termination at the Annual Labor Law Seminar on October 18 and 19. 13 individual should be terminated.

Annual Labor Law Seminar | October 18 or 19, 2017 Stay up-to-date and compliant with the latest developments in labor law CHOICE OF DATES:

Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357 To register, please contact: Kelsey at kelsey@gnyada.com or 718.746.5900 x273 Save the Date

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FTC Raising Fees to Access Do-Not-Call List in 2018

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the fee requirement, but must still register with the FTC. Dealerships accessing six or more area codes must pay the per-area-code access fee when renewing their accounts. For more information about the FTC’s Telemarketing Sales Rule, visit: https://www.ftc.gov/enforcement/rules /rulemaking-regulatory-reform-pro- ceedings/telemarketing-sales-rule

The Federal Trade Commission (FTC) recently announced an increase in fees for companies to access its “Do- Not-Call” (DNC) Registry in order to avoid dialing registered numbers. New charges will be in place as of 2018. The cost for yearly access to a single area code of data will increase to $62, up from $61, and the fee for accessing an additional area code for a half year will increase to $31, up from $30. The maximum amount that can be charged

to an entity accessing all area codes nationwide will increase to $17,021, up from $16,714. Businesses, including dealerships, are prohibited from calling phone num- bers on the DNC Registry for tele- marketing purposes. Those who seek access to the DNC list must pay the above fees. Dealers who want access to only five area codes or fewer from the DNC registry are exempt from

Above Ground Storage Tank Inspection Alert

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GNYADA has been made aware that regulators are con- ducting random compliance inspections of dealerships’ above ground storage tanks (AST). Notices of Violations were issued and dealers have been assessed fines as high as $10,000 per tank. All dealers are required to: Register each tank with the County Dept. of Health (in NYC, tanks must be registered with the State Department of Environmental Conservation.); Label each tank; Color code each fill port; Ensure there is no spilled material around the tank; Maintain monthly, quarterly, and annual inspection logs; and, Conspicuously post the dealer’s operating permit On a monthly basis dealers should check and record the following: Tank label is intact and in good condition; Hoses, piping, and tank for leaks; Functionality of tank leak detection system; Functionality of overfill alarm; n n n n n n n n n n

Quarterly inspection requirements: Vents/emergency vents; and, Spill fill containment, labeling n n

Annual inspection requirements: Site drainage (check for changes that would affect spill pathway); Emergency vents, o-rings, and gaskets; and, Tank supports and foundation For additional information about above ground storage tank rules, call the Association at 718.746.5900. n n n

Water in interstitial space (there should be no liquid in the space in between primary and secondary tanks); Water in tank; Area free of spills; Possible leaks in the dispenser; and, Exterior condition

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

The Newsletter • September 2017 9

Tire Recycling Fee Reminder Quarterly waste tire fee must be filed by 9/30 16

Waste tire management and recycling fee returns covering this year’s third quarter (June 1 - August 31) must be filed with New York State’s Department of Taxation and Finance by September 30, 2017. Dealers must file these quarterly returns and pay the required recycling fees even if they made no sales of tires subject to the waste tire management fee during that quarter. Tire recycling fees must be itemized on all estimates and repair orders, as well as in advertisements. An official sign, stating that disposal costs are 17 Q: If a dealer takes back a vehicle that a customer wants to return after purchasing, does the vehicle need to be reregistered and retitled? A: Yes. If a customer drives a vehicle off the dealership's lot, for any period of time, that vehicle must be registered and titled back to the dealer upon being returned to the dealership. Q: Can a dealer do a "title only" certification to themselves, in order to use a vehicle for dealership businesses? A: No. In New York State, a trade-in must be titled and registered in the dealership’s name. “Title Only” certifications are for consumers only, for when they’ve purchased a vehicle, but may not be ready to register it yet.

incorporated into the price of new tires, must be posted in the dealership. The DTF extended the waste tire management and recycling fee expiration date to December 31, 2019. Up until that date, dealers must continue imposing a charge of up to $2.50 for every new tire sold, to cover recycling costs. GNYADA offers signs that explain tire disposal/recycling charges to members at no charge. To request signs, please call 718.746.5900. Q: If I am closing or selling a dealership, what should I do with any remaining plates? A: On dealership letterhead, prepare a letter to the DMV’s Dealer Plate Issuance unit. In it, state that the dealership is closing, and list all remaining plates the dealership has. Send both the letter and the remaining plates to the Dealer Plate Issuance Unit. (Be sure to secure a receipt or proof of delivery.) Once DMV receives that delivery, they will review the dealership’s plate inventory record, send a receipt for the returned plates, and grant a refund.

Frequently Asked DMV Questions

Q: My dealership received its Facility Renewal application and its Dealer Plate renewal forms. Can I renew my dealer plates before sending in the Facility Renewal application? A: No. Dealer plates cannot be renewed until the Facility Renewal Application is processed. DMV does this in order to confirm that the dealership for which they’re renewing dealer plates is still in business. This is also another way in which DMV confirms that the

dealership received their Facility Renewal application and remitted their renewal check.

DMV-DIRECT processes titles and registrations for over 200 dealers and can handle duplicate titles in as little as three days. The office assists dealers with all DMV work, including plate transfers, renewals, VIN searches, and more. Learn more at gnyada.com/dealers/registration/overview .

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The Newsletter • September 2017

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Leon Geller Remembered 18

In 1990, Mr. Geller was Greater New York’s nominee for the Time Magazine Quality Dealer Award. He was also named a NADA Charitable Foundation Ambassador in 2014. “Leon was a strong believer in the idea that dealers need to be part of GNYADA to make sure their collective voices are heard and their businesses are protected,” said GNYADA President, Mark Schienberg. Mr. Geller is survived by his sons, Dr. Charles Geller (Kim) and Russell (Allyson), as well as his four grandchildren, Payton, Marisa, Melanie, and Jason. His wife of 55 years, Muriel, passed away in 2016. On behalf of the Board of Directors and staff of GNYADA, the Association expresses its heartfelt condolences to the Geller family and the staff at Beck Chevrolet for their loss. do further research to confirm the result. Is the customer located in the same area as the person on the list? Do they have the same date of birth? If not, there may be a false match. If there are many similarities, dealers should contact OFAC’s hotline (800.540.6322) for verification. Criminal penalties for OFAC viola- tions can include fines of up to $10,000,000 and imprisonment for up to 30 years for willful violations. Civil penalties range from $250,000 to twice the amount of each underly- ing transaction, up to $1,075,000.

working at the dealership in 1964, becoming Dealer Principal in the mid-70s. Mr. Geller was a highly active member of the GNYADA Board for almost forty years. Joining the Board in 1984, he was named to the Executive Committee in 1986 and became Chairman in 1989. He also served on several Association Committees, including Auto Show and Public Relations, and was Chairman of the Finance Committee. In addition, Mr. Geller was a Director of the Association’s Services Corpor- ation and the Head Trustee of the Association’s Health & Welfare Trust. Mr. Geller played many roles within the Association over the years. He was deeply involved in the New York International Auto Show’s relocation from the old New York Coliseum at Columbus Circle to its current home at the Jacob Javits Convention Center in 1987. compile and sell reports that included erroneous OFAC alerts, while failing to provide those alerts in the reports they provided to their consumers. For this reason, TransUnion was also found to have violated the Fair Credit Reporting Act, which added to the owed penalties. Dealers are required to ensure their staff checks every customer’s name against the SDN list ( https://sanction- ssearch.ofac.treas.gov/ ), regardless of how they pay. If a customer’s name matches the SDN list, the dealer must Always Double-Check OFAC Matches

Former GNYADA Chairman of the Board Leon Geller passed away on Sunday, August 13, 2017, at the age of 90, after a long illness. Mr. Geller was the Dealer Principal at Beck Chevrolet in Yonkers, New York. Beck Chevrolet, which Mr. Geller co- owned with his son, Russell Geller, has been part of GNYADA for nearly five decades. Mr. Geller began

Credit Company to Pay $60 Mil for OFAC / FCRA Violations 19

A federal jury found that TransUnion owes $60 million to customers that the credit reporting agency wrongly flagged as terrorists or drug traffickers because they happened to have simi- lar names. This occurred because TransUnion did not double-check results that showed matches between their customers’ names and those included on the Specially Designated Nationals (SDN List), maintained by the Office of Foreign Assets Control (OFAC). Despite being sued by one of the wrongfully flagged individuals, TransUnion allegedly continued to

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The Newsletter • September 2017 11

Make the Most of Your GNYADA Membership The Association encourages its members to utilize the programs and services that GNYADA offers to help dealerships run as efficiently and profitably as pos- sible. Here are some highlights: 21

Notify Employees about Healthcare Cost Assistance

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Employee Relations Plan: GNYADA’s Employee Relations Plan (ERP) keeps dealers in-the-know about employment laws that impact dealerships. ERP’s Labor Law attorneys offer guidance on hiring/firing, payment issues, worker conflicts, and more. Visit gnyada.com/dealers/employee/overview to learn more. Bond Program: GNYADA secures required bonds for dealers throughout the 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 also helps dealers with Permit Bonds, Utility Bonds, and many others. To learn more, email jennifer@gnyada.com . Insurance Brokerage: GNYADA Insurance Brokerage seeks out benefit programs to meet dealerships’ specific coverage needs. The Brokerage also consults members on required changes to their insurance offerings and helps with IRS form filing compliance. Learn more at gnyada.com/dealers/insur- ance/overview . Discounted Products & Services: Dealer Discount Club offers GNYADA members low prices on products and services dealers use the most, including office supplies, required forms, and data storage. To find a vendor that fills your needs, email jennifer@gnyada.com .

As health insurance open enrollment season is set to begin on November 1, 2017, dealers must make sure they notify employees about the Children’s Health Insurance Program Reauthorization Act (CHIPRA). CHIPRA offers premi- um assistance to subsidize health- care costs for eligible low-income children and families covered by the dealership’s health insurance. CHIPRA is funded jointly by states and the federal government and requires employers to notify employees who live in participating states (which include New York, New Jersey, and Pennsylvania) of the option to receive financial help to pay for employer-provided health insurance. Employers who fail to properly noti- fy employees about CHIPRA assis- tance may face penalties of $100 per day that employees go un-notified; dealers should be aware that these penalties are at the Department of Labor’s discretion and are typically only imposed when employees have had substantive problems with CHIPRA access in the past. The CHIPRA notice should be dis- tributed annually to all employees, preferably with any open enrollment documents, before January 1 of the upcoming plan year. A model notice is available on the Department of Labor’s website: https://www.dol.gov/sites/default/file s/ebsa/laws-and-regulations/laws/ chipra/model-notice.pdf

GNYADA BOND PROGRAM

Workshops & Seminars: GNYADA holds specialized training programs taught by expert instructors, designed to improve dealership operations, and enhance profitability. To review upcoming courses at GNYADA’s Center for Automotive Education & Training, see page 6 of this Newsletter, or click here .

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

Contact Us:

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.

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

The Newsletter • September 2017

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