Illinois Automobile Dealers Association Newsletter
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2013 IADA OFFICERS


Chairman
Gary Knight
Carmack Car Capitol
Danville

Vice Chairman
Mike Mangold
Mangold Ford
Eureka

Treasurer
Dave Taylor
Taylor Chrysler Dodge, Inc.
Bourbonnais

Secretary
Sam Roberts
Roberts Motors, Inc.
Alton

President
Peter Sander
IADA
Springfield


IADA Staff Contacts:
Ph# 1-800-252-8944

Pete Sander
President
Ext. 103
psander@illinoisdealers.com

Larry Doll
Legal
Ext. 105
ldoll@illinoisdealers.com

Mark Harting
Administrative Services
Ext. 110
mharting@illinoisdealers.com

Mike Healey
Member Services
Ext. 107
mhealey@illinoisdealers.com

Joe McMahon
Legislative
Ext. 113
jmcmahon@illinoisdealers.com

Meghan Sander
Member Communications
Ext. 109
msander@illinoisdealers.com
     

 

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Upcoming Webinars


June 6th
Steve Kwiatkowski
How to Prepare Now for the Inevitable 50% Drop in R.O.s  (12 PM CST)

June 13th
Don Reed

How to Manage the 8 Controllables of Dealership Service Profits (12 PM CST)

 
 
 


June 5th
JD Rucker

Beyond the Basics: 5 Myths and 10 Rules for Advanced Social Media Mastery (11 AM CST)
 
June 18th 
Rob Stansbury
CARA Special: What Will They Fine Me For? (11 AM CST)





June 11th
Joel Rice and Steve Miller
Crafting a Compliant Social Media Policy (12 PM CST)



 
 

 

 



 
May 31, 2013    Vol 2013, Issue 10

 

  LEASE TAX BILL (HB 2317) PASSES SENATE; HOUSE CONTACTS NEEDED  
 
House Bill 2317, which is being promoted by the Illinois Automobile Dealers Association and the Chicago Automobile Trade Association, passed out of the Senate last night on a vote of 55-0.  HB 2317 changes the tax base for motor vehicle leases from the selling price of the leased vehicle to the amount of the lease payments.  HB 2317 is sitting in the House Chamber awaiting final consideration in the form of a motion to concur with Senate Amendment #1.
 
Additional information about HB2317 can be found here:  HB2317 Fact Sheet
 
Today is the last scheduled day of the 2013 Spring Legislative Session.  Please contact your State Representative today and urge him or her to vote yes on the motion to concur with Senate Amendment No. 1 to House Bill 2317. 
 
For the easiest way to contact your State Representative, click on our IADA-VoterVoice link. (Enter your address and you will have direct access to your State Represenative's contact information.)
 
Below is an example paragraph that you can cut and paste into the email or compose your own. 
 
Dear Representative                      :
 
I urge you to vote yes on House Bill 2317.  This legislation will rationalize the way that motor vehicle leases are taxed in Illinois. HB2317 will change the taxable base on a motor vehicle lease from the entire selling price of the leased vehicle to the amount of the lease payments.  Taxing a customer on his or her actual use of a leased vehicle rather than the entire purchase price would put Illinois in line with the way that the vast majority of other states tax motor vehicle leases. If enacted, HB2317 would increase leasing activity and overall business at my dealership and throughout the state, resulting in additional tax revenue for the state.
 



 

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  IADA BOARD APPOINTMENTS  
 
IADA Chairman of the Board, Gary Knight, is pleased to announce the following dealers have been nominated to serve on the IADA Board of Directors to represent several newly formed districts in accord with the IADA By-Laws.  Their terms are for three years.  IADA congratulates and welcomes these new dealers to the Board of Directors 
 
Mike Ettleson, Ettleson Cad-Buick-GMC, Hodgkins
Pat Manning, Brad Manning Ford, DeKalb
Jason Roberts, Advantage Chevrolet, Hodgkins
Dan Roesch, Roesch Auto Group, Bensenville
Rick Yemm, Yemm Chev/Buick/GMC/Chrys/Jeep, Galesburg
 
Click here for a complete listing of the IADA Board of Directors.
 

 

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  CONSUMER FINANCE PROTECTION BUREAU  
 
NADA and ATAE’s working with members of the House Financial Services Committee circulated a letter by Rep. Sewell of AL and signed by 13 Democratic members of that Committee, to CFPB director Richard Cordray on May 29th.  The letter asks for the data, analysis and methodology supporting the CFPB’s assertion that there may be disparate impact discrimination in indirect auto lending, and the only potential safe harbor for finance sources is to compensate dealers with flat fees instead of dealer reserve.  
 
IADA extends its appreciation to Illinois Congressman Bill Foster (D-11, Naperville) for signing onto the letter requesting this information. A copy of the letter is attached, click here.  
 
 

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  ATTENTION TITLE DEPARTMENTS - PAPERWORK HAS TO BE TURNED INTO SOS IN TIMELY MANNER  
 
Use the new $20 Quick Lien Release Title Process to Stay in Compliance and Take Care of Your Customers. The Illinois SOS is proactively working to insure dealers are turning in paperwork for car deals in a timely manner. Please review your title process at your dealership to insure that applications are not slipping thru the cracks or going unprocessed for extended periods of time. SOS has specific timeline requirements and customers appreciate professional timeliness.
 
To assist with some of the trouble titles, IADA and CVR have worked with SOS to create a $20 Quick Lien Release Title. If your title department is having difficulty obtaining a trade-in title, you can avoid the long drawn out process by utilizing this new procedure. Stay in compliance and take care of your customer.  Click here for directions on how to use this process.   
 
 

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  EMPLOYMENT OF MINORS  
 
With the school year ending, your dealership may be hiring high school age employees for the summer.  Below are some important guidelines from the U.S. Department of Labor regarding the employment of minors.
 
Child Labor Prohibitions
 
In general, the federal wage-hour law sets a 16-year-age minimum for employment in all occupations unless otherwise provided by regulation. The law, however, contains the following exceptions and conditions:
 
Employment of minors Between 14 and 16 Years of Age: Regulations permit the employment o minors between 14 and 16 years of age in a limited number of occupations where the work is confined to periods that will not interfere with their schooling and under conditions that will not interfere with their health and well-being. Working time is specifically limited to: 
 
1. Employment outside of school hours and between the hours of 7 a.m. and 7 p.m., except during the summer (June 1 through Labor Day) when the evening hour will be 9 p.m.; and 
2. Employment for not more than 3 hours a day nor more than 18 hours a week when school is in session; and 
3. Employment for not more than 8 hours a day nor more than 40 hours a week when school is not in session.

Further, permissible work must be deemed nonhazardous and is restricted in retail establishments to work such as the following: 
 
Office and clerical work (including the operation of office machines); 
Cashier and selling; 
Assembling orders, packing and shelving parts (but not if involving the operation or tending of hoisting apparatus or of any power-driven machinery); 
Errand and delivery work by foot, bicycle, and public transportation; 
Clean-up work, including the use of vacuum cleaners and floor waxers; 
Maintenance of grounds (but not including the use of power-driven mowers or cutters); 
Car cleaning, washing and polishing; 
Dispensing gasoline and oil (but not the use of pits, racks and lifting apparatus or the inflation of any tires mounted on a rim equipped with a removable retaining ring). 
 
Employment of minors Between 16 and 18 Years of Age: At 16 years of age, minors may be employed for any number of hours and during any periods of time in any occupation other than those declared hazardous by the Department of Labor.
 
Where the occupation is considered particularly hazardous (as for example, any occupation involving driving on any public road or riding on a motor vehicle on a public road outside the cab to assist in transporting or delivering goods) the employee must be at least 18 years of age. However, the Department of Labor has ruled that it is not particularly hazardous for a minor between the ages of 16 and 18 to operate automobiles or trucks if all of the following conditions are met:
 
1. The automobile or truck does not exceed the 6,000 pounds gross vehicle weight (which includes the truck, chassis with lubricants, water and full tank or tanks of fuel, plus the weight of the cab or driver`s compartment, body and special chassis and body equipment, and payload); and 
2. The driving is restricted to daylight hours; and 
3. The operation of the automobile or truck is only occasional and incidental to the child`s employment; 
(Driving is "occasional and incidental" if it is limited to no more than 1/3 of the minor`s work in any workday and not to exceed 20% of the minor`s work time in any workweek when performed); and 
4. The child driver holds a state license valid for the type of driving involved in the job which he/she performs, has completed a state approved driver education course, and has no record of moving violations at the time of hire; and 
5. The vehicle is equipped with a seat belt or similar device for the driver and for each helper, and the employer has instructed each child that such belts or other devices must be used; and 
6. The driving does not involve the towing of vehicles, any urgent or time-sensitive deliveries, or more than 2 trips per day away from the primary place of employment to transport passengers or to deliver goods for the employer.
 
Thus, the driving of automobiles or trucks that meets the above definition by minors between 16 and 18 years of age on dealership premises for purposes such as courtesy service, storage, and servicing is permissible.
 
Employment of Employees 18 Years of Age or Older: An employee who is 18 years of age or older may perform any job, whether hazardous or not, for unlimited hours during any periods of time.
 
Parental Exemption: A parent, or a person standing in place of a parent, may employ his/her own child or a child in his/her custody under the age of 16 in any occupation other than those deemed to be particularly hazardous or detrimental to the health or well-being for children between the ages of 16 and 18 years. The exemption applies only in cases where the child is exclusively employed by his/her parents, i.e., not where a child simply assists a parent in his/her work for the parent`s employer.
 
Additional information can be found on the U.S Department of Labor’s website, including the “Employer’s Pocket Guide on Youth Employment” (http://youthrules.dol.gov/documents/for-employers/YouthRulesBrochure.pdf) and Child Labor Provisions for Nonagricultural Occupations Under the Fair Labor Standards Act (http://www.dol.gov/whd/regs/compliance/childlabor101_text.htm).
 
If you have any questions about the employment of minors, please contact IADA at (217) 753-0220 or ldoll@illinoisdealers.com.  
 
 

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  NOMINATE A COLLEAGUE FOR THE TIME MAGAZINE QUALITY DEALER AWARD  
 
Nominations are being accepted for the 2014 Illinois TIME Magazine Quality Dealer Award nominee and Illinois Dealer of the Year.
 
The TIME Dealer of the Year program honors new-car dealers in America who exhibit exceptional performance in their dealerships and perform distinguished community service. The dealer must demonstrate strong ethics, be active in his or her community, give generously of time and talents to charitable causes, and be the designated dealer principal of an IADA and NADA member. To nominate someone for this prestigious award, please see the attached form to nominate a deserving dealer.
 
 

 

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  LOCALLY IMPOSED SALES TAX CHANGES EFFECTIVE JULY 1ST  
  Beginning July 1, 2013, the rates of certain locally imposed sales taxes that are administered by the Illinois Department of Revenue will change. Please refer to the attached bulletin from the Illinois Department of Revenue to see if you are affected. Please note that these sales tax rate changes apply only to general merchandise and do not apply to vehicles.  The Department of Revenue bulletin can be found here: http://tax.illinois.gov/Publications/Bulletins/2013/FY-2013-15.pdf.
 

 

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  FEDERATED INSURANCE OFFERS HEALTH REFORM SOLUTION FOR SMALL EMPLOYERS  
 
Federated Insurance, your association’s recommended insurance carrier, has recently developed a strategy for small employer accounts (50 or fewer employees) to change their plan year and renew their coverage on December 1, 2013, deferring the impact of many portions of the ACA until December 1, 2014 versus January 1, 2014. Each Federated client will have the option to either change their plan year to 12/1/13 or remain on their current plan year. Electing to change their plan year to begin on December 1, 2013 will allow employers to take advantage of lower premium rates, retaining their current plan design, and possibly delaying the application of non-discrimination rules.

Click here to watch this important message. 
 
If you are not currently a Federated Insurance client, please consider taking advantage of this opportunity to explore your association’s recommended group health program. Federated has been a loyal supporter of our association and a trusted business partner to many of our members for years. They are here to offer you the professional counsel and innovative services that will help you navigate these uncertain times. If you are a Federated Insurance client, please expect to hear from your local Federated Insurance Marketing Representative regarding this and other health care reform solutions.
 
 

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