SUNSET REVIEW LEGISLATIVE WRAP-UP

After a year and a half of evolution, preparation, negotiation, and meetings, an extremely favorable final version of SB-221 is on its way to Gov. Bill Ritter’s desk for final passage.

The following represent some key transitional changes to the Motor Vehicle Dealer Board (MVDB) effective July 1, 2007. 

  CLICK HERE to read this article by CAR lobbyist Jeremy Cottrell. 
 

OFAC COMPLIANCE REMINDERS

The Office of Foreign Assets Control (OFAC) is an office of the U.S. Department of the Treasury. OFAC is empowered by the president to administer and enforce the U.S. government’s sanctions programs. These programs include both country sanctions, such as Cuba, Iran, and Sudan, as well sanctions placed on individuals and entities whose names are place on the Specially Designated Nationals and Blocked Persons (SDN) list.

It is this SDN listing of individuals and entities with whom all U.S. businesses are prohibited from doing business. The requirement is broad, and all businesses are required to check against this listing. However, it is particularly businesses like auto retailing, that sell a product that could be loaded up with explosives and driven into or near a building, that are most likely to be targeted—and have been—for audits and fines. The likelihood of doing business with anyone on this list is extremely low; but the penalties are exorbitant (million dollar fines and potentially criminal sanctions). 

The key to the compliance requirement, however, is to have procedures in place to ensure you are running the checks on all deals, exercising “due diligence,” and to have proper record-keeping to show that due diligence steps were taken. Most dealers by now are aware of the OFAC-checking requirement. However, there are a few key points that all dealers may not be aware of:

1. The credit bureaus do not provide the OFAC list-check for free; it is typically an add-on service that dealers must elect. There is usually a small transaction cost for the check.
    

2. OFAC checks must be run on all deals—both cash and credit. If you do not run a credit check on every deal, you must do the OFAC checking separately.

a.     The OFAC listing is available directly from OFAC in various formats, all of which can be somewhat difficult to use and require periodic updating. These options are available at http://www.ustreas.gov/offices/enforcement/ofac/sdn/.
 

b.     There is a more user-friendly, free service for searching the OFAC list available at www.OFACcompliance.com.
 

                                                i.      Move your cursor over “Resources” on the top menu bar; select “Free Services” from the sub-menu that appears; and then select “OFAC Free Name Check” from the list of options. At the very top of this page just below the username and password, select "First Time?"  You will need to set up a login id and password to utilize
this service.
 

                                                ii.      The company currently providing this free service, Bridger Insight, sells various PATRIOT Act, OFAC and other compliance software. To utilize their free service, you will likely receive some promotional emails on their other services.
 

c.     Numerous other vendors provide OFAC checking services and software. Key considerations include: the administrative time required to run information through a separate program, archiving/record-keeping of your list-checking, advanced algorithms to limit “false positives,” integration capabilities with your DMS, and the cost (typically a monthly or annual subscription).                     
                                                                                    

CLICK HERE to view frequently asked questions regarding OFAC compliance.

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If you have additional questions on any legal or regulatory topics, please contact either Tammi McCoy or Tim Jackson:

• Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448

• Tammi McCoy, VP, tammi.mccoy@cadaonline.org, 303.282.1449

LIFELINE TO PROFITS SEMINAR

Wednesday to Friday, June 6-8, 2007

Denver (CADA Headquarters)

Is your dealership operating at peak performance? Are your current operations designed to capitalize on profit opportunities? In conjunction with the National Automobile Dealers Association (NADA), this Lifeline to Profits workshop is an outstanding opportunity to develop a strategy and action plan for maximizing your dealership’s profits.

NADA trainers will help you identify untapped profit opportunities in your dealership. You will take home a practical action plan specifically designed for you. This in-depth and intensive two and a half-day session will provide you the essential edge you need to more effectively compete in today’s competitive market.

In order to fully benefit from this exciting opportunity, it’s important to bring your numbers:

• Financial statements

• Repair orders

• Parts stock order figures

• Vehicle inventory and used vehicle appraisals

You’ll begin and end each day with a developmental session that refines a specific dealership action plan for you based on information covered in the workshop. You’ll discuss the most positive action, event or result your dealership has seen in the last six months.

In addition, you’ll be asked to provide trainers with information about a critical concern you’d like to identify as a key element in the improvement of your operation. Most important, be prepared to actively participate.

Specifically, the association’s Lifeline to Profits program “can help you meet any number of challenges, from having too much inventory to seeing our cash flow trickle to a near standstill,” said Dale Willey, Chairman of NADA.

We strongly encourage you and your key managers
to attend this valuable workshop.

 Space is limited so please enroll today!

DATE/TIME:   8 a.m. to 5:30 p.m., Wednesday, June 6, 2007 (breakfast, lunch and dinner)

                        8 a.m. to 5:30 p.m., Thursday, June 7, 2007 (breakfast and lunch)

                        8 to 11:30 a.m., Friday, June 8, 2007 (breakfast)

LOCATION:    William D. Barrow Building, CADA Offices, 290 East Speer Blvd., Denver

TRAINERS:     Brad Lawson, NADA Group 20 Team Leader

         Mark Rogers, NADA Dealership Management Consultant

  CLICK HERE for seminar flyer and to fax or mail your registration.

CLICK HERE to register for this three-day seminar.
 

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upcoming events