The 2012 legislative session of the Maryland General Assembly ended in historic fashion at the strike of midnight on April 9th without a compromised budget.  The House refused to give in to the Senate's stance on expanded gaming, and the Senate felt as if the House was not making enough concessions.  By the time an agreement was in place, the legislature ran out of time to put the compromised budget to a vote.  The House attempted to extend the session past midnight, but the Senate refused to attempt a similar move.  So now, a "doomsday" budget is set to go into effect on July 1 if the Governor does not call a Special Session.  This budget makes significant cuts to government spending.  However, it is widely anticipated the Governor will call the General Assembly back for a Special Session in a couple weeks to pass a compromised budget once an informal agreement is in place.

As with any Special Session, any piece of legislation may be introduced, debated and passed.  So while transportation funding did pass the legislature during the regular session, the State may have two bites at the apple so to speak.  MADA will be speaking to General Assembly leaders and key budget negotiators to ensure the automobile dealer industry is not part of any Special Session negotiated legislation.  MADA swiftly defeated one attempt to repeal the vehicle trade-in tax allowance, and we will use the same lobbying tactics to ensure it does not get repealed in any Special Session.

MADA defeated all other tax increases and customer notification burdens proposed by the General Assembly this year.  A full report with all bill's MADA lobbied on behalf of the membership will be included in the Spring issue of our magazine, In Gear.

MADA wishes to congratulate two Salisbury high school students, Brent Horner and Ryan Murray, who recently finished in 6th place out of 30 teams that competed in the 2012 National Automotive Technology Competition hosted during the New York International Auto Show.  Under the instruction of their teacher, David White, the students spent several months preparing for the competition-hard work which obviously paid off very well!  

Ryan Murray, Instructor, David White, and Brent Horner

MADA sponsored the team; the first in several years that has represented Maryland at this prestigious competition.   Both boys, their instructor, David White, and their parents were all thrilled to hear their names being called to the stage to accept their rewards. Brent and Ryan each received tool sets from Snap-On Tools and educational scholarships totaling upwards of $25,000, MADA is very proud to have sponsored such skilled and intelligent students and we're even more excited that they did so well! Congratulations guys!   

Ryan Murray checking diagnostics on a computer while Brent Horner peers under the hood

With the economy still on the rebound and an ever increasing deficit, both the State and Federal governments are looking for revenue.  Unfortunately for the dealer community, there seems to be a large target directly on their back.  In the last 2 years alone, the number of inspections in SIC code 5511 (auto related) have more than doubled when compared to the previous 4 year stretch. The bottom line question that you, as a business owner, need to ask yourself is this: If OSHA/DLLR/EPA/MDE showed up at my door today, would I be prepared for the inspection?

These government agencies are looking for two types of compliance - bureaucratic documentation and physical shop compliance.  One deals with required documentation and employee trainings, the other with how things are stored and labeled in the back end of the dealership (service/parts/body shop).  To complicate things even further, the State of MD has many of their own state specific laws which go above and beyond the Federal requirement.

To combat these issues and to help MD dealers be better prepared, MADA and KPA hosted a webinar on March 20. The webinar covering the following topics:

-Why the government is coming out to your dealership?

-What they'll request that you produce?

-What happens if you can not provide them with what they request?

-Do you require an SPCC plan?

-Do you meet the states' standards for UST monitoring?

To view the recorded webinar please Click Here. For further information on this topic, please contact Rob Stansbury with KPA at (484) 326-9765 or by email.

MADA requests that our members save the dates, June 17-20, 2012, for our annual Summer Business Convention. We are returning this year to the Hyatt Regency Chesapeake Bay Golf Resort, Spa & Marina in Cambridge.

Registration materials will be mailed soon, so please be on the lookout. In the meantime, mark your calendars and plan to join us in June!

MADA will host a Legal and Legislative Compliance Seminar on May 10th.  Presenters will be Mike Charapp,of Charapp & Weiss, LLP, and Peter Kitzmiller and Travis Martz.  This seminar will cover new laws and regulations passed during the 2012 Legislative session, as well as the legal and compliance issues that you face in the day-to-day operation of your dealership.   

Registration materials will be provided soon, but event details are as follows:         

LOCATION:  Turf Valley Resort Ellicott City 

DATE:  May 10, 2012 

TIME:  10:00 a.m. - 12:30 p.m.

COST:     $99 per person (MADA Members Only!)   

The 2012 Highway Loss Data Institute's (HLDI) Annual Insurance Collision Report is now available. Data in the report is used by motor vehicle liability insurance companies to help set the collision portion of insurance premiums.

The National Highway Traffic Safety Administration (NHTSA) has mailed the 2012 version of the annual booklet to all dealerships, which should have been made available to prospective purchasers by March 30, 2012.  New-vehicle staff should be instructed to give any prospective purchaser who requests one a copy of the NHTSA booklet. The booklet may also be downloaded via NHTSA'S website.  

Please note, there is no mandate to display or stockpile copies of this booklet, only to make one available upon request.  

MADA announces the next live webinar coming to you from DealersEdge...    

Tax Treatments of Factory Image Programs - Forget Everything You Thought You Knew!

Date/Time: Thursday, April 19 at 1:00 p.m.

Presenter: Robert Davis III & Wayne Robbins Jr, CPAs with Dixon Hughes Goodman LLP   

Cost: $149.00 per person

If you recently completed your Image Program renovations, or they are still in the planning stages, it is vitally important that you are aware of the changing nature of Federal Tax Regulations concerning the treatment of related expenses.  Some dealers have already collected and are now faced with repayment of the benefits already realized.  Others have had their plans turned up-side-down!

Robert Davis and Wayne Robbins, both CPAs with Dixon Hughes Goodman Dealer Services Group, will join us for an in-depth discussion of just what happened and how dealers can best position themselves for the best tax treatment possible for costs related to factory-mandated facility upgrades. 

 CLICK HERE TO REGISTER TODAY! 

We thank those members who have already paid their 2012 Membership Year dues. If you have not submitted your membership dues, please do so as soon as possible. We are currently compiling our 2012 membership information to be included in the yearly directory and if we do not have your dues payment, your business will not be included. If you need a 2nd copy of your dues statement, please contact Charlotte Rutkowski at 800.526.7423.