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Holiday Schedule
In observance of Independence Day, MADA's office will be closed on Friday, July 3rd. We will reopen on Monday, July 6th. We wish all of our members and their families a safe, happy, and celebratory Fourth of July!
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Save the Dates!
Registration materials will be out next week, but MADA encourages our members to save the date for our Fall Conference which will be hosted September 18-21 at The Hotel Hershey.
Also coming up on our events calendar is our Annual Golf Outing & Crab Feast on September 9 at Queenstown Harbor. Registration materials for this event will be out in the coming weeks, but mark the date on your calendar!
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MVA Bulletin: New Z Soundex Number Issuance for Business Entity
Effective July 1, 2015, the Maryland MVA recently released a new bulletin detailing the new procedures for the issuance of a new Z Soundex number. A business entity titling a vehicle must show proof of the legal existence of the business at the time of titling before a new Z Soundex number can be issued. You must request the customer to present acceptable proof of their Business. The following documents are acceptable proof:
- Business License
- Articles of Incorporation
- Articles of Organization
- Partnership Agreement
- And more...
Two new titling forms are also to be used according t the new procedures. These forms can be found on the MVA website. Form VR-475 - Business Entity Submission of Proof of Vehicle Titling. Now available on the MVA website, Forms Section, this form must be attached to the Maryland title when a business is titling a vehicle and requesting the MVA to issue a new Z Soundex number which will identify the business in MVA records.
Form VR-005 - Application for Certificate of Title. Modified from the original version to allow for the FEIN number to be entered along with the type of business, this form can be used for titling a vehicle. The form must be filled out and brought in person t your local full service MVA office.
To read the complete bulletin and for all other information and details, please download the bulletin. Questions and comments may be directed to [email protected]. |
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MD Minimum Wage Increases to $8.25 July 1st
As a result of legislation passed in 2014, the state 's minimum wage is slowly being increased over a four year period. The hourly wage implementation schedule is as follows:
- January 1, 2015-$8.00
- July 1, 2015-$8.25
- July 1, 2016-$8.75
- July 1, 2017-$9.25
- July 1, 2018-$10.10
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TDOY Nominations Actively Sought
Nominations are now being accepted for the 2016 TIME DEALER OF THE YEAR AWARD (TDOY), which will be presented at the National Automobile Dealers Association Convention in Las Vegas, March 31-April 3, 2016. If you know a dealer who should be considered as a nominee for the 2016 TIME Dealer of the Year Award, please complete and return the attached form. The nominee for Maryland will be selected by the Committee, which consists of the last five recipients of the award. Nominee Requirements:- Be a franchised new car dealer.
- Be a member of the National and State Automobile Dealers Associations.
- Is the actual operating head of the dealership as designated in the franchise paragraph of the factory agreement, or the owner's designated agent with full authority for business operations for a minimum of one year with recognition by the sponsoring dealer association as the dealership's voting representative.
- Have a presence in the dealership offices, during at least 60% of business hours, actively managing the dealership.
- Have at least a five-year record of active participation in affairs of the nominee's state or local dealer Association.
- Agree to be available for participation in TDOY activity during the year following selection.
The nomination deadline is July 31, 2015. To nominate a fellow dealer, please download and return the Nomination Form. The form is a fill-able PDF and you will need to open it in either Adobe Reader or Adobe Acrobat to fill in the text fields and then return via email. To return, simply click on the "Submit Form" button at the top-right of the form. You may also print off the form, complete it, and mail or fax to MADA: Maryland Automobile Dealers Association 7 State Circle, Suite 301 Annapolis, Maryland 21401 or FAX to: (410) 269-1549
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U.S. Department Of Labor Issues New FMLA Forms
The U.S. Department of Labor (DOL) recently updated its Family and Medical Leave Act (FMLA) notices and certification forms. Importantly, the medical certification forms now refer to the Genetic Information Nondiscrimination Act of 2008 (GINA), a federal law that makes it illegal for employers to discriminate based on one's genetic information. The revised medical certification forms caution health care providers against sharing any genetic information pertaining to employees or their families with an employer. Effective May 27, 2015, dealerships must use the revised forms found on DOL's FMLA page.
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CFPB Will Now Oversee 34 Non-Bank Auto Lenders
The Consumer Financial Protection Bureau (CFPB) recently finalized new rules that will bring 34 large, non-bank auto finance companies under the Bureau's oversight. The rules, which take effect in August, cover non-banks that made more than 10,000 auto loans or leases in a year. Some of the companies include the captive finance arms of Ford, General Motors, Honda, Nissan, Toyota and Volkswagen.
Currently, only auto finance companies that are banks or bank holding companies are subject to federal oversight by the CFPB, the Federal Reserve Board and other regulators. When the new rules take effect, the CFPB will ensure the auto lending arms comply with the Equal Credit Opportunity Act, the Truth in Lending Act, the Consumer Leasing Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act's prohibition on unfair, deceptive, or abusive acts or practices.
The Bureau will review the lending practices of auto finance companies that market directly to consumers to ensure they are not using deceptive tactics to market loans or leases. The CFPB review will seek to determine whether consumers understand the terms they are getting, and will assess whether information auto finance companies provide to credit bureaus is accurate, and if they treat consumers fairly.
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Don't Forget The Fair Credit Reporting Act Requirements Governing Employee Background Checks & Driver's License Records
Automotive retailers frequently obtain criminal background records or driver's license records on their employees for various legitimate business reasons. Federal rules, such as the Safeguards Rule, require a certain degree of due diligence in hiring employees who will have access to finance documents and customer information, and an employer's insurance premiums will depend on the driving records of employees who will be driving company and/or customers' vehicles. It is important to remember that whenever investigative reports of this nature are obtained from a third-party provider, they are considered "consumer reports," just like credit reports, under the Fair Credit Reporting Act (FCRA). And FCRA sets forth special rules and procedures, which employers must follow when "consumer reports" are to be used in an employment setting.
The FCRA is triggered when an employer uses a third-party service to obtain or compile information, such as criminal convictions or driver's license records. It does not apply when the employer obtains the information itself, directly from government record keepers, but this is often a lengthy and impractical process, so it is common to use third-party providers to obtain the information.
This is a brief summary of FCRA requirements when an employer uses a "consumer report" in making a decision, which will affect an employee.
- Before obtaining a report on an employee, the employer must notify the employee in writing that they intend to do so and that the information will be used in making employment decisions. This must be a separate document, not a provision in an employment manual, for example.
- The employer must obtain written authorization from the employee, consenting to the release of the information to the employer. The form used to document consent may be combined with the notice to the employee of the intent to obtain a report.
- The employer must certify to the agency providing the report that the employer has complied with all of the requirements of the FCRA including:
- That the employer will use the information for employment purposes only.
- That the employer will not use the information in violation of any federal or state equal opportunity law.
- That the employer has obtained all the necessary disclosures and consent/release forms.
- That the employer will give the appropriate notices in the event that an adverse action is taken against an applicant/employee based in whole or in part on the contents of the consumer report.
In the event the employer is going to take "adverse action" against an applicant or employee based on information in the report, the employer must take further steps. "Adverse action" would include a refusal to hire an applicant, or a decision not to promote a current employee, or any decision adversely affecting the employee's pay or job duties. If an employer will be taking adverse action based on a consumer report, the employer must take the following steps prior to the adverse action:
- Provide a copy of the report to the applicant or employee.
- Provide the applicant or employee with a copy of the Consumer Finance Protection Bureau's (CFPB) Summary of Rights.
- Wait a reasonable time (usually five business days) before taking action, to allow the applicant or employee an opportunity to challenge any inaccuracies in the report.
If the employer then determines to take adverse action against an applicant or employee, the employer must provide notice of adverse action, which may be oral, but it is preferable to do so using a written "adverse action notice." This notice should include:
- The fact that adverse action has been taken.
- The contact information of the Consumer Reporting Agency (CRA) providing the information to the employer.
- A statement that the CRA did not make the adverse action decision and cannot explain the decision.
- The right of the subject of the report to obtain a free copy of the report from the CRA within 60 days.
- The right of the subject of the report to dispute with the CRA the accuracy and/or completeness of the report.
The CFPB has published a Notice to Users of Consumer Reports, which sets forth all of an employer's obligations under the FCRA, and a model Notice of Consumer Rights, both of which can be found in the Federal Register as appendix N and appendix K.
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Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, MD 21401
(800) 526.7423 (Toll-free)
(410) 269.1549 (Fax)
www.mdauto.org
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Interested in advertising in our quarterly publication, In Gear?
Please contact Don F. Brown with Media Communications for more information: 813.423.1429 or
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