Pub. 6 2016 Issue 1

6 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com Chairman Mr. Sam Roberts / 618.466.7220 Roberts Motors, Inc. 4350 Albey St., Alton, IL 62002 Vice Chairman Mr. Jack Schmitt / (618) 628-2500 Jack Schmitt Chevrolet 127 Regency Park Dr., O Fallon, IL 62269 Treasurer Mr. Dan Roesch / (630) 834-8000 Larry Roesch Chrysler-Jeep 200 West Grand Avenue Elmhurst, IL 60126 Secretary Mr. Pat Manning / 815.756.6325 Brad Manning Ford 402 Manning Dr., Dekalb, IL 60115 President Peter J. Sander / 217.753.0220 Illinois Automobile Dealers Association 300 W. Edwards, P.O. Box 3045, Springfield, IL 62708 Illinois Automobile Dealers Association 300 West Edwards Street, Springfield, IL 62708 T 217.753.0220 • F 217.753.3424 www.IllinoisDealers.com 2016 OFFICERS IADA PRESIDENT’SMessage | BY PETER J. SANDER Thanks for Your Support and Involvement in IADA O n behalf of the IADA Board of Directors and staff, I would like to thank all of our members for your par- ticipation in association activities and programs this past year. As we start 2016, we’d like to encourage you now more than ever to continue your involvement in our legislative grassroots efforts, and your participation in CAR of Illinois, IADA’s statewide political action committee. This past year we were once again challenged by Senator Oberweis with three (3) bills which would amend the provision in the Vehicle Code that prohibits the sale of motor vehicles on Sunday. The Senate Transportation Committee sent all three Sunday Closing Repeal bills to a Senate Sub-Committee, essen- tially killing these pieces of legislation for the legislative session. IADA would like to thank dealers and their employees for their calls, e-mails and notes to their state senators on these bills. Your continued support has kept dealerships closed on Sundays. IADA participated in two coalition reforms this past year: the No AD Tax and Pension Reform. The "No Ad Tax Coalition" is a coalition formed with several retail associations concerned with a proposal to tax all advertising expenditures in Illinois. The GOP Governor and a growing number of bipartisan law- makers are contemplating a 6.25-10 percent tax on newspapers, television, radio and internet advertising. In early December, the No Ad Tax Coalition applauded the introduction of House Resolution 889, a bipartisan piece of legislation sponsored by a majority of House members that opposes the imposition of any new taxes on advertising services as Illinois looks for additional revenue to solve the state’s budget woes. At the federal level IADA has been seeking legislative relief for dealers who are participating in Multi Employer Pension Union Funds that are dramatically underfunded and in “red zone” or “critical” status. Under federal law, businesses that stop contributing to these underfunded pension plans face with- drawal liability. The departing dealer is allocated their share of the underfunding, which must be paid in quarterly installments over 20 years. These withdrawal liability assessments are stag- gering, well beyond the dealers’ ability to pay, and usually greater than a dealership’s value. We will continue attempts to offer an alternative withdrawal liability for employers to leave these funds. CFPB, the Consumer Financial Protection Bureau, is attempt- ing to increase regulation on dealership’s F&I department which will increase the cost of credit for your customers. In 2013, the CFPB issued “guidance” to pressure lenders to change the way dealers are compensated in an attempt to eliminate your ability to discount credit for your customers.