Up to Speed - Q2 2023

COMPLIANCE REQUIREMENTS UNDER AMENDED SAFEGUARD RULE

REPAIRMAN’S PRIVELAGE: COME GET YOUR CAR!!

NADA DIRECTOR ADDRESS: MARK HEBERT

LADA 84TH ANNUAL CONVENTION JUNE 21-25, 2023

ISSUE #16

SECOND QUARTER 2023

EXECUTIVE COMMITTEE

Chairman, Marshall Harper

HARPER MOTORS District 6, Minden

Chairman-Elect, Kristie McMath-Hebert ARCENEAUX FORD District 5, New Iberia

Treasurer, Patton Fritze RED RIVER MOTOR COMPANY District 7, Bossier City

Immediate Past Chairman Lawrence S. Searcy, Jr. WALKER AUTOMOTIVE District 16, Alexandria

Robert A. Grace

SOUTHPOINT VOLKSWAGEN District 11-12, Baton Rouge

Richard Q. Flick BANNER AUTOMOTIVE District 1-3, Metairie

Mark A. Hebert, Sr. NADA State Director

HEBERT’S TOWN & COUNTRY

CHRYSLER DODGE JEEP

DIRECTORS

L. Keith Hanks LAKESIDE TOYOTA District 1-3, Metairie

Lee Carney

GEAUX CHEVROLET District 1-3, LaPlace

Brett Barker TERROBONNE FORD District 4, Houma

Brett K. Oubre LAKESIDE FORD District 8, Ferriday

Hunter White WHITE FORD LINCOLN District 9, Winnsboro

Allen O. Krake

SUPREME AUTOMOTIVE GROUP District 10, Slidell

David L. Fabre ACURA OF BATON ROUGE District 11-12, Baton Rouge

John R. Young

JOHN R. YOUNG BUICK CHEVROLET GMC District 13, Eunice

Corey Tarver LAKE CHARLES TOYOTA District 14, Lake Charles

Rand Alford ALFORD MOTORS, INC. District 15, Leesville

Clinton E. Hixson

HIXSON AUTOPLEX OF ALEXANDRIA District 16, Alexandria

Scott Oliphant

KENWORTH OF LOUISIANA District 17, Heavy Truck

STRIVING FOR FAIR AND EQUAL ACCESS TO VEHICLES

The Louisiana Legislature is back in session down here in Baton Rouge! The 2023 Regular Legislative Session Convened on Monday, April 10, 2023, with a final State of the State address by termed out Governor Edwards. In his speech, Gov. Edwards laid his plans for his proposed $45 billion spending plan, as well as his support for teacher pay raises, an increase to the state’s minimum wage and how to address the state’s ongoing insurance crisis.

The Republican dominated House and Senate have roughly 830 bills to hear, many of which seek to address our state’s anti-competitive and complicated tax structure. As we enter into an election year, with every House, Senate and Statewide elected official on the ballot, much of the focus will be on making our state competitive and attractive to investment.

LADA is tracking over 50 legislative measures that affect our industry in various ways. LADA initially made House Bill 481, sponsored by Rep. Thomas Pressly, our top priority. HB 481 sought to level the playing field between manufacturers and competing dealers of the same line make by ensuring fair access to vehicles, incentive programs, and sales promotion plans. It also set out to establish the clear prohibition against a manufacturer establishing a dealer agency only model. After much debate and discussion with the manufacturers and other various stakeholders, LADA leadership decided to withdraw the legislation this session in order to work on a more comprehensive bill next year that we think will better address our issues.

We will continue to support good tax measures and oppose others that seek to limit the inventory tax credit. These and other important business measures are making their way through the legislative process, so please pay attention to our LADA TAKE ACTION emails.

We touched on these and other priority topics during our recent Regional Meetings Grassroots tour. I would like to express our deep gratitude to all of the dealers across the state who joined us, as well as to the sponsors who accompanied us on the circuit. These grassroots meetings are vital to our efforts to be a value-add to your business. We do not take the face-to-face time and opportunity to fellowship for granted, and hope that everyone enjoyed gathering over the various dates.

We are all looking forward to seeing everyone at the Hilton Sandestin for the 84th Annual LADA Convention June 21-25! We have more information featured in this issue on pages 12 & 13. Until then, please be rest assured that our staff will continue to work tirelessly for you at the Captiol during this Legislative Session. Do not hesitate to contact the LADA staff should you have any questions or concerns.

PLATINUM

John Harvey Toyota

Kenworth of Louisiana

Landers Dodge Chrysler Jeep

Shreveport Bossier New Car Dealers Association

GOLD

Arceneaux Ford, Inc.

Dantin Chevrolet

Foy Chevrolet-Buick.GMC

Giles Nissan

Harper Chevrolet GMC

Hebert’s Town & Country Dodge

Chrysler Jeep

Honda of Covington

Michael Harper

Ralph Sellers Motor Company

Richards Honda

Van-Trow Toyota, LLC

Walker Automotive

SILVER

Acadiana Chrysler Dodge Jeep

Acura of Baton Rouge

Alford Motors, Inc.

Ann Barker-Fairley

Ascension Honda

Audi Lafayette

Audi New Orleans

Brett Barker

BRONZE

Chris Barker

Geaux Chevrolet

Hyundai of Metairie

Keith Barker

Michael Barker

Ryan Chevrolet

Sparks Nissan Kia

Toyota of Slidell

Courtesy Chevrolet Buick GMC Cadillac of Ruston, LLC

John Roussel

P.K. Smith Motors, Inc.

Ross Downing Chevrolet, Inc.

Southpoint Volkswagen

Southwest Volkswagen, Inc.

Toyota of New Orleans

White Ford, LLC

I do consider it a privilege to represent the Dealers in Louisiana as we deal with issues that affect all of us in the automobile business.

As we look forward to a successful year in 2023 there are signs of new vehicle inventory getting better and I hope all dealers will see some relief this year.

NADA continues to work on your behalf on regulatory, legislative, and industry relations matters. NADA continues to oppose the Federal Trade Commission’s Vehicle Shopping Rule which is a flawed process and there is a lack of justification for this Rule.

Nada is very hopeful that Congress will pass LIFO relief legislation that will be retroactive. New legislation has been reintroduced in the House.

NADA has engaged a number of OEM’s in productive discussions related to various initiatives that would negatively impact dealers and our customers. Electric vehicles are coming and they are coming fast. Dealers are having to spend thousands of dollars to prepare our facilities for EV’s and it is imperative that the dealer network and franchise system is protected. Franchise dealers are the best way to sell and service vehicles regardless of the powertrain.

Stay safe, stay strong, and stay united! We are stronger together.

COME GET YOUR CAR!!

By: Jeanne

From time to time, dealers are faced with a situation where a customer has tendered his or her vehicle for repairs, but refuses to pay for the work and will not pick up the vehicle. Recently, we became aware of one instance where the owner of the repaired vehicle died while the car was in the shop, leaving no heirs to pick it up or pay for it. What can a dealer do to ensure payment and terminate the obligation to safely store the vehicle for untold periods of time?

Louisiana law provides two options to recoup the cost of repairs made. The first option, a Repairman’s lien, is a privilege for the cost of repairs made, including the parts and labor, and arises by operation of law alone. The privilege may be enforced by a writ of sequestration, without the Repairman having to furnish security.

This privilege, which is superior to all other privileges with certain important exceptions, is effective for a period of 120 days from the last day the labor was performed if the vehicle has been removed from the place where the labor was performed. If the vehicle remains in the dealer’s possession, such privilege continues as long as it remains there.

To obtain a Repairman’s lien, the dealer must file a Verified Petition for Garnishment Under Writ of Sequestration. After the sheriff executes the writ of sequestration, the owner of the vehicle may obtain

the release of the vehicle by paying off the judgment. If the owner does not do so, a final judgment can be obtained which allows the dealer to sell the seized vehicle.

The second option available to dealers falls under the Louisiana Towing and Storage Act. The procedure is somewhat onerous, but allows for the recovery of storage fees1 as well as repairs. To begin this process, the Repairman must notify the Department of Public Safety and Corrections, Office of Motor Vehicles, Reconstructed/Stored Vehicle Unit (the “Department”) when a vehicle has been stored or left in possession of a motor vehicle dealer or Repairman for repair and has not been claimed in order to provide the Department with information about the stored vehicle. The Department will then provide the Repairman with information regarding the most current owner and any lienholder information available on the stored vehicle. Then, the Repairman must make two notifications to the owner of the vehicle.

Within ten business days from the date the Department sends the vehicle owner information to the Repairman (five days if sent electronically), the Repairman shall send a First Notice with a certificate of mailing to the owner of the vehicle at the owner’s last known address and to any lienholder. The First Notice shall include:

(1) address of the repair shop;

(2)

Comeaux and Candace Ford, Breazeale Sachse & Wilson

1 The charges and cost for storage shall not exceed any maximum charge set by the Public Service Commission for storage services.

full description of vehicle-year, make, model, VIN; (3) vehicle license plate number, state of issuance, and expiration date, if known; (4) name of the person that had the vehicle towed or placed in storage; (5) date the vehicle was placed in storage and any applicable adjusted storage dates; (6) condition of the vehicle; and (7) all outstanding charges against the stored vehicle.

After a period of forty-five days from the First Notice, if payment of the cost of storage or repair has not been made, the Repairman must send a Final Notice. The Repairman shall send the Final Notice in the same manner as the First Notice, informing the stored vehicle’s owner that unless he pays all outstanding charges and claims the vehicle or makes arrangements, the Repairman may apply for a permit to sell or permit to dismantle from the Department after fifteen days from the date of the Final Notice. The Final Notice shall also inform the stored vehicle’s owner of the entitlement to any credits from the sale; and that he may be turned over to collections for failure to pay outstanding charges and claims.

Prior to issuance of the permit to sell or permit to dismantle, the Repairman shall provide the Department with the following evidence:

• A copy of the original report of the stored vehicle including owner and lienholder information furnished by the Department.

• A copy of the first and final notices sent to the owner of the stored vehicle and to any lienholder.

• A photograph of the vehicle in its current condition.

• If the Department requires an affidavit of physical inspection, it shall be completed by a Peace Officer Standards and Training (P.O.S.T.) certified law enforcement officer, who has the proper credentials.

• Although both methods involve some procedural hoops, the Repairman’s lien requirements are intended to be more user friendly.

• The original certificate of mailing for the first notice and the certified mail, electronic return receipt, if applicable, for the final notice sent to the stored vehicle’s owner and to any lienholder.

• An appraisal based on the most recent National Automobile Dealers Association Guide.

Candace Ford

Jeanne Comeaux

A STITCH IN

SAVE JUNE 9, DEALER DATA

SECURITY OBLIGATIONS

MARCH ON: HOW TO STAY ON TOP OF ONGOING COMPLIANCE REQUIREMENTS UNDER THE AMENDED SAFEGUARDS RULE

By: Sunny Mayhall, The LDS Group

Less than two months remain before the Amended Safeguards Rule’s1 June 9, 2023, deadline. At this stage, you are likely well aware of the requirements promulgated by the FTC: (1) designate a qualified individual to manage your information security program (ISP); (2) conduct risk assessments of your ISP; (3) implement mitigation tools for identified ISP risks; (4) test your ISP; (5) train your staff; (6) monitor your third-party service providers; (7) write an incident response plan; and (8) report to organization leadership on ISP activity. The FTC’s stated purpose for these requirements is to protect the customer information that dealerships collect.

By now, or in the waning few weeks ahead, you and your ISP qualified individual will tick the boxes on specific action items under the amended rule such as lining up your threat detection provider, installing multifactor authentication, sending out service provider questionnaires, polishing the written documents that encompass your ISP, reviewing system inventory lists and user access protocols, and settling on your encryption solution, etc. While important, clearing these compliance to-dos by June 9 is only part of the equation. Embedded in the FTC’s Amended Safeguards Rule are ongoing, continuous obligations that are vast. They necessitate consistent attention and a best-laid plan.

Specifically, the Amended Safeguards Rule mandates periodic written risk assessments, which commentators have opined means annually. The risk assessment should include the criteria used for the evaluation, the types of data analyzed, and foreseeable threats to data. As your data inventory changes and business needs adjust, so do the risks and the tools utilized to neutralize the risks. As these developments occur, they prompt edits to your written ISP.

Additionally, the amended rule requires continuous monitoring of your data systems or annual penetration testing, with bi-annual vulnerability assessments. The testing results and recommendations must be reported to your board or senior officers in writing and at least annually.

The rigorous nature of these ongoing obligations is apparent. From discussions with dealers, we have gathered the importance of engaging a steadfast compliance partner. Though the interaction between your inside qualified individual and your outside compliance partner will be unique to your organization, it will be imperative that both work according to a predetermined schedule so that assessments, tests, and reports are completed at the required intervals. This means scheduling internal deadlines for preparatory meetings and deadlines for when reports must be made.

Notably, these activities and evaluations will produce new records about your organization. Recordretention policies and safety measures for them will need to be considered, as well. Documents should be organized and easily accessible in the event of an audit, whether from the FTC or your cyber insurance carrier.

Your employees need to stay abreast of your written ISP and any changes to it. You and your compliance partner should develop a scheduled course of action for policy dissemination. What’s worse than not having a required policy? Having one that no one knows or follows.

In addition to training on your customer data standards, dealership staff should stay current on industry-wide data-security ethics and compliance issues. Approximately every eight weeks, The LDS Group offers an Ethics and Compliance Seminar via Zoom. Attendance is tracked, allowing dealers to receive reports on F&I employees who attend. As you know, training is not a one-and-done exercise. Repeated exposure to these issues positions your employees to be effective risk managers.

As the song goes, “The only thing that stays the same is everything changes.”2 This is especially true in the customer data context. We have found that a reliable compliance partner and regular training help dealers stay on top of ongoing, progressing compliance requirements. After all, June 9 is not the date to put your ISP on a shelf. It marks the beginning of your security obligations.

The Amended Safeguards Rule also requires dealership staff be trained on a routine basis regarding customer information security protocols.

2 Tracey Lawrence, Time Marches On, Written by Bobby Braddock, Atlantic, 1996

Sunny Mayhall

WEDNESDAY, JUNE 21

REGISTRATION

LADA BOARD OF DIRECTORS MEETING

WELCOME PARTY RECEPTION

THURSDAY, JUNE 22

BREAKFAST BUFFET

OPENING SESSION

BEACH OLYMPICS

NEXTGEN LUNCHEON

LADA-SIF TRUSTEES MEETING

MIX & MINGLE HOSTED BY

FRIDAY, JUNE 23

BREAKFAST BUFFET

KEYNOTE SPEAKER

ANNUAL MEETING OF THE MEMBERSHIP NOT INTO GOLF LUNCHEON

GOLF TOURNAMENT @ RAVEN GOLF CLUB

SATURDAY, JUNE 24

DAY AT THE BEACH

KIDS' NIGHT OUT

CHAIRMAN OF THE BOARD COCKTAIL RECEPTION

CHAIRMAN OF THE BOARD & DEALER OF THE YEAR

BANQUET

SUNDAY, JUNE 25

FAREWELL BREAKFAST

“OSHA Approved” First Aid Kit for Dealerships???

Quite often our Loss Prevention Representatives at Risk Management Services (RMS) are told by dealership management that they are using a vendor to provide / restock “OSHA approved” first aid kits. While OSHA standard 1910.151(b) does require the employer to have “adequate supplies” and that they be “readily available”, it does not specify what supplies should be in the first aid kit. Therein, OSHA has often referred employers to ANSI Z308.1-2021 as a source of guidance for the minimum requirements for first aid kits.

ANSI Z308.1-2021 established minimum performance requirements for first aid kits and their supplies that are intended for use in various work environments. It provides lists for two kits: Class A Kits contain basic items for common injuries, and Class B Kits are intended for more complex or high-risk workplaces. A number of safety supply companies and safety sources recommend that high-risk workplaces (e.g., construction sites, warehouses, large manufacturing plants, etc.) minimally utilize a Class B first aid kit. Using this logic, service shops, collision shops, parts departments and detail/wash operations should minimally utilize “Class B” kits while office areas and showrooms could be equipped with a “Class A” type kit. The latest revision, ANSI Z308.1-2021 includes several notable updates. A foil blanket has been added to both Class A and Class B kits, the quantity of hand sanitizer for both Class A and Class B kits has increased. For the Class B kit more specificity on the type of tourniquet required has been outlined to distinguish them from those types of bands used to draw blood, which are not as effective in preventing blood loss, as intended. Please visit Minimum Requirements for Workplace First Aid Kits for explanation of the contents of each kit including information on recent content requirement changes made in 2021 that went into effect in October 2022.

Over The Counter (OTC) Medications?

OSHA does not address over the counter (OTC) medications, but if a kit includes OTC drugs, the ANSI standard says they should be in a single-dose, tamperevident packaging and should not contain ingredients known to cause drowsiness. Distributing nonprescription, OTC medications to employees can create liability risks for an employer because even nonprescription medicines can cause harmful side effects. There are also risks with improper dosages and drug interactions. Due to liability concerns, some employers do not include OTC medications, or only offer them through a vending machine. Liability laws differ by state, so dealerships may want to consult a labor law attorney on this matter.

Expired Items?

OSHA doesn’t address expired items, but the ANSI standard advises removing and replacing any expired items. State health regulations might also require this. OSHA suggests that one person be responsible for tracking and maintaining the supplies.

Locking First Aid Cabinets?

If employees take supplies for personal use, employers might think about locking the cabinet. In a Letter of Interpretation (LOI), OSHA said that cabinets may be locked, but if someone with a key cannot be found when needed, the supplies are not “readily accessible.” Employers might provide keys to several individuals and let employees know who has a key.

For more information or questions regarding First Aid Kits, please contact Risk Management Services’ Loss Prevention department by phone at 1-800-351-7475 or by email LossPrevention@rmsla.com.

Always here for Louisiana

A lot has changed since Casey & Casey began helping dealers with their title & registration needs in 1957. But even now, as we are known as Dealertrack and Auto Title Express, one thing will never change: Our commitment to giving every dealer in Louisiana the personalized service you deserve with:

• Dedicated training staff here to help you with any needs or questions

• “Louisiana Cancel Plate Program” that cancels plates on the spot for your customers

• “Louisiana Temp Tag Program” that makes issuing temp tags for your customers a snap

ur attorneys can help you steer through the labor laws affecting the car usiness. Since 1943, we have been the labor lawyers of choice for utomobile dealers. Fisher Phillips is dedicated to helping the members the Louisiana Automobile Dealers Association with their labor and mployment legal matters. We’re driven to help you succeed.

Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed.

Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed.

Lance J Kinchen

Jeanne C Comeaux

Claude F Reynaud, Jr