< Previous102020 Election: OCADA-PAC is an Investment in your DealershipWhat is the OCADA-PAC?The OCADA Political Action Committee (OCADA-PAC) is a crucial tool to financially support and help elect pro-dealer candidates who are running for City Council, County Supervisor, State Assembly and Senate. By getting pro-Dealer candidates elected, we set the stage for successful legislative outcomes at the city, county and state level.A Small Investment Makes a Huge Impact! Even though OCADA requests a relatively small contribution from each Dealer, collectively these member contributions have a great impact toward our goal of electing pro-Dealer candidates. In most cases we provide the maximum contribution allowed by law which clearly demonstrates to the candidate the Dealers are in their corner. In the 2018 election over $100,000 was invested in electing pro-dealer candidates in Orange County.How Does the OCADA-PAC Decide Which Candidates to Support?We rely heavily on local Dealer input, our political network and experience. We also have each candidate complete a “Candidate Questionnaire” so your OCADA-PAC Committee knows where the candidate stands on Dealer issues. How You Can Help Elect Pro-Dealer CandidatesThe OCADA-PAC makes it easy and here are three ways to help:1. Recommend which candidates in your city/district should receive support from OCADA- PAC. You know your local candidates best!2. Join the OCADA-PAC Chairman’s Club by making an additional $500 contribution this election year.3. Personally deliver an OCADA-PAC check to a candidate at your dealership. You’ll have a special opportunity to educate a future lawmaker about the successes and hardships of running your business and how your dealership impacts your community. To help make a difference contact John Sackrison at (949) 428-5050 or John@ocada.org.Brian Babler Roger Hogan Doug Pielemeier Eddie Bissiccio Josh Irvine Megan Quezada Miles Brandon David Kim Chad Roberts Steve Brown Richard Landfield Mike Russell Chris Childs Mark LeCompte Trey Selman A.J. D’Amato Chad Lemieux Pete Shaver Tony D’Amato Dennis Lin Frank Shaygan Al Dimont Paul Liu Damon Shelly Tim Doddridge Pat Lustig Ahmad Soleman Jay Francis Allen Moznett Penny Spellens Jim Graham Kevin Oliff Gary Stone Bruce Hamlin Al Parajeckas Scott Wade Roberta Hardin Young Park Gary Willenborg Jim Parsons Omar Z. Donors Chairman’s Club Cliff Allen Matt Gunderson Dave Robins Paul Conant Jared Hardin RJ Romero David DeLillo KC Heidler George Saad James Graham John Oh David Simpson Jon Gray Bill Piercey Derrick Van Nieulande David Wilson 1112California Budgets $21 Million to Target Misclassification of Independent ContractorsAs employers continue to face great hardships in the wake of the COVID-19 pandemic, late last month California allocated $21.68 million dollars of its 2020-2021 budget to ensuring compliance with A.B. 5, the law that limits the use of independent contractors in favor of hiring employees. A.B. 5 RefresherA.B. 5 codified the California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, which created a three-pronged “ABC test” for determining whether a worker is an employee or independent contractor.Under the ABC test, a worker is presumed to be an employee unless the company proves that the worker:(A) Is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and(B) Performs work that is outside the usual course of the hiring entity’s business; and(C) Is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.The requirement that the worker perform work that is outside the usual course of the hiring company’s business dramatically altered the landscape of the type of services a worker can provide to qualify as an independent contractor. A.B. 5 provides some relief for industry-specific occupations by carving out exemptions from the application of the ABC test for those occupations. For workers included in the exempt categories, the test in effect before A.B. 5 was enacted applies. This test is referred to as the Borello test. In some instances, additional requirements imposed under A.B. 5 apply when determining a worker’s independent contractor status.A.B. 5 EnforcementSince taking effect on January 1, 2020, many businesses and advocacy groups have vigorously pushed for A.B. 5 to be repealed or amended to include additional exemptions. While those efforts may continue, Governor Newsom’s actions indicate that California has no intention of delaying the enforcement of A.B. 5 as battles persist over its scope. California’s 2020-2021 budget provides resources to implement enforcement of A.B. 5, including $17.5 million for the Department of Industrial Relations, $3.4 million for the Employment Development Department (EDD), and $780,000 for the Department of Justice. According to Governor Newsom, these resources will allow the State to train employees on how to make determinations about employment/independent contractor status and to conduct more hearings, investigations, and litigation related to A.B. 5.Alison C. Gibbs, Esq. is a Senior Associate in Ferruzzo & Ferruzzo, LLP’s Employment Practices Group. Alison represents employers in a wide-range of employment-related litigation, including wage and hour defense, and defense of discrimination, harassment and retaliation claims. Alison also regularly advises employers before litigation ever occurs, handling employment disputes and managing day-to-day employee issues, including reviewing employee handbooks policies, wage and hour compliance, leave issues, internal investigations, lay-offs, disciplinary action, terminations, severance negotiations, and other employment practices.Take Away for Dealers• Now that Governor Newsom has allocated financial resources to enforce A.B. 5 by conducting more audits, prosecuting claims, and assessing penalties to employers for misclassifying workers as independent contractors, employers should reexamine their independent contractor relationships and ensure they are appropriately classified under A.B. 5. • It is recommended that dealerships review each individual or business who receives a Form 1099 and carefully examine whether A.B. 5 is satisfied.If you have any questions or concerns regarding A.B. 5 and its application to your business, the attorneys at Ferruzzo & Ferruzzo, LLP are available to provide guidance. Alison Gibbs may be reached by phone at (949) 608-6900 or by email agibbs@ferruzzo.com. Lance, Soll & Lunghard, LLP | CPAs & Advisors | lslcpas.com | (714) 672-0022BreaSacramento“We have a fantastic relationship with the LSL team. They keep our interests top of mind and maintain a positive reputation in the industry.” Santa Ana -Craig Whetter, President, David Wilson Automotive Group (relationship since 1983) Donald Slater, CPA Automotive Services Partner donald.slater@lslcpas.comMike Mangold, CPA Automotive Services Partner mike.mangold@lslcpas.comDavid Myers, CPA Automotive Tax Partnerdave.myers@lslcpas.comThe Enterprise Holdings Foundation has donated $2,500 to OC Driven for Success, the charitable organization that was founded by the Orange County Automobile Dealers Association to develop highly skilled automotive technicians. As the first industry donor, Enterprise has shown great leadership and their generous donation will expand automotive technician workforce development in Orange County through: Outreach - OC Driven for Success staff will educate over 1,500 high school and college students annually on the opportunities our industry provides. Scholarships - Future technicians will receive community college scholarships for tuition, books, safety uniforms, tools and other requirements to successfully learn the skillset needed to be an Auto Tech.Placement - Auto Tech students will be connected with dealership positions at recruiting fairs hosted by OC Driven for Success on community college campuses.Enterprise Holdings Foundation is the philanthropic arm of Enterprise Holdings, which, through its integrated network of independent regional subsidiaries and franchises, operates the Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car brands. Enterprise Rent-A-Car is an Associate Member of OCADA, so you’ve probably met Jennifer Heckman. 14Thank You Enterprise for Donating $2,500 to OC Driven for Success!Jennifer Heckman (R) of Enterprise delivered a $2,500 check from the Enterprise Holdings Foundation to Kim McPhaul (L) of OCADA for OC Driven for Success. For more information about OC Driven for Success, please contact Kim McPhaul at (949) 428-5050 or Kim@ocada.org.Creating Tomorrows Techs Today15OCATT Helps Fight a Significant Rise in Auto Fraud and TheftThe Orange County Auto Theft Taskforce (OCATT), introduced the iPAS program to OCADA members last year to help Dealers protect your businesses from fraud purchases.This Opt-In program for Dealers is designed to alert you when law enforcement has identified an organized group and/or individual who is targeting car dealerships for fraud. The alert will notify your dealership contact person of the possible name(s) and scams used by the identity thieves to carry out the theft. It may also contain a photograph of the suspect(s) using the stolen identity. NORM REEVES HONDA SUPERSTORE HUNTINGTON BEACHPaul Conant and his team at Norm Reeves Honda Superstore Huntington Beach were targeted by a theft ring recently, but with their keen attention to a bulletin they had received from iPAS, they were able to thwart the criminal by working with law enforcement. Conant shared, “This lady contacted our store to purchase and have a car delivered to her at 11:00 p.m. Our finance director recognized the way she wanted it delivered to a medical facility, compared her driver’s license (this time it was Jennifer Migliaccio) to the IPAS bulletin and realized it was the same lady. We put off the delivery until 1:00 the next day, I contacted Detective Humphries with HBPD and he set up a sting using our sales consultant and finance director. Long story short, we busted her! Detective Humphries says they’re very familiar with her and her theft ring and thinks they will be able to arrest many if not all of them now. Tell your team to pay attention to these bulletins!”Below is the IPAS Bulletin that alerted Conant and Team to the theft ring.16OCADA recommends that all dealer members Opt-In to the iPAS program. Contact Crime Analyst Carla Castro of the OCATT at Carla.castro@da.ocgov.com to sign up and start receiving Bulletin emails.1718OCATT OFFICERS RECOVER SIX STOLEN VEHICLESRecently Tustin Lexus was targeted by criminals who stole six high-end Lexus vehicles during the middle of the night over a weekend. General Manager Tony D’Amato contacted OCATT Sergeant Fel Navarro and OCATT Detectives, along with the Tustin Police Department, immediately began to work together in a joint effort to locate the six stolen vehicles. During the course of their investigation, information was gathered on the possible locations of the stolen vehicles at various locations in the City of Los Angeles. OCATT personnel immediately responded. After just a few hours, OCATT, with the assistance of CHP K-9 Units, were able to recover all of the stolen vehicles. The estimated value of the recovered vehicles was $350,000 and all vehicles were returned to Tustin Lexus.D’Amato said, “Sergeant Navarro and his team were unbelievable, they recovered all of our stolen cars in under 24 hours with no damage. They communicated with me throughout the entire process, step-by-step of what he and his team were about to do. Without Navarro we would probably have never seen our stolen cars again.” If your dealership is the target of auto theft, OCATT asks that Dealers contact their local law enforcement agency who has primary jurisdiction. OCATT currently has a Commander, two Sergeants, one full-time Deputy District Attorney and 11 full-time auto theft detectives assigned from local law enforcement agencies:- Brea Police Department - Buena Park Police Department - California Department of Motor Vehicles - California Highway Patrol - Fullerton Police Department- La Habra Police Department- National Insurance Crime Bureau - Orange County District Attorney’s Office - Orange County Sheriff’s Department For more information about OCATT and how the Taskforce supports Dealer businesses, contact John Sackrison at (949) 428-5050 or John@ocada.org.THANK YOU OCATTPORTFOLIO REINSURANCEMy Winning.My Portfolio.“No dealer I’ve met in this business likes winning more than I do.” Winning in this business is a team effort, so my job as a dealer is to find the best star performers I can find. When I signed up with Portfolio eight years ago, I knew they were star performers. Their reinsurance structure put me in the driver’s seat with a new source of personal capital under my control, including investments. Their people who call on me and my stores are veteran car people who help boost my store profits, increase my reinsurance wealth, and keep my customers happy. Expect more from everyone. Get more with Portfolio. © 2020 Portfolio Holding, Inc. All rights reserved.For a confidential conversation about reinsurance, contact:Ryan Hanlon, Managing Director(805) 275-2023 office(818) 599-3373 cellryan@portfolioco.comNext >