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CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2018 All rights reserved. Cover image © www.istockphoto.com.
AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.
AASP-MN BOARD MEMBERS 2018 - 2019
Vol. 26 No. 6
COLLISION DIVISION DIRECTOR’S MESSAGE..............................................4 Learning to Change with the Industry by Matthew Feehan, AASP-MN Collision Division Director LEGISLATIVE UPDATE ........................................................................5 Legislature Completes Work (Kind Of) by Kevin Walli, AASP-MN Lobbyist LOCAL NEWS ..................................................................................6
PRESIDENT Will Latuff
NATIONAL NEWS..............................................................................8
IMMEDIATE PAST PRESIDENT Wayne Watson
HORSE RACING & BBQ AT CANTERBURY PARK REGISTRATION ........................13
SECRETARY-TREASURER Carl Thomas
DEG ESTIMATING TIPS ......................................................................15
COLLISION DIVISION DIRECTOR Matthew Feehan
INSURANCE I.Q. ..............................................................................17 Employee Cellphone Use While Driving
MECHANICAL DIVISION DIRECTOR Randy Notto, AAM
PARTNERS IN PREVENTION..................................................................19 Empty Containers
ASSOCIATE DIVISION DIRECTOR Dave Bock COLLISION SEATS Bruce Tschida, AAM Randy Miller MECHANICAL SEAT Tom Archambault
GUEST EDITORIAL ............................................................................20 Will Justices Give Brick and Mortar Retailers a Level Playing Field? by Aaron Lowe, Auto Care Association CASH IN ON YOUR MEMBERSHIP! ..........................................................21 Bankcard Regulations Aren’t Getting Any Easier AASP-MN MEMBER BENEFIT PROGRAMS ................................................22
STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci | lea@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Kristen Dalli | kristen@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com www.grecopublishing.com
UPCOMING EVENTS
June 19, 2018
June 27, 2018
August 22, 2018
24TH ANNUAL GOLF OUTING Keller Golf Course 2166 Maplewood Drive Maplewood, MN 55109
CUSTOM MOTORCYCLE RAFFLE DRAWING Veit Automotive Foundation 914 80th St. NW Maple Lake, MN 55313
HORSE RACING & BBQ Canterbury Park 1110 Canterbury Rd. Shakopee, MN 55379
ADVERTISERS’ INDEX
AmeriPride ............................................21 Axalta Coating Systems..........................IFC Buerkle Hyundai ....................................16 Choice Auto Rentals ..............................7 Dentsmart ..............................................15 FinishMaster ..........................................18 Inver Grove Honda / Inver Grove Toyota 16 Jack McClard ........................................10 Keystone ................................................14 Maplewood Toyota ................................18 AASP-MN News
Mills Parts Center ..................................14 Morrie’s ................................................4 Motorwerks BMW ..................................IBC MPA ......................................................9 PAM’s Auto ............................................18 Proven Force ..........................................OBC Rosedale Chevrolet ................................10 Roseville Chrysler ..................................14 Straight & Square ..................................5 Toyota Group..........................................12 June 2018 | 3
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COLLISION DIVISION DIRECTOR’S MESSAGE
Learning to Change with the Industry by Matthew Feehan AASP-MN Collision Division Director
I began working in the collision repair industry in 1991 as a part-time general maintenance helper and detailer at my parents’ shop while still in high school. After graduating, I attended Hennepin Technical College’s auto body repair program and continued on at the shop, working my way up the ranks to painter, body/frame technician and finally, estimator/office manager. I left my parents’ shop in 2000 to work for a national auto body repairer. My duties there entailed customer service and general management in one of the largest repair centers in Minnesota. During this employment, I also helped pilot and implement into practice many of the "lean manufacturing" processes that are currently being used by repair centers around the country. In 2006, I purchased my then-retiring parents’ shop – American Auto Body in Osseo. As a new owner, I relied on many of the resources my parents had already established – AASP-MN being one of them. They had been members since 1993, and I’ve happily continued the tradition of active
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membership ever since. I have participated in several of AASPMN’s education and training programs and other activities over the past several years, which is how I got interested in serving on its collision and legacy committees a few years ago, and then the Board of Directors last year. Today, I’m pleased to serve as your Collision Division Director of AASP-MN for the 2018-19 term. I believe my industry experience and history of high performance gives me the ability to collaborate with others for the benefit of all. I have always been a forward-thinking individual. Our industry is constantly changing and I want to help others to change with it. Any time there is great change, there is also great opportunity, and as members of AASP-MN, we have a better chance to learn about it and take advantage of it. When I’m not working at the shop or participating on an industry-related board or committee, I enjoy spending time with my wife and kids and family and friends. I like camping, snowmobiling and competitive horse riding. Wishing you all a successful year!
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LEGISLATIVE UPDATE
Legislature Completes Work (Kind Of) The 2018 Legislature came to a conclusion 12 minutes ahead of its midnight Constitutional deadline on May 20th. One of the major pieces of legislation to emerge this year was an Omnibus Tax Bill. There was a high priority placed on passing a Tax Bill this year in order for the State Tax Code to conform with the federal tax changes that were enacted late in 2017. However, the Legislature did go beyond federal tax conformity and enacted modest reductions in the lower personal income tax rates and sought to reduce certain business taxes. Governor Dayton did not concur with these provisions and vetoed the tax package. He has also indicated his intention to not call a Special Session of the Legislature. His view is that we could go into the 2019 Session and have the Legislature enact a simple conformity measure before the tax filing deadlines occur for the 2018 personal and business income taxation. The Supplemental Budget Bill faced a similar fate to that of the Tax Bill. Since this was not the major budget year, all of the proposed changes in state spending were assembled into a single
by Kevin Walli AASP-MN Lobbyist
piece of legislation, which was 990 pages long. A number of provisions were included in this massive bill with which the Governor did not agree. This bill was vetoed, as well. One specific provision of the Supplemental Budget Bill that was of concern to AASP-MN was a change to the salvage title statute. LKQ parts led an effort to remove the words “late model or high value” from the definition of vehicles that must apply for a Salvage Certificate of Title when an insurer acquires ownership. The advocates for this change claimed that it would prevent water-damaged vehicles from hurricane and flood zones from coming into Minnesota. AASP-MN argued that this language has no such impact. We asked for an opportunity to discuss salvage title policy in a broader context away from the Legislature in order to develop a consensus position for the 2019 Session. The advocates for the removal of the term “late model or high value” prevailed on the Conference Committee Members to
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LOCAL NEWS
MNCARS Launches MotorMouth™ Campaign MNCARS – Minnesota Careers in Auto Repair and Service – is pleased to announce the launch of its MotorMouth™ campaign. All automotive professionals across Minnesota are invited to join the movement to promote auto service and collision repair careers and fill the pipeline of future employees by being a MotorMouth™ for the industry! And MNCARS has created a fully stocked toolbox (carcareers.org/motor-mouth) of information to help them get started. The MotorMouth™toolbox contains a variety of resources, tips and materials to help industry members get involved in their local community and start having conversations with customers, community members and students about the career potential in the automotive industry. Tools found in the toolbox include: • Display, presentation and handout materials for local career fairs, speaking engagements or other events • Promotional materials to display at places of business (window cling, poster, etc.) • Information to post on personal or business social media pages • A website badge to show participation in the MotorMouth™initiative All members of the automotive service industry are encouraged to seek out events and speaking opportunities in their local schools, chambers of commerce, car clubs and other community organizations. The toolbox has all of the materials MotorMouths™will need to spread the message about the important opportunities and roles within the automotive industry and ensure that repairers have the talented employees they need to succeed. Dan Sjolseth, MNCARS chairman and owner of Superior Service Center in Eagan and Apple Valley, states, “In order to really make a difference, this work has to be undertaken by more than just AASP-MN staff and a handful of active and dedicated volunteers. The entire industry must pitch in, get involved and do their part to help solve the industry’s workforce shortage.” MNCARS was established in 2016 by the Alliance of Automotive Service Providers of Minnesota (AASP-MN) to raise awareness of career opportunities in the auto service and collision repair industry, and to recruit students into college automotive education programs and industry jobs. The initiative has reached thousands of potential students, parents and counselors through its website, social media, event participation and presentations to middle and high school classes. Visit carcareers.org to learn more.
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AASP-MN Awards Scholarships to Automotive Students AASP-MN is pleased to announce that nearly $16,000 in scholarships has been awarded to help 15 automotive service and collision repair students pay for tuition and tools during the 2018-19 school year. The majority of the scholarships are in the amount of $1,000 per student, and were made possible by a successful fundraising drive within the AASP-MN membership, as well as generous donations from the Minnesota State I-CAR Committee and the Bill Smith Fund. Thirty-eight college and high school students from 14 schools submitted scholarship applications. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations. The recipients are: • Maxwell Asplund, Hennepin Technical College, Eden Prairie – Auto Body Collision Repair • James Baskfield, Hennepin Technical College, Eden Prairie – Auto Body Collision Repair • Benjamin Erickson, Hibbing Community College, Hibbing – Automotive Service Technology • Jose Guerrero, Century College, White Bear Lake – Auto Body Collision Repair • Kurt Hanlin, Jr., Century College, White Bear Lake – Automotive Service Technology • Tiffani Hauta-Sanders, Hibbing Community College, Hibbing – Automotive Service Technology • Hunter Hedstrom, MN State Community & Technical College, Moorhead – Automotive Service Technology • Eric Hoffman, Hennepin Technical College, Eden Prairie Automotive Service Technology • Logan Koffler, Pine Technical College, Pine City – Automotive Service Technology • Jackson Lee, St. Paul Technical College, St. Paul – Automotive Service Technology • Gavin Legrand, Century College, White Bear Lake – Automotive Service Technology • Alan Ruiz-Rubio, Hennepin Technical College, Eden Prairie – Auto Body Collision Repair • Dustin Scheibel, South Central College, North Mankato – Auto Body Collision Repair • Brandon Utech, Rochester Community & Technical College, Rochester – Automotive Service Technology • Lane Walstrom, Ridgewater College, Willmar – Automotive Service Technology
Congratulations to all of this year’s recipients! The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, which was established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry.
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AASP-MN to Host Member Outing at Canterbury Park AASP-MN is excited to announce it will host a member outing at Canterbury Park on Wednesday, August 22 from 5:30 – 10:00pm. AASP-MN members will enjoy a delicious BBQ on the beautiful Silks Deck, and a great night of horse racing events. Odds are it will be a great time! Tickets are $38 per person (includes BBQ). See page 13 for registration information.
OSHA 300 Electronic Reporting Required by July 1, 2018 Minnesota OSHA has adopted the electronic recordkeeping requirement. By July 1, any company with 20 or more employees must submit their 2017 OSHA 300 log electronically through Federal OSHA's Injury Tracking Application. For more information on filing, you can go to OSHA's Electronic Submission of Injury and Illness Records page: www.osha.gov/injuryreporting/index.html.
Complete Your AASP-MN Member Profile The AASP-MN website was designed to help you seek out and connect with other AASP-MN members when looking for products, services, tools or equipment, and has unbeatable search capabilities. However, in order for the search results to include information about your shop, you must complete your member profile on the website. To do that, go to aaspmn.org and click on the “Members Only” button in the upper right corner. You will be prompted for a
username and password. Your default username is the first letter of your first name and your last name (i.e. JDoe). Your password is the telephone number of your business, including the dashes (i.e. 612-623-0000). Note: You do have the option to change these settings once you are logged in. Once you are logged into the site, click on “Members Only” on the navigation bar. A dropdown menu will appear. The first option on that menu is “My Profile.” Click on the “My Profile” option to update your company profile. Once you’ve completed your profile, hit the save button at the bottom of the page. Please take the time to check out all of the great information and resources on the AASP-MN website, including: Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro campaign • Current and past legislative activities & find your legislator • Industry training and upcoming events
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NATIONAL NEWS
Data Ownership, Right to Repair Roadblocks Detailed at AASP National Meeting by Joel Gausten Vehicle data ownership and the accessibility of mechanical repair information are critical issues that require immediate attention. This was the major takeaway from a guest presentation by Tom Tucker, director of state affairs for the Auto Care Association, during the May 4 AASP National Board meeting in Chicago. Tucker updated AASP state affiliate leaders on a number of Auto Care Association initiatives currently underway to improve conditions for repairers/service professionals and the public they serve. Tucker urged attendees to work closely with his association in addressing telematics and the control of consumer data. “We have a fundamental belief that the data should be controlled by the consumer. If the consumer chooses to send their data to the auto manufacturers, we’re fine with it. But we think the consumer should make the final decision…You buy the car, insure the car and make your monthly payments for the car, but the auto manufacturers say that all your data in the vehicle belongs to them.” Currently, the Auto Care Association is considering what Tucker called a “two-pronged attack” of pursuing legislation on the federal and state levels to ensure that consumer privacy is preserved. On the Right to Repair front, the Auto Care Association is working to guarantee that automakers provide independent facilities with vehicle service/repair information in an appropriate and responsive manner. Recent compliance testing performed by the Auto Care Association in Massachusetts revealed that Kia and Hyundai have been slow in meeting the cloud-based diagnostic requirements of the agreement. Additionally, the testing uncovered issues with the subscription platforms currently offered by Mercedes-Benz, Nissan and Volvo. Tucker also noted that General Motors is changing to a VIN-based subscription platform, which he noted may not comply with law. The Auto Care Association plans to pursue action under a Right to Repair statute against non-complying companies if these problems are not addressed. “While we have the agreement, we are concerned that some of the manufacturers are not fully in compliance. There are definitely some issues with how some of the vehicle manufacturers have approached the MOU [Memorandum of Understanding] that need to be worked out.” During its affiliate report to the Board, AASP-MN briefed the Board on its new MotorMouth™ campaign. In an effort to promote automotive career opportunities to high school and middle school students and encourage their involvement in the industry, AASP-MN recently expanded its popular MNCARS (Minnesota Careers in Auto Repair and Service) initiative by introducing the new MotorMouth™campaign. MotorMouth™is designed to provide repair and service professionals in the state with greater resources for outreach in their area schools and communities. AASP-MN Executive Director Judell Anderson explained that the association created MotorMouth™to foster greater indus8 | June 2018
try involvement beyond the group of volunteers currently overseeing MNCARS. “It’s going to take more than a dozen people to really make an impact,” she said.
Available to all AASP-MN members, the Motormouth™ toolbox includes: • props and handouts to participate in career fairs and events in their local communities; • a PowerPoint presentation (with video) that outlines the many career paths and opportunities in the automotive industry (plus an outline that gives the user talking points and suggestions for each of the slides, along with best practices for presenting); • career promotional materials to display at a facility’s front counter and/or waiting area (plus a window cling for a business’ door or window); • digital and social media posts that reinforce and spread the message about industry careers; • point-of-sale promotional items for shops and parts counters; and • tips and suggestions for ways that users can contribute and help alleviate the workforce shortage.
In Anderson’s mind, promoting MotorMouth™to the AASPMN membership strengthens the industry’s ability to build and sustain a future employee base. “The availability of a future workforce is the number one issue for my members – and I think for all of our [national] members,” she said. In other AASP news, the national association’s benefits program with United Fire Group (UFG) continues to grow in premiums and the number of state affiliates with participating members. Minnesota alone saw $3.1 million in written premiums in 2017 (a 16-percent increase over the previous year). UFG currently works with nearly 550 AASP members in 22 states, totaling nearly $8.1 million in total written premiums. Currently, the program’s loss ratio looks favorable for a recommended dividend to be paid to insured members for the 2017 program.
www.langmarketing.com
Service Bays Boost Product Sales Car and light truck Do-It-For-Me (DIFM) product volume has steadily increased over the past five years, despite there being 8,000 fewer service bays across the U.S. Light vehicle repair outlets have been able to keep pace with the rising DIFM repair volume by increasing their service bay productivity. The average car and light truck service bay in the U.S. added more than $10,000 in annual product sales between 2011 and 2016.
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Member shops, tools and equipment: Search our database to find a member shop in your area, see what diagnostic or other equipment they own, what repair information they subscribe to, which management system they use and more! Our extensive database was designed to help members connect with and be a resource to other members. So be sure to login and complete your member profile! continued from pg. 7
Resources/links: • Regulation of Claims Practices & Prohibition on Insurers Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure & Reporting Requirements • P-Pages, DEG and other estimating resources • OEM service information • MPCA Fact Sheets and other regulatory compliance information
Sample documents: • Complaint Letter to Department of Commerce • Loaner Car Agreement • Repair Authorization form • Assignment of Insurance Proceeds • Sheriff’s Sale instructions and documents
Consumer info: • Find a Shop • Auto Insurance Claims & Claimants’ Rights “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams • Automotive career and scholarship info, including links to state college automotive programs Other: • Monthly magazine – Check out the current or past issues of the association’s monthly magazine, AASP-MN News
And, much more! Please take the time to check out the resources available to you from AASP-MN at aaspmn.org.
LOCAL NEWS
Thank You 2018 AASP-MN Sponsors! GOLD AASP National AmeriTrust Group Auto Value Parts Stores/APH Axalta Coating Systems CBIZ AiA FinishMaster PPG Automotive Finishes United Fire Group SILVER aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive O'Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet BRONZE Casualty Assurance of Chaska C.H.E.S.S. Lube Tech & Partners OTHER Choice Auto Rental Dent Impressions Monroe Moxness Berg, PA Sherwin Williams VENDOR Accessory Pro Warehouse AmeriPride Services Autoshop Solutions Dentsmart PDR Heartman Insurance NAPA Auto Parts NCS/Single Source Net Driven The Matrix Wand Workplace Safety Consultants
Minnesota Careers in Auto Repair & Service (MNCARS) MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state's college-level automotive service and collision repair programs and, ultimately, into industry workplaces. To further those efforts, MNCARS recently participated in the following events: • • • • •
MN School Counselors Association Annual Conference St. Paul Central High School auto class students Supermileage competition Northfield Schools Career Exploration Day Hennepin Technical College Car & Motorcycle Show
Take advantage of the resources in the MotorMouth toolbox! Get out and get active in your local community to promote industry careers! AASP-MN News
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AASP-MN invites all members, employees and their families to join us for a Barbeque and night of horse racing. BBQ includes: -Burgers, brats and grilled chicken -Calico beans -Cole slaw -Chips & dip -Fresh fruit & cookies -Ice water & lemonade
Registration deadline Monday, August 6th!
1100 Canterbury Rd. Shakopee, MN Wednesday, August 22, 2018 5:30 - 10:00 p.m. $38 per person
Order Your Canterbury Tickets Today! Company Name:______________________________________________________________ Contact:_____________________________________________________________________ Mailing Address:______________________________________________________________ (Note: Tickets will be mailed to you approximately one week before the event.) Number of Tickets:____________ @$38 each..........................................$___________ Return with payment by August 6th to: AASP-MN 1970 Oakcrest Ave., Suite 102, Roseville, MN 55133 Phone: 612-623-1110/Email: aasp@aaspmn.org/Fax: 612-623-1122 AASP-MN News
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ESTIMATING TIPS Mitchell: Not-included masking operations: In its CEG (Collision Estimating Guide), Mitchell has listed additional not-included operations when it comes to masking a vehicle. Located on Page 28, under “mask vehicle to prevent overspray damage,” Mitchell has listed out labor operation suggestions for additional not-included operations, should it be necessary to perform these operations based on individual job requirements. As always, material costs are NOT INCLUDED in labor times. Audatex: Not-included masking operations – drain, refill and bleed: Audatex DBRM 4-2 labor exclusions state that the following are NOT INCLUDED considerations in labor time development: • Drain, refill and/or top off engine oil • Drain or refill fuel tank • Drain, refill and/or top off transmission fluid An example would be a vehicle with oil transmission coolers built into the radiator, or separate cooler requiring it to be disconnected, drained and refilled using the appropriate fluid. Additionally, bleeding operations are NOT INCLUDED in labor time development: • Bleeding of brake, cooling, or hydraulic systems (‘Additional Labor’ for brake bleeding) An example would be having to bleed or purge air out of a cooling/radiator during the refill process. Or filling and bleeding a brake system after opening the fluid lines to disconnect. CCC/MOTOR: Not-included masking operations - can be found in the GTE (PPages) under refinish procedures – bagging (cover entire vehicle exterior). The following applies per the GTE: Published refinish times include time necessary to mask exterior surface adjacent to the refinish area to a perimeter of 36 inches, or three feet. When the process of perimeter masking is substituted for an entire vehicle bagging procedure, then no additional time should be added. If entire vehicle bagging is used along with perimeter masking, then the following formula may be considered. APPLY AND REMOVE VEHICLE COVER (BAGGING) • Add 0.2 each time a cover is applied and removed Additional not-included masking operations listed under “Basic Color Coat Application:”
• Cover mask engine / compartment to prevent overspray • Cover / mask entire exterior of vehicle to prevent overspray damage • Cover / mask for prime and block • Cover / mask for cut-in • Cover / mask recessed edges / jambs • Cover / mask trunk / compartment to prevent overspray • Cover / mask interior of vehicle to prevent overspray damage Additional not-included masking operations listed under “Color Blend (adjacent panels) and “Three-stage Color Blend (Adjacent panels): • Cover / mask recessed edges / jambs • Masking of attached parts In the event a facility decides roping or “lifting” window seals is the best repair option for the vehicle, published refinish times are for one color applied to new, undamaged OEM replacement components, without exterior trim, interior trim or other attached components. Roping or lifting seals would require an on-the-spot evaluation for labor time, if required. As always material costs associated with masking operations are NOT INCLUDED. CCC, Audatex, Mitchell: OEM Information website access cost is NOT INCLUDED in developed labor times in any of the three estimating systems. OEM technical information sites offer multiple subscription options available to end users depending on their specific needs and time. Research and diagnostic labor time is also not included in published labor times. Both labor and subscription cost would require an on-the-spot evaluation to be added to the repair/work order. Mitchell: Refinish bed underside: “Refinish Complete Bed Assembly Including Tailgate” does not include labor to refinish the underside bed assembly. A separate refinish selection needs to be added from the Mitchell database. Depending on the paint manufacturer, the underside refinish may require a flattened or matte clear to be used over the underside color for additional protection. This is not an included operation and the clear coat labor for the underside would need to be manually entered following the clear coat formula in the CEG guide under the Refinish Section on page 28. Material costs for refinish are NOT INCLUDED in the labor allowances.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.You can view these tips and others on the DEG website,WWW.DEGWEB.ORG.
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INSURANCE I.Q.
RISK INSIGHTS
Employee Cellphone ! ! Use While Driving !
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driving and enforcing policies with signed written Cellphone use has become commonplace, and text ! ! ! ! and ! !conducting ! ! ! ! ! acknowledgments from employees can all help to limit an messaging, emailing business via !cellphone have ! ! ! While ! the convenience ! ! be employer’s potential become routine. of! cellphones! can ! ! ! !liability. ! ! ! ! ! ! ! In the policy, beyond setting enormous, problems arise when using one while driving. ! ! ! ! ! ! ! ! ! ! ! ! ! clear-cut ! ! !rules ! limiting ! cellphone ! A Nationwide Insurance use while driving, offer suggestions such as informing clients ! ! ! ! poll ! found that ! 81 ! percent ! of! ! ! ! ! ! ! ! ! ! of ! driving schedules to avoid calls while on the road, pulling over to cellphone owners admitted to talking on a cellphone while ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! driving. While employers may be aware of the obvious benefits place or receive an important call or asking a passenger to handle ! ! ! ( ! ! ! ! of allowing employees to use cellphones to conduct business cellphone usage. Be sure to emphasize that while productivity is ! ! ! ! ! ! ! ! ! ! !! while driving, there are significant liability risks associated with certainly important, employee safety and the safety of others on ! ! ! ! ! ! ! ! ! ! cellphone use while driving. the road is more important – safety that is neglected when using a ! ! ! ! - cellphone. ! ! ! ! ! ! ! ! ! ! ! ! A! National! Safety! Council survey found! that! of employers !who had !a cellphone ! ! driving ! !policy, 70 percent ! ! ! ! ! Even !with a comprehensive ! ! ! !cellphone use ! policy, ! !courts ! may saw no decrease ! !and over ! ! percent saw ! ! ! employee ! in !productivity 20 decreases in still hold employers responsible for! any harm !caused by! ! ! ! ! ! ! vehicle crashes. ! ! ! ! ! ! employees! while on company business, so it is important ! ! ! ! ! ! to According to Johns Hopkins University, as individuals focus ensure that your policy is being upheld and enforced. Be ! ! ! ! ! ! ! ! ! ! ! ! !clear! on listening and engaging in conversation, the activity in the about the! importance of following the policy, and follow through visual part! of the brain with consequences if employees are found to be disobeying it. ! ! ! decreases, ! even when using a hands-free device. In addition, the University of Utah found that drivers are ! ! ! ! ! ! ! ! ! ! ! ! ! as impaired on a cellphone as they are while driving under the State Laws ! ! ! ! ! ban! the ! use! of hand-held ! ! ! cellphones ! ! influence ! ! ! ! ! ! ! ! ! of alcohol. Many states currently ! ! and! many! states! have! taken ! an increasingly ! !active ! ! As a !result, if! you have ! ! ! driving ! on company ! employees time, while driving, ! in addressing ! ! ! ! !use ! need to ! be aware !! of your cellphone use exposure and take the role you the! relationship between driver! cellphone ! appropriate steps to mitigate your risks. and traffic safety. These laws change frequently, so employers should always be aware of their state’s laws and require ( ( ( ( ( ( ! Case Studies employees to observe those regulations regarding cellphone use ! ! ! ! ! ! ! Recently, a Georgia employee making a business call while while driving. Include the current state law in your policy, and ! ! ! ! ! ! ! ! ! ! ! driving hit and caused serious injury to another driver. The require employees to review and re-sign it whenever the law ! ! ! ! ! ! employee’s company agreed to pay $5 million in damages after changes. While state laws do not directly address employer the court found that the company was liable since the employee liability, they have the potential to increase employer exposure ( ( ! ! ! ! ! ! ! was making a business-related call. In a different case, $2 million for cellphone-related accidents. For more information about state ! ! awarded ! to a child’s ! ! family after ! requirements, access the Governor’s Highway Safety Association in damages were an employee ! ! The! family! also ! sued! the employee’s ! ! company ! website at: ghsa.org. hit and killed her. ! ! revealed ! that ! the! employee ! ! !was! talking ! to a In addition to updating your company’s cellphone policy and after phone records ! ! ! ! ! training program, employers should also review their insurance client at the! time of! the! crash. ! policies. For help assessing your company’s risk regarding If a customer’s car is! damaged while ! ! ! in! your !company’s ! care, employee cellphone use or for assistance in developing a or if it causes! damage! while in your company’s care, your GGL ! ! ! ! ! ! ! cellphone use policy, contact Brad Schmid at could leave you exposed. However, a separate coverage ! ! ! ! ! ! ! ! ! bschmid@cbizaia.com or 763-549-2247. commonly sold! along with a GGL policy—garagekeepers ! ! ! ! ! ! ! coverage—is designed specifically to provide coverage for that ! ! ! PROVIDED BY CBIZ exposure. This Coverage Insights is not intended to be exhaustive nor should any
discussion or opinions be construed as legal advice. Readers should conMinimizing Employer Liability ( ( ( tact legal counsel or an insurance professional for appropriate advice. While there is no guaranteed defense to liability, developing ! an appropriate ! ! employee ! ! ! ! ! use policy, ! ! training ! ! ! ! © 2018 Zywave, ! ! ! rights ! !reserved. ! ! ! ! ! cellphone Inc. All ! ! ! ! the dangers ! !of talking on ! a cellphone !! ! !while ! ! ! ! ! employees about
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PARTNERS IN PREVENTION
Empty Containers You know the rules for the hazardous wastes in your shop and what to do with them. But what about the empty containers that held those materials, such as paint cans, paint cup liners and brake cleaner aerosol cans? Regulators consider containers to be empty when all the material that can be removed has been removed. Use up products when possible. Then recycle as many types of containers as your hauler will take. You pay high state and county taxes on your trash bill, but not on your recycling bill, so recycling saves you money in the long run. Put paint cup liners in the trash after any leftover paint has been squeezed from them into your hazardous paint waste drum. Cans of paint should be dealt with the same way – scrape residual paint into your hazardous paint waste drum. Recycle the empty can, if possible, or put it in the trash. Aerosol cans are empty when there is no product left in the container and no pressure remaining. How do you know? An aerosol can is considered empty when no liquid is heard or felt when you shake the can, and no propellant or product is heard or seen when you press the button and rotate the can in all directions. Empty aerosol cans can usually be recycled as scrap steel.
If there is still product or pressure in an aerosol can, you have the option of puncturing, draining and recycling the can, but you must determine if the drained waste is hazardous and collect, manage and dispose of it properly. An easier way is to manage and dispose of the entire unpunctured can as universal waste. Store aerosol cans in a way that prevents the button valve from being pressed, label them “universal waste aerosol cans,” and have your hazardous waste hauler pick them up within a year. For more information, contact your metro county environmental services department or review the universal waste factsheet by searching the MPCA website, pca.state.mn.us, for “universal waste.” For more details on empty containers and information on larger containers such as 55-gallon drums, search the MPCA website for “hw4-16” to find the empty container fact sheet. Although state rules allow you to recycle or dispose of an empty container as solid waste, your hauler may be more restrictive or have additional requirements. Check with your waste hauler before disposing of empty containers. For containers of product that can still be used, use the product up or contact the Minnesota Materials Exchange at mnexchange.org to find a new user for it.
LEGISLATIVE UPDATE include their language in the Omnibus Supplemental Appropriations Bill. Right up to the end of the Session, we were talking with the bill’s author to ask him for an opportunity to discuss the salvage title statute in order to ensure a common understanding and make changes that are appropriate for all interests within the industry. The House author, Representative John Koznick, has indicated a willingness to have such conversations. However, now the prospect of having those conversations is much improved since the Supplemental Appropriations Bill was vetoed and the salvage title measures not enacted. The third piece of legislation that was the focus of the 2018 Session was the Capital Budget or Bonding Bill. The Legislature assembled a comprehensive package of projects that are to be built or continued from pg. 5
improved over the course of the next two years. As the Session came to a close, it was clear that there were some projects that the Governor supported which had not been included in the Bonding Bill. This raises the possibility that the Governor might lineitem veto some provisions that are in the bill in order to bring the Republicans back to the table to renegotiate the Bonding Bill. In the coming weeks and months, AASP-MN will be discussing issues that the industry will pursue in the 2019 Session. If you have an issue that you would like the association to consider, please connect with AASP-MN or a member of the AASP-MN Governmental and Regulatory Affairs Committee so that we can begin the process of analyzing the issues and preparing specific proposals to address member concerns. AASP-MN News
WELCOME NEW MEMBERS:
MAY 2018
Dick’s Hot Rod Shop Lakeville Ken’s Auto Repair Maplewood The Body Shop Lake City Transmission Doctor Plus Apple Valley Wallace Auto & Collision Benson June 2018 | 19
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GUEST EDITORIAL
Will Justices Give Brick and Mortar Retailers a Level Playing Field? It is doubtful anyone could have foreseen the growth in ecommerce that has occurred since 1992 when access to the Internet was still pretty limited. Certainly not the Supreme Court Justices who ruled that year on a case, Quill Corporation vs. North Dakota, that is currently having a major impact on the auto care industry and, in fact, all of e-commerce in the U.S. Quill Corporation vs. North Dakota involved the purchases by individuals of licensed software directly from a catalog offered by Quill Corporation, in which the company claimed they did not need to collect sales tax since they had no physical presence in North Dakota. The Supreme Court ruled in favor of Quill based on the Commerce Clause, which gives the federal government the power to regulate interstate commerce and prohibits state action that might interfere with trade between states. The Supreme Court ruled at the time that a company must have a physical presence in order to collect tax on the sale of a product into that state. Fast forward to the 21st Century, sales over the Internet now stand at a whopping $400 billion, representing nearly 30 percent of all retail sales. Yet, the Quill vs. North Dakota case is still the law of the land. This puts brick and mortar retailers at a competitive disadvantage to online-only companies that are free from charging sales tax as long as they are headquartered outside the state where the sale occurs. This is one reason President Trump has targeted Amazon's tax dollars in recent days. In order to bring fairness to the system and bring tax law into the 21st Century, a large group of trade associations, including the Auto Care Association have pushed Congress to enact what is termed, the Marketplace Fairness Act. This legislation would permit states to collect sales tax on Internet sales even if the online retailer has no physical presence in the state. Joining the trade groups in support of this legislation are the states themselves who are seeing an enormous source of revenue, about $23 billion every year, escape their grasp due to the Quill Supreme Court decision. You might expect Internet-only retailers to oppose Marketplace Fairness legislation, but you might be surprised to learn that the legislation is also strongly opposed by many legislators who claim the requirement to collect tax on Internet sales would amount to a new tax, thus violating their pledge to 20 | June 2018
by Aaron Lowe, Auto Care Association
never support a new or increased tax. Unfortunately, these “donot-tax� legislators and Internet companies have managed to keep the legislative fix to Quill bottled up in Congress for several years. Frustrated and with little near-term hope that the legislation could be advanced, many state legislatures have taken matters into their own hands, passing legislation that requires the collection of sales tax on Internet sales. The aim of these bills is clearly to trigger a review of the Quill decision by the Supreme Court. The first state to move through the pipeline is South Dakota, which enacted the digital sales tax statute that would require sales tax collection for remote retailers with annual in-state sales exceeding $100,000 or 200 separate in-state transactions. Prior to the law coming into force on May 1, 2017, the state sent out notices of pending lawsuits to four of the largest out-of-state vendors that they believed would exceed the sales threshold and were not already collecting sales taxes. Three of the four companies refused to comply and they were sued in court. Of course, the court rejected the suits based on the Quill ruling, setting the stage for the hope by states that the Supreme Court would take on the case. The Auto Care Association, along with other organizations, filed an amicus brief, asking for the high court to review South Dakota vs Wayfair, Inc., Overstock.com, Inc., and Newegg, Inc., a case based on the unfair advantage gained by remote sellers that do not need to collect sales tax. Thankfully, earlier this year, the Supreme Court agreed to hear the South Dakota case, scheduling oral arguments for April 17. A decision is expected in June. There is no doubt that this is an important case for both states and brick and mortar retailers. These groups believe this is not about increasing taxes, but fairness. Brick and mortar retailers also have a major presence on the web, competing headto-head with Internet-only companies which now have a built-in advantage. These companies believe they should not be penalized for also having a physical presence. What might have made sense in the '90s does not necessarily make sense now considering the impact of technology on current day retailing. Now, we can only hope the Supreme Court agrees!
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CASH IN ON YOUR MEMBERSHIP!
Bankcard Regulations Aren’t Getting Any Easier If governmental rules and regulations aren’t enough to make shop owners tear their hair out, we can thank the bankcard companies for getting the job done. Visa, MasterCard, Discover and American Express continually increase their own requirements and, to no shop owner’s surprise, they’re slanted in the cardholder’s favor. As disconcerting as this may be, a business owner only has two choices: Either stop taking cards or do what they say. The card companies know the latter will be chosen, as you’re not going to remain in business unless you accept their cards from your customers. It took a while, but they’ve achieved their goal of loading customers’ wallets with multiple debit and credit cards, and if your shop won’t accept the cards, the next guy down the street certainly will. Their most onerous requirement in recent years is PCI-DSS (Payment Card Industry – Data Security Standards) compliance. In basic terms, the card companies are saying, “Business owner, protect those card numbers because we are now holding you responsible for whatever happens with any stolen numbers. We’re not taking that liability anymore!” What a contrast that is from the days of manual imprinters when the full 16 digit number was displayed on the sales draft. It even carried through to electronic terminals when they came out. Just like an imprinted sales draft, there too on the printed receipt, for the world to see in all its glory, was the full card number. My, oh my, how privacy concerns have changed. It wasn’t that many years ago when people found it convenient to have their driver’s license, and possibly their social security number, preprinted on their checks. The latest liability shift comes in the form of chip cards. The processors, in their view, were absorbing too many losses from altered magnetic strips. Evidently, it’s not hard to embed a different, and probably stolen number, in the strip. There is no regulation that says you have to have chip reading
equipment, but if you’re still swiping the magnetic strip, there is virtually no protection if it’s a fraudulent card, or even if the customer disputes the sale. The same is true for Apple Pay and Google Pay transactions. This is the new, neat, cool way for cardholders to store card numbers on their smart phones. Its impressive technology allows the customer to open an app that transmits the card number and expiration date into your terminal. It’s as slick as can be, but these are considered non-card swipe transactions. The processing fee increases to non-swipe rates, and there is no chargeback protection from customer disputes since the chip is not read. By the nature of the automotive repair business, hand-keyed transactions are going to occur. Parents call in their card numbers for repairs on their kids’ cars. Or a customer can’t make it to the shop by
AASP-MN News
closing time so he gives his number over the phone. Your only option is to hand key the sale and take the risk of having the sale charged back from a customer dispute. Whether you should accept hand-keyed transactions is a business decision. It’s all about knowing who your customer is. Your customers may be telling you signatures are no longer required. You’ll be fine without a signature, at least until a chargeback comes. It’s going to be very difficult to win your case without being able to produce a signed sales draft, so keep getting those signatures. If you have questions, want more information, or would like to see if AASPMN’s bankcard service can save you money, please contact Mac Hardin at 800-999-4399, or mach@retailfinancialservices.biz.
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AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE AmeriTrust Group (formerly Meadowbrook Insurance Group) Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn. PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group! EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year. CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.
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LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up). Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / rmullen@netdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees.
AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aaiassessment.com / www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price and starts as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars. CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.
TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit.
SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. (CHESS) Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance.
INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE & Teamworks products. For more information, contact Customer Service at 888-724-6742, ext. 6986.
PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free.
Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.
BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on one-onone sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 25% discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.
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