Legislative Overview / How CADA works for you
Over the years, the government’s view of the auto industry has shifted with changing administrations, both in Denver and Washington, D.C. The one constant for auto dealers across Colorado is CADA’s active role in representing your concerns. CADA and NADA are involved at every level of government to create a more level playing field for you, to ensure your continued success.
In 1914, the Denver Automobile Dealers Association (DADA) was formed by a small group of dealers where its primary purpose was to annually host the Denver Auto Show. In 1933, a tax-related issue spawned the Colorado Automobile Dealers Association (CADA), which was designed to address important statewide issues that could affect auto dealers. CADA began enacting legislation in 1937 and incorporated in 1938. Fast forward 70-plus years. The DADA, which had become the Metro Denver Automobile Dealers Association merged with CADA in 2009. Today, CADA continues advocating on behalf of dealer members at the state legislature and hosts the Denver Auto Show. In For a complete history, get The 100-Year Deal.
Summary of Advocacy role
Since then, CADA has remained focused on protecting auto dealers’ interest at the state level, both defending dealers against harmful legislation and introducing measures that protect dealers AND the car-buying public.
Through attending conferences and agency meetings, as well as monitoring alerts, CADA stays on top of rulemaking and major policy changes at the state and federal levels — then communicates the impact of these changes to you as soon as the changes are known.
Across the state, Colorado Governor John Hickenlooper requires state agencies to actively revisit and update regulations. Also, stakeholder meetings are required to be held before formally proposing new or modified rules. Within Colorado, CADA participates with the following agencies:
Motor Vehicle Dealer Board - Auto Industry Division
CADA attends monthly meetings of the nine-member Motor Vehicle Dealer Board (MVDB) - Auto Industry Division. The panel comprises three new car dealers, three used car dealers and three members of the public. New car dealers on the panel are Mike Jorgenson, Red Noland Auto Group; Jason White, Fay Myers Motorcycle World and Carrie Baumgart, Markley Motors.
The Auto Industry Division is part of the enforcement division of the Department of Revenue; it’s the primary agency that oversees licensing and regulation of Colorado’s retail motor vehicle industry. Monthly MVDB meetings are the forum for new dealer license applications, affidavits of probable cause against dealers and any concerns raised by the public to the board. Also, MVDB maintains the sale of motor vehicles through the Colorado Code of Regulations.
These monthly meetings and disciplinary actions provide insight into compliance issues for dealers. Because proposed rules are heavily based on information gathered during stakeholder meetings, and CADA is a key industry association, we attend each MVDB rulemaking stakeholder meeting — and often influence regulatory rules to ensure dealers are protected from harm.
Attorney General’s office
The Office of the Attorney General (AG) maintains and enforces the Uniform Code of Consumer Credit. This code — and its regulations — affects any dealers that finance consumer credit. Dealers also are required to file an annual registration with the AG’s office. Each year, CADA reminds dealers and sends details of this annual registration requirement.
In the past few years, dealer audits have become a common occurrence. CADA can help by guiding dealers who are audited for the first time with insights on the process, what to expect and referrals to legal counsel if issues arise.
Department of Revenue
Within the Department of Revenue, CADA staff closely works with the Motor Vehicle Titles and Registration department on issues that surface across the state’s 64 counties that process titles. Issues include paperwork requirements, variances in county interpretations of state guidelines or laws, proper-place-of-registration disputes between counties, tax questions with the state Taxation Division or home-rule city sales and use tax audits.
CADA organizes educational seminars to instruct title clerks in best practices and requirements for each jurisdiction and how to navigate the labyrinth of taxing districts created by home-rule city principles. Through these education sessions, we hope to reduce stress to your title clerks, uncertainty and lengthy phone calls to the Department.
In 2015, CADA joined forces with retired state investigator Eric Hartsough to look into concerns and consumer complaints against new car dealers. His industry experience has helped resolve hundreds of disputes without mediation or litigation.
Also, Hartsough has helped CADA identify recurring consumer behavior patterns and responses, which results in CADA offering educational seminars to clarify complex transactional issues.