Pub. 22 2023 Issue 4

Issue 4 | 2023 NJ DEALERSHIPS TOP OSHA COMPLIANCE PITFALLS

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WE MEAN BUSINESS New York • Newark • Jersey City • Basking Ridge • Philadelphia Genova Burns LLC • www.genovaburns.com ATTORNEYS AT LAW

EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 ©2023 New Jersey Coalition of Automotive Retailers | The newsLINK Group, LLC. All rights reserved. The New Jersey Auto Retailer is published four times each year by The newsLINK Group, LLC for the New Jersey Coalition of Automotive Retailers (NJCAR) and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and dealer education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NJ CAR, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. While NJ CAR encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. table of CONTENTS NJ CAR Executive Committee and Board of Trustees 2022-2023 NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Joseph Agresta, Jr. Timothy Allocca Jeffrey Brown John Fette Tim Hlavenka (Alt.) William Kundert, Jr. Brian Lam Renee P. McGuire James Russomano (Alt.) Richard Selman (Alt.) Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Scott Barna (Alt.) David Ferraez John Johnson, Jr. Sean Lyons Chris Preziosi, Jr. (Alt.) Edward J. Rossi William L. Strauss, III Stephen Tilton James Curley, III ....................................................................................Chairman Eric Nielsen ...................................................................................Vice Chairman Ronald E. Baus, Jr. .................................................................................Secretary Andy Shapiro ..........................................................................................Treasurer Michael P. DeSilva ...................... Regional Vice President (Northern Region I) Mark Montenero ........................Regional Vice President (Northern Region II) Richard Malouf, Jr. ..........................Regional Vice President (Central Region) Ed Barlow, III ................................Regional Vice President (Southern Region) Michael P. DiFeo .....................................................................Budget Chairman Michael McGuire ...................................NJ CAR Insurance Co. Ltd. Chairman Richard DeSilva, Jr. .......................................NJ CAR Services, Inc. President Richard DeSilva, Jr. ...........................................NADA Director for New Jersey Frank M. Pezzolla ..................................................Truck Committee Chairman Charles S. Miller ...................................................................CAR-PAC President Thomas DeFelice, lll ............................................................NextGen Chairman James B. Appleton ...............................................................................President CENTRAL REGION (Middlesex, Monmouth, Ocean) Robert Ciasulli Thomas Faragall Garry Foltz Elizabeth Giglio (Alt.) Adam Kraushaar Melissa Longo Shari Sandidge (Alt.) Paul Sansone, Jr. Anton Semprivivo David Wintrode, Sr. (Alt.) Jordan Wright SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Russell Abate Jason Elkins Jeremy Fisher William Kassner (Alt.) Steven Kindle (Alt.) Judith Krupnick David Kull Peter Lanzavecchia (Alt.) Stacey Lilliston James McCormick Robert D. McCormick Tina Wright 7 President’s Message NJ CAR Preparing Legislation to Strengthen Dealer Franchise Protections and Boost Recall Completion Rates BY JAMES B. APPLETON 10 Chairman’s Message State and Federal Incentives Make Many EVs More Affordable BY JAMES CURLEY, III 12 NADA Director’s Message NADA Addresses Major Issues BY RICK DESILVA, Jr. 14 Ray Catena Named New Jersey’s 2024 TIME Dealer of the Year Award Winner Nationally Recognized for Community Service and Industry Accomplishments 16 NJ Dealerships Top OSHA Compliance Pitfalls BY CHARLES RUSSO 20 Form 8300 Process Changes Electronic Filing and What to Know BY PHIL CRAFT AND JEN MOYLAN 22 NJ CAR Compliance Forms Series Waiver of New Jersey Inspection and the “Addendum to Retail Order Form” BY GREYSON P. HANNIGAN, ESQ. 25 May the Fourth (Incentive) Be With You (At Least Temporarily) BY MAGDALENA PADILLA 28 NJ CAR Recognizes the Dealerships That Have Contributed to CAR-PAC 32 Thank You to Those Who Contributed to NADA PAC 34 Every Dealership Should Be a Member of NJ CARPOOL 4 new jersey auto retailer

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PRESIDENT’S MESSAGE NJ CAR Preparing Legislation to Strengthen Dealer Franchise Protections and Boost Recall Completion Rates JAMES B. APPLETON New Jersey already has one of the nation’s strongest Franchise Practices laws. That doesn’t mean there aren’t improvements that can be made to ensure New Jersey’s franchised new car and truck dealerships are protected from any potential manufacturer overreach. The New Jersey Franchise Practices Act was first passed in 1971 and has been amended several times over the past 52 years. NJ CAR is preparing legislation that would address several outstanding issues impacting dealers. The legislation would be aimed at protecting dealerships AND consumers by ensuring dealers are able to continue providing price competition for sale and service, as well as ready access to warranty and recall repair services to promote highway safety. The proposal grew out of a year-long discussion with the Executive Committee and the NJ CAR Franchise Practices Act Committee, which identified a number of franchise and recall-related issues that required attention. NJ CAR began discussing the issue recently with Legislative Leaders and potential bill sponsors, who have expressed support for legislation would boost recall completion rates in New Jersey, improve highway safety, and foster competition in the new car and used car marketplace. The amendments NJ CAR has prepared will address a variety of issues important to dealers and consumers: • Prohibits the sale of unsafe used vehicles under a “stop sale” or “do not drive” recall. • Requires all used car dealers to check the National Highway Traffic Safety Administration (NHTSA) website (safercar.gov) for open recalls on a vehicle before it is sold. 7 new jersey auto retailer

• Codifies the existing requirement for dealers to disclose whether a vehicle is subject to any open recall at the time of sale. • Provides a “safe harbor” defense to any consumer fraud claim, as long as the dealer checked the NHTSA website (safercar.gov) and found no recall on the vehicle before it was sold. The amendment also makes clear the dealer is not liable for any errors or omissions on the safercar.gov website and has no obligation to continue checking the website after the sale. • Requires automakers to provide the New Jersey Motor Vehicle Commission (NJMVC) with a list of all New Jersey-registered vehicles under recall for six (6) months or more (that have yet to be repaired) and, in cooperation with the NJMVC, to send notice to those registered vehicle owners with unresolved recalls. • Requires automakers to compensate their franchisees for specified costs associated with a “stop sale” or “do not drive” order. • Defines the dealers’ recall costs more clearly and requires automakers to compensate dealers 1.75% per month of the book value of any used vehicle subject to a stop-sale recall. • Clarifies provisions in existing law, which require an automaker to pay dealers a fair retail rate of reimbursement on parts and labor to repair vehicles under recall. • Protects auto retailers from being subject to financial or other penalties levied by an automaker in the event they bring a claim for reimbursement of recall costs. • Prohibits manufacturers from recovering their cost of compliance with state law and requires retail reimbursement to the dealer for parts and services provided for warranty and safety recalls. • Prohibits manufacturers from arbitrarily and unilaterally reducing the retail price of parts required for warranty and safety recall services immediately preceding or during a recall campaign to avoid paying dealers fair compensation for warranty and safety recall work. The amendments also address an issue that is at the heart of the complicated franchisor/franchisee relationship. Franchisees NJ CAR IS PUSHING FOR AMENDMENTS THAT WOULD ADDRESS SEVERAL OUTSTANDING ISSUES IMPACTING DEALERS. are often reluctant to challenge their franchisors, even when the franchisor violates the provisions of the Franchised Practices Act (and the dealerships’ rights), because litigation is too expensive or they fear retaliation. In these situations, dealers often turn to their advocates, like NJ CAR, to file legal challenges that individual dealers cannot file on their own. Unfortunately, two recent lawsuits brought by NJ CAR, on behalf of its Lincoln and Mazda dealers, were dismissed after a trial court found the statute doesn’t explicitly grant standing to sue for relief under the law to anyone other than an actual franchisee. The proposed amendment to the Franchise Practices Act would specifically grant standing to sue for a trade association that meets the U.S. Supreme Court criteria for associational standing. 8 new jersey auto retailer

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CHAIRMAN’S MESSAGE State and Federal Incentives Make Many EVs More Affordable JAMES CURLEY, III NJ CAR has been educating dealers for months about the proposed federal and state electric vehicle mandates aimed at dramatically increasing the number of EVs on the road. Dealers are “all-in” on EVs, but the Coalition has cautioned Governor Murphy and the New Jersey Department of Environmental Protection (NJDEP) to take a more realistic approach to achieving a 100% EV future. Consumers want choice and don’t appreciate being told what they can and cannot buy. EV mandates, like the Governor’s mandate to have 35% EVs sold in New Jersey by 2027 and 100% EVs sold in New Jersey by 2035, are going to backfire. EVs currently account for less than 10% of all vehicles sold. It’s unrealistic to assign an arbitrary percentage to a year without any consideration for consumer interest and electric charging infrastructure and readiness. Consumers will decide when New Jersey becomes a 100% EV state, not government decision-makers. The government can’t (and shouldn’t) force consumers into an EV, but the government can (and should) incentivize consumers to transition to an EV. The following is a recap of the various state and federal government programs that aim to make EVs more affordable for consumers. CHARGE UP NEW JERSEY EV INCENTIVE PROGRAM New Jersey recently wrapped up the third year of the Charge Up New Jersey EV Incentive Program. The $300 million, 10-year Program provides $30 million per year to incentivize consumers to purchase EVs. Below are some of the eligibility requirements to qualify for a Charge Up New Jersey incentive: • Eligible vehicles with an MSRP below $45,000 are eligible for a maximum incentive of $4,000. Eligible vehicles with an MSRP between $45,001 and $55,000 are eligible for a maximum incentive of $1,500. EVs with an MSRP over $55,000 are not eligible. • Buyer must be a resident of New Jersey at the time of vehicle order, purchase or lease and must remain a resident for at least two (2) years following the purchase. • The Program is limited to individuals only. 10 new jersey auto retailer

• Only vehicle transactions occurring after the official launch and before the official closing of the current year’s Program are eligible for an incentive. • A vehicle ordered, purchased, or leased, and/or delivered out-of-state, is not eligible for the incentive. Any vehicle ordered online must be delivered in New Jersey to qualify. • Purchasers agree to retain ownership, or an active lease agreement, and registration of the vehicle in New Jersey for a minimum of 36 consecutive months. For more information on the program or to view a list of eligible vehicles, visit https://chargeup.njcleanenergy.com. EXEMPTION FROM NEW JERSEY SALES TAX The New Jersey Legislature exempts residents from paying State sales tax on the purchase or lease of a zero-emissions vehicle. With the current sales tax rate at 6.625%, this is a significant incentive that offers hundreds to thousands of dollars off the vehicle cost — at the point of purchase. To apply this incentive, the customer must fill out a Sales Tax Exempt Use Certificate (Form ST-4). Visit the NJDEP’s Drive Green website (https://dep.nj.gov/drivegreen/sales-and-use-tax-exemption/) to view a list of vehicles eligible for the sales tax exemption. FEDERAL TAX CREDIT The Inflation Reduction Act of 2022 changed the rules for tax credits on eligible battery and plug-in hybrid electric vehicles. Under the new rules, the purchaser is not required to reach a minimum tax liability to secure a federal tax credit. However, THE GOVERNMENT CAN’T (AND SHOULDN’T) FORCE CONSUMERS INTO AN EV, BUT THE GOVERNMENT CAN (AND SHOULD) INCENTIVIZE CONSUMERS TO TRANSITION TO AN EV. the federal EV tax credit amount is affected by the individual’s tax liability and other factors. For example, if an individual purchases an EV eligible for the maximum $7,500 tax credit but owes only $4,000 in taxes, they will receive a $3,500 credit. Once a manufacturer sells 200,000 eligible plug-in electric vehicles, the available federal tax credit begins to phase out. To qualify, the eligible vehicle must be bought for personal use, NOT for resale, and the buyer’s modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers. The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date and other factors. For more details regarding vehicle eligibility, purchaser eligibility and how tax credit amounts are determined, visit https://fueleconomy.gov/feg/tax2023.shtml. Beginning in January 2024, the tax credit can be implemented at the point of sale, with dealers applying for reimbursement from the IRS, which has said it will pay dealers within three days of application. For more details on the federal EV tax credit, visit https://fueleconomy.gov/feg/tax2023.shtml. 11 new jersey auto retailer

NADA DIRECTOR’S MESSAGE NADA Addresses Major Issues RICK DeSILVA, JR. The following is the latest information on some of the major issues being addressed by NADA and was discussed at the most recent NADA Board Meeting. FTC “VEHICLE SHOPPING RULE” The FTC’s proposed “Vehicle Shopping Rule” would inject massive amounts of time, cost, and complexity into the vehicle sales process, undermining industry efforts to streamline and improve the customer experience. NADA has urged the FTC to scrap the proposed rule and go back and propose a rule through a responsible regulatory process involving all stakeholders. On October 4, Senators Moran (R-KS) and Manchin (D-WV) introduced S. 3014, the “FTC REDO Act.” The bill would stop the proposed rule and offer the process the FTC must follow to “redo” the proposal. The bill also amplifies the concerns expressed by both Republican and Democratic members of Congress that believe the FTC’s rushed and irresponsible approach will add frustration and confusion to the car buying process, therefore making it more costly for consumers. NADA expects the legislation to also be introduced in the House and will be seeking co-sponsors to demonstrate bipartisan support to stop this rule. FEDERAL EMISSIONS RULEMAKINGS America’s franchised new-car and -truck dealers are doing their part to be ready for the increasing electrification of the fleet. Over the next decade, franchised dealers will invest more than $5 billion in training and equipment necessary to facilitate an unbeatable consumer experience when it comes to EV education, sales, and service across the entire market. Yet, any significant level of EV penetration into the mass market will require a broad, unified strategy that recognizes the importance of factors such as affordability, charging infrastructure, utility capacity, resources for battery manufacturing, model availability, and consumer incentives. The Biden Administration’s policy actions, including the most recent proposed emissions rulemaking from EPA and DOT, disregard critical demand-side marketplace factors. Its approach (shared by ZEV states like New Jersey) is based on overly aggressive assumptions regarding future EV market penetration and has the effect of promoting electric exclusively at the expense of ICE, hybrid, and other alternative-fuel vehicles. The EPA’s proposed rule is expected to be finalized by the first half of 2024, with the DOT’s rule following shortly thereafter. NADA will continue to advocate for technology-neutral emissions standards that maximize fleet turnover as opposed to inhibiting it. LIFO RELIEF Congressional leaders continue to express support for retroactive LIFO relief legislation for dealers. Under the “Supply Chain Disruptions Relief Act,” Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemic-related foreign trade interruptions have been met. While vehicle inventory is recovering, the LIFO recapture penalty has imposed massive tax bills on small business dealerships that will take years to recover. Dealers should remind members of Congress that this technical and noncontroversial legislation would merely provide relief to dealers whose inventories disappeared due to an unprecedented interruption of global supply chains. 12 new jersey auto retailer

22 Florence Street • South Hackensack, NJ 07606 • Learn more at WASCOonline.com • 800-732-4511 Why Should Your Dealership Partner With WASCO? Dealership Supplies & Exceptional Customer Service WASCO helps me manage a very diverse, very difficult business. Interacting with many vendors on my behalf really helps me simplify the entire process. — Ed Rossi, Rossi Chevrolet Buick GMC “ ” VOLUME PRICING DISCOUNTS PURCHASING EFFICIENCY ANNUAL DIVIDEND While challenges remain with congressional gridlock, LIFO relief is a strong candidate for action this year, with its overwhelming bipartisan support and passage in the Senate by unanimous consent last year. The legislation has 139 House cosponsors and 64 Senate cosponsors. This significant support makes the legislation less vulnerable to procedural hurdles. CATALYTIC CONVERTER THEFT Catalytic converter theft has skyrocketed over the past few years, costing millions of dollars to businesses and individual vehicle owners. Replacing a catalytic converter is costly and often difficult due to demand and supply chain shortages. Catalytic converters are not currently one of the 18 vehicle parts required to be marked with a VIN or number traceable to a VIN. Law enforcement has said that tracing in the legislation is critical to help deter the theft and trafficking of stolen catalytic converters since it would make it easier to prosecute criminals. There are currently over 100 state bills addressing catalytic converter thefts, but since this crime frequently involves trafficking stolen parts across state lines, a federal standard is needed to help law enforcement. The “Preventing Auto Recycling Theft (PART) Act” provides a national framework to help law enforcement combat catalytic converter theft by marking catalytic converters and creating a more transparent market that deters its theft. NADA will continue to advocate for the passage and enactment of this legislation to help curb the growing national problem of catalytic converter theft. OEM ENGAGEMENT NADA remains focused on the unsettling way many OEMs are speaking publicly about the retail process, and we continue to track and express our concerns about many of the changes being implemented between OEMs and their dealers. NADA also knows that, despite the fact that they have not been operationalized on a widespread basis, these ongoing references to things like direct sales; direct and exclusive sale of postpurchase vehicle services; taking over the customer experience; and dealers as agents, etc., cannot realistically be seen by dealers, NADA, or state associations as anything other than threats that go to the very core of the franchise system. NADA uses their regular Dealer Attitude Survey meetings, as well as constant engagement at the highest levels, to discuss these issues head-on with OEM leaders. OEMs that NADA engages with appreciate that the national association is increasingly leaning into the dealer-OEM relationship, and dealers appreciate the clarity that most OEMs have provided by publicly committing to their dealers and recognizing the competitive advantage dealers provide. 13 new jersey auto retailer

Ray Catena Named New Jersey’s 2024 TIME Dealer of the Year Award Winner Nationally Recognized for Community Service and Industry Accomplishments 14 new jersey auto retailer

Ray Catena, President of Ray Catena Motor Car Corporation, was recently selected as New Jersey’s 2024 TIME Dealer of the Year (TDOY) award winner. Ray is being recognized for his exceptional industry accomplishments, as well as his commitment to community service. He will be honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on February 3, 2024. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. Ray was one of 49 auto dealers nominated for the 55th annual award from more than 16,000 nationwide. Ray is a born entrepreneur who learned the value of a hard day’s work from his grandparents, who raised him. In grammar school, he would collect spare parts to repair and resell bicycles. At age 12, he bought his first car and sold it for a profit. “From that point on, I was hooked and knew the automotive business was my destiny,” said Ray. “The work ethic and integrity my grandparents instilled in me have served me well throughout my automotive career.” His career officially started in 1958, when he opened Towne Auto Sales, a retail used car and wholesale operation in Kearny, at the age of 22. Ray spent the next 18 years honing his knowledge of the automotive industry, which prepared him to move into new-car sales with Ray Catena Chevrolet in Fair Lawn, New Jersey, in 1976. Ray’s wife, Elsie, has worked beside him from the beginning of his career and continues to do so to this day. While his company has grown substantially since 1976, Catena is proud of his reputation for excellent customer service. His motto has always remained the same: “If you think something is more important than the customer, think again.” Ray is one of the most accomplished and respected dealers to ever represent New Jersey in the competition. His success is the result of his commitment to his customers, his manufacturers, the communities in which his dealerships operate, and his employees. Founded in 1981, the Ray Catena Auto Group has grown to employ more than 1,100 people, representing luxury brands Mercedes-Benz (three dealerships), Sprinter, Porsche, Infiniti, Lexus (four dealerships) Land Rover (two dealerships), Audi, BMW, Jaguar, and MINI throughout New Jersey and New York. One of Catena’s daughters, a son-in-law, and two grandsons are the next generations representing the family’s enterprise. Ray feels it is his responsibility, as a successful businessperson, to give back to his employees, his customers, and the communities his dealerships serve. To that end, he supports a wide variety of charitable causes, including the Tunnel to Towers Foundation; the Wounded Warrior Project; the Monmouth Conservation Foundation; the Susan G. Komen Foundation; the Monmouth Park Charity Fund; the Hackensack Meridian Riverview Medical Center; the Memorial Sloan Kettering Cancer Center; the New York-Presbyterian Columbia Medical Center; St. Jude Children’s Research Hospital; Fulfill Food Bank of Monmouth & Ocean Counties; Mercy Center; the Raine Foundation; Special Olympics of New Jersey; the Tigger Stavola Foundation for mental illness & addiction support; as well as an array of local youth sports teams, in addition to police, fire, and first aid squads throughout New Jersey and many other worthwhile causes. Ray is also proud to partner with Brookdale Community College and Universal Technical Institute on the vocational “School to Career Path” for automotive technicians, a program that provides the opportunity for paid internships, working side-by-side with master technicians and bridging the gap between theory and practice. HIS SUCCESS IS THE RESULT OF HIS COMMITMENT TO HIS CUSTOMERS, HIS MANUFACTURERS, THE COMMUNITIES IN WHICH HIS DEALERSHIPS OPERATE, AND HIS EMPLOYEES. 15 new jersey auto retailer

New Jersey dealerships know the importance of an injury-free workforce and do a lot to ensure employee safety. A fully present and functional workforce delivers improved customer service, increases productivity, and significantly reduces costly waste and expense. Getting employees to follow safety policies is challenging, and the enforcement and compliance burden, unfortunately, lies mainly with the employer. The Occupational Safety and Health Administration (OSHA) has recently increased the frequency of its inspections. OSHA continues to increase the maximum penalties for major and minor compliance violations (ranging from $15,000 per violation to $150,000 plus for willful/repeated violations). Dealerships assessing workplace risks and specific job hazards can better manage many common OSHA regulation pitfalls. Each year, OSHA releases a list of violations cited most frequently during the previous inspection year. The most common violations that apply to dealerships provide a practical starting point for managers working to meet annual compliance requirements: Hazardous Communications The Hazardous Communications standard applies to employees who use or encounter hazardous chemicals. Employers must have a written hazardous communications plan and share it with employees. Training must occur upon hire, when introducing a new chemical, or when employees are not using chemicals safely. Employers must document all training, keep an up-to-date list of hazardous chemicals, and provide updated Safety Data Sheets (SDS). Respiratory Protection The Respiratory Protection standard references using ventilation and respirators to control occupational diseases caused by breathing air contaminated with “harmful dusts, fogs, fumes, mists, gases, smokes, sprays, or vapors.” Employers must have a written respiratory protection program wherever these dangers are known to contaminate the air. Training must be completed annually, upon a new hire, or whenever a new exposure requires changes. NJ Dealerships Top OSHA Compliance Pitfalls BY CHARLES RUSSO, NJ CAR DIRECTOR OF RISK MANAGEMENT & INSURANCE 16 new jersey auto retailer

Control of Hazardous Energy The Control of Hazardous Energy standard covers “the servicing and maintenance of machines and equipment … [and the] release of stored energy [that] could cause injury to employees.” Such equipment can include vehicle lifts, grinding wheels, and any other equipment in disrepair that uses an energy source. Managers should follow all Lock Out Tag Out (LOTO) procedures outlined by this OSHA regulation. Machine Guarding All machines must be maintained with guards as intended by the manufacturer. Guards should never be removed or altered, and employers are required to train employees to follow all manufacturer guidelines on safely using machine guarding equipment. Dealerships that use grinders should check grinding wheels, ring test wheels periodically, bolt them to a platform or floor, and calibrate the guards as OSHA requires. Powered Industrial Truck (PIT) (Forklift) The specifics of this OSHA standard depend on the type of PIT used, but all standards require that the forklift is in good working order and that safety protections are available. To become authorized to operate PITs, operators must undergo initial training and certification and then re-train and re-certify every three years. Personal Protective Equipment (PPE) Employees are required to use Personal Protective Equipment that protects eyes, hands, and body whenever exposure to injury exists in a specific job function. Proper footwear should provide slip resistance and adequate foot and ankle support to protect employees from falling or rolling objects. Employers can review the standards to see what PPE they shall provide versus what the employee can provide before deciding what is appropriate. Walking/Working Surfaces Outdoor lots and indoor walking areas should be free of potholes and uneven surfaces. Employees should keep indoor floors free of any obstacles that create tripping hazards, keeping them dry and clean as much as possible. In the shop, organized workspaces result in far fewer accidents than disorganized ones. In dealerships, curling and buckling rugs, mats, and slippery floor surfaces are notorious for causing falls. During inclement weather, dealers are encouraged to use “Caution Wet Floor” signs in all affected areas. Dealers should also treat outdoor lots to prevent slips and falls during inclement weather and freeze-thaw cycles. It is helpful to remind employees to keep emergency exits clear and unlocked to provide easy access to them, and all exits should be marked. OSHA National Emphasis Program — New in 2022 OSHA’s National Emphasis Programs focus on specific safety and health hazards. One of these programs focuses on indoor and outdoor temperatures contributing to heat illness. The program took effect in April 2022 and runs until 2025. Dealerships are most vulnerable to inspection when the heat index (high temperature with high humidity) stays above 80 degrees Fahrenheit over multiple days. This past summer, New Jersey experienced several “heat waves,” resulting in surprise OSHA inspections. Dealers can prepare for the next summer by: • Developing a written heat illness prevention program; • Providing employees with air-conditioned or shaded areas if they start feeling unwell; • Training employees on the signs and symptoms of heat illness; • Encouraging open communication about heat illness; and • Providing cool water or electrolyte-infused drinks for employees during heat waves. Dealerships face a myriad of regulatory and compliance minefields when it comes to OSHA and other regulatory agencies. Compliance can be tricky, but it is possible to stay out of trouble with some planning. Dealerships that address common exposures and put effective safety policies, procedures, and training in place are far less likely to experience an OSHA inspection. For more information about anything discussed in this article, OSHA compliance or general insurance questions, please contact me at (609) 883-5056, x314 or via email at crusso@njcar.org. 17 new jersey auto retailer

As a recognized leader in the industry, Citrin Cooperman’s Automotive Dealership Practice continually provides local-level attention and top-notch client service through a robust foundation of highly specialized expertise and a team of dedicated professionals. Start your journey towards excellence by contacting us today. citrincooperman.com "Citrin Cooperman" is the brand name under which Citrin Cooperman Advisors LLC and Citrin Cooperman & Company, LLP, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. ELLEN KERA Partner ekera@citrincooperman.com WILL FERNANDEZ Partner wfernandez@citrincooperman.com 290 W. Mt. Pleasant Avenue, Suite 3310, Livingston, NJ 07039 709 Westchester Avenue, White Plains, NY 10604

On August 30, the IRS formally announced that all Form 8300s must be eFiled (with limited exceptions) as of January 1, 2024. The IRS said the change is intended to make filing and communication regarding 8300 easier and quicker. In order to file electronically, all dealers will need to register with the Financial Crimes Enforcement Network’s BSA eFiling system (bsaefiling.fincen.treas.gov/main.html). Once approved, the dealership representative will sign onto the BSA eFiling system and complete Form 8300, just like a blank PDF. Dealerships are encouraged to register well ahead of the January 1 deadline in case there are any technical difficulties. Form 8300 Process Changes Electronic Filing and What to Know BY PHIL CRAFT, CPA AND JEN MOYLAN, LEAD CONSULTANT AT WITHUM 20 new jersey auto retailer

Below are some tips, best practices, and differences from paper filing: • Dealerships will no longer be able to skip over fields. If the dealership doesn’t have the customer’s social security number, it is recommended to enter it as all zeros. The IRS also recommends checking the “suspicious transaction” box if a customer is not willing to provide this information. • Be sure to describe the dealership’s collection efforts in the comments section at the bottom of page two. It is recommended to provide dates and times of phone calls and emails, along with the response from the customer. • Don’t delay filing due to lack of information. This applies to any field that the dealership can’t complete within the 15-calendar day deadline. The dealership can send an amended report whenever the other details have been collected. The filing penalties have increased from $50 per occurrence to $290 per occurrence. There is an additional $290 dollar fine assessed if the customer is not notified of the non-compliance. • The dealership must print the completed form before submitting it online and save the confirmation receipt once finalized. You won’t be able to print it once the form is submitted. Keeping a copy of the filed Form 8300 is required. Take advantage of your NJCAR Benefits today! PeterJagodzinski, Account Manager 732.440.0038 pjagodzinski@spragueenergy.com Gail Caputi, Program Manager 609.760.2043 gcaputi@njcar.org Knowledgeable Account Manager Over 150 Years of Energy Experience Pricing Programs Designed to Fit Your Needs Outstanding Customer Care Tailored Advice from Market Experts We Will Find For Your Dealership! NJ CAR SERVICES, INC. works for you! NJ CAR Services has provided fair, competitive and consistent pricing on business forms and advertising items to members of the New Jersey Coalition of Automotive Retailer since 1975. NJ CAR Services has saved members tens of thousands through increased competition and less expensive products. One call does it all. 609.883.5056 ext. 402 njcarservices.com • It is recommended that a simple worksheet be completed on every retail delivery. This will detail the total amount due on the sale of the vehicle, then deduct each payment received. Be sure to include the funding balance from the lender, trade credits, rebates, etc. Make two columns for this worksheet entitled ‘reportable’ and ‘non-reportable’ transactions. Your transactions should be clearly identified. • Waivers are available for religious and other limited exemptions but do not preclude the taxpayer from filing 8300s. Just the electronic requirement. IRS Form 8300 audits are on the rise. During the pandemic, audits were down due to the need for the auditors to visit the dealership to review the documents. Auditors are now back in the field and are more well-equipped with technology to do remote audits. Submitting online is the easy part. Having a good system, with checks and balances in place to review cash payments, is a more difficult task. If your dealership is looking for best practices or would like to do an internal self-audit or training session, reach out to Withum for help and a complete list of best practices. Phil Craft is a CPA and Senior Manager, and Jen Moylan is a Lead Consultant at Withum. They can both be reached at (732) 572-3900. 21 new jersey auto retailer

NJ CAR Compliance Forms Series Waiver of New Jersey Inspection and the “Addendum to Retail Order Form” BY GREYSON P. HANNIGAN, ESQ., DIRECTOR OF LEGAL & REGULATORY AFFAIRS, NJ CAR New Jersey law requires motor vehicle dealers to warrant that every used vehicle they sell will pass state inspection to receive a certificate of approval (inspection sticker). Prior to 2017, the New Jersey law also allowed a waiver of the dealer’s obligation to make sure that used vehicles sold could pass inspection. On August 7, 2017, P.L 2017, c. 182 became law and required any waiver of a dealer’s obligation regarding necessary repairs impacting vehicle inspection to include a description of known defects. The law took effect on November 1, 2017. The law amended N.J.S.A. 39:10-29 and provided that any agreement of retail sale may contain a provision whereby the purchaser waives the dealer’s obligation to make repairs so that a motor vehicle can pass inspections. The law further required that a waiver must be separately stated in the agreement of retail sale and separately signed by the purchaser, provided that such a waiver must include a brief description of known defects that may need to be resolved to obtain a certificate of approval (inspection sticker) for the vehicle. The signing of a waiver by the purchaser also served to eliminate any criminal responsibility placed upon any motor vehicle dealer. Prior to August 1, 2010, New Jersey’s inspection program included a rudimentary safety inspection, in which the headlights, directional signals, tires, and brakes would be inspected. Therefore, the warranty applied to all the parts of the vehicle that were required to be inspected during the State safety inspection. However, after August 1, 2010, New Jersey eliminated the routine safety inspection and was limited to only an emissions inspection under federal law. This, however, did not mean that a dealership could sell an unsafe vehicle to a customer if the vehicle could pass an emissions inspection. The New Jersey Consumer Fraud Act requires disclosure of all material defects to a consumer, which includes emissions problems that could cause a vehicle to fail a New Jersey inspection. To satisfy the requirement of the law, an Addendum to the Retail Order Form was created to supplement a Retail Order Form (ROF) if and only if a customer waives the inspection warranty. The form must be signed by both the customer and the dealership with a provided space for the dealership to list any defects that may need to be resolved so that the motor vehicle can pass the New Jersey emissions inspection. The Addendum to the Retail Order Form (SKU: 584) can be ordered by calling NJ CAR Services at (609) 883-5056, ext. 402. The form can also be ordered on the NJ CAR Services website (njcarservices.com). Greyson Hannigan is NJ CAR’s Director of Legal & Regulatory Affairs. He can be reached at ghannigan@njcar.org. APPROVED 22 new jersey auto retailer

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The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client-specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Insurance brokerage and related services to be provided by Arthur J. Gallagher Risk Management Services, Inc. (License No. 0D69293) and/ or its affiliate Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. (License No. 0726293). © 2022 Arthur J. Gallagher & Co. | GGB41888 In association with ajg.com The Gallagher Way. Since 1927. • Broker-friendly access: Dealerships don’t need to give up their existing relationship. • Industry-specific classification rules: Premium reductions between 15%–20%. • Scheduled underwriting credits: Up to 25%, based on individual dealers’ risk profile. • Collaborative claims advocacy: Aggressive claims investigation and cost containment. • Access to NJ CAR’s Zero Injury Program: A proven industry loss prevention program. NJ CAR Workers’ Compensation Program Lowering costs for franchised auto dealers across New Jersey. NJ CAR in partnership with Gallagher and AmTrust, offers the industry's most comprehensive workers' compensation program custom tailored to New Jersey Franchised Auto Dealers. One of the key benefits of the program is a generous dividend return of up to 25% of your policy premium — not a credit applied to future premiums — and is based on individual loss experience rather than group performance. In 2022, the program paid $1,007,689 in dividends to participating dealers, beating the previous high of $840,505 paid in 2021. Other program benefits include: For more information, please contact: Pattie Collins Gallagher Area Senior Vice President T: 732.837.9150 | E: Pattie_Collins@ajg.com Charles Russo NJ CAR Director of Risk Management and Insurance T: 609.883.5056, ext 314 | E: crusso@njcar.org Northern New Jersey $2,264,134 Returned South Jersey $595,091 Returned Central New Jersey $$7903,035 Returned

(At Least Temporarily) BY MAGDALENA PADILLA, DIRECTOR OF GOVERNMENT AFFAIRS, NJ CAR On July 12, 2023, the New Jersey Board of Public Utilities (NJBPU) announced the fourth phase of the state’s Charge Up New Jersey Electric Vehicle (EV) Incentive Program. Only vehicles ordered, purchased, or leased as of that date are eligible for an incentive. In the first three phases of the program, the state provided incentives for more than 16,000 vehicles. At the end of 2022, there were 91,560 electric vehicles (incentivized and non-incentivized) on New Jersey roads, according to the New Jersey Department of Environmental Protection (NJDEP). New Jersey currently has 2.5 million registered vehicles. That means the vast majority of registered vehicles in New Jersey are still not EVs. For this latest phase of the Charge Up New Jersey Program, the state adjusted the rules to provide enhanced incentives for EVs with a lower price point in an effort to encourage moderate-income buyers to consider EVs. Under this phase, incentives of up to $4,000 are provided for vehicles with a Manufacturer’s Suggested Retail Price (MSRP) under $45,000, as well as incentives of up to $1,500 for vehicles with an MSRP between $45,001 and $55,000. Plug-in EVs (PHEVs) have not been eligible for incentives since December 2022. WHERE IS THE HIGHEST UTILIZATION AMONG ALL 20 COUNTIES? The Charge Up New Jersey EV Incentive Program is funded through an annual budget appropriation, as designated in the 2020 legislation signed by Governor Murphy that May the Fourth (Incentive) Be With You 25 new jersey auto retailer

created the program. Under this law, NJBPU will provide at least $30 million in annual incentives for the Charge Up New Jersey program for a period of 10 years ($300 million TOTAL). Unfortunately, the funding has been exhausted in all prior funding phases before their one-year anniversaries, and we anticipate that funding will be exhausted again before the one-year anniversary of this phase. A recent analysis of the incentive utilization found that the following three counties led the way: 1. Middlesex County 17.24% incentives $14,492,300 total 2. Bergen County 13.46% incentives $12,506,950 total 3. Monmouth 8.43% incentives $8,151,600 total WHERE IS THE LOWEST UTILIZATION AMONG ALL 20 COUNTIES? There are five counties with less than 1% of program utilization: Salem County 0.17% incentives $166,600 total Cumberland County 0.28% incentives $249,275 total Cape May County 0.47% incentives $470,000 total Warren County 0.57% incentives $514,125 total Sussex County 0.84% incentives $734,700 total WHAT HAS BEEN THE DISTRIBUTION OF INCENTIVES SINCE 2020? According to data available on the Charge Up New Jersey website, below is a brief snapshot of incentives per month from May 2020 through August 2023. HOW MUCH FUNDING REMAINS? Dealers and consumers can find out the latest information regarding available funding by visiting the Charge Up New Jersey Program website (chargeup.njcleanenergy.com). 26 new jersey auto retailer

CONTACT US TODAY! 801.676.9722 sales@thenewslinkgroup.com Your Customers Are Too. Advertising Space Available. QR Code CONTACT US TODAY TO PLACE YOUR ANNOUNCEMENT AD Call 801-676-9722 or scan the QR code to fill out the form. Employees are motivated when they are recognized and feel valued. It’s about… ▷ Who to congratulate ▷ Who to acknowledge ▷ Who to thank for a job well done This magazine is a great platform to celebrate your team’s accomplishments! Place QR Code Here IT’S ABOUT THE 27 new jersey auto retailer

NJ CAR Recognizes the Dealerships That Have Contributed to CAR-PAC NJ CAR appreciates the support of the 331 dealers who contributed to CAR-PAC, the Coalition’s political action committee, between January 1, 2023, and September 30, 2023. CAR PAC needs the contributions of ALL dealers to ensure it has the necessary financial resources to support candidates (on both sides of the aisle) who support the franchised retail automotive industry in New Jersey and ensure dealers’ voices are heard in Trenton on a wide variety of important public policy issues. CAR-PAC has been (and will continue to be) very active in supporting the candidates who support our industry. The New Jersey Election Law Enforcement Commission (ELEC) rules allow contributions to a political action committee of up to $7,200 per business or jointly-controlled business. Don’t forget, contributions can be made with corporate funds. If you have any questions regarding how much your dealership or dealership group can still contribute this election cycle, please contact Jim Appleton at (609) 883-5056, Ext. 330, or by email at jappleton@njcar.org. NJ CAR encourages those dealers who have not yet contributed to support CAR-PAC’s efforts on behalf of ALL New Jersey franchised automotive retailers. The following dealerships contributed to CAR-PAC between January 1, 2023, and September 30, 2023: Ace Ford Acme Motors Action Hyundai of Millville Acura of Ocean All American Ford In Point Pleasant All American Ford of Paramus All American Ford Subaru of Old Bridge All American Ford, Inc. Arena Buick GMC Audi Meadowlands Audi Princeton Autoland Chrysler Jeep Dodge Ram Autoland Toyota Autosport Acura of Denville Avalon Honda Barlow Buick GMC — Manahawkin Barlow Buick GMC — Woodbury Barlow Chevrolet Bell Audi Bellavia Chevrolet Buick Bennett Chevrolet Bentley Truck Services Logan Twp. Benzel Busch Motor Car Corp. Beyer Bros. Corp. Bill Vince’s Bridgewater Acura BMW of Atlantic City BMW of Bridgewater BMW of Ramsey BMW of Springfield BMW of Tenafly Boardwalk Acura Boardwalk Honda Bobbitt Auto, Inc. Bridgewater Chevrolet Bridgewater Kia Brogan Cadillac Company Buhler Chrysler Jeep Dodge Buick GMC of Mahwah Burke Motors, Inc. Burlington Chevrolet, Inc. Burlington Chrysler Dodge Jeep Ram Burlington Hyundai Burlington Kia Burlington Volkswagen Burns Buick GMC Hyundai Burns Honda Cadillac of Mahwah Campbell Freightliner Causeway Ford Lincoln Causeway Honda Causeway Hyundai Causeway Nissan Chapman Ford Lincoln Mazda Cherry Hill Volvo Cars Chevrolet of Jersey City Chevrolet of Jersey City Chrysler Dodge Jeep of Paramus Chrysler Dodge Jeep Ram of Princeton Chrysler Jeep Dodge Ram of Englewood Cliffs Ciocca Chevrolet Buick GMC Ciocca Chevrolet of Princeton Ciocca Ford Lincoln of Lawrenceville Ciocca Kia Ciocca Subaru Ciocca Subaru of Pleasantville Circle BMW Circle Infiniti Coast Cities Truck Sales, Inc. Coleman Buick GMC Cadillac Colonial Airstream Contemporary Motor Cars, Inc. Crown Cadillac, Inc. D & C Honda of Tenafly DARCARS Lexus of Englewood Dayton Toyota DCH Academy Honda DCH BMW of Bloomfield DCH BMW of Freehold DCH Brunswick Toyota DCH Ford of Eatontown DCH Freehold Toyota DCH Kay Honda DCH Montclair Acura DCH Paramus Honda DeFelice of Point Pleasant, Inc. DiFeo Kia Douglas Infiniti Douglas Volkswagen Dover Dodge Chrysler Jeep, Inc. Downs Ford East Coast Toyota Echelon Ford, Inc. Edison Nissan Elite Acura Elkins Chevrolet 28 new jersey auto retailer

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