bureaucracy and leasing getting involved matters dennis brown vice president state government...
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BUREAUCRACY and LEASING
GETTING INVOLVED MATTERS
Dennis Brown
Vice President
State Government Relations
Equipment Leasing & Finance Association
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What is the Equipment Leasing and Finance Association?
New Name, New Direction:
ELFA is …
1. Forum for industry development
2. Platform to advocate for the industry
3. Principal resource for industry research
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•ELFA’s NEW e-learning portal offers online courses and web seminars
•Provides high quality, interactive training and resources for the equipment leasing and finance professional
•Currently offering 2 courses for credit professionals:– Financial Statement Analysis– Should You Do the Deal – Case Studies in Equipment
Finance
•Fundamentals of Equipment Finance course to be offered Fall 2007
•18 web seminars planned for 2008
The ELFA Academy
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ELFA is Principal Resource for Industry Information
• Increased public use of industry data and research - MLFI-25 - as economic indicator
• Conducting major research to develop new statistical/economic models to size the market and brand equipment finance sector
• Dramatic growth in size and breadth of Foundation
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Platform to Advocate for the Industry
ELFA’s new, robust public affairs focus:• Accentuated emphasis on federal and
state government relations• Amplified grassroots activity at the state
and federal level• Increased political activity through
LeasePAC• Strategic coalition building with targeted
associations
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I Work State Capitols
My Job Is To Protect You From
The People You Elect
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As A Lobbyist In State Governments
I Realize Some Days I Can Be The Pigeon
But Most Days I Will Be The Statue
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What Does Leasing Confront?
January 1993
My First Week On The Job
Lt. Governor Virginia Proposes Legislation
Prohibiting Tax Credits To Leased Equipment
Legislative Legal Counsel Gave Two
Reasons Leasing To Be Denied Tax Credits
What Were The Reasons?
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Why Would Virginia Lt. Gov.Deny Tax Credits To Leasing?
Reason # 1
Congress has Investigated Equipment
Leasing and Found It To Be An
“Illegal Activity”
What was the Second Reason?
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Why Would Virginia Lt. Gov.Deny Tax Credits To Leasing?
Reason # 2
A Federal Grand Jury
Will Soon Indict ELFA Staff
and All Our Industry Members
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Electronic Recycling
ELFA Promotes Environmentally Safe Recycling and Disposal of Electronic Equipment
• ELFA Supports Producer/Manufacturer Responsibility Wherein Manufacturers Take Back Equipment and/or Pay States For Recycle/Disposal
• Our Opposition Wants Equipment Lessors and Retailers To Collect Fees and All Recycling Responsibility Falls to States
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California Requires Equipment Lessors and Retailers To Collect Fees
• Supporters View Equipment Lessors as Retailers
• Requested Addresses of ELFA Member Stores
• Believe We Have Warehouses of Equipment
• Informed ELFA Our Car Dealers Are Exempt
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2007 California Legislation
• Commercial Lease & Finance Companies Must Give Lessees Address of Recycling Centers in County of the Lessors Store Where Equipment was Acquired
• Lessors Must Post Recycling Center Locations In ELFA Member Stores
• Amendment - Lessors Include Notice “at time of purchase” with “sales receipt” given all equipment users
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Legislators Want To Write Lease Provisions
We Are Confused With Others:
• Consumer Rental Centers• Car Dealers/Rent To Own
Legislators Want To Give Consumer Protections
To Our Lessees
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New MexicoTragic Deaths Following Allegedly FaultyMaintenance on a Scissor Lift by a Rental Center
New Mexico Senate Bill 69 would:• Eliminate choice of law provisions in Leases• Prevent lease contracts from forcing lessees to
indemnify or hold harmless another party• Enforce Vicarious Liability Upon Finance
Sources
ELFA Legal Committee Chair Teresa Davidson, Volvo Financial Services North America, led Successful Drive to Remove UCC2A From Bill
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Rhode IslandReacting to Untrained Equipment Operators• Targeted Hoisting/Excavation Equipment• In One Case, Equipment Ran Off A Pier
Senate Bill 502 Would Require Special Rhode
Island Warning Sticker On Eq. Entering The State• David Miele, RBS Asset Finance and David Parr,
Bank Of America Advocated in Legislature
Amendment Exempted Commercial Transactions
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Streamlined Sales Tax
ELFA Members Negotiated 2 Years on
Definition of a Lease and Sourcing Rule
• Centralized Electronic Filing In Each State• Uniform Definitions/Rules Nationwide• Simplified Exemption Processing• Destination Sourcing• Rate Simplification
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What Other Misconceptions and
Erroneous Beliefs Abound?
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Not All Equipment Can Be LeasedCalifornia• Shipyard Equipment and Cargo Shipping Containers
Pennsylvania• ELFA Members Met With Tax Writing Staff• Chief Counsel Accused ELFA of Untrue Statements
That Airplanes Can Be Leased
What Are Two Reasons You Can’t Lease Airplanes?
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Why Airplanes Can’t Be Leased
Reason # 1
The Airlines Name
Is On The Side Of the Plane
What Was The Second Reason?
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Why Airplanes Can’t Be Leased
Reason # 2
It’s Too Big
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Two Lobbyist Mottos To Leave With You
• If you want the rainbow, you must put up with the rain
• If you can't be kind, at least have the decency to be vague
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Thank You
Questions?