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BUREAUCRACY and LEASING GETTING INVOLVED MATTERS. Dennis Brown Vice President State Government Relations Equipment Leasing & Finance Association. What is the Equipment Leasing and Finance Association?. New Name, New Direction: ELFA is … Forum for industry development
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BUREAUCRACY and LEASINGGETTING INVOLVED MATTERS Dennis Brown Vice President State Government Relations Equipment Leasing & Finance Association
What is the Equipment Leasing and Finance Association? New Name, New Direction: ELFA is … • Forum for industry development • Platform to advocate for the industry • Principal resource for industry research
The ELFA Academy • 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
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
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
I Work State Capitols My Job Is To Protect You From The People You Elect
As A Lobbyist In State Governments I Realize Some Days I Can Be The Pigeon But Most Days I Will Be The Statue
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?
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?
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
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
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
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
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
New Mexico Tragic Deaths Following Allegedly Faulty Maintenance 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
Rhode Island Reacting 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
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
What Other Misconceptions and Erroneous Beliefs Abound?
Not All Equipment Can Be Leased California • 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?
Why Airplanes Can’t Be Leased Reason # 1 The Airlines Name Is On The Side Of the Plane What Was The Second Reason?
Why Airplanes Can’t Be Leased Reason # 2 It’s Too Big
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
Thank You Questions?