Understanding the Operational Impact Behind the Policy
What H.R. 3385 could change about the federal definition of motorcycle and how updated vehicle classification may impact powersports dealers.
A recently proposed bill, HB 2963, is gaining attention in the Texas Legislature for its bold move toward “Right to Repair” standards for digital electronic equipment. While the bill is currently pending in a Senate committee, it has implications worth noting – especially for dealers and service professionals in the powersports industry. What the Bill Proposes HB 2963 would require manufacturers of certain digital electronic products to provide independent repair shops and consumers access to diagnostic tools, documentation, and replacement parts – on “fair and reasonable” terms. These requirements would expand the market by giving more entities the resources needed to perform repairs outside the original equipment manufacturer (OEM) network. There are major drawbacks to consumers, dealers and OEMs that have dealers and OEMs opposing the bill. Critically, the bill does not apply to motorcycles or autocycles, however, powersports OHV, PWC and Boats are not exempt. This bill also sets a precedent that may influence OEM relationships, parts distribution practices, and customer expectations, even in exempt sectors. TMDA’s Advocacy TMDA’s lobbyist, Royce Poinsett, is monitoring the progress of this legislation and any proposed amendments. TMDA is actively seeking an exemption for all powersports from the effects of the bill. The bill has been approved by the House but must still pass the Senate committee, the full Senate, and be approved by the Governor. We will continue to keep members updated on this and any future “Right to Repair” developments. If passed, HB 2963 would take effect on September 1, 2026.
We are pleased to acknowledge our team’s tremendous efforts and dedication at the Texas Motorcycle Dealers Association (TMDA) over the past several years. Through our concerted efforts, we have been tirelessly working to achieve a justifiable increase in the document fee for our industry. We are delighted to inform you that our efforts have borne fruit! The State of Texas has acknowledged the need to adjust our document fee to a market rate. As of September 5th, 2024, dealers may now increase the document fee to up to $200 per contract. This would equate to an ADDITIONAL $7500 in revenue per 100 units sold! This milestone would not have been possible without our lobbyists’ relentless work and our Dealers’ active participation. Your commitment to joining forces and contributing to our cause has been invaluable in mitigating the expenses associated with this initiative. As we continue to work towards our goals, we encourage everyone to stay engaged and support our ongoing efforts. Together, we can ensure that our industry remains competitive and fair. Thank you once again for your dedication and hard work. Sincerely, Texas Motorcycle Dealers Association Here is the description of the new rule. Here is the officially published rule as effective in the Texas Administrative Code.
The Texas House of Representatives recently passed House Bill 3861 (HB 3861), which is now awaiting approval in the Senate. If this bill passes, it will mandate the use of webDEALER, an online platform, for processing most title applications by dealers. The introduction of webDEALER aims to streamline the paperwork process at local tax offices, reducing wait times and improving efficiency. While the majority of county Tax Assessors support HB 3861, concerns have been raised by some regarding the suitability of webDEALER for all dealers and specific transaction types. The Benefits and Concerns webDEALER has long been recommended as a valuable tool for dealers, but there are concerns about making it mandatory. Certain transaction types, such as applying for initial handicap plates and antique tags, cannot be processed on the webDEALER system, which presents a challenge for dealers specializing in these vehicles. Additionally, some dealers rely on full-service deputies to handle their paperwork. Regardless, there is a pressing need for faster processing times at tax offices, benefiting both dealers and consumers. Dealers’ Responsibility Dealers have an important role to play in helping their local tax offices expedite customer paperwork. Several measures can be taken to speed up the process and are within YOUR control. One crucial aspect is ensuring the completeness of all submitted paperwork. Incomplete or flawed documentation can significantly delay the tax office’s processing time. According to state law, a vehicle is considered titled once the tax office receives properly completed paperwork. Hence, dealers will not be penalized for any delays caused by the tax office, as long as the paperwork was correctly submitted. Embracing webDEALER One effective way to expedite the process is by signing up for webDEALER, provided it aligns with the dealership’s needs. The adoption of webDEALER allows tax office employees to process four to five times more transactions compared to in-person drop-offs. If a dealer has yet to sign up for webDEALER, it is recommended to consult with the local tax office to initiate the process. Training resources for webDEALER can be accessed at https://www.txdmv.gov/dealers/webdealer/resources. Monitoring Progress At present, HB 3861 is awaiting a Senate hearing. If no hearing occurs within the next two weeks, the bill will not pass and become law. The passage of HB 3861 and the potential implementation of webDEALER for title applications mark a significant step toward streamlining processes and reducing wait times at tax offices. While concerns have been raised regarding the suitability of webDEALER for all dealers and specific transaction types, the overall aim is to improve efficiency for the benefit of dealers and consumers alike. Dealers should remain proactive in assisting their local tax offices by ensuring complete and accurate paperwork submission. We continue to monitor the progress of HB 3861 and will provide updates accordingly, keeping dealers informed of any changes or decisions made. This post has been adapted from an article by Earl Cooke of Texas Independent Automobile Dealers Association .
Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Beginning January 1, 2024, this reporting will have to be done electronically. Dive into this piece to understand the form’s purpose, its filing requirements, and the latest adjustments in the regulations. Form 8300 and Reporting Cash Payments of Over $10,000 The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering. Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking, tax evasion, and terrorist financing. Who Must File A “person” who must file Form 8300 includes an individual, company, corporation, partnership, association, trust or estate. You must file Form 8300 electronically with FinCEN, or in paper-form with the IRS, if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands). Note : See How to File . Electronic filing mandate starting January 1, 2024. When to File You must file Form 8300 within 15 days after the date the cash transaction occurred. Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS. Persons who file the required Form 8300 and do not provide a written statement to each person named on Form 8300 are subject to penalties. Penalty amounts are adjusted annually for inflation. Keep in mind, when Forms 8300 filed due to suspicious activity that are filed under the $10,000 threshold and box 1b is checked off on the form, the statement is not to be provided to the individuals identified on the form. Forms filed under the dollar threshold are not required to be filed. Filing under the threshold is done on a voluntary basis. IRS highly encourages you to file suspicious activity when identified regardless of the dollar amount. Forms marked as suspicious are also treaded confidentially. How to File Effective January 1, 2024, you must electronically file (e-file) Forms 8300 if you’re required to e-file other information returns, such as Forms 1099 series and Forms W-2. You must e-file your Forms 8300 if you’re required to file at least 10 information returns of one or more type(s) other than Form 8300 during a calendar year. For example, if you’re required to file five Forms W-2 and five Forms 1099-INT, then you’re required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 total information returns other than Forms 8300, you’re not required to file the information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the electronic filing requirement. Keep in mind, if you’re not required to e-file, you can still choose to do so. Businesses that are not required to file their Forms 8300 electronically that choose to physically mail in their Forms 8300 to the IRS, will send their forms to: Internal Revenue Service Detroit Federal Building P.O. Box 32621 Detroit, MI 48232 Waivers You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Request for Waiver from Filing of Information Returns PDF. If the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the duration of the calendar year. You must include the word ‘WAIVER’ on the center top of each Form 8300 (Page 1) when submitting the paper filed returns. Note: Waivers for electronic filing are not required when business files less than 10 total information returns other than Forms 8300. Exemptions If using the technology required to e-file conflicts with your religious beliefs, you are automatically exempt from filing Form 8300 electronically. You must include the words “RELIGIOUS EXEMPTION” on the center top of each Form 8300 (Page 1) when submitting the paper-filed returns. Penalty for Paper Filing If you are required to e-file but file by paper and you don’t have a waiver or religious exemption, you will be subject to a failure to file penalty. Late Returns You must identify late returns. You must file a late Form 8300 in the same way, either electronically or on paper, as a timely filed Form 8300. When filing a late Form 8300 electronically you must include the word “LATE” in the comments section of the return. When filing a late Form 8300 on paper you must write “LATE” on the center top of each Form 8300 (Page 1). Note: Failure to file timely includes a failure to file in the required manner. If you are required to file electronically and failed to do so, Form 8300 would be considered late. Forms 8300 that are late are subject to penalty. Recordkeeping Remember, you must keep a copy of Form 8300 for five years. When e-filing, be sure to save a copy of the form before you finish submitting the return. Confirmation receipts don’t meet the recordkeeping requirement. You should associate the confirmation number with the saved copy. Form 8300 Resources IRS Form 8300 Reference Guide Motor Vehicle Dealership Q&As IR-2020-168, IRS reminds businesses filing cash transaction reports about e-file option; batch filing now available FS-2020-11, Reporting cash transactions helps the government combat criminal activities Publication 1544, Reporting Cash Payments of Over $10,000 Publicación 1544 (SP), Informe de Pagos en Efectivo en Exceso de $10,000 (in Spanish)
As businesses increasingly rely on digital platforms, cybercriminals find new ways to exploit vulnerabilities. One of the most prevalent and concerning threats is phishing attacks. These attacks have seen a resurgence recently, targeting businesses of all sizes and industries. To shed light on this growing issue and provide valuable insights, we have gathered tips to combat phishing and quotes from the Federal Trade Commission (FTC) to help protect your business from these malicious attacks. The Resurgence of Phishing Attacks Phishing attacks involve fraudulent attempts to obtain sensitive information such as login credentials, financial data, or personal information by posing as a trustworthy entity. These attacks are typically carried out through deceptive emails, text messages, or websites that mimic legitimate organizations. Despite increased awareness and security measures, phishing attacks have resurfaced with renewed vigor. Cybercriminals are employing sophisticated tactics, exploiting human vulnerabilities, and leveraging current events to manipulate unsuspecting employees. Tips to Combat Phishing Educate Your Employees: Training and awareness programs are essential in equipping employees with the knowledge to identify and respond to phishing attempts. Teach them to scrutinize emails and messages for signs of phishing, such as suspicious links, misspellings, or requests for personal information. Implement Multi-Factor Authentication (MFA): MFA adds an extra layer of security by requiring users to provide additional verification beyond passwords. By implementing MFA, even if an attacker gains access to login credentials, they would still require an additional form of authentication. Keep Software and Systems Updated: Regularly update your operating systems, antivirus software, firewalls, and other security tools to ensure you have the latest patches and protections against known vulnerabilities. Use Robust Spam Filters: Deploy robust email filters to prevent phishing emails from reaching employees’ inboxes. These filters can analyze incoming messages for suspicious content and potential phishing indicators. Encourage Vigilance with Links and Attachments: Advise employees to exercise caution when clicking on links or opening attachments, especially if they are unsolicited or appear suspicious. Encourage them to independently verify the legitimacy of the sender before taking any action. If you got a phishing email or text message, report it. The information you give helps fight scammers. • If you got a phishing email, forward it to the Anti-Phishing Working Group at reportphishing@apwg.org. • If you got a phishing text message, forward it to SPAM (7726). • Report the phishing attempt to the FTC at ReportFraud.ftc.gov. From the FTC Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card, or a utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might: • say they’ve noticed some suspicious activity or log-in attempts — they haven’t • claim there’s a problem with your account or your payment information — there isn’t • say you need to confirm some personal or financial information — you don’t • include an invoice you don’t recognize — it’s fake • want you to click on a link to make a payment — but the link has malware • say you’re eligible to register for a government refund — it’s a scam • offer a coupon for free stuff — it’s not real Here’s a real-world example of a phishing email:
Section 314.4 of the Safeguards Rule identifies nine elements that your company’s information security program must include. Let’s take those elements step by step. a. Designate a Qualified Individual to implement and supervise your company’s information security program. The Qualified Individual can be an employee of your company or can work for an affiliate or service provider . The person doesn’t need a particular degree or title. What matters is real-world know‑how suited to your circumstances. The Qualified Individual selected by a small business may have a background different from someone running a large corporation’s complex system. If your company brings in a service provider to implement and supervise your program, the buck still stops with you. It’s your company’s responsibility to designate a senior employee to supervise that person. If the Qualified Individual works for an affiliate or service provider, that affiliate or service provider also must maintain an information security program that protects your business. b. Conduct a risk assessment. You can’t formulate an effective information security program until you know what information you have and where it’s stored. After completing that inventory, conduct an assessment to determine foreseeable risks and threats – internal and external – to the security, confidentiality, and integrity of customer information. Among other things, your risk assessment must be written and must include criteria for evaluating those risks and threats. Think through how customer information could be disclosed without authorization, misused, altered, or destroyed. The risks to information constantly morph and mutate, so the Safeguards Rule requires you to conduct periodic reassessments in light of changes to your operations or the emergence of new threats. c. Design and implement safeguards to control the risks identified through your risk assessment. Among other things, in designing your information security program , the Safeguards Rule requires your company to: Implement and periodically review access controls. Determine who has access to customer information and regularly reconsider whether they still have a legitimate business need. Know what you have and where you have it. A fundamental step to effective security is understanding your company’s information ecosystem. Conduct a periodic data inventory, noting where it’s collected, stored, or transmitted. Keep an accurate list of all systems, devices, platforms, and personnel. Design your safeguards to respond with resilience. Encrypt customer information on your system and when it’s in transit. If it’s not feasible to use encryption , secure it by using effective alternative controls approved by the Qualified Individual who supervises your information security program. Assess your apps. If your company develops its own apps to store, access, or transmit customer information – or if you use third-party apps for those purposes – implement procedures for evaluating their security. Implement multi-factor authentication for anyone accessing customer information on your system. For multi-factor authentication , the Rule requires at least two of these authentication factors: a knowledge factor (for example, a password); a possession factor (for example, a token), and an inherence factor (for example, biometric characteristics). The only exception would be if your Qualified Individual has approved in writing the use of another equivalent form of secure access controls. Dispose of customer information securely. Securely dispose of customer information no later than two years after your most recent use of it to serve the customer. The only exceptions: if you have a legitimate business need or legal requirement to hold on to it or if targeted disposal isn’t feasible because of the way the information is maintained. Anticipate and evaluate changes to your information system or network. Changes to an information system or network can undermine existing security measures. For example, if your company adds a new server, has that created a new security risk? Because your systems and networks change to accommodate new business processes, your safeguards can’t be static. The Safeguards Rule requires financial institutions to build change management into their information security program. Maintain a log of authorized users’ activity and keep an eye out for unauthorized access. Implement procedures and controls to monitor when authorized users are accessing customer information on your system and to detect unauthorized access. d. Regularly monitor and test the effectiveness of your safeguards. Test your procedures for detecting actual and attempted attacks. For information systems , testing can be accomplished through continuous monitoring of your system. If you don’t implement that, you must conduct annual penetration testing , as well as vulnerability assessments, including system-wide scans every six months designed to test for publicly-known security vulnerabilities. In addition, test whenever there are material changes to your operations or business arrangements and whenever there are circumstances you know or have reason to know may have a material impact on your information security program. e. Train your staff. A financial institution’s information security program is only as effective as its least vigilant staff member. That said, employees trained to spot risks can multiply the program’s impact. Provide your people with security awareness training and schedule regular refreshers. Insist on specialized training for employees, affiliates, or service providers with hands-on responsibility for carrying out your information security program and verify that they’re keeping their ear to the ground for the latest word on emerging threats and countermeasures. f. Monitor your service providers. Select service providers with the skills and experience to maintain appropriate safeguards. Your contracts must spell out your security expectations, build in ways to monitor your service provider’s work, and provide for periodic reassessments of their suitability for the job. g. Keep your information security program current. The only constant in information security is change – changes to your operations, changes based on what you learn during risk assessments, changes due to emerging threats, changes in personnel, and changes necessitated by other circumstances you know or have reason to know may have a material impact on your information security program . The best programs are flexible enough to accommodate periodic modifications. h. Create a written incident response plan. Every business needs a “What if?” response and recovery plan in place in case it experiences what the Rule calls a security event – an episode resulting in unauthorized access to or misuse of information stored on your system or maintained in physical form. Section 314.4(h) of the Safeguards Rule specifies what your response plan must cover: The goals of your plan; The internal processes your company will activate in response to a security event; Clear roles, responsibilities, and levels of decision-making authority; Communications and information sharing both inside and outside your company; A process to fix any identified weaknesses in your systems and controls; Procedures for documenting and reporting security events and your company’s response; and A post-mortem of what happened and a revision of your incident response plan and information security program based on what you learned. i. Require your Qualified Individual to report to your Board of Directors. Your Qualified Individual must report in writing regularly – and at least annually – to your Board of Directors or governing body. If your company doesn’t have a Board or its equivalent, the report must go to a senior officer responsible for your information security program. What should the report address? First, it must include an overall assessment of your company’s compliance with its information security program. In addition, it must cover specific topics related to the program – for example, risk assessment, risk management and control decisions, service provider arrangements, test results, security events and how management responded, and recommendations for changes in the information security program.
