the Legacy is the Achievement by wanghonghx


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                 ni                                                                                                                  Winter 2007


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                                                                            California / Nevada Automotive Wholesalers’ Association
                     sa          so
                       lers’ • As
                                      CAWA — The Automotive             Aftermarket Industry Association of n
                                                                                                            California and Nevada

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In thIs Issue                              the Legacy is the Achievement

                                                                                                                                                   otive •
More and More                              Bart Scott, CARQUEST
Manufacturers                              2007 Chair of the Board
support CAWA

Page 3                                                 ne always wonders what the legacy will be that they leave


                                                       behind. How will one be judged against the past and future

Annual Meeting

                                                       leaders of the organization? I set three goals for the Associa-
Dinner                                                                                                                      sa          so
                                           tion this year. The first was to continue being an influence in the public         lers’ • As
Page 4
                                           affairs arena. We have achieved this goal on many fronts this year. We held Bart Scott, CarQueSt,
                                                                                                                            Chair, CaWa Board of
Insurance Benefits                         legislative days in California and Nevada and conducted several in-district      Directors
Page 6                                     meetings to deliver our message to legislators, educating them on the is-
                                           sues of the automotive aftermarket. I feel our biggest win was the “Right
Keep the stars                             to Repair” Resolution in the Nevada Legislature. This was a milestone for CAWA. With-
shining                                    out the concerted effort by our organization and the membership, this would not have
Page 6                                     happened. In California we worked to persuade the Air Resources Board to consider an
                                           alternative to an outright ban of R-134A. This could have had dramatic consequences on a
Legislative update
                                           specific segment of our business. CAWA also continued to work with CARB on extended
Page 7
                                           warranty regulations that have been proposed.
Your Government                               I would be remiss if I didn’t say thank you to our manufacturer supporters of the CAWA
Affairs Program                            government affairs program; many of the program groups, also made “over the top” con-
Page 8                                     tributions to the government affairs program, which we are very thankful for. CAWA also
                                           continues to work hand in hand with AAIA on the national front. We helped to re-intro-
Manufacturers                              duce the Federal Right to Repair Act in Congress.
supporting CAWA                               The second goal was to insure the membership was receiving benefits from the Associa-
Page 10
                                           tion. This was also achieved with more aggressive pricing on insurance programs and other
Members Contribute                         benefits that became available to the members this year. We awarded 4 scholarships to
to Political Action                        individuals for a career in the automotive aftermarket. I feel these benefits will continue to
Fund                                       grow in the future with new and diversified benefits for the entire CAWA organization.
Page 11                                       The third goal was to build relationships with other state aftermarket organizations. We
                                           needed to extend a hand, bring our expertise and services to these organizations. Again,
CAWA scholarships                          we achieved this goal. We brought new members to our organization, many of these mem-
Page 12                                    ber representing new organizations coming into CAWA for the first time. We also worked
                                           with our Nevada members on many fronts. I feel our biggest success was the giant step we
Next CAWA Board                            took to help the state of Arizona to provide an automotive aftermarket presence in their
Meeting                                    State.
February 29-March 1,                          We can all be very proud of the accomplishments of the CAWA. We are a force in the
Silverado Resort                           automotive aftermarket. We are the leader of the next generation and we do see the future
Napa                                       and what it holds. So, when someone asks you what does CAWA do? You can answer with
                                                                                                                       Continued on page 3

                                                         CAWA — We’re in Business to Keep You in Business
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                                   California/Nevada Automotive Wholesalers’ Association
                                                                                                             CAWA stAFF
                                                      OFFICeRs OF the BOARD                                  11160 Sun Center Drive
                                                      Bart scott – Chair
                                                                                                             Rancho Cordova, CA 95670
                                                                                                             916-635-9774 / 800-332-2292
                                                      Pat Winters – Vice Chair
                                                      David Finley - Treasurer                               Rodney K. Pierini
                                                      Finley Industries                                      President and CEO
                                                      tim Gerrity – Secretary                      
                                                      General Auto Parts
                                                      scott nassif - Past Chair                              Julie snyder
                                                      NAPA Auto Parts - Apple Valley                         Director of Operations
                                                      BOARD MeMBeRs
                                                                                                             Jennifer Zins
                                                      Ron Cannon
                                                      Charleston Auto Parts, Inc.                            Director of Government Affairs
                                                      Doug Cole                                              (916) 871-0603
                                                      Shasta Auto Supply                           
                                                      Bill Copeland
                                                      Hanson Distribution Co., Inc.                          norman Plotkin
                                                      Mary Davis                                             Legislative Advocate, California
                                                      NGK Spark Plugs (U.S.A.), Inc.                         Phone: (916) 446-5900
                                                      Bruce Douglass                               
                                                      Fast Undercar, Inc.
                                                      Jack Gosnell                                           David Brown
                                                      Turlock Auto Parts                                     Legislative Advocate, Nevada
                                                      evan hammer, Jr.
                                                                                                             Phone: (702) 933-0777
                                                      Evan’s Electric Service
                                                      ed Jimenez                                   
                                                      Riebe’s Auto Parts
                                                      Leonard Johnson                                        MeMBeRshIP seRvICes RePResentAtIves
                                                      Lindy’s Auto Parts                                     scott Condos, Nevada
                                                      Frank Kohlweiss
                                                      Kohlweiss Auto Parts                                   (702) 429-1637
                                                      Greg Livingston                              
                                                      CSK Auto
                                                                                                             Bruce tatum, Northern California
                                                      ted Loroña
                                                      NAPA Distribution Center – LA                          (916) 635-9774
                                                      Pat Martin                                   
                                                      Pacific Supply Company
                                                      eric Mezger                                            George Wyart, Southern California
                                                      Viking Auto Supply, Inc.                               (714) 544-2329
                                                      Ken Miller                                   
                                                      Burbank Auto Parts
                                                      Gary Mueller
                                                      Gibbs Trucks
                                                      David nunez
                                                      APW Inc./APW International                             MISSION STATEMENT
                                                      Ray Pohlman                                                The mission of the California/Nevada Au-
                                                      AutoZone                                               tomotive Wholesalers’ Association is to provide
                                                      steve sharp
                                                                                                             communication, education, legislative and regu-
                                                      harry Wilson                                           latory advocacy and group purchasing of services
                                                      GATES                                                  for its members, while promoting the automotive
                                                                                                             aftermarket industry.

            2                      C a l i f o r n i a             /   N e v a d a     A u t o m o t i v e     W h o l e s a l e r s ’   A s s o c i a t i o n
                     •A •N
        More and More Manufacturers support CAWA

        ion • Califo

                                     ach year more and more             line of defense out West by manufacturers, distributors
                                     aftermarket manufacturers          and retailers throughout the Country. The membership

                                               otive •
                                     join the ranks of membership       of CAWA has been gracious enough to voluntarily give
                            and give additional financial support       dollars beyond their dues payments to assure we have the
                            for what CAWA does on behalf of the         necessary resources to fulfill our role. Many of you have
                   Est.     industry out West (see list on page         given voluntarily this year and through our educational
                            10). These supporters understand the        efforts we believe more and more members will give to


                            importance of a presence in the halls       support CAWA’s government affairs presence in the fu-

                   le       of government and in the regulatory
                                     o                                  ture (see list of members contributing now on page 11).
                      sa          ss
                            and legislative processes. From stream
                        lers’ • A                                          We are grateful to all who have done so and want to
                            degradation because of brake pad            assure them that the money will be guarded and well
rodney Pierini                                                                                   spent on their behalf. As we look
                            dust, to extended
        warranties that drive repair busi-                                                       forward to 2008, CAWA, as your
        ness to the new car dealers to the             A special thanks and note                 trade Association, will continue
        independent’s need for diagnostic              of appreciation goes to the               to do what it can for the indus-
        and repair information, CAWA is at             following Board members that              try it serves. Watch for training
        the forefront of the industry’s fight          contributed their time and                initiatives, promotion of legisla-
                                                       efforts serving on the CAWA
        in Sacramento, Carson City and in                                                        tors and candidates in an election
                                                       Board of Directors. Their
        the federal legislative districts which        participation was an asset to             year (who are industry friendly),
        has an impact on what happens in               the association and we applaud            association health insurance (to
        Washington D.C.                                their success.                            reduce your premiums while
            Our partnership with the                                                             providing valuable benefits),
                                                       Doug Cole, Shasta Auto Supply
        national Automotive Aftermar-                                                            continued reductions in work-
        ket Industry Association (AAIA)                Scott Nassif, NAPA Auto Parts             ers compensation premiums and
        has flourished in recent years and                                                       many more member benefits that
                                                       Ray Pohlman, AutoZone                     you should be considering for
        the consolidation of resources to
        protect the industry’s interests out                                                     your business (see
        West is readily accessible. Fostering                                                    for details).
        relationships with other state aftermarket associations in         The CAWA family wishes you and your family a
        California and Nevada has assisted the industry in being happy holiday season and the best in business in 2008.
        focused and united to off set attacks that are detrimen-        Should I be of personal assistance to you, I am simply a
        tal to the viability of the independent aftermarket. None telephone call away (800.332.2292, ext. 114). Finally,
        of these coalition efforts and protective, proactive steps      thank you for your membership in an Association you
        could not be taken without industry support.                    can be proud of while knowing we are there for the
            CAWA has been recognized as the industry’s first            many members we serve.                                •N
                                                                                                                                           a             A
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                                                                        NEW MEMBERS
                                                                                                                                                              otive • W

        Continued from page 1
                                                                           New Members

                                                                                     Company                      City         Est.


        pride and say we are the movers and shakers for the

                                                                                     all exhaust Distribution     Benicia                 le
                                                                                                                                               lers’ • As

        automotive aftermarket out West.                                             BBB Industries               Mobile
                                                                                     Butte auto Parts             Gridley
           I would like to thank everyone for his or her
                                                                                     Canam Industries             San ramon
        participation in the organization this past year.
                                                                                     Dura International           rancho Dominguez
        Without the sacrifice of personal time by each                               Grand Canyon auto Supply     Flagstaff
        and every one of you, we would not have had the                              Mohave auto Parts Inc.       Kingman
        success. The legacy is the achievement of leaving                            North Lake auto Parts        tahoe City
        the organization in better shape and with a bright                           Omaha auto Parts, Inc.       riverside
        future.                                                                      One Stop undercar Commerce   Commerce
                                                                                     Walker Products              Los angeles

          C a l i f o r n i a    /   N e v a d a    A u t o m o t i v e        W h o l e s a l e r s ’      A s s o c i a t i o n                                           3
     CAWA Annual Membership Dinner Meeting Draws
     Record Attendance and over $3,500 in scholarship Funds

                 e are proud
                 to announce
                 that this year’s
     Annual Membership Din-
     ner meeting again drew a
     record attendance. Frank
     Ordoñez, President of
     Delphi Product & Service
     Solutions, addressed the
     group with his perspec-
     tive of the future of the
                                                                     Left to right: Greg Livingston,
         Jack Hardy of Chris Kouri and Associates inducted           CSK auto, Scott Donnelly,
     the 2008 officers, which include Chair of the Board,            Delphi, Dave Nickerson, Chris                            Bart Scott, CarQueSt
     Pat Winters, CARQUEST; Vice Chair of the Board,                 Kouri and associates                                     presents a plaque to Scott
                                                                                                                              Nassif, NaPa auto Parts in
     David Finley, NAPA Auto and Truck Parts;
                                                                                                                              appreciation for his service
     Treasurer, Tim Gerrity, General Auto Parts;                                                                              on the CaWa Board of
     Secretary, Mary Davis, NGK Spark Plugs,                                                                                  Directors
     and Immediate Past Chair of the Board, Bart
     Scott, CARQUEST.
         Outgoing Chair of the Board, Bart Scott,
     CARQUEST was presented with his cer-
     emonial red vest, by 1984 Past Chair, Mort
     Schwartz in honor of CAWA Past Chairs.
         On behalf of CAWA and its members,
     we thank all of the sponsors for this year’s
     dinner.                                                         Jack Hardy of Chris Kouri (far right) swears in the CaWa 2008
                                                                     Officers: left to right: Secretary – Mary Davis, NGK Spark Plugs,
                                                                     treasurer – tim Gerrity, General auto Parts/NaPa, Vice-Chair
                                                                     – David Finley, Napa auto & truck Parts, Chair – Pat Winters,
                                                                     CarQueSt, and Past Chair – Bart Scott, CarQueSt

                                                                      Left to right Frank Ordoñez, Marissa Sura, Carrie Wright, Bill
                                                                      Lafontaine, David Wendt, Joe Boyle, Scott Donnelly of Delphi
                                                                      Product Service Solutions

    Left to right: NGK representatives Darrel reuss, ann
    robinson, Carl arnold, Mary Davis, and Pete Daley

4      C a l i f o r n i a       /   N e v a d a      A u t o m o t i v e    W h o l e s a l e r s ’          A s s o c i a t i o n
             Additional Sponsors include.
             Evan’s Electric Service, Evan Hammer
             General Auto Parts, Tim Gerrity
             Genuine Parts Co., Ted Loroña
             NOVA Information Systems
             CAWA Insurance Services
             This year’s dinner registration fee went to-
          ward the CAWA Memorial Scholarship Fund.
          Applications are now being accepted for 2008
          (over $3500 was raised). Apply at www.
 before March,
             Additional Scholarship Contributors are:
                                                                 autologue, Back row from left to right, roy Betancur Sr., Steve Gill, Price Sloan
             KYB America, Paul Kratzer                           Front row from left to right, Mike Proctor, Bob Fasano, Larry Guettler, Jim Franco,
             NAPA Auto Parts, Chuck Herr                         Dennis David, Joe Salcido
             Mort and Mickie Schwartz
             Please join us for next year’s annual dinner
          meeting to kick off Industry Week on Novem-
          ber 2, 2008.

                                                                        representatives of Chris Kouri and associates: Back row from left to
                                                                        right: John Hansen, Chris Kouri, Frank Lushinsky, ron Klopf and Chris
                                                                        Wyart Front row from left to right: Mike Bryant, David Nickerson, Jack
                                                                        Hardy, Mike todd and russ Sakamoto

 Left to right: tom Boggs, Preferred employers Insurance Co.,
Steve Sharp, WOrLDPaC, and Jack Gosnell, turlock auto Parts

                                                                                CAWA members are qualified to receive significant
          Aftermarket Career Center now Available to                         discounts on job postings. Simply register on the Career
          CAWA Members!                                                      Center through, select your package, and
                                                                             create your job posting. The discounts and associated
             The Career Center, accessible through the CAWA                  promotional codes, to be entered before payment, are:
          web site (located on the left hand side
          bar), is a comprehensive career and recruiting tool for            Package                   Non-Member       Member       Code
          the automotive aftermarket industry. Answering the                 One 30-day Job Posting       $350           $200      CAWA4351
          industry-wide call for more recruitment of qualified ca-           Three 30-Day Job Postings    $950           $540      CAWA4352
          reer candidates, the Career Center seeks to provide the            One 60-Day Job Posting       $630           $360      CAWA4353
          right person for the right job with an organized online            One 90-Day Job Posting       $895           $510      CAWA4354

            C a l i f o r n i a      /   N e v a d a       A u t o m o t i v e       W h o l e s a l e r s ’          A s s o c i a t i o n            5
                      What’s up In CAWA Association
                      Insurance Benefits?
                                                                through Ullico or OneBeacon Insurance Companies. For
                                                                example, filed rates of $5.20 can be discounted as much
       We are pleased to announce some new member               as 50% for the 8046 class code depending on each mem-
    benefits that are exclusive for CAWA in California and      ber’s claim history and payroll volume. We still continue
    Nevada:                                                     to offer one of the industry’s most stable safety groups
                                                                with Preferred Employers Insurance Company.
    Association Health Plan with Allied National
        After several months of negotiations, we are rolling    Health Care Discount Card Benefit
    out a new association health plan available to member          Members of CAWA are also enrolled in a health care
    firms with 2-50 full time employees. It features: A         discount program that includes medical, dental, vision,
    multi-option medical plan offering with a low-cost, lim-    hearing, prescription drug and other health care services
    ited benefit plan (as low as $.50 per hour), an optional    through the Coast-To- Coast/Points of Care benefit pro-
    catastrophic major medical wrap-around plan, and an         gram through our endorsed administrator of Health Sav-
    H.S.A. qualified High Deductible Health Plan. These         ings Accounts (American Health Value). It costs nothing
    plans are all insured by American Alternative Insur-        to use the program and it is available to all employees and
    ance. Aside from these attractive benefits, the best part   their dependents who are employed by a CAWA member
    of the offering is the price: Association members can       business.
    qualify for the lowest Risk Adjustment Factor (R AF)           CAWA Insurance Services/CIMS
    as if they were a large employer group. By aggregating         Phone: 1-800-575-6891 Fax: 1-800-210-3210
    our membership as a purchasing entity, CAWA saves its          Email:
    membership as much as 22% in rates!                            Insurance License o. OB14519
                                                                   Dave Fear, Ext. 116 (
    Another workers compensation insurance option                  Jennifer Mason, Ext. 118 (
       We have added another workers compensation offer-           Randi Wise, Ext. 114 (
    ing for our members that enables you to gain additional        Kathy LeBar, Ext. 122 (
    premium discounts if you are a member of CAWA

    Keep the stars shining

           tar employees are those with       fund the plan with life insurance      be as attracted by
           the right qualifications to        when needed.                           retirement benefits
           do the job and the personal             The employees agree to meet       early in their careers.
    qualities to help fulfill your vision     certain criteria and must forfeit      It also can provide
    for your business. Keeping your           their rights to future bonuses if      a reward to help
    “star” employees satisfied and            employment is terminated for any       reduce turnover and
    motivated is important. Competitive       reason, or if they can no longer       encourage long-term
                                                                                                             Keith ellard
    salaries and a solid benefit package      perform their duties. The agreement    commitment from
    are essential, but the typical benefits   is neither an employment contract      your most valued employees.
    may not be enough.                        nor a retirement plan and, if          When life insurance is used, the
         A Private Bonus Plan may             properly written, is not subject to    employer “owns” the policy and the
    offer a solution. This is a written       nondiscrimination requirements and     cash value build-up is tax-deferred.
    agreement whereby an employer             ERISA laws.                            A tax deduction is taken when the
    agrees to pay selected valuable                A Private Bonus Plan can help     bonus is paid. Contact your Federated
    employees previously agreed               retain highly-skilled employees        Insurance marketing representative to
    upon bonuses at specified times.          and key leaders or promising           help you explore this option to keep
    Employers may have the option to          young employees who may not            your best and brightest stars.

6    C a l i f o r n i a    /   N e v a d a    A u t o m o t i v e     W h o l e s a l e r s ’     A s s o c i a t i o n
                           Legislative update
                           Jennifer Zins, Director of Government

                              Federal Right to Repair Act Gains Mo-
                              mentum in Congress                           ed the Senator was taken on a tour of the WORLDPAC
                                 The Motor Vehicle Owners’ Right to        facility to gain a better understanding of how the after-
                              Repair Act (HR 2694) was reintroduced        market industry works.
Jennifer Zins
                              into the 110th Congress in June. To date         In December, CAWA members will be meeting with
             the bill has drawn 35 co-sponsors and is continuing to        Senator Tom Harman in Costa Mesa to educate him
             gain momentum. A number of high profile California            about CAWA and automotive aftermarket issues.
             Congressional members have co-sponsored the bill in-              All of these meetings are extremely important in help-
             cluding George Miller, and Anna Eshoo.                        ing draw attention to the legislative and regulatory issues
                 The need for Right to Repair legislation has become       impacting CAWA including access to information, manda-
             apparent due to the increasing use of computers and elec-     tory health care legislation, extended warranty regulations,
             tronics which control nearly every vehicle function from      the proposed retail sales ban of R134a, and the need for
             safety and emissions to entertainment. Although these         expanded career technical programs to name a few.
             computers provide many benefits to motorists through              Special thanks to the CAWA members who take time
             improved fuel efficiency, comfort and safety, they also       out of their businesses to attend these meetings on your
             provide increasing opportunities for car companies to lock    behalf!
             out access by car owners and the independent repair shops
             where they choose to obtain service for their vehicles.       CAWA Continues Battle to halt extended Warranties
                 The Motor Vehicle Owners’ Right to Repair Act (HR             As you will recall despite a compelling argument and
             2694) would mandate that car companies provide full ac-       a united effort among the aftermarket, CARB voted
             cess to all tools and service information needed to repair    earlier this year to extend warranties on emissions parts
             motor vehicles, thus leveling the competitive playing field   from the statutorily required 3 years/50,000 miles (7/70
             between dealers and independent repair shops.                 for more expensive parts) to 10 years/120,000 miles.
                 CAWA will be working closely with AAIA to coor-               This was a small victory for the aftermarket as CARB
             dinate and participate in federal in district meetings        had initially proposed 15 year/150,000 mile warranties
             throughout the state with the goal of educating members       until the CAWA led coalition pointed out that their own
             of Congress about the need for the bill and urging them       regulations said that the useful life of the vehicle and its
             to co-sponsor the legislation.                                component parts was only 10/120. So they scaled back
                                                                           to 10/120 and then passed the regulation, even though
           CAWA Members Continue to Meet with state Lead-                  the statute was clear what the warranties were to be and
           ers to Discuss Legislative Issues                               the aftermarket delivered a study that pointed to the po-
              CAWA’s Government Affairs Team including President           tential cost to the aftermarket in the billions of dollars.
           & CEO Rodney Pierini as well as several CAWA members                The aftermarket is still amazed that regulators acted
           including CAWA Public Affairs Committee Chair Eric              in defiance of the law and at great potential detriment to
           Mezger, Viking Auto Supply; Mary Davis, NGK Spark-              the aftermarket industry.
           plugs; and Sam Cracraft, Sacramento TBA recently met                As we reported in the last newsletter the coalition has
           with Assemblyman Bill Emmerson, Vice Chair of the               said ‘enough is enough’ and have reached out to partners
           Assembly Transportation Committee to discuss issues             in the industry through the Warranty Task Force have
           of interest to CAWA members including workers comp              voted to move forward with litigation against CARB in-
           updates, career and technical training opportunities and        cluding selecting legal counsel to represent the aftermar-
           other business legislation and regulations.                     ket in this lawsuit.
              In addition, CAWA Board Member Steve Sharp host-                 The plan of attack is in place, but we continue to wait
           ed an in district legislative meeting at WORLDPAC head-         until the regulation is certified by the Office of Adminis-
           quarters in Newark with Senator Ellen Corbett, member           trative Law. Once the regulation has been certified, next
           of both the Senate Transportation and Senate Business           steps toward filing a lawsuit against CARB will be made.
           and Professions Committees. When the meeting conclud-           Stay tuned ….

            C a l i f o r n i a     /   N e v a d a    A u t o m o t i v e       W h o l e s a l e r s ’      A s s o c i a t i o n       7
            Your Government Affairs                                           sale of “carbon credits,” or “offsets” to emerge wherein car-
                                                                              bon neutral behavior can be credited and then purchased by
            Program at Work for YOu                                           industries with carbon intensive processes to mitigate their
            and your Business!                                                carbon “footprint,” a process referred to as “cap and trade.”
                                                                              The legislature, on the other hand, driven by the environ-
                   Norman Plotkin, Legislative Advocate                       mental community, want to focus on regulations.
                                                                                  When the Board approved only three early action items
                     AB 32 Implementation Process – An update                 in June, the Governor fired the Chairman prompting the
                         AB 32 created a process for inventorying state       Executive Officer to resign as well. A new Chairman was ap-
                     greenhouse gas emissions, establishing what 1990         pointed and staff huddled with interested parties and came
                     levels were for various business and industry sectors    back with 44 new potential Early Action Items, six of which
Norm Plotkin         and developing a plan to reduce current emissions        were adopted as Discreet Early Actions.
                     through regulations by 2020 to those 1990 levels or
             what amounts to the equivalent of a 25% reduction. In real       Legislature Adjourns for the Year
             terms, the target is 174 million metric tons of CO2 equiva-          The Legislature has adjourned for the year and returns
             lent [MMTCO2E]. A substance is measured by its global            on January 7, 2008, for the 2nd year of their 2 year legisla-
             warming potential, or GWP, which measures against carbon         tive session. In 2005, Governor Schwarzenegger was dealt
             dioxide, which has a GWP of 1. For example, HFC R134a            a major political blow with the defeat of all of his reform
             has a GWP of 1300; this is based upon it’s long life (>100       measures at the statewide special election held that year for
             years) in the atmosphere and its tendency to interact with       that purpose. He came back in 2006, claimed that he heard
             volatility with other atmospheric compounds.                     the message sent by the electorate, and cut deals with the
                 CARB is in the middle of establishing mandatory re-          Democratic controlled legislature on a host of infrastruc-
             porting of carbon emissions and scoping a plan for pro-          ture bond measures and landmark global warming mitiga-
             mulgating regulations to reach the 174 MMTCO2E that              tion legislation. In so doing, the Governor angered those in
             equals the required 25% reductions, as well as coordinating      his own party, but elevated his own standing on the world
             with other state regulatory agencies like the Public Utilities   stage.
             Commission and the Energy Commission. It is a huge task              In early 2007, Governor Arnold announced the arrival
            and the legislature didn’t want them to get bogged down           of a new era in politics- the “post-partisan” era, a time when
            with these details such that it would be years before any         state leaders moved past partisan politics and on to solving
            reductions were realized, so they established an “Early Ac-       the major public policy challenges on his agenda, namely
            tion” requirement.                                                term limits and redistricting reform; healthcare reform, i.e.:
                Discreet Early Actions were required to be determined         insuring the six million uninsured in California; and water
            by July 2007. The criteria for a Discreet Early Action: cost      storage and distribution infrastructure improvements for an
            effective, technologically feasible and in place as an enforce-   arid state.
            able regulation by 1/1/2010. One of the three (3) original            Despite the fanfare, nothing happened on any of these
            Discreet Early Actions was to ban the retail sales of R134a.      items, and in fact the whole legislative session was pretty
            Industry pushed back and offered an alternative proposal to       much a bust. The governor was sent 991 bills, signed 750
            the straight ban. This alternative includes a reengineered        and vetoed 241, or roughly 25 percent. This marked the
            self-sealing or “one-way” can top coupled with a recycling        lowest number of bills sent to the governor in years and the
            program to capture used cans that contain residual amounts        highest number of vetoes in three administrations.
            of refrigerant otherwise known as a can “heel”. CAWA is               Ever optimistic, the governor called a special session of
            engaged in working with CARB staff on the details of this         the legislature to move beyond the normal adjournment
            alternative, in fact we had a working meeting with CARB           date so that they could work on health care and water is-
            staff on November 7th to discuss this alternative proposal.       sues. The administration released detailed plans for legisla-
                The issue is highly politicized and volatile. Industries      tive changes in these areas, but in the end, the legislature
            across the economy are fearful of the amount of power that        could not move past partisan gridlock and did nothing in
            has been given to CARB with potentially huge economic             the special session.
            ramifications. Further, the Governor wants to focus on cap-           Next year is an election year, likely filled with more par-
            ping emissions and allowing a market for the purchase and         tisan divisions and distractions.

  8           C a l i f o r n i a     /   N e v a d a      A u t o m o t i v e      W h o l e s a l e r s ’        A s s o c i a t i o n
health Care Reform                                              reform, the legislators did nothing with it and as of press
    While the fact that there are about six million uninsured   time it did not look likely that anything would happen until
Californians is agreed on by all involved in the legislative    the regular session reconvenes in January.
process, that is where the agreement ends. The legislative
proposal that emerged from the many introduced at the be-       Workers Compensation
ginning of the year, Assembly Bill 8 (Nunez), expressed the         The Governor signed a couple of compensation bills in-
attempt to expand access to health care and bring greater       cluding:
efficiency to the insurance market. The bill would have es-         AB 338 (Coto) – Temporary Disability Benefit Fix,
tablished a minimum spending requirement for employers          expands the window of benefit distribution to four years
and provided options to meet the requirement.                   from the date of injury rather than two, while maintain-
    The bill would have substantially expanded public health    ing a cap of 104 weeks of benefit for all injuries on or after
care programs for children and adults by extending cover-       4/29/04.
age through the Healthy Families and Medi-Cal programs.             AB 812 (Hernandez) – allows an insurance company to
Proponents argued that overall participation in these public    assess a penalty up to three times the current premium to
programs were projected to decline by one million people as     an employer who fails to comply with an insurance compa-
a result of picking up coverage through expanded market or      nies’ payroll audit request.
employment based opportunities.                                     In addition the Governor vetoed a number of poten-
    The full program would have cost expend $8.3 billion        tially very damaging workers comp bills including SB 936
financed through a combination of employer contributions,       Perata which would have doubled permanent disability
employee contributions, state and federal funding. In total,    benefits over a period of three years beginning 1/1/2008,
the new system was expected to save $235 million in pub-        regardless of the data available, and AB 1710 a temporary
lic expenditures while providing comprehensive coverage to      staffing bill that included a dangerous provision that could
2/3rds of the state’s uninsured.                                have forced an employer who secures the services of a tem-
    Employers would have been required to either elect to       porary staffing company to be jointly and severally liable in
spend 7.5 percent of Social Security wages on health care       the event that the staffing company does not retain workers
expenditures for full-time and part-time employees and de-      compensation insurance.
pendents, or pay an equivalent amount into a trust fund.
    All employers would have been required to establish Sec-    Career and technical education
tion 125 plans to allow pre-tax payments for health insur-          The Governor signed legislation to expand career tech-
ance contributions. The bill would have applied to employ-      nical education efforts:
ers of any size (except for self-employed) and for both part        AB 400 (Nunez) – Strengthens the Academic Perfor-
and full time employees. On the last day for doing so, the      mance Index (API) by including career and technical edu-
Governor vetoed AB 8.                                           cation. A 21st century public education system needs to
                                                                measure school results in career preparation, not just math
Governors healthcare Proposal                                   and English, as is currently being done. The API will now
    The Governor’s proposal for a healthcare overhaul con-      include how many students in each high school are enrolled
tains major reforms of the insurance marketplace, it con-       in career and technical education courses and the percent-
tains a mandate to purchase, much the same as Californians      age of 9th graders who actually graduate by the end of 12th
are required to carry automobile insurance. The proposal        grade. A stronger API will provide a better index for stu-
would have a guaranteed issue requirement in the individual     dents and parents to judge their schools.
market. The plan creates a state run health insurance pur-          SB 13 (Wyland) – Career Technical Education facilities
chasing pool, expands public health care programs, contains     bond. This bill requires the State Department of Educa-
minimal cost containment, and requires carriers to institute    tion to include in its application for new construction plan,
a minimum medical loss ratio of 85 percent, that is, 85 per-    approval certain questions relating to career technical edu-
cent of premiums paid would be required to be spent on          cation facilities, including whether the project will include
medical care.                                                   facilities related to career technical education and if not,
    While the Legislature convened the special session called   how the applicant district plans to meet the needs of pupils
by the Governor for the purpose of dealing with healthcare      related to career technical education.

 C a l i f o r n i a     /   N e v a d a     A u t o m o t i v e      W h o l e s a l e r s ’       A s s o c i a t i o n        9
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                    California/nevada Automotive Wholesalers’ Association
                     Manufacturer’s Members and Service Providers
                    Supporting CAWA’s Government Affairs Program

                               It’s A Smart Decision
           CAWA is fortunate to have several businesses that give financial support, in addition to their
         annual dues, to CAWA’s government affairs program. With this support, CAWA’s vigilance and
                     protection of industry interests in the legislative process is more effective.
         Clearly, these partners understand the importance of an effective aftermarket industry presence
                      in government affairs in Sacramento, Carson City, and Washington, D.C.
                         CAWA is grateful for the support and appreciates the contributions.

                           Your company’s logo should be here too!

10   C a l i f o r n i a   /   N e v a d a    A u t o m o t i v e                      W h o l e s a l e r s ’   A s s o c i a t i o n
CAWA Members Continue to voluntarily support Political Action Funding

101 Hardware & auto Supply                                  elmer’s auto Parts                                    Peerless auto Parts
52/48, Inc.                                                 engler Brothers Motor Parts                           Performance automotive Whsl., Inc.
aaa Foreign a/P & Salvage, Inc.                             evan’s electric Service                               Performance Warehouse
acme automotive Co.                                         express Brake Supply and Distributors                 Peterson’s auto Supply, Inc.
activant Solutions                                          eZ auto Supply- NaPa                                  Pine auto Supply
acton auto Parts                                            Fast undercar                                         Piston engine Parts
aftermarket Distributing, Inc.                              Fast undercar, Inc.                                   Pittsburg Motor Parts, Inc.
air of Sacramento                                           Fiber-tech auto Parts, Inc.                           Pixley auto Parts
akebono Corporation                                         First Street auto Parts                               Placerville auto Parts
all auto Parts                                              Fleet Services                                        Plumas Motor Supply
allen’s Wholesale auto Parts                                Foresthill Parts & equipment                          Power Brake Sales
amatulli auto Parts                                         Gates rubber Company                                  Power Performance
american auto air                                           General auto Parts / NaPa                             Powerhouse engine Components, Inc.
american Mustang Parts LLC                                  Goertzen Service Center, Inc.                         Premium auto Parts, Inc.
arvin auto Parts                                            Golden State Distributors                             Prestolite Wire Corporation
atI Parts, Inc.                                             Good Vibrations racing                                Professional Courier & Logistics, Inc.
auto accessories                                            Gotelli auto Supply                                   Quality Brake Supply, Inc.
auto row Parts Company                                      Graffigna Bros. Napa auto Parts                       r & B Supply Co., Inc.
auto Villa, Inc.                                            Grand auto Parts                                      rancho auto Parts
auto-extra                                                  Gromm racing Heads                                    red’s Headers and Speed equipment
autologue Computer Systems, Inc.                            Hanson Distributing Co., Inc.                         reno Brake, Inc.
autostar undercar Warehouse                                 Hap’s auto Parts                                      riebes auto Parts
aV Battery Specialists                                      Headliner auto Parts                                  ripon auto Parts
B & B auto Parts, Inc.                                      Hilmar auto Parts                                     rising Sun Import Parts, Inc.
B & M automotive, Inc.                                      House of Quality auto Parts                           royal Solutions, Inc.
B & Z auto Color, Inc.                                      Interstate Battery Sys-Modesto                        rPS Marketing
Battery Bill, Inc.                                          Intex auto Parts
                                                                                          •A                      S & H Sales, Inc.
Battery Power, Inc.                                         Jerry’s Paint & Supply, Inc.                          Sacramento Mustang
Battery World                                               Jim Moran & associates                                Sacramento tBa, Inc.
BBB Industries                                              Johnstone Supply of Long Beach                        Salgado automotive rebuilders, Inc.

Bell & Gaines, Inc.                                         Kar tek                                               Santa rosa auto Parts

Bob Kisling auto Parts & tire                               Keystone automotive Industries, Inc. om               Scott Valley auto Parts
                                                • Cali

Bob’s auto Supply                                           KJ                                                    Select auto Parts
Bogies auto Parts                                           Kustom 1 Warehouse                                    Service auto Parts
                                                                                                    otive • W
Bokan Bros.                                                 KYB america, LLC                                      Service Center
Bouquet auto Parts                                          L & r automotive Supply                               Service Motor Parts Co.
Brake Parts Supply & Dist., Inc.                            L & u Machine                                         Sevier’s auto Supply
Brembo North america                                        Lake Parts                                            Shasta auto Supply

Brentwood auto Parts, Inc.                                  Larry’s auto Parts                                    Smeding Performance
Brown’s auto Parts                                          Latta’s auto Supply                                   Smith auto Parts, Inc.
Buellton auto Parts                                            Est.
                                                            Launch tech (uSa), Inc.                               Sonoma auto Parts, Inc.
C & H Motor Parts, Inc.                                        1955
                                                            Lehr auto electric, Inc.                              Specialized automotive Systems, Inc.

Calaveras auto Supply                                       Leon’s auto Parts                                     Specialized truck Svc & Parts

Car Sound exhaust Systems, Inc.                             Lester Catalog                                        Standard Motor Products, Inc.

Carquest of the Desert                                 le   Levins auto Supply, LLC
                                                                         o                                        taneva auto Parts, Inc.
Central auto Parts                                        saLonnie Jensen Co., Inc.                               team C Performance Center
Central Cal radiator Warehouse
                                                            Lucas Oil Products Inc.
                                                            lers’ • A                                             team Marketing
Central Valley Motor Parts, Inc.                            Lu’s Lighthouse, Inc.                                 teM auto Parts
Centric Parts                                               Mackenzie Warehouse                                   terminal air Brake Supply, Inc.
Charleston auto Parts                                       Mac’s Distributing Co.                                the Best Connection
Chester ave Brake                                           Manhattan Beach auto Parts                            the Bug Stop
Cheyenne auto Parts, Inc.                                   Marv Vollmer’s trailer/Spring & Wheel                 the Parts House
Chris Kouri & associates                                    Mesa Machine & Supply                                 the Source, Inc.
Clark County auto Parts                                     Mighty auto Parts                                     tops auto Supply
Clutch & Brake Xchange, Inc.                                Mighty auto Parts - Central Valley                    triangle truck Parts, Inc.
Clymer auto Parts, Inc.                                     Mohave auto Parts Inc.                                undercar Specialty Warehouse
Coast auto Parts / Napa                                     Morgans Number One                                    uSa Industries
Colt auto Supply                                            Mor-Jon, Inc.                                         Valley Brake & Wheel Service
Completes Plus                                              Napa auto & truck Parts                               Vic Hubbard Speed & Marine
CSK auto                                                    Napa auto Parts                                       Vincent’s Quality engine rebuilders
Ct Sales                                                    NaPa auto Parts - apple Valley                        V-P Sales Company
Curtis & Christensen                                        NaPa auto Parts - Monterey                            WaBCO
Dave’s auto Parts                                           NaPa auto Parts - Sanger                              Wayne Krantz and associates
Davis auto Parts a Corporation                              North Coast Parts & Supplies, Inc.                    Wayne’s engine rebuilders, Inc.
Davison-Conroy, Inc.                                        North County rebuilders                               Weber’s auto Parts & Distributing Co.
Dayco Products, Inc.                                        North Hollywood auto Parts                            Western auto
Del Sur enterprises, Inc.                                   Northend auto Parts, Inc.                             Western tool Group
Delphi Products & Service Solutions                         Northstar Sales & Marketing, Inc.                     Williams tBa Supply Co, Inc.
Dewey thompson auto Parts                                   NSa Corp.                                             Winchester auto Stores - Campbell
Diamond Diesel Service, Inc.                                Ojai automotive Parts                                 WIX Corporation
Diversified environmnetal Catalysts (D.e.C.)                One Stop auto Parts - Oakland                         Woodland Center auto Supply
Don Green Sales Co., Inc.                                   One Stop Brake Supply, Inc.                           Worldpac
Don’s auto Parts                                            Orme Brothers, Inc.                                   Wyman & associates
Duff Watrous & Sons                                         Pacific Supply Company                                Yerby Brake Supply, Inc.
Dunaway auto Parts, Inc.                                    Pahrump auto Parts                                    Young auto Parts, Inc.
eddings Bros. auto Parts                                    Parts & People                                        Yreka auto Parts & Siskiyou equip
egge Machine Company                                        PBW Distributor
el Monte auto Paint

  C a l i f o r n i a            /    N e v a d a              A u t o m o t i v e             W h o l e s a l e r s ’               A s s o c i a t i o n   11
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                            Applications now being accepted for

                                                                                                          ion • Califo

                            2008 scholarships                                                      Manufacturer Advisory Council

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                                CAWA is proud to announce that scholarship applications can                  Mary Davis, Chair
                                                                                                        NGK Spark Plugs (U.S.A.), Inc.

                            now be submitted at The on line

                            application process allows students, employees, and employers that                                      so
                                                                                                               Harry Wilson, Vice-Chair
                                                                                                                          lers’ • As
                            are expanding their education in the aftermarket industry to submit                Gates Rubber Company
                            one application and be considered for several scholarships in which
                                                                                                                            Lyle Burgess
                            you meet the qualifications.                                                                   Rare Parts, Inc.
                                Don’t delay - Deadline to apply is March 31, 2008.                                    Borise Cota
                                If you submit a complete application at www.automotivescholar-                    Akebono Corporation
                  , it will be reviewed by these organizations where you meet
                            the qualifications:                                                                           William Fischer
                                                                                                                          WIX Corporation
                            GAAS – Global Automotive Aftermarket Scholarships
                            AAACT – Automotive Aftermarket Association of the Carolinas                                Jack Hardy
                                                                                                                Chris Kouri & Associates
                              and Tennessee (regional association for residents of North and
                                                                                                                 Wayne Krantz
                              South Carolina and Tennessee)
                                                                                                           Target Sales and Marketing
                            AAAS – Automotive Aftermarket Association Southeast (regional
                                                                                                                            Paul Kratzer
                              association for residents of Alabama, Georgia, and Mississippi)                             KYB America, LLC
                            ADS - Association of Diesel Specialists
                                                                                                                            Gary Mercer
                            APSA – Automotive Parts & Services Association (regional associa-                             Dura International
                              tion for residents of Arkansas, Colorado, Iowa, Kansas, Missouri,
                                                                                                                       Kevin Reamer
                              Nebraska, Oklahoma, Texas and Wyoming)                                                Tenneco Automotive
                            APSA of IL – Automotive Parts and Service Association of Illinois
                                                                                                                             Dan Roque
                              (regional association for residents of Illinois)                                            Activant Solutions
                            ASC Industries, Inc
                                                                                                                            Steve Salustri
                            Breslow Foundation – Breslow Foundation Scholarships                                           RPS Marketing
                            CAWA – California/Nevada Automotive Wholesaler’s Association
                                                                                                                      Phil Shaffer
                              (regional association for residents of California and Nevada)                     Shaffer & Company, Inc.
                            LDN – Leadership Development Network of AAIA
                                                                                                                  Jim Weis
                            RL Polk – GAAS Scholarships funded by a grant from RL Polk                   New Starters and Alternators
                            University of the Aftermarket Foundation
                                                                                                               David Wendt
                            Zurich High Octane Scholarships – funded by a grant from Zurich.         Delphi Products & Service Solutions

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                a                                     California/Nevada Automotive
                                                      Wholesalers’ Association

                                                                                                                                                                PRST STD
    ion • Califo


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