NATIONAL AUTO AUCTION ASSOCIATION Today’s National Auto Auction Association (NAAA) grew from the nucleus of the zones, which have provided the heart, soul and backbone of the association since its inception. They continue to serve as the breeding ground for the future leaders of NAAA and as a medium for the discussion of ideas and auction practices. But the association, as well as the remarketing industry and business in general, has changed drastically over the years. With improvements in travel and advancements in technology, it has become much easier to communicate nationally and internationally. It’s no longer necessary to gather in small, regional groups scattered across the country. We started out holding separate zone meetings, followed by the joint meetings of two zones, and finally we adopted the quad-zone approach. Now we’re combining that meeting with the CAR Conference to encourage attendance, enrich professional development and enhance networking opportunities, while actually reducing the number of conferences that our members are required to attend. I have always been a strong supporter of the zones, yet I believe that it’s time for our organization to evolve to the next operational level for the benefit of our membership. My proposal is very simple and does not alter the way the zones function. Although the zone corporations would be dissolved and merged into the NAAA, they will continue to exist as chapters of the NAAA. They would remain governed by a Board of Directors and Officers elected by members of each zone under a zone governance agreement. They’d also retain representation on the NAAA Board of Directors and present nominees for NAAA officers just as they do now. Plus there would be no tax consequences from this change. This seamless transition would not only preserve the unique identity and core character of each zone that has been our strength, it also offers the advantages of improved efficiency and immediate cost-effective administration. At the new chapter level it would no longer be necessary to record and report state sales and use tax, prepare and file state and federal tax returns, maintain corporate documents, or conduct annual reviews and audits of financial statements. Accounting fees and insurance costs would be eliminated at the zone level and the NAAA staff will perform the collection of dues, accounting and record keeping tasks. Applications for NAAA membership would be overseen by the Membership Committee, much as they are now. After appropriate due diligence, including site visits if necessary, candidates would be posted to the entire membership for comment. At the end of the comment period, the committee would make a recommendation to the NAAA Board of Directors regarding admittance. This allows the association to consider applications all year long as opposed to biannually. Upon acceptance, members would be assigned a zone based on the existing geographic boundaries. The three-strike rule would be applied and enforced at the NAAA level based on attendance at the zone all member meeting. In summary, there no longer is a need to have five separate legal entities to conduct the business of our association. We can streamline our operations for efficiency and cost savings without losing the identity of the zones. I believe that this evolutionary step will promote greater strategic cooperation and provide more value to our members that will ensure our success for the future.
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