Government Affairs

A Wisconsin-proposed regulation to prohibit the registration of certain imported collector vehicles has been put on hold. Members of the Senate Transportation Committee voted by ballot to send the proposed rule, Trans 123, back to the Department of Transportation for revisions due to the vocal opposition of Wisconsin enthusiast groups, including members of the SEMA Action Network (SAN). Under an agreement reached with department officials, the rule will not be resubmitted but will be considered by lawmakers in the 2011 legislative session. The measure threatened to prohibit the registration of imported vehicles manufactured after 1967 that did not meet Federal Motor Vehicle Safety Standards (FMVSS).

The Federal Trade Commission (FTC) is updating its “Green Guides,” which are intended to help marketers avoid misleading environmental claims. The Guides were first issued in 1992 but have not been revised since 1998. The Guides cover: 1) general principles that apply to all environmental marketing claims; 2) consumer perception of claims and marketing substantiation of claims; and 3) avoiding consumer deception.

Many SEMA members have secured design or utility patents from the U.S. Patent & Trademark Office only to discover that their patented product is being infringed by imports. If litigation is ultimately necessary to combat the problem, there are two possible forums in which to pursue a grievance, the U.S. International Trade Commission and a federal district court. Each forum has advantages and disadvantages.

SEMA applauded the signing into law of the “Small Business Jobs and Credit Act” (H.R. 5297), including $12 billion in tax incentives for small businesses and creating a $30 billion resource to activate greater lending to small businesses by community banks.

The California Air Resources Board (CARB) adopted goals to reduce carbon dioxide (CO2) emissions and other greenhouse gases from cars and light trucks in 18 urban areas around the state. While the goals are nonbinding, local jurisdictions will need to demonstrate a likelihood of success in order to take advantage of other incentives, such as streamlined permitting for development projects.

SEMA praised the United States Senate for passing the “Small Business Jobs and Credit Act” (HR 5297). The bill will be signed into law by President Obama pending imminent ratification by the House of Representatives.

The legislation creates a $30 billion fund to provide banks with less than $10 billion in assets access to capital to lend specifically to small businesses while providing tax incentives to encourage business development. In addition, the bill includes $12 billion in tax cuts and stronger government loan guarantees.

This year’s mid-term elections are the most anticipated in recent memory. Last week, SEMA provided a complete list of voter registration/absentee ballot forms for all 50 states (click here to find your state and to vote early). We also encourage SEMA members to become engaged by supporting SEMA Political Action Committee (PAC). This election stands to be one of the most important in many years with the potential to deliver historic results. The balance of power in Washington is currently in question, and without the active participation of SEMA members, our industry will miss the opportunity to raise our voice and make a noticeable impact.

As of April 1, 2011, it will be illegal to sell or install a wheel weight in New York that contains lead. The state joins several others that have enacted laws banning the manufacture, sale and use of lead weights. California’s law went into effect on January 1, 2010. Illinois, Maine, Vermont and Washington also ban the products while Iowa, Maryland, Rhode Island and Wisconsin have considered a ban.

The U.S. Department of Commerce unveiled 14 proposals to strengthen the enforcement of U.S. trade laws. The measures would focus on illegal import practices from non-market economies by tightening U.S. rules governing antidumping (AD) and countervailing duties (CVD). “Dumping” is when a manufacturer(s) in one country exports a product to another country at a price that is below its production costs or the price charged in its home market.  “Countervailing duties” are imposed when an investigation finds that a foreign country is subsidizing its exports and injuring the importing country’s domestic producers. The Commerce Department initiated 34 AD/CVD investigations in 2009 compared to 19 the previous year.

The Wisconsin Department of Transportation has proposed a new regulation (Chapter Trans 123) to prohibit the registration of imported vehicles manufactured after 1967 that do not meet Federal Motor Vehicle Safety Standards (FMVSS). U.S. law specifically exempts imported vehicles that are 25 years old and older from these safety standards. Trans 123 offers no such reasonable exemption.