SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

Colorado

Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process has been “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality. These older vehicles are generally well-maintained and infrequently driven, constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.

Kansas

Inoperable Vehicles: Support for a SEMA-opposed bill that would allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners through the use of first-class mail instead of certified mail (with a return receipt) has been withdrawn. There will be no action on the bill this year. The Kansas jurisdiction behind the bill’s introduction has decided to withdraw its support until there is another method to notify property owners of enforcement action. Nuisance-abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Michigan

Historic Vehicles: SEMA is opposing legislation in the Michigan legislature that threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of a historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle’s model year for a one-time fee of $35. This measure would also increase that one-time fee to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner’s birthday.

Nebraska

Abandoned Vehicles: Legislation that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit will not be considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property. Given the opposition raised by SEMA and the Nebraska vehicle hobbyist community, the bill sponsor will make a series of amendments to protect hobbyists before he reintroduces the legislation next year.

Ohio

Street Rods/Custom Vehicles: The Ohio House Transportation Committee held a hearing, after several postponements, on SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble. The committee will formally approve the bill before sending it to the floor for a vote by the full House.

Oklahoma

Older Motor Vehicles: SEMA is supporting a bill in the Oklahoma Legislature to reduce the annual registration fee for vehicles 25 years old and older to $5. Under current law, these vehicles are assessed at a rate of $15
per year.

Utah

Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.” Among other things, the bill ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions; did not supply law enforcement with a clear standard to enforce, allowing officers to make subjective judgments on whether or not a modified exhaust system is in violation; and would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-
performing options.

Washington

Scrappage: SEMA again helped turn back legislation in the Washington Legislature that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Given the outcry of SEMA and members of the Washington vehicle hobbyist community, the House Finance Committee chose not to consider the bill before the cut-off deadline. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

Inoperable Vehicles: A version of SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby did not receive committee consideration before the legislature’s deadline. Under the bill, junked, wrecked or inoperable vehicles—including parts cars, stored on private property—would have required screening from public view, if required by local law.  

FEDERAL UPDATE

Jobs Bill: President Obama signed into law a SEMA-supported $16 billion jobs bill that is intended to expand the American workforce by hiring unemployed workers. All businesses that hire a new employee before January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes.

The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time, $1,000 tax credit for each such worker. The legislation also extends the “Section 179” expensing provision, allowing small businesses to write off up to $250,000 of capital expenditures made during 2010 rather than recovering the costs over time through depreciation. The bill also increases the investment cap to $800,000 for 2010 rather than $500,000, indexed for inflation. The House and Senate are now considering other bills intended to spur economic growth, such as legislation to extend the research and development tax credit and other deductions.

OHVs and Land Use: A U.S. Department of the Interior document indicates that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama Administration would not bypass input from local communities, governors and Congress if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation.

Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA supports land-use decisions that are reasonable and enjoy local community support. SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in determining the size of monuments if such a designation is deemed appropriate.  

SEMA News - May 2010 

SEMA Provides Legislative Advocacy for the Industry

	Representative John Campbell of California (left) discusses industry issues with Hillbank Motor Corp. President Lance Stander in his home district as part of the SEMA-sponsored Congressional Site Visit program.

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. SEMA has a proven legislative and regulatory program led by a full-time professional staff based in Washington, D.C., that continually works on behalf of the membership. The program includes a number of components that together have resulted in a long list of successes of significant benefit to the industry. 

“Our members work hard to develop their products and run their businesses,” said Steve McDonald, SEMA vice president of government affairs. “In turn, our office works hard to help them thrive in the marketplace. As the nation and our industry struggle with a challenging economic recovery, our charge is to stay on top of every relevant state and federal matter of consequence to our membership to ensure the best possible outcome.”

McDonald heads up the SEMA office in Washington, D.C., where he and a team of experts track and analyze legislation and regulations, both state and federal, and then advocate positions to public officials on behalf of member companies. In addition to opposing bills that would potentially harm the automotive hobby or hinder SEMA-member companies, the staff proactively pursues opportunities to enact pro-industry initiatives.

State Legislation: SEMA staff works with state legislators to overhaul existing statutes and create brand-new programs that safeguard and expand the specialty-equipment aftermarket. Over the years, the state legislative program has brought
a series of significant legislative and regulatory accomplishments for the industry and the vehicle enthusiast community on issues ranging from equipment standards to registration and titling classifications to emissions-test exemptions to hobbyist rights.

State Caucus: 2010 marks the fifth anniversary of the founding of the State Automotive Enthusiast Leadership Caucus, a bipartisan group of state lawmakers with a passion for automobiles. In its daily efforts to promote and protect the auto hobby, SEMA partners with caucus members from across the country to raise the motor-vehicle hobby’s profile in state legislatures and in the public’s eyes. Approximately 400 state legislators from all 50 states are involved in the caucus.

Federal Legislation: SEMA is involved in a wide variety of issues on Capitol Hill that impact the industry, from regulatory reform to intellectual property protection and health-care coverage. Other legislative priorities include tackling energy and environmental issues in a fashion that takes jobs, safety, consumer choice and technology into consideration. SEMA also continues to pursue tax relief on measures that spur economic growth along with permanent renewal of the research and development tax credit.

Federal Agencies: On the regulatory front, the government affairs office works with a number of agencies that have jurisdiction over the marketing of automotive equipment. These include the National Highway Traffic Safety Administration, the U.S. Environmental Protection Agency and the Federal Trade Commission, among others. Topics range from regulations governing tire-pressure monitoring systems, roof crush, side impact, electronic stability control and hazardous air pollutants during auto painting operations to deceptive marketing practices.

	California Assemblymember Tony Mendoza (second from right) and Montana State Senator John Brueggeman (right) were given a tour of Egge Machine Co. by president Bob Egge (second from left).

SEMA Action Network: Another component of the SEMA legislative program involves working with dedicated automotive enthusiasts. The SEMA Action Network (SAN) is a partnership of vehicle clubs and enthusiasts who unite to protect their hobby. With the support of 4,500-plus car clubs, more than 39,000 individual contacts and 150-plus publications, the SAN has an estimated reach of 36 million enthusiasts in the United States and Canada. These members have been extremely effective in amplifying SEMA’s political voice on issues affecting the specialty-equipment auto-parts industry.

Congressional Caucus: Founded in 1996, the 100th year of the automobile, the Congressional Automotive Performance and Motorsports Caucus is the federal equivalent of SEMA’s state caucus. As a coalition of lawmakers who love cars and recognize the importance of the industry to America, these members of Congress help raise the profile of the automotive specialty-equipment industry in Washington and around the country.

Political Action Committee: The SEMA Political Action Committee (PAC) is a vital component of the SEMA legislative program. Established in 2003, SEMA PAC helps support candidates for Congress on both sides of the aisle who support our industry. Through SEMA PAC, individual SEMA members can pool their resources to give the industry a larger cumulative voice on Capitol Hill.

Congressional Visits: SEMA’s Congressional Visits Program can produce long-term relationships. Under the initiative, SEMA’s Congressional relations staff facilitates meetings with a U.S. representative or senator at a SEMA-member facility. Other SEMA members in that district are invited to participate in roundtable discussions on topics of interest to the individual companies and the industry.

Get Involved: While the various components of the SEMA government affairs program have resulted in great success for the industry, it is essential that all SEMA-member companies and their employees be involved as well. You can stay current on the latest laws and regulations affecting the automotive aftermarket industry by visiting www.sema.org and clicking on the “Government Affairs” link. Contacting your lawmaker about bills in your state legislature or in the U.S. Congress is vital to our success. Lawmakers really do listen to their constituents—so does the SEMA government affairs staff. For more information, contact Steve McDonald at 202/783-6007.  

 

 

SEMA News - May 2010 

SEMA Provides Legislative Advocacy for the Industry

	Representative John Campbell of California (left) discusses industry issues with Hillbank Motor Corp. President Lance Stander in his home district as part of the SEMA-sponsored Congressional Site Visit program.

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. SEMA has a proven legislative and regulatory program led by a full-time professional staff based in Washington, D.C., that continually works on behalf of the membership. The program includes a number of components that together have resulted in a long list of successes of significant benefit to the industry. 

“Our members work hard to develop their products and run their businesses,” said Steve McDonald, SEMA vice president of government affairs. “In turn, our office works hard to help them thrive in the marketplace. As the nation and our industry struggle with a challenging economic recovery, our charge is to stay on top of every relevant state and federal matter of consequence to our membership to ensure the best possible outcome.”

McDonald heads up the SEMA office in Washington, D.C., where he and a team of experts track and analyze legislation and regulations, both state and federal, and then advocate positions to public officials on behalf of member companies. In addition to opposing bills that would potentially harm the automotive hobby or hinder SEMA-member companies, the staff proactively pursues opportunities to enact pro-industry initiatives.

State Legislation: SEMA staff works with state legislators to overhaul existing statutes and create brand-new programs that safeguard and expand the specialty-equipment aftermarket. Over the years, the state legislative program has brought
a series of significant legislative and regulatory accomplishments for the industry and the vehicle enthusiast community on issues ranging from equipment standards to registration and titling classifications to emissions-test exemptions to hobbyist rights.

State Caucus: 2010 marks the fifth anniversary of the founding of the State Automotive Enthusiast Leadership Caucus, a bipartisan group of state lawmakers with a passion for automobiles. In its daily efforts to promote and protect the auto hobby, SEMA partners with caucus members from across the country to raise the motor-vehicle hobby’s profile in state legislatures and in the public’s eyes. Approximately 400 state legislators from all 50 states are involved in the caucus.

Federal Legislation: SEMA is involved in a wide variety of issues on Capitol Hill that impact the industry, from regulatory reform to intellectual property protection and health-care coverage. Other legislative priorities include tackling energy and environmental issues in a fashion that takes jobs, safety, consumer choice and technology into consideration. SEMA also continues to pursue tax relief on measures that spur economic growth along with permanent renewal of the research and development tax credit.

Federal Agencies: On the regulatory front, the government affairs office works with a number of agencies that have jurisdiction over the marketing of automotive equipment. These include the National Highway Traffic Safety Administration, the U.S. Environmental Protection Agency and the Federal Trade Commission, among others. Topics range from regulations governing tire-pressure monitoring systems, roof crush, side impact, electronic stability control and hazardous air pollutants during auto painting operations to deceptive marketing practices.

	California Assemblymember Tony Mendoza (second from right) and Montana State Senator John Brueggeman (right) were given a tour of Egge Machine Co. by president Bob Egge (second from left).

SEMA Action Network: Another component of the SEMA legislative program involves working with dedicated automotive enthusiasts. The SEMA Action Network (SAN) is a partnership of vehicle clubs and enthusiasts who unite to protect their hobby. With the support of 4,500-plus car clubs, more than 39,000 individual contacts and 150-plus publications, the SAN has an estimated reach of 36 million enthusiasts in the United States and Canada. These members have been extremely effective in amplifying SEMA’s political voice on issues affecting the specialty-equipment auto-parts industry.

Congressional Caucus: Founded in 1996, the 100th year of the automobile, the Congressional Automotive Performance and Motorsports Caucus is the federal equivalent of SEMA’s state caucus. As a coalition of lawmakers who love cars and recognize the importance of the industry to America, these members of Congress help raise the profile of the automotive specialty-equipment industry in Washington and around the country.

Political Action Committee: The SEMA Political Action Committee (PAC) is a vital component of the SEMA legislative program. Established in 2003, SEMA PAC helps support candidates for Congress on both sides of the aisle who support our industry. Through SEMA PAC, individual SEMA members can pool their resources to give the industry a larger cumulative voice on Capitol Hill.

Congressional Visits: SEMA’s Congressional Visits Program can produce long-term relationships. Under the initiative, SEMA’s Congressional relations staff facilitates meetings with a U.S. representative or senator at a SEMA-member facility. Other SEMA members in that district are invited to participate in roundtable discussions on topics of interest to the individual companies and the industry.

Get Involved: While the various components of the SEMA government affairs program have resulted in great success for the industry, it is essential that all SEMA-member companies and their employees be involved as well. You can stay current on the latest laws and regulations affecting the automotive aftermarket industry by visiting www.sema.org and clicking on the “Government Affairs” link. Contacting your lawmaker about bills in your state legislature or in the U.S. Congress is vital to our success. Lawmakers really do listen to their constituents—so does the SEMA government affairs staff. For more information, contact Steve McDonald at 202/783-6007.  

 

 

SEMA News - May 2010 

SEMA Provides Legislative Advocacy for the Industry

	Representative John Campbell of California (left) discusses industry issues with Hillbank Motor Corp. President Lance Stander in his home district as part of the SEMA-sponsored Congressional Site Visit program.

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. SEMA has a proven legislative and regulatory program led by a full-time professional staff based in Washington, D.C., that continually works on behalf of the membership. The program includes a number of components that together have resulted in a long list of successes of significant benefit to the industry. 

“Our members work hard to develop their products and run their businesses,” said Steve McDonald, SEMA vice president of government affairs. “In turn, our office works hard to help them thrive in the marketplace. As the nation and our industry struggle with a challenging economic recovery, our charge is to stay on top of every relevant state and federal matter of consequence to our membership to ensure the best possible outcome.”

McDonald heads up the SEMA office in Washington, D.C., where he and a team of experts track and analyze legislation and regulations, both state and federal, and then advocate positions to public officials on behalf of member companies. In addition to opposing bills that would potentially harm the automotive hobby or hinder SEMA-member companies, the staff proactively pursues opportunities to enact pro-industry initiatives.

State Legislation: SEMA staff works with state legislators to overhaul existing statutes and create brand-new programs that safeguard and expand the specialty-equipment aftermarket. Over the years, the state legislative program has brought
a series of significant legislative and regulatory accomplishments for the industry and the vehicle enthusiast community on issues ranging from equipment standards to registration and titling classifications to emissions-test exemptions to hobbyist rights.

State Caucus: 2010 marks the fifth anniversary of the founding of the State Automotive Enthusiast Leadership Caucus, a bipartisan group of state lawmakers with a passion for automobiles. In its daily efforts to promote and protect the auto hobby, SEMA partners with caucus members from across the country to raise the motor-vehicle hobby’s profile in state legislatures and in the public’s eyes. Approximately 400 state legislators from all 50 states are involved in the caucus.

Federal Legislation: SEMA is involved in a wide variety of issues on Capitol Hill that impact the industry, from regulatory reform to intellectual property protection and health-care coverage. Other legislative priorities include tackling energy and environmental issues in a fashion that takes jobs, safety, consumer choice and technology into consideration. SEMA also continues to pursue tax relief on measures that spur economic growth along with permanent renewal of the research and development tax credit.

Federal Agencies: On the regulatory front, the government affairs office works with a number of agencies that have jurisdiction over the marketing of automotive equipment. These include the National Highway Traffic Safety Administration, the U.S. Environmental Protection Agency and the Federal Trade Commission, among others. Topics range from regulations governing tire-pressure monitoring systems, roof crush, side impact, electronic stability control and hazardous air pollutants during auto painting operations to deceptive marketing practices.

	California Assemblymember Tony Mendoza (second from right) and Montana State Senator John Brueggeman (right) were given a tour of Egge Machine Co. by president Bob Egge (second from left).

SEMA Action Network: Another component of the SEMA legislative program involves working with dedicated automotive enthusiasts. The SEMA Action Network (SAN) is a partnership of vehicle clubs and enthusiasts who unite to protect their hobby. With the support of 4,500-plus car clubs, more than 39,000 individual contacts and 150-plus publications, the SAN has an estimated reach of 36 million enthusiasts in the United States and Canada. These members have been extremely effective in amplifying SEMA’s political voice on issues affecting the specialty-equipment auto-parts industry.

Congressional Caucus: Founded in 1996, the 100th year of the automobile, the Congressional Automotive Performance and Motorsports Caucus is the federal equivalent of SEMA’s state caucus. As a coalition of lawmakers who love cars and recognize the importance of the industry to America, these members of Congress help raise the profile of the automotive specialty-equipment industry in Washington and around the country.

Political Action Committee: The SEMA Political Action Committee (PAC) is a vital component of the SEMA legislative program. Established in 2003, SEMA PAC helps support candidates for Congress on both sides of the aisle who support our industry. Through SEMA PAC, individual SEMA members can pool their resources to give the industry a larger cumulative voice on Capitol Hill.

Congressional Visits: SEMA’s Congressional Visits Program can produce long-term relationships. Under the initiative, SEMA’s Congressional relations staff facilitates meetings with a U.S. representative or senator at a SEMA-member facility. Other SEMA members in that district are invited to participate in roundtable discussions on topics of interest to the individual companies and the industry.

Get Involved: While the various components of the SEMA government affairs program have resulted in great success for the industry, it is essential that all SEMA-member companies and their employees be involved as well. You can stay current on the latest laws and regulations affecting the automotive aftermarket industry by visiting www.sema.org and clicking on the “Government Affairs” link. Contacting your lawmaker about bills in your state legislature or in the U.S. Congress is vital to our success. Lawmakers really do listen to their constituents—so does the SEMA government affairs staff. For more information, contact Steve McDonald at 202/783-6007.  

 

 

SEMA News - May 2010 

SEMA Provides Legislative Advocacy for the Industry

	Representative John Campbell of California (left) discusses industry issues with Hillbank Motor Corp. President Lance Stander in his home district as part of the SEMA-sponsored Congressional Site Visit program.

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. SEMA has a proven legislative and regulatory program led by a full-time professional staff based in Washington, D.C., that continually works on behalf of the membership. The program includes a number of components that together have resulted in a long list of successes of significant benefit to the industry. 

“Our members work hard to develop their products and run their businesses,” said Steve McDonald, SEMA vice president of government affairs. “In turn, our office works hard to help them thrive in the marketplace. As the nation and our industry struggle with a challenging economic recovery, our charge is to stay on top of every relevant state and federal matter of consequence to our membership to ensure the best possible outcome.”

McDonald heads up the SEMA office in Washington, D.C., where he and a team of experts track and analyze legislation and regulations, both state and federal, and then advocate positions to public officials on behalf of member companies. In addition to opposing bills that would potentially harm the automotive hobby or hinder SEMA-member companies, the staff proactively pursues opportunities to enact pro-industry initiatives.

State Legislation: SEMA staff works with state legislators to overhaul existing statutes and create brand-new programs that safeguard and expand the specialty-equipment aftermarket. Over the years, the state legislative program has brought
a series of significant legislative and regulatory accomplishments for the industry and the vehicle enthusiast community on issues ranging from equipment standards to registration and titling classifications to emissions-test exemptions to hobbyist rights.

State Caucus: 2010 marks the fifth anniversary of the founding of the State Automotive Enthusiast Leadership Caucus, a bipartisan group of state lawmakers with a passion for automobiles. In its daily efforts to promote and protect the auto hobby, SEMA partners with caucus members from across the country to raise the motor-vehicle hobby’s profile in state legislatures and in the public’s eyes. Approximately 400 state legislators from all 50 states are involved in the caucus.

Federal Legislation: SEMA is involved in a wide variety of issues on Capitol Hill that impact the industry, from regulatory reform to intellectual property protection and health-care coverage. Other legislative priorities include tackling energy and environmental issues in a fashion that takes jobs, safety, consumer choice and technology into consideration. SEMA also continues to pursue tax relief on measures that spur economic growth along with permanent renewal of the research and development tax credit.

Federal Agencies: On the regulatory front, the government affairs office works with a number of agencies that have jurisdiction over the marketing of automotive equipment. These include the National Highway Traffic Safety Administration, the U.S. Environmental Protection Agency and the Federal Trade Commission, among others. Topics range from regulations governing tire-pressure monitoring systems, roof crush, side impact, electronic stability control and hazardous air pollutants during auto painting operations to deceptive marketing practices.

	California Assemblymember Tony Mendoza (second from right) and Montana State Senator John Brueggeman (right) were given a tour of Egge Machine Co. by president Bob Egge (second from left).

SEMA Action Network: Another component of the SEMA legislative program involves working with dedicated automotive enthusiasts. The SEMA Action Network (SAN) is a partnership of vehicle clubs and enthusiasts who unite to protect their hobby. With the support of 4,500-plus car clubs, more than 39,000 individual contacts and 150-plus publications, the SAN has an estimated reach of 36 million enthusiasts in the United States and Canada. These members have been extremely effective in amplifying SEMA’s political voice on issues affecting the specialty-equipment auto-parts industry.

Congressional Caucus: Founded in 1996, the 100th year of the automobile, the Congressional Automotive Performance and Motorsports Caucus is the federal equivalent of SEMA’s state caucus. As a coalition of lawmakers who love cars and recognize the importance of the industry to America, these members of Congress help raise the profile of the automotive specialty-equipment industry in Washington and around the country.

Political Action Committee: The SEMA Political Action Committee (PAC) is a vital component of the SEMA legislative program. Established in 2003, SEMA PAC helps support candidates for Congress on both sides of the aisle who support our industry. Through SEMA PAC, individual SEMA members can pool their resources to give the industry a larger cumulative voice on Capitol Hill.

Congressional Visits: SEMA’s Congressional Visits Program can produce long-term relationships. Under the initiative, SEMA’s Congressional relations staff facilitates meetings with a U.S. representative or senator at a SEMA-member facility. Other SEMA members in that district are invited to participate in roundtable discussions on topics of interest to the individual companies and the industry.

Get Involved: While the various components of the SEMA government affairs program have resulted in great success for the industry, it is essential that all SEMA-member companies and their employees be involved as well. You can stay current on the latest laws and regulations affecting the automotive aftermarket industry by visiting www.sema.org and clicking on the “Government Affairs” link. Contacting your lawmaker about bills in your state legislature or in the U.S. Congress is vital to our success. Lawmakers really do listen to their constituents—so does the SEMA government affairs staff. For more information, contact Steve McDonald at 202/783-6007.