LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Arizona Emissions Exemption:

SEMA-supported legislation to exempt all vehicles manufactured in the ’74 model year and earlier from the state’s mandatory biennial emissions inspection program was signed into law by Arizona Governor Jan Brewer. Under previous law, only vehicles manufactured in 1966 and earlier and “collectibles” were exempt. The governor’s signature acknowledges the relatively minimal environmental impact of older vehicles, such as the historic cars targeted for this exemption. These vehicles constitute a small portion of the vehicle fleet and are well maintained and infrequently operated.

	Courtesy Shutterstock

Massachusetts Aftermarket Exhaust Systems:

SEMA is opposing a Massachusetts bill to ban the “use and sale of any exhaust pipe that increases the sound emissions of any vehicle including motorcycles.” An identical bill was introduced in 2009 by the same sponsor and was set aside for study without any committee consideration. Among other things, the measure does 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. The bill also ignores the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions.

Nevada New-Car Emissions Exemption:

Legislation to extend the emissions inspection waiver for new vehicles has been approved by the Nevada Senate Natural Resources Committee. Under the bill, new cars will be exempt for the first three years after their initial registration. The bill also changes the state’s emissions inspection program so that vehicles will only be required to undergo testing every two years. Current law requires annual emissions inspections for passenger vehicles and exempts new vehicles for only the first two years after initial registration. The Senate Finance Committee will next consider the bill.

Oklahoma Rebodied Vehicles:

Legislation to provide for certificates of title to be issued for “rebodied” vehicles has been signed into law by Oklahoma Governor Mary Fallin. Under the new law, a rebodied vehicle is defined as a vehicle that has been assembled using a new body or new major component part, which must be identical to the body or major component part used on the original vehicle. The law also requires that a new body or major component part that is used to assemble a rebodied vehicle must be licensed by the manufacturer of the original vehicle. Other original, new or reconditioned parts may also be used. Titles issued to rebodied vehicles will identify the year, make and model of the originally manufactured vehicle and include a notation that states: “This vehicle has been assembled with new major components licensed by the original manufacturer.” Upon application, the Oklahoma Tax Commissioner will assign each rebodied vehicle a new vehicle identification number.

Oklahoma Racing:

Legislation to allow municipalities to issue permits for sanctioned motor vehicle racing events on public streets and highways within its geographical jurisdiction has been signed into law by Oklahoma Governor Mary Fallin. Introduced as the Municipal Motor Vehicle Racing Act, the new law promotes legal racing in Oklahoma, boosts the state’s tourism sector and streamlines the process for race promoters to obtain racing event permits. An exemption from regulations governing “public or private nuisances,” including noise limits, is also provided for in the new law. To obtain a permit, the racing event must be sanctioned by a nationally or internationally recognized racing organization.

Tennessee Emissions Exemption:

Legislation to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program was signed into law by Tennessee Governor Bill Haslam. To qualify for the SEMA-supported exemption, the vehicles must be registered as “antique motor vehicles.” Previous law exempted only vehicles manufactured before the ’75 model year from emissions inspection. Antique vehicles are defined as more than 25 years old, equipped with non-modified engines and bodies and used for club activities, exhibits, tours, parades and similar uses as a collector’s item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday.

Texas Street Rods/Customs:

SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the full Texas House of Representatives. 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 measure provides for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble. The Senate Transportation Committee will now consider the bill.

FEDERAL UPDATE

Collector Car Appreciation Day:

At the request of SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) councils, the U.S. Senate passed Senate Resolution 154 to designate July 8 as Collector Car Appreciation Day (CCAD). The resolution was sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA-member companies, car clubs and individuals are encouraged to organize CCAD events on July 8 or that weekend. A list of scheduled events is maintained on the SEMA Action Network website. Sponsored events will include car shows and cruises, small-business open houses and “drive your car to work” displays.

Business Activity Taxes:

The Business Activity Tax Simplification Act (BATSA) has been introduced in the House. The bipartisan bill would require a company to have a physical presence within a state before that state could impose a business activity tax or some other form of income tax. Several states, including Ohio, Michigan and Washington, have passed laws exposing companies to business activity taxes based on sales rather than physical presence. SEMA is working with a coalition of other organizations and companies to support passage of the bill. A Judiciary Subcommittee held a hearing on the measure in April.

Wilderness:

SEMA has joined a number of other organizations representing the off-road industry and enthusiasts to support legislation that would release 42 million acres of land from a wilderness designation. The lands have been set aside as “wilderness study areas” or “inventoried roadless areas.” The wilderness designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. Following extensive reviews, the U.S. Bureau of Land Management and the U.S. Forest Service have identified the 42 million acres as not suitable as wilderness. The agencies would be directed to manage the lands for multiple uses.

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Arizona Emissions Exemption:

SEMA-supported legislation to exempt all vehicles manufactured in the ’74 model year and earlier from the state’s mandatory biennial emissions inspection program was signed into law by Arizona Governor Jan Brewer. Under previous law, only vehicles manufactured in 1966 and earlier and “collectibles” were exempt. The governor’s signature acknowledges the relatively minimal environmental impact of older vehicles, such as the historic cars targeted for this exemption. These vehicles constitute a small portion of the vehicle fleet and are well maintained and infrequently operated.

	Courtesy Shutterstock

Massachusetts Aftermarket Exhaust Systems:

SEMA is opposing a Massachusetts bill to ban the “use and sale of any exhaust pipe that increases the sound emissions of any vehicle including motorcycles.” An identical bill was introduced in 2009 by the same sponsor and was set aside for study without any committee consideration. Among other things, the measure does 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. The bill also ignores the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions.

Nevada New-Car Emissions Exemption:

Legislation to extend the emissions inspection waiver for new vehicles has been approved by the Nevada Senate Natural Resources Committee. Under the bill, new cars will be exempt for the first three years after their initial registration. The bill also changes the state’s emissions inspection program so that vehicles will only be required to undergo testing every two years. Current law requires annual emissions inspections for passenger vehicles and exempts new vehicles for only the first two years after initial registration. The Senate Finance Committee will next consider the bill.

Oklahoma Rebodied Vehicles:

Legislation to provide for certificates of title to be issued for “rebodied” vehicles has been signed into law by Oklahoma Governor Mary Fallin. Under the new law, a rebodied vehicle is defined as a vehicle that has been assembled using a new body or new major component part, which must be identical to the body or major component part used on the original vehicle. The law also requires that a new body or major component part that is used to assemble a rebodied vehicle must be licensed by the manufacturer of the original vehicle. Other original, new or reconditioned parts may also be used. Titles issued to rebodied vehicles will identify the year, make and model of the originally manufactured vehicle and include a notation that states: “This vehicle has been assembled with new major components licensed by the original manufacturer.” Upon application, the Oklahoma Tax Commissioner will assign each rebodied vehicle a new vehicle identification number.

Oklahoma Racing:

Legislation to allow municipalities to issue permits for sanctioned motor vehicle racing events on public streets and highways within its geographical jurisdiction has been signed into law by Oklahoma Governor Mary Fallin. Introduced as the Municipal Motor Vehicle Racing Act, the new law promotes legal racing in Oklahoma, boosts the state’s tourism sector and streamlines the process for race promoters to obtain racing event permits. An exemption from regulations governing “public or private nuisances,” including noise limits, is also provided for in the new law. To obtain a permit, the racing event must be sanctioned by a nationally or internationally recognized racing organization.

Tennessee Emissions Exemption:

Legislation to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program was signed into law by Tennessee Governor Bill Haslam. To qualify for the SEMA-supported exemption, the vehicles must be registered as “antique motor vehicles.” Previous law exempted only vehicles manufactured before the ’75 model year from emissions inspection. Antique vehicles are defined as more than 25 years old, equipped with non-modified engines and bodies and used for club activities, exhibits, tours, parades and similar uses as a collector’s item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday.

Texas Street Rods/Customs:

SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the full Texas House of Representatives. 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 measure provides for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble. The Senate Transportation Committee will now consider the bill.

FEDERAL UPDATE

Collector Car Appreciation Day:

At the request of SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) councils, the U.S. Senate passed Senate Resolution 154 to designate July 8 as Collector Car Appreciation Day (CCAD). The resolution was sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA-member companies, car clubs and individuals are encouraged to organize CCAD events on July 8 or that weekend. A list of scheduled events is maintained on the SEMA Action Network website. Sponsored events will include car shows and cruises, small-business open houses and “drive your car to work” displays.

Business Activity Taxes:

The Business Activity Tax Simplification Act (BATSA) has been introduced in the House. The bipartisan bill would require a company to have a physical presence within a state before that state could impose a business activity tax or some other form of income tax. Several states, including Ohio, Michigan and Washington, have passed laws exposing companies to business activity taxes based on sales rather than physical presence. SEMA is working with a coalition of other organizations and companies to support passage of the bill. A Judiciary Subcommittee held a hearing on the measure in April.

Wilderness:

SEMA has joined a number of other organizations representing the off-road industry and enthusiasts to support legislation that would release 42 million acres of land from a wilderness designation. The lands have been set aside as “wilderness study areas” or “inventoried roadless areas.” The wilderness designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. Following extensive reviews, the U.S. Bureau of Land Management and the U.S. Forest Service have identified the 42 million acres as not suitable as wilderness. The agencies would be directed to manage the lands for multiple uses.

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Arizona Emissions Exemption:

SEMA-supported legislation to exempt all vehicles manufactured in the ’74 model year and earlier from the state’s mandatory biennial emissions inspection program was signed into law by Arizona Governor Jan Brewer. Under previous law, only vehicles manufactured in 1966 and earlier and “collectibles” were exempt. The governor’s signature acknowledges the relatively minimal environmental impact of older vehicles, such as the historic cars targeted for this exemption. These vehicles constitute a small portion of the vehicle fleet and are well maintained and infrequently operated.

	Courtesy Shutterstock

Massachusetts Aftermarket Exhaust Systems:

SEMA is opposing a Massachusetts bill to ban the “use and sale of any exhaust pipe that increases the sound emissions of any vehicle including motorcycles.” An identical bill was introduced in 2009 by the same sponsor and was set aside for study without any committee consideration. Among other things, the measure does 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. The bill also ignores the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions.

Nevada New-Car Emissions Exemption:

Legislation to extend the emissions inspection waiver for new vehicles has been approved by the Nevada Senate Natural Resources Committee. Under the bill, new cars will be exempt for the first three years after their initial registration. The bill also changes the state’s emissions inspection program so that vehicles will only be required to undergo testing every two years. Current law requires annual emissions inspections for passenger vehicles and exempts new vehicles for only the first two years after initial registration. The Senate Finance Committee will next consider the bill.

Oklahoma Rebodied Vehicles:

Legislation to provide for certificates of title to be issued for “rebodied” vehicles has been signed into law by Oklahoma Governor Mary Fallin. Under the new law, a rebodied vehicle is defined as a vehicle that has been assembled using a new body or new major component part, which must be identical to the body or major component part used on the original vehicle. The law also requires that a new body or major component part that is used to assemble a rebodied vehicle must be licensed by the manufacturer of the original vehicle. Other original, new or reconditioned parts may also be used. Titles issued to rebodied vehicles will identify the year, make and model of the originally manufactured vehicle and include a notation that states: “This vehicle has been assembled with new major components licensed by the original manufacturer.” Upon application, the Oklahoma Tax Commissioner will assign each rebodied vehicle a new vehicle identification number.

Oklahoma Racing:

Legislation to allow municipalities to issue permits for sanctioned motor vehicle racing events on public streets and highways within its geographical jurisdiction has been signed into law by Oklahoma Governor Mary Fallin. Introduced as the Municipal Motor Vehicle Racing Act, the new law promotes legal racing in Oklahoma, boosts the state’s tourism sector and streamlines the process for race promoters to obtain racing event permits. An exemption from regulations governing “public or private nuisances,” including noise limits, is also provided for in the new law. To obtain a permit, the racing event must be sanctioned by a nationally or internationally recognized racing organization.

Tennessee Emissions Exemption:

Legislation to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program was signed into law by Tennessee Governor Bill Haslam. To qualify for the SEMA-supported exemption, the vehicles must be registered as “antique motor vehicles.” Previous law exempted only vehicles manufactured before the ’75 model year from emissions inspection. Antique vehicles are defined as more than 25 years old, equipped with non-modified engines and bodies and used for club activities, exhibits, tours, parades and similar uses as a collector’s item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday.

Texas Street Rods/Customs:

SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the full Texas House of Representatives. 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 measure provides for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble. The Senate Transportation Committee will now consider the bill.

FEDERAL UPDATE

Collector Car Appreciation Day:

At the request of SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) councils, the U.S. Senate passed Senate Resolution 154 to designate July 8 as Collector Car Appreciation Day (CCAD). The resolution was sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC) to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA-member companies, car clubs and individuals are encouraged to organize CCAD events on July 8 or that weekend. A list of scheduled events is maintained on the SEMA Action Network website. Sponsored events will include car shows and cruises, small-business open houses and “drive your car to work” displays.

Business Activity Taxes:

The Business Activity Tax Simplification Act (BATSA) has been introduced in the House. The bipartisan bill would require a company to have a physical presence within a state before that state could impose a business activity tax or some other form of income tax. Several states, including Ohio, Michigan and Washington, have passed laws exposing companies to business activity taxes based on sales rather than physical presence. SEMA is working with a coalition of other organizations and companies to support passage of the bill. A Judiciary Subcommittee held a hearing on the measure in April.

Wilderness:

SEMA has joined a number of other organizations representing the off-road industry and enthusiasts to support legislation that would release 42 million acres of land from a wilderness designation. The lands have been set aside as “wilderness study areas” or “inventoried roadless areas.” The wilderness designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. Following extensive reviews, the U.S. Bureau of Land Management and the U.S. Forest Service have identified the 42 million acres as not suitable as wilderness. The agencies would be directed to manage the lands for multiple uses.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA members tell us that market research is at the top of their list as a key member benefit. That’s understandable: With good research it’s possible to plan ahead, take advantage of growing trends and navigate thoroughly challenging times. With no research, or poorly conducted research, we’re all navigating without a compass.

Couple that with the fact that building a clear picture of any given market is expensive, time consuming and difficult to conduct reliably, and it’s easy to see why this is an area where SEMA can make a big contribution to member success. For most of our members, high-quality research is a tool too expensive to afford out of their own pockets.

Here at SEMA, we’ve made a decision to ramp up the resources dedicated to providing members with best-in-class market research.

A case in point is the just-released annual 2011 Market Report, which focuses on three core product segments and nine aftermarket enthusiast niches. This study has something for everybody in the industry. It was compiled by combining data from interviews with manufacturers, wholesalers and retailers with data from consumer surveys and government sources. Included are snapshots from ongoing SEMA research projects, such as the Consumer Demand Index and the Financial Benchmark reports. In a nutshell, it shows the size and shape of the industry, trends over time and reveals the beginnings of an overall market upturn in 2010. It’s available now for download—free to SEMA members—on www.SEMA.org. A summary appears starting on p. 53 of this issue.

Even while we were compiling the annual Market Report, we spent a lot of time surveying members, asking about how to improve SEMA’s market research. The feedback indicated that, while our industry-focused studies are good, SEMA members want more
market-specific information—and especially more research on consumers themselves.

Based on that feedback, we are planning 2011 studies that will supply a better picture of the consumer. These studies will look at the broader population to define people who are not currently on our radar screen. The idea is to take a closer look at the entire range of people in our market, from hardcore enthusiasts—the only group we already know fairly well—to less-involved consumers of aftermarket products. The goal is to help SEMA-member businesses better understand buyers’ motivations and needs when selecting specialty equipment and to develop a new way of classifying and speaking about the different types of aftermarket consumers.

To get the job done, we plan to partner with outside firms that offer high levels of specialized expertise. They will range from very large, generalized companies that have a lot of resources to small companies that are very specialized within the automotive market. (These partnerships, as a side benefit, will allow us to tap into syndicated studies that touch on information that our members may not otherwise find.)

Another upgrade will be to look more closely at data from the SEMA Show, which should tell us more about industry trends and the direction of the market, segment by segment.

The end result will be to capture an even broader view of the specialty-equipment marketplace and render it in 3-D across a big screen. As SEMA members, you’ll have the best seat in the house.

Adding these new approaches to our existing research efforts requires a significant commitment of resources. We’re convinced that unique and well-grounded market research is a worthy investment and an appropriate application of association resources. So expect to hear more in the coming year about new data, new sources and new approaches to allow you to better connect with your customers.