Matching Product, Producer and Promotion

	If a vehicle is going to be displayed in a booth at the SEMA Show, Wilwood wants its parts to be on that vehicle. One example is this ’59 Corvette ZR59.

According to Randy Fisher, Royal Purple’s director of consumer marketing, the trick is to ensure that it’s the right partnership, that you understand each other’s needs and wants and that the vehicle owner does a good job of building brand awareness for both the vehicle produced and the products being represented.

Royal Purple was involved in several project builds for last year’s SEMA Show, including a ’65 Mustang Fastback called “The Producer,” which was created by Ringbrothers and then displayed in the Royal Purple booth. For that build, Royal Purple donated lubrication products, including motor oil, oil filters and transmission fluid. These performance enhancements were not overtly apparent by looking at the vehicle itself, so special arrangements were made to ensure that the Royal Purple brand became a visible part of the promotion.

“We try to get the best possible deliverables,” Fisher said. “If it’s a vehicle that goes on tour, we provide product guides or brochures to the builders so potential customers are educated about our product and understand the benefits. They can give us good word of mouth to the consumer.”

Fisher also recommended being a little bit picky about who you work with.

“We look for those who have a talent for building vehicles, those who go above and beyond just sticking a decal on a car,” he said. “We want to be involved with partners like Ringbrothers, who build some of the top vehicles in the world and outperform at what they do. We look for the best of the best.”

Other types of parts may be easier to showcase on a project vehicle, but the marketing plan still needs to be extensive and detailed. Exhibiting at the SEMA Show, magazine exposure and social-media presence are the major qualifiers for landing Hellwig’s products on your project vehicle, according to Melanie White, the company’s marketing manager. She said that most builders are good about mentioning all of their partners, and some even cover the whole installation from start to finish via social media and other outlets.

	A.R.E.’s most recent project-vehicle build is its Pro Football Hall of Fame Ford F-150—a joint marketing venture between Ford, A.R.E. and the Pro Football Hall of Fame.

Hellwig sees its project-vehicle opportunities from two sides, because the company is both a builder and a manufacturer that frequently supplies parts to other projects. In addition to donating parts to at least 20 different projects annually, Hellwig averages one build per year itself.

“When we’re the ones doing a build, I always like to under-promise and over-deliver to our partners in terms of media exposure,” White said.

This year’s project vehicle—a Ford F-250 called the “Big Wig” that Hellwig uses as a camper—includes 16 different partners. Previous builds have included a Chevy Suburban and a lifted Avalanche; a Jeep Wrangler Unlimited LJ, a Grand Cherokee ZJ and a Cherokee XJ; and a Ford F-150.

Ken Hale follows his own process as Wilwood Engineering’s director of sales and marketing. Before he decides to accept a proposal, he verifies that the vehicle has been invited to the SEMA Show. Then he looks at the builder’s track record, the kind of vehicle it has, the type of brake system it wants and whether Wilwood already has any builds using the same brake system.

“As a general rule, if a vehicle is going to be displayed in a booth at the SEMA Show, Wilwood wants to be on that car because of the media attention it will generate,” he said.

Unlike many other parts manufacturers, Wilwood doesn’t necessarily require signage or logos to participate in a build.

“Typically, the wheels are set so that you can clearly see the brakes and calipers,” said Hale. “If they are completely covered, we’re not interested. We really like it when the wheel is taken off the car and the brake is exposed.”

A.R.E., a manufacturer of truck caps, tonneau covers and accessories, evaluates product requests on a case-by-case basis. A.R.E.’s most recent project-vehicle build is its Pro Football Hall of Fame Ford F-150—a joint marketing venture between Ford, A.R.E. and the Pro Football Hall of Fame.

	The first thing Bilstein considers is whether a build will be interesting to attendees and attract attention. Pictured here is a TRG Porsche 911 GT3 project vehicle, which Bilstein brought to last year’s SEMA Show.

In the past, A.R.E has been successful with commercial vehicle builds, including a project truck for Tim Samaras of “Storm Chasers” on the Discovery Channel. A.R.E. also built a tornado-chasing truck that was regularly seen on the “Storm Chasers” last year, and the company has built multiple trucks called “Site Commanders” utilizing Ford Super Duty pickups. Those projects spun off into annual truck giveaways by Remodeling and Tools of the Trade magazines.

A.R.E. selects projects that it can provide products for within its budget and that will generate the most publicity for the company. For new proposals, it is important that the vehicle has a home at the SEMA Show inside the Las Vegas Convention Center. If it’s going to be displayed in Ford’s booth, A.R.E. Director of Marketing Bryan Baker approves with no questions asked, but he rarely says yes to a request if the vehicle will be placed outside the Convention Center unless it is accompanied by an outstanding post-SEMA Show marketing plan.

Wilwood’s Hale agrees: “Having brakes on a car in the Ford or GM booth is much more valuable than having it in another (non-OEM) manufacturer’s booth, because it gives your product legitimacy.”

For builders, it’s a good business practice to communicate regularly with parts donors throughout the process.

“During the ‘Storm Chasers’ build, Samaras would update us all daily from the field in regard to his tornado encounters,” said Baker. “But, in general, we do try and keep the donors updated on the publicity generated by a project vehicle build.”

One thing is for sure: When a project vehicle is used properly for marketing, it works.

When Bilstein introduced its new 5160 Series remote-reservoir shocks and displayed them installed on a Jeep Rubicon JK Unlimited, good things happened.

“Not only did it help to drive foot traffic to the booth, but it also significantly increased interest in this new product,” said Chelsea Bell, Bilstein’s marketing specialist, “and we noticed a rapid sales response following the event. We also leveraged actual images and video footage of the vehicle in our booth and used them in our advertising materials, which likely contributed to the product sales.”

Develop a Detailed Plan

	Royal Purple looks for partners who have a talent for building some of the top vehicles in the world and outperform at what they do, such as this project build with Ringbrothers called “The Producer”—a ’65 Mustang Fastback.

A strong marketing plan that includes media and/or extensive event exposure is a must if manufacturers who donate parts or labor are to benefit from their participation. The amount of exposure needs to be commensurate with the value of the parts or labor.

The plan should include a show schedule that details where the builder will exhibit throughout the year, including the number of people who attend so that parts donors can actually measure their impressions and cost per exposure. For manufacturers who participate in a project-vehicle buildup, getting a return on investment in the form of product exposure is the bottom line when it comes to donating parts.

“We provide product that costs several hundred dollars,” said Royal Purple’s Fisher. “It doesn’t seem like a lot, but when you get hundreds of requests, it adds up. We have to take a look at each one individually and base it on the merits of what they’re proposing and what they can provide to us versus the quantity of product they’re looking for, and we try to do the best we can to maximize the promotion for both of us.”

Hellwig’s White has found that creating a theme around the vehicle as part of the planning phase and taking it to events related to that theme is a successful way to attract reputable manufacturers.

“For our current build, we are attending events geared toward the RV market, including RV rallies and other events that are specific to the niche we built the vehicle for,” she said. “We built the ‘Big Wig’ truck for people who are towing and hauling, so it’s a perfect match for what we’re trying to do with our own product line. But then we have to get that in front of the right crowd, so we’re using the truck and camper to tow our Jeep, and we’ll take it to the Off-Road Expo and some other off-road events, too.”

To a company like Bilstein, a winning proposal should highlight the company’s long-standing history of notable achievements, such as races won. Last year the company featured a few high-profile vehicles, including a Turner Motorsports BMW and a TRG Porsche 911 GT3.

“The first thing we consider is whether the build will be interesting to attendees and attract attention,” said Bell. “Also, will the vehicle feature some of our top products that we want to push this year, and will it be supported by other reputable manufacturers?”

Post-Show Promotion

A solid project build should extend beyond the SEMA Show, because that is when the real promoters pull away from the rest of the pack, according to A.R.E.’s Baker. These days, social media can become a significant way to deliver eyeballs to benefit project-vehicle parts donors. Developing press releases and integrating the build into point-of-purchase displays, literature and websites are all crucial areas to explore. Much of this type of publicity can be measured with a fair amount of accuracy. Baker estimated that the Hall of Fame truck has received more than $185,000 worth of free media exposure.

“I recently ran the numbers on the Pro Football Hall of Fame project vehicle, and so far it has been seen by more than 4 million sets of eyes,” he said. “And this doesn’t even consider how many thousands of people have taken photos of it and posted them on Facebook for their 100-plus friends to see.”

Royal Purple’s Fisher agreed that the useful value of social media and the lasting credibility of third-party recommendations are crucial.

“We can go out there and spend all the marketing dollars we want touting ourselves, but that’s not selling the product,” he said. “It’s someone using the product and then telling their friend about the benefits. When we have a relationship with someone who’s touring their vehicle and they go to 15 shows and have the chance to talk to thousands of people, those are good impression counts, because the cost of what we provide to them isn’t necessarily that high. It’s a good value and return on our investment, since we’re giving them several hundred dollars of product and they’re talking about us all year long.”

Long-term thinking can pay off in a variety of ways—some quite unexpected. At last year’s SEMA Show, Wilwood displayed a ’59 Corvette ZR59 project in its booth. The company also provided brakes for a new Chevrolet Sonic, which GM displayed in its booth. Because of that display, Wilwood is now in negotiations with Chevrolet to provide the brake kit as a dealer-installed upgrade option.

The Bottom Line For a Winning Project

	To reach the right crowd, Hellwig takes its current project—a Ford F-250 “Big Wig” truck—to events specific to the RV market.

If you’re building a vehicle, build a great one and market it effectively in ways that will pay off for your partners.

“Do an exceptional job the first time, and it will increase your odds in regard to future projects,” said Baker. “If you don’t meet your partners’ expectations the first time, you likely won’t get a second chance.”

Six Steps to a Successful Build

• Devise a solid plan that includes a theme, appropriate partners and a market segment target.

• Ensure that you have the time and resources to follow through. All involved will want to know that your timetable and budget plan are sound.

• Create a winning proposal for the OEMs and parts donors that includes previous build experience and a schedule of shows and races where the vehicle will be displayed throughout the year (with projected attendance numbers, vehicle renderings and booth locations).

• Understand your partners’ ideas in terms of specific needs and wants. If a donor’s product is hidden under the vehicle or hood, how do you propose to expose the brand at shows and events?

• Use social media to market your build and work to generate enough public interest and media exposure for everyone involved.

• Stay in touch. Update your partners on the status of the build regularly as the vehicle is being built and throughout the subsequent marketing process.

California
Specially Constructed Vehicles:

For the past several years, SEMA has been working with the California legislature and state agencies to provide protection for owners of improperly or illegally titled and registered specially constructed vehicles (SPCNS). Under a looming threat of prosecution, this program was pursued to help vehicle owners and builders avoid a situation that could have led to confiscated cars and felony law enforcement actions. Beginning July 1, 2011, an amnesty program to allow proper registration of previously registered SPCNS went into effect. The program is slated to conclude on June 30, 2012. Working with the Bureau of Automotive Repair (BAR) and the Department of Motor Vehicles (DMV), SEMA has finally resolved program implementation problems on behalf of California SPCNS owners seeking amnesty. These solutions permit these owners and builders to demonstrate compliance with current BAR smog-check tailpipe emissions requirements in addition to providing amnesty for owners who have knowingly made false statements regarding the value of these vehicles, the year of manufacture or knowingly falsified any other facts in documents filed with the DMV or Highway Patrol.

California
Emissions Exemption:

SEMA-supported legislation to exempt all motor vehicles prior to the 1981 model year from the emissions inspection requirement has been granted reconsideration after failing to be approved by the Senate Transportation and Housing Committee on a 3-4 vote. The bill will be reconsidered in a future committee hearing. In 2004, legislation was enacted to repeal California’s rolling emissions-test exemption for vehicles 30 years old and older and replace it with a law requiring the lifetime testing of all 1976 and newer model-year vehicles.

Connecticut
Antique/Rare/Special-Interest Motor Vehicles:

SEMA-opposed legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” was approved by the Connecticut Joint Committee on Planning and Development by a narrow 10-9 vote. Under the bill, vehicles to be registered as antique, rare or special-interest motor vehicles would be required to be at least 30 years old. Currently, vehicles 20 years old or older are eligible for this status and special license plates. For the purpose of property taxes, the bill also increases the maximum assessment of these vehicles from $500 to $2,500. The bill will now be sent to the Connecticut House of Representatives for a vote by all members.

Hawaii
Low-Mileage Credit:

SEMA is supporting resolutions introduced in the Hawaii House of Representatives urging the city and county of Honolulu to create a 10% vehicle registration credit for residents who drive limited miles in their vehicles, such as rarely used hobby cars. The resolutions were introduced to offset the burden put on certain vehicle owners by increased registration fees. Under the resolutions, the credit would extend to any resident who is registering a vehicle and can provide the two most recent safety inspections (at least 11 months apart) showing that less than 3,000 miles were driven between the two inspections.

Michigan
Ethanol:

SEMA is supporting Michigan legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the labeling requirement. The bill provides that a person who violates the labeling requirement is liable for a civil fine up to $1,000 for each day the violation continues.

Nebraska
Special-Interest Vehicles:

SEMA-supported legislation to create a registration class and special license plate for special-interest motor vehicles was signed into law by Governor Dave Heineman. The new law authorizes owners of special-interest motor vehicles to operate them on Nebraska’s roads displaying a single license plate on the rear of the vehicle. Under the new law, special-interest motor vehicles are defined as those vehicles “of any age which are being collected, preserved, restored, or maintained by the owner as a leisure pursuit and not used for general transportation of persons or cargo.” Under a SEMA-drafted amendment, special-interest motor vehicles may be driven on public streets and roads for occasional transportation, public displays, parades and related pleasure or hobby activities. SEMA worked with the bill sponsor and staff to delete provisions in the original bill that would have required proof of membership in a recognized car club; forced owners to account for all daily-driver vehicles owned or operated by the applicant; obligated owners to a sworn affidavit that the vehicle would not be used for daily transportation; and mandated that these vehicles be essentially unaltered from the original manufacturer’s specifications.

New Jersey
Emissions Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA has now incorporated revisions to the State Implementation Plan (SIP) submitted by the New Jersey Department of Environmental Protection to include the extension of the new vehicle inspection exemption from four years to five years. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

Pennsylvania
Year-of-Manufacture Plates:

SEMA-supported legislation to provide vehicle owners with the option of using vintage, original model-year license plates on antique and classic vehicles was signed into law by Governor Tom Corbett. Under the bill, an application fee of $75 would be charged to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state between the years 1906 and 1975, must be provided by the vehicle owner and be legible from a reasonable distance. Under current law, antique-vehicle owners may apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is signed into law.

Texas Street
Rods/Custom Vehicles:

The Texas Department of Motor Vehicles (DMV) has issued its policies and procedures for issuance of titles and specialty license plates to owners who seek to register their vehicle as street rods or custom vehicles. The policy also provides for a basic safety equipment inspection to be performed by an Automotive Service Excellence (ASE) master technician. These procedures were drafted pursuant to the 2011 enactment into law of SEMA-model legislation. Originally slated to go into effect on September 1, 2011, the new law 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 law also allows 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. In addition, the law holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle. Unfortunately, due to a flawed interpretation of the law by the DMV, all vehicles seeking registration as street rods and custom vehicles must carry a title with a “Replica” brand—even those vehicles altered from original steel bodies. According to the DMV, any changes to that policy must be provided to the agency through amendments to the law. SEMA is currently in the process of contacting members of the Texas legislature to seek additional legislation to correct this flaw. The Texas legislature does not meet for a regular 2012 session, requiring legislation to be introduced in 2013. In the meantime, the new polices should accommodate owners of replica street rods and custom vehicles.

Utah
Vintage Travel Trailers:

A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was signed into law by Governor Gary Herbert. Under the law, vintage travel trailers would also be eligible for special group license plates and would be exempted from wheel cover, mudguard, flap, or splash-apron requirements. Slated to go into effect on July 1, 2012, the new law defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and is primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Virginia
License Tax:

SEMA helped defeat legislation that originally threatened to provide localities with the authority to raise from $100 to $500 the amount charged for an annual license tax for vehicles that do not display current license plates. Virginia Governor Bob McDonnell vetoed a substitute bill containing SEMA-drafted amendments. The SEMA amendments exempted from the license tax all vehicles and parts cars stored on private property for the purpose of restoration or repair.

West Virginia
Property Tax:

A bill to provide a cap on property taxes paid by owners of antique and classic motor vehicles was vetoed by Governor Early Ray Tomblin due to a technical issue. The bill had been amended and approved by the West Virginia State Legislature with a new $5,000 assessed value for all of these cars. Previous versions of the bill contained an assessed value provision of $1,000. Generally, the bill vetoed by the governor benefited antique and classic vehicle owners whose cars are worth more than $5,000. However, it would have penalized most antique and classic vehicle owners whose cars are worth less than $5,000. The legislature chose not to call an additional vote on the bill in an attempt to override the veto.

Wisconsin
Motor Vehicle Registration Rights:

Legislation that originally sought to provide legal registration to hobby vehicles with clear titles, required safety equipment and in good working order was signed into law by Governor Scott Walker. Due to opposition from the Wisconsin Department of Transportation, the bill was amended to now affect only former military vehicles. Several pro-hobby provisions of the bill with application to all hobby vehicles were eliminated. While the amended bill does not solve the many problems associated with registering a hobby car in Wisconsin, it still gained SEMA’s support since it improves the rules governing former military vehicles.

Small Public Companies:

President Obama signed into law a bipartisan bill designed to remove regulatory barriers for companies going public and seeking to attract investors. The SEMA-supported “Jumpstart Our Business Startups” Act makes it easier for small companies to comply with Securities and Exchange Commission (SEC) rules when securing outside capital investment. Companies will be able to file initial public offerings more quickly as regulations will be phased in over a period of five years. The legislation raises the threshold number of shareholders triggering SEC registration from 500 to 2,000 and increases the offering threshold from $5 million to $50 million in shares. Companies can raise capital using the Internet and social media so long as the website is registered with the SEC and investors are informed about a company’s financial condition and shareholder risks. Individual investments are limited to 5% of annual income for those earning under $100,000 a year and 10% for those earning above that amount. Companies with gross annual revenues of up to $1 billion can sell shares to the public while being exempted from some of the requirements of the Sarbanes-Oxley Act.

Certain Steel Wheels from China:

The U.S. International Trade Administration has issued final duty rates for certain steel wheels from China that are being sold at less than fair value in the United States. The subject wheels range from 18 to 24.5 inches in diameter and include rims and discs whether imported as an assembly or separately. The wheels are typically used in commercial vehicles (trucks, buses, trailers, etc.), but duty rates also apply to passenger car wheels within that size range. Calculations for the final dumping margins range from 44.96% to 193.54% ad valorem, and countervailing duties range from 25.66% to 38.32% ad valorem. The duties are on hold until the U.S. International Trade Commission confirms that the dumping and unfair subsidies are causing harm to U.S. industry.

Highway Bill:

The U.S. Senate passed its version of legislation to fund highway construction and other transportation projects over the next two years. SEMA supports the bill’s maintenance of current funding levels in order to address the nation’s aging infrastructure and provide states with more spending flexibility. The legislation also would dramatically increase fines for vehicle or equipment recalls and include mandates to address distracted driving, unintended acceleration and pedal placement and require installation of event data recorders. SEMA contends that current civil penalties are already higher than those imposed on manufacturers for many other types of consumer products, and the National Highway Traffic Safety Administration is already addressing the other issues. The legislation has been sent to the House of Representatives, which is attempting to draft its own bill for a five-year plan. The draft bill currently does not include the auto safety provisions. The government’s authority to fund highway programs expires on June 30.

Ethanol Fuel:

The EPA has begun approving applications by fuel producers to blend gasoline with 15% ethanol (E15). However, there are several other regulatory hurdles to be met before the fuel can be offered for sale. Gas stations will not be required to sell the fuel, and the federal government and most states have not yet enacted laws to shield the industry (gas stations, fuel producers, automakers, auto parts manufacturers, etc.) from lawsuits by consumers who allege that E15 caused mechanical breakdowns. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. A court is expected to rule this summer on a lawsuit challenging the EPA waivers. SEMA is working with a diverse coalition of other associations to oppose the introduction of E15.

Forest Service Planning Rule:

The U.S. Forest Service updated its “Planning Rule,” which provides guidance and directives for managing the country’s 155 national forests and 20 grasslands encompassing 193 million acres. The courts have rejected previous versions of the Planning Rule in recent years. SEMA joined with a number of other organizations representing the off-road community in opposing the latest version on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Lawmakers attending a recent U.S. House Natural Resources Subcommittee hearing expressed similar concerns, noting that the rule incorporates a number of undefined terms and does not ensure a “full mix of recreational opportunities.” The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. Forest managers will now begin applying the rule’s guidelines as they gradually update management rules for each individual forest and grassland.

California
Specially Constructed Vehicles:

For the past several years, SEMA has been working with the California legislature and state agencies to provide protection for owners of improperly or illegally titled and registered specially constructed vehicles (SPCNS). Under a looming threat of prosecution, this program was pursued to help vehicle owners and builders avoid a situation that could have led to confiscated cars and felony law enforcement actions. Beginning July 1, 2011, an amnesty program to allow proper registration of previously registered SPCNS went into effect. The program is slated to conclude on June 30, 2012. Working with the Bureau of Automotive Repair (BAR) and the Department of Motor Vehicles (DMV), SEMA has finally resolved program implementation problems on behalf of California SPCNS owners seeking amnesty. These solutions permit these owners and builders to demonstrate compliance with current BAR smog-check tailpipe emissions requirements in addition to providing amnesty for owners who have knowingly made false statements regarding the value of these vehicles, the year of manufacture or knowingly falsified any other facts in documents filed with the DMV or Highway Patrol.

California
Emissions Exemption:

SEMA-supported legislation to exempt all motor vehicles prior to the 1981 model year from the emissions inspection requirement has been granted reconsideration after failing to be approved by the Senate Transportation and Housing Committee on a 3-4 vote. The bill will be reconsidered in a future committee hearing. In 2004, legislation was enacted to repeal California’s rolling emissions-test exemption for vehicles 30 years old and older and replace it with a law requiring the lifetime testing of all 1976 and newer model-year vehicles.

Connecticut
Antique/Rare/Special-Interest Motor Vehicles:

SEMA-opposed legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” was approved by the Connecticut Joint Committee on Planning and Development by a narrow 10-9 vote. Under the bill, vehicles to be registered as antique, rare or special-interest motor vehicles would be required to be at least 30 years old. Currently, vehicles 20 years old or older are eligible for this status and special license plates. For the purpose of property taxes, the bill also increases the maximum assessment of these vehicles from $500 to $2,500. The bill will now be sent to the Connecticut House of Representatives for a vote by all members.

Hawaii
Low-Mileage Credit:

SEMA is supporting resolutions introduced in the Hawaii House of Representatives urging the city and county of Honolulu to create a 10% vehicle registration credit for residents who drive limited miles in their vehicles, such as rarely used hobby cars. The resolutions were introduced to offset the burden put on certain vehicle owners by increased registration fees. Under the resolutions, the credit would extend to any resident who is registering a vehicle and can provide the two most recent safety inspections (at least 11 months apart) showing that less than 3,000 miles were driven between the two inspections.

Michigan
Ethanol:

SEMA is supporting Michigan legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the labeling requirement. The bill provides that a person who violates the labeling requirement is liable for a civil fine up to $1,000 for each day the violation continues.

Nebraska
Special-Interest Vehicles:

SEMA-supported legislation to create a registration class and special license plate for special-interest motor vehicles was signed into law by Governor Dave Heineman. The new law authorizes owners of special-interest motor vehicles to operate them on Nebraska’s roads displaying a single license plate on the rear of the vehicle. Under the new law, special-interest motor vehicles are defined as those vehicles “of any age which are being collected, preserved, restored, or maintained by the owner as a leisure pursuit and not used for general transportation of persons or cargo.” Under a SEMA-drafted amendment, special-interest motor vehicles may be driven on public streets and roads for occasional transportation, public displays, parades and related pleasure or hobby activities. SEMA worked with the bill sponsor and staff to delete provisions in the original bill that would have required proof of membership in a recognized car club; forced owners to account for all daily-driver vehicles owned or operated by the applicant; obligated owners to a sworn affidavit that the vehicle would not be used for daily transportation; and mandated that these vehicles be essentially unaltered from the original manufacturer’s specifications.

New Jersey
Emissions Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA has now incorporated revisions to the State Implementation Plan (SIP) submitted by the New Jersey Department of Environmental Protection to include the extension of the new vehicle inspection exemption from four years to five years. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

Pennsylvania
Year-of-Manufacture Plates:

SEMA-supported legislation to provide vehicle owners with the option of using vintage, original model-year license plates on antique and classic vehicles was signed into law by Governor Tom Corbett. Under the bill, an application fee of $75 would be charged to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state between the years 1906 and 1975, must be provided by the vehicle owner and be legible from a reasonable distance. Under current law, antique-vehicle owners may apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is signed into law.

Texas Street
Rods/Custom Vehicles:

The Texas Department of Motor Vehicles (DMV) has issued its policies and procedures for issuance of titles and specialty license plates to owners who seek to register their vehicle as street rods or custom vehicles. The policy also provides for a basic safety equipment inspection to be performed by an Automotive Service Excellence (ASE) master technician. These procedures were drafted pursuant to the 2011 enactment into law of SEMA-model legislation. Originally slated to go into effect on September 1, 2011, the new law 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 law also allows 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. In addition, the law holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle. Unfortunately, due to a flawed interpretation of the law by the DMV, all vehicles seeking registration as street rods and custom vehicles must carry a title with a “Replica” brand—even those vehicles altered from original steel bodies. According to the DMV, any changes to that policy must be provided to the agency through amendments to the law. SEMA is currently in the process of contacting members of the Texas legislature to seek additional legislation to correct this flaw. The Texas legislature does not meet for a regular 2012 session, requiring legislation to be introduced in 2013. In the meantime, the new polices should accommodate owners of replica street rods and custom vehicles.

Utah
Vintage Travel Trailers:

A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was signed into law by Governor Gary Herbert. Under the law, vintage travel trailers would also be eligible for special group license plates and would be exempted from wheel cover, mudguard, flap, or splash-apron requirements. Slated to go into effect on July 1, 2012, the new law defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and is primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Virginia
License Tax:

SEMA helped defeat legislation that originally threatened to provide localities with the authority to raise from $100 to $500 the amount charged for an annual license tax for vehicles that do not display current license plates. Virginia Governor Bob McDonnell vetoed a substitute bill containing SEMA-drafted amendments. The SEMA amendments exempted from the license tax all vehicles and parts cars stored on private property for the purpose of restoration or repair.

West Virginia
Property Tax:

A bill to provide a cap on property taxes paid by owners of antique and classic motor vehicles was vetoed by Governor Early Ray Tomblin due to a technical issue. The bill had been amended and approved by the West Virginia State Legislature with a new $5,000 assessed value for all of these cars. Previous versions of the bill contained an assessed value provision of $1,000. Generally, the bill vetoed by the governor benefited antique and classic vehicle owners whose cars are worth more than $5,000. However, it would have penalized most antique and classic vehicle owners whose cars are worth less than $5,000. The legislature chose not to call an additional vote on the bill in an attempt to override the veto.

Wisconsin
Motor Vehicle Registration Rights:

Legislation that originally sought to provide legal registration to hobby vehicles with clear titles, required safety equipment and in good working order was signed into law by Governor Scott Walker. Due to opposition from the Wisconsin Department of Transportation, the bill was amended to now affect only former military vehicles. Several pro-hobby provisions of the bill with application to all hobby vehicles were eliminated. While the amended bill does not solve the many problems associated with registering a hobby car in Wisconsin, it still gained SEMA’s support since it improves the rules governing former military vehicles.

Small Public Companies:

President Obama signed into law a bipartisan bill designed to remove regulatory barriers for companies going public and seeking to attract investors. The SEMA-supported “Jumpstart Our Business Startups” Act makes it easier for small companies to comply with Securities and Exchange Commission (SEC) rules when securing outside capital investment. Companies will be able to file initial public offerings more quickly as regulations will be phased in over a period of five years. The legislation raises the threshold number of shareholders triggering SEC registration from 500 to 2,000 and increases the offering threshold from $5 million to $50 million in shares. Companies can raise capital using the Internet and social media so long as the website is registered with the SEC and investors are informed about a company’s financial condition and shareholder risks. Individual investments are limited to 5% of annual income for those earning under $100,000 a year and 10% for those earning above that amount. Companies with gross annual revenues of up to $1 billion can sell shares to the public while being exempted from some of the requirements of the Sarbanes-Oxley Act.

Certain Steel Wheels from China:

The U.S. International Trade Administration has issued final duty rates for certain steel wheels from China that are being sold at less than fair value in the United States. The subject wheels range from 18 to 24.5 inches in diameter and include rims and discs whether imported as an assembly or separately. The wheels are typically used in commercial vehicles (trucks, buses, trailers, etc.), but duty rates also apply to passenger car wheels within that size range. Calculations for the final dumping margins range from 44.96% to 193.54% ad valorem, and countervailing duties range from 25.66% to 38.32% ad valorem. The duties are on hold until the U.S. International Trade Commission confirms that the dumping and unfair subsidies are causing harm to U.S. industry.

Highway Bill:

The U.S. Senate passed its version of legislation to fund highway construction and other transportation projects over the next two years. SEMA supports the bill’s maintenance of current funding levels in order to address the nation’s aging infrastructure and provide states with more spending flexibility. The legislation also would dramatically increase fines for vehicle or equipment recalls and include mandates to address distracted driving, unintended acceleration and pedal placement and require installation of event data recorders. SEMA contends that current civil penalties are already higher than those imposed on manufacturers for many other types of consumer products, and the National Highway Traffic Safety Administration is already addressing the other issues. The legislation has been sent to the House of Representatives, which is attempting to draft its own bill for a five-year plan. The draft bill currently does not include the auto safety provisions. The government’s authority to fund highway programs expires on June 30.

Ethanol Fuel:

The EPA has begun approving applications by fuel producers to blend gasoline with 15% ethanol (E15). However, there are several other regulatory hurdles to be met before the fuel can be offered for sale. Gas stations will not be required to sell the fuel, and the federal government and most states have not yet enacted laws to shield the industry (gas stations, fuel producers, automakers, auto parts manufacturers, etc.) from lawsuits by consumers who allege that E15 caused mechanical breakdowns. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. A court is expected to rule this summer on a lawsuit challenging the EPA waivers. SEMA is working with a diverse coalition of other associations to oppose the introduction of E15.

Forest Service Planning Rule:

The U.S. Forest Service updated its “Planning Rule,” which provides guidance and directives for managing the country’s 155 national forests and 20 grasslands encompassing 193 million acres. The courts have rejected previous versions of the Planning Rule in recent years. SEMA joined with a number of other organizations representing the off-road community in opposing the latest version on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Lawmakers attending a recent U.S. House Natural Resources Subcommittee hearing expressed similar concerns, noting that the rule incorporates a number of undefined terms and does not ensure a “full mix of recreational opportunities.” The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. Forest managers will now begin applying the rule’s guidelines as they gradually update management rules for each individual forest and grassland.

California
Specially Constructed Vehicles:

For the past several years, SEMA has been working with the California legislature and state agencies to provide protection for owners of improperly or illegally titled and registered specially constructed vehicles (SPCNS). Under a looming threat of prosecution, this program was pursued to help vehicle owners and builders avoid a situation that could have led to confiscated cars and felony law enforcement actions. Beginning July 1, 2011, an amnesty program to allow proper registration of previously registered SPCNS went into effect. The program is slated to conclude on June 30, 2012. Working with the Bureau of Automotive Repair (BAR) and the Department of Motor Vehicles (DMV), SEMA has finally resolved program implementation problems on behalf of California SPCNS owners seeking amnesty. These solutions permit these owners and builders to demonstrate compliance with current BAR smog-check tailpipe emissions requirements in addition to providing amnesty for owners who have knowingly made false statements regarding the value of these vehicles, the year of manufacture or knowingly falsified any other facts in documents filed with the DMV or Highway Patrol.

California
Emissions Exemption:

SEMA-supported legislation to exempt all motor vehicles prior to the 1981 model year from the emissions inspection requirement has been granted reconsideration after failing to be approved by the Senate Transportation and Housing Committee on a 3-4 vote. The bill will be reconsidered in a future committee hearing. In 2004, legislation was enacted to repeal California’s rolling emissions-test exemption for vehicles 30 years old and older and replace it with a law requiring the lifetime testing of all 1976 and newer model-year vehicles.

Connecticut
Antique/Rare/Special-Interest Motor Vehicles:

SEMA-opposed legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” was approved by the Connecticut Joint Committee on Planning and Development by a narrow 10-9 vote. Under the bill, vehicles to be registered as antique, rare or special-interest motor vehicles would be required to be at least 30 years old. Currently, vehicles 20 years old or older are eligible for this status and special license plates. For the purpose of property taxes, the bill also increases the maximum assessment of these vehicles from $500 to $2,500. The bill will now be sent to the Connecticut House of Representatives for a vote by all members.

Hawaii
Low-Mileage Credit:

SEMA is supporting resolutions introduced in the Hawaii House of Representatives urging the city and county of Honolulu to create a 10% vehicle registration credit for residents who drive limited miles in their vehicles, such as rarely used hobby cars. The resolutions were introduced to offset the burden put on certain vehicle owners by increased registration fees. Under the resolutions, the credit would extend to any resident who is registering a vehicle and can provide the two most recent safety inspections (at least 11 months apart) showing that less than 3,000 miles were driven between the two inspections.

Michigan
Ethanol:

SEMA is supporting Michigan legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the labeling requirement. The bill provides that a person who violates the labeling requirement is liable for a civil fine up to $1,000 for each day the violation continues.

Nebraska
Special-Interest Vehicles:

SEMA-supported legislation to create a registration class and special license plate for special-interest motor vehicles was signed into law by Governor Dave Heineman. The new law authorizes owners of special-interest motor vehicles to operate them on Nebraska’s roads displaying a single license plate on the rear of the vehicle. Under the new law, special-interest motor vehicles are defined as those vehicles “of any age which are being collected, preserved, restored, or maintained by the owner as a leisure pursuit and not used for general transportation of persons or cargo.” Under a SEMA-drafted amendment, special-interest motor vehicles may be driven on public streets and roads for occasional transportation, public displays, parades and related pleasure or hobby activities. SEMA worked with the bill sponsor and staff to delete provisions in the original bill that would have required proof of membership in a recognized car club; forced owners to account for all daily-driver vehicles owned or operated by the applicant; obligated owners to a sworn affidavit that the vehicle would not be used for daily transportation; and mandated that these vehicles be essentially unaltered from the original manufacturer’s specifications.

New Jersey
Emissions Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA has now incorporated revisions to the State Implementation Plan (SIP) submitted by the New Jersey Department of Environmental Protection to include the extension of the new vehicle inspection exemption from four years to five years. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

Pennsylvania
Year-of-Manufacture Plates:

SEMA-supported legislation to provide vehicle owners with the option of using vintage, original model-year license plates on antique and classic vehicles was signed into law by Governor Tom Corbett. Under the bill, an application fee of $75 would be charged to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state between the years 1906 and 1975, must be provided by the vehicle owner and be legible from a reasonable distance. Under current law, antique-vehicle owners may apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is signed into law.

Texas Street
Rods/Custom Vehicles:

The Texas Department of Motor Vehicles (DMV) has issued its policies and procedures for issuance of titles and specialty license plates to owners who seek to register their vehicle as street rods or custom vehicles. The policy also provides for a basic safety equipment inspection to be performed by an Automotive Service Excellence (ASE) master technician. These procedures were drafted pursuant to the 2011 enactment into law of SEMA-model legislation. Originally slated to go into effect on September 1, 2011, the new law 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 law also allows 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. In addition, the law holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle. Unfortunately, due to a flawed interpretation of the law by the DMV, all vehicles seeking registration as street rods and custom vehicles must carry a title with a “Replica” brand—even those vehicles altered from original steel bodies. According to the DMV, any changes to that policy must be provided to the agency through amendments to the law. SEMA is currently in the process of contacting members of the Texas legislature to seek additional legislation to correct this flaw. The Texas legislature does not meet for a regular 2012 session, requiring legislation to be introduced in 2013. In the meantime, the new polices should accommodate owners of replica street rods and custom vehicles.

Utah
Vintage Travel Trailers:

A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was signed into law by Governor Gary Herbert. Under the law, vintage travel trailers would also be eligible for special group license plates and would be exempted from wheel cover, mudguard, flap, or splash-apron requirements. Slated to go into effect on July 1, 2012, the new law defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and is primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Virginia
License Tax:

SEMA helped defeat legislation that originally threatened to provide localities with the authority to raise from $100 to $500 the amount charged for an annual license tax for vehicles that do not display current license plates. Virginia Governor Bob McDonnell vetoed a substitute bill containing SEMA-drafted amendments. The SEMA amendments exempted from the license tax all vehicles and parts cars stored on private property for the purpose of restoration or repair.

West Virginia
Property Tax:

A bill to provide a cap on property taxes paid by owners of antique and classic motor vehicles was vetoed by Governor Early Ray Tomblin due to a technical issue. The bill had been amended and approved by the West Virginia State Legislature with a new $5,000 assessed value for all of these cars. Previous versions of the bill contained an assessed value provision of $1,000. Generally, the bill vetoed by the governor benefited antique and classic vehicle owners whose cars are worth more than $5,000. However, it would have penalized most antique and classic vehicle owners whose cars are worth less than $5,000. The legislature chose not to call an additional vote on the bill in an attempt to override the veto.

Wisconsin
Motor Vehicle Registration Rights:

Legislation that originally sought to provide legal registration to hobby vehicles with clear titles, required safety equipment and in good working order was signed into law by Governor Scott Walker. Due to opposition from the Wisconsin Department of Transportation, the bill was amended to now affect only former military vehicles. Several pro-hobby provisions of the bill with application to all hobby vehicles were eliminated. While the amended bill does not solve the many problems associated with registering a hobby car in Wisconsin, it still gained SEMA’s support since it improves the rules governing former military vehicles.

Small Public Companies:

President Obama signed into law a bipartisan bill designed to remove regulatory barriers for companies going public and seeking to attract investors. The SEMA-supported “Jumpstart Our Business Startups” Act makes it easier for small companies to comply with Securities and Exchange Commission (SEC) rules when securing outside capital investment. Companies will be able to file initial public offerings more quickly as regulations will be phased in over a period of five years. The legislation raises the threshold number of shareholders triggering SEC registration from 500 to 2,000 and increases the offering threshold from $5 million to $50 million in shares. Companies can raise capital using the Internet and social media so long as the website is registered with the SEC and investors are informed about a company’s financial condition and shareholder risks. Individual investments are limited to 5% of annual income for those earning under $100,000 a year and 10% for those earning above that amount. Companies with gross annual revenues of up to $1 billion can sell shares to the public while being exempted from some of the requirements of the Sarbanes-Oxley Act.

Certain Steel Wheels from China:

The U.S. International Trade Administration has issued final duty rates for certain steel wheels from China that are being sold at less than fair value in the United States. The subject wheels range from 18 to 24.5 inches in diameter and include rims and discs whether imported as an assembly or separately. The wheels are typically used in commercial vehicles (trucks, buses, trailers, etc.), but duty rates also apply to passenger car wheels within that size range. Calculations for the final dumping margins range from 44.96% to 193.54% ad valorem, and countervailing duties range from 25.66% to 38.32% ad valorem. The duties are on hold until the U.S. International Trade Commission confirms that the dumping and unfair subsidies are causing harm to U.S. industry.

Highway Bill:

The U.S. Senate passed its version of legislation to fund highway construction and other transportation projects over the next two years. SEMA supports the bill’s maintenance of current funding levels in order to address the nation’s aging infrastructure and provide states with more spending flexibility. The legislation also would dramatically increase fines for vehicle or equipment recalls and include mandates to address distracted driving, unintended acceleration and pedal placement and require installation of event data recorders. SEMA contends that current civil penalties are already higher than those imposed on manufacturers for many other types of consumer products, and the National Highway Traffic Safety Administration is already addressing the other issues. The legislation has been sent to the House of Representatives, which is attempting to draft its own bill for a five-year plan. The draft bill currently does not include the auto safety provisions. The government’s authority to fund highway programs expires on June 30.

Ethanol Fuel:

The EPA has begun approving applications by fuel producers to blend gasoline with 15% ethanol (E15). However, there are several other regulatory hurdles to be met before the fuel can be offered for sale. Gas stations will not be required to sell the fuel, and the federal government and most states have not yet enacted laws to shield the industry (gas stations, fuel producers, automakers, auto parts manufacturers, etc.) from lawsuits by consumers who allege that E15 caused mechanical breakdowns. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. A court is expected to rule this summer on a lawsuit challenging the EPA waivers. SEMA is working with a diverse coalition of other associations to oppose the introduction of E15.

Forest Service Planning Rule:

The U.S. Forest Service updated its “Planning Rule,” which provides guidance and directives for managing the country’s 155 national forests and 20 grasslands encompassing 193 million acres. The courts have rejected previous versions of the Planning Rule in recent years. SEMA joined with a number of other organizations representing the off-road community in opposing the latest version on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Lawmakers attending a recent U.S. House Natural Resources Subcommittee hearing expressed similar concerns, noting that the rule incorporates a number of undefined terms and does not ensure a “full mix of recreational opportunities.” The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. Forest managers will now begin applying the rule’s guidelines as they gradually update management rules for each individual forest and grassland.

California
Specially Constructed Vehicles:

For the past several years, SEMA has been working with the California legislature and state agencies to provide protection for owners of improperly or illegally titled and registered specially constructed vehicles (SPCNS). Under a looming threat of prosecution, this program was pursued to help vehicle owners and builders avoid a situation that could have led to confiscated cars and felony law enforcement actions. Beginning July 1, 2011, an amnesty program to allow proper registration of previously registered SPCNS went into effect. The program is slated to conclude on June 30, 2012. Working with the Bureau of Automotive Repair (BAR) and the Department of Motor Vehicles (DMV), SEMA has finally resolved program implementation problems on behalf of California SPCNS owners seeking amnesty. These solutions permit these owners and builders to demonstrate compliance with current BAR smog-check tailpipe emissions requirements in addition to providing amnesty for owners who have knowingly made false statements regarding the value of these vehicles, the year of manufacture or knowingly falsified any other facts in documents filed with the DMV or Highway Patrol.

California
Emissions Exemption:

SEMA-supported legislation to exempt all motor vehicles prior to the 1981 model year from the emissions inspection requirement has been granted reconsideration after failing to be approved by the Senate Transportation and Housing Committee on a 3-4 vote. The bill will be reconsidered in a future committee hearing. In 2004, legislation was enacted to repeal California’s rolling emissions-test exemption for vehicles 30 years old and older and replace it with a law requiring the lifetime testing of all 1976 and newer model-year vehicles.

Connecticut
Antique/Rare/Special-Interest Motor Vehicles:

SEMA-opposed legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” was approved by the Connecticut Joint Committee on Planning and Development by a narrow 10-9 vote. Under the bill, vehicles to be registered as antique, rare or special-interest motor vehicles would be required to be at least 30 years old. Currently, vehicles 20 years old or older are eligible for this status and special license plates. For the purpose of property taxes, the bill also increases the maximum assessment of these vehicles from $500 to $2,500. The bill will now be sent to the Connecticut House of Representatives for a vote by all members.

Hawaii
Low-Mileage Credit:

SEMA is supporting resolutions introduced in the Hawaii House of Representatives urging the city and county of Honolulu to create a 10% vehicle registration credit for residents who drive limited miles in their vehicles, such as rarely used hobby cars. The resolutions were introduced to offset the burden put on certain vehicle owners by increased registration fees. Under the resolutions, the credit would extend to any resident who is registering a vehicle and can provide the two most recent safety inspections (at least 11 months apart) showing that less than 3,000 miles were driven between the two inspections.

Michigan
Ethanol:

SEMA is supporting Michigan legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the labeling requirement. The bill provides that a person who violates the labeling requirement is liable for a civil fine up to $1,000 for each day the violation continues.

Nebraska
Special-Interest Vehicles:

SEMA-supported legislation to create a registration class and special license plate for special-interest motor vehicles was signed into law by Governor Dave Heineman. The new law authorizes owners of special-interest motor vehicles to operate them on Nebraska’s roads displaying a single license plate on the rear of the vehicle. Under the new law, special-interest motor vehicles are defined as those vehicles “of any age which are being collected, preserved, restored, or maintained by the owner as a leisure pursuit and not used for general transportation of persons or cargo.” Under a SEMA-drafted amendment, special-interest motor vehicles may be driven on public streets and roads for occasional transportation, public displays, parades and related pleasure or hobby activities. SEMA worked with the bill sponsor and staff to delete provisions in the original bill that would have required proof of membership in a recognized car club; forced owners to account for all daily-driver vehicles owned or operated by the applicant; obligated owners to a sworn affidavit that the vehicle would not be used for daily transportation; and mandated that these vehicles be essentially unaltered from the original manufacturer’s specifications.

New Jersey
Emissions Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA has now incorporated revisions to the State Implementation Plan (SIP) submitted by the New Jersey Department of Environmental Protection to include the extension of the new vehicle inspection exemption from four years to five years. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

Pennsylvania
Year-of-Manufacture Plates:

SEMA-supported legislation to provide vehicle owners with the option of using vintage, original model-year license plates on antique and classic vehicles was signed into law by Governor Tom Corbett. Under the bill, an application fee of $75 would be charged to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state between the years 1906 and 1975, must be provided by the vehicle owner and be legible from a reasonable distance. Under current law, antique-vehicle owners may apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is signed into law.

Texas Street
Rods/Custom Vehicles:

The Texas Department of Motor Vehicles (DMV) has issued its policies and procedures for issuance of titles and specialty license plates to owners who seek to register their vehicle as street rods or custom vehicles. The policy also provides for a basic safety equipment inspection to be performed by an Automotive Service Excellence (ASE) master technician. These procedures were drafted pursuant to the 2011 enactment into law of SEMA-model legislation. Originally slated to go into effect on September 1, 2011, the new law 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 law also allows 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. In addition, the law holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle. Unfortunately, due to a flawed interpretation of the law by the DMV, all vehicles seeking registration as street rods and custom vehicles must carry a title with a “Replica” brand—even those vehicles altered from original steel bodies. According to the DMV, any changes to that policy must be provided to the agency through amendments to the law. SEMA is currently in the process of contacting members of the Texas legislature to seek additional legislation to correct this flaw. The Texas legislature does not meet for a regular 2012 session, requiring legislation to be introduced in 2013. In the meantime, the new polices should accommodate owners of replica street rods and custom vehicles.

Utah
Vintage Travel Trailers:

A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was signed into law by Governor Gary Herbert. Under the law, vintage travel trailers would also be eligible for special group license plates and would be exempted from wheel cover, mudguard, flap, or splash-apron requirements. Slated to go into effect on July 1, 2012, the new law defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and is primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Virginia
License Tax:

SEMA helped defeat legislation that originally threatened to provide localities with the authority to raise from $100 to $500 the amount charged for an annual license tax for vehicles that do not display current license plates. Virginia Governor Bob McDonnell vetoed a substitute bill containing SEMA-drafted amendments. The SEMA amendments exempted from the license tax all vehicles and parts cars stored on private property for the purpose of restoration or repair.

West Virginia
Property Tax:

A bill to provide a cap on property taxes paid by owners of antique and classic motor vehicles was vetoed by Governor Early Ray Tomblin due to a technical issue. The bill had been amended and approved by the West Virginia State Legislature with a new $5,000 assessed value for all of these cars. Previous versions of the bill contained an assessed value provision of $1,000. Generally, the bill vetoed by the governor benefited antique and classic vehicle owners whose cars are worth more than $5,000. However, it would have penalized most antique and classic vehicle owners whose cars are worth less than $5,000. The legislature chose not to call an additional vote on the bill in an attempt to override the veto.

Wisconsin
Motor Vehicle Registration Rights:

Legislation that originally sought to provide legal registration to hobby vehicles with clear titles, required safety equipment and in good working order was signed into law by Governor Scott Walker. Due to opposition from the Wisconsin Department of Transportation, the bill was amended to now affect only former military vehicles. Several pro-hobby provisions of the bill with application to all hobby vehicles were eliminated. While the amended bill does not solve the many problems associated with registering a hobby car in Wisconsin, it still gained SEMA’s support since it improves the rules governing former military vehicles.

Small Public Companies:

President Obama signed into law a bipartisan bill designed to remove regulatory barriers for companies going public and seeking to attract investors. The SEMA-supported “Jumpstart Our Business Startups” Act makes it easier for small companies to comply with Securities and Exchange Commission (SEC) rules when securing outside capital investment. Companies will be able to file initial public offerings more quickly as regulations will be phased in over a period of five years. The legislation raises the threshold number of shareholders triggering SEC registration from 500 to 2,000 and increases the offering threshold from $5 million to $50 million in shares. Companies can raise capital using the Internet and social media so long as the website is registered with the SEC and investors are informed about a company’s financial condition and shareholder risks. Individual investments are limited to 5% of annual income for those earning under $100,000 a year and 10% for those earning above that amount. Companies with gross annual revenues of up to $1 billion can sell shares to the public while being exempted from some of the requirements of the Sarbanes-Oxley Act.

Certain Steel Wheels from China:

The U.S. International Trade Administration has issued final duty rates for certain steel wheels from China that are being sold at less than fair value in the United States. The subject wheels range from 18 to 24.5 inches in diameter and include rims and discs whether imported as an assembly or separately. The wheels are typically used in commercial vehicles (trucks, buses, trailers, etc.), but duty rates also apply to passenger car wheels within that size range. Calculations for the final dumping margins range from 44.96% to 193.54% ad valorem, and countervailing duties range from 25.66% to 38.32% ad valorem. The duties are on hold until the U.S. International Trade Commission confirms that the dumping and unfair subsidies are causing harm to U.S. industry.

Highway Bill:

The U.S. Senate passed its version of legislation to fund highway construction and other transportation projects over the next two years. SEMA supports the bill’s maintenance of current funding levels in order to address the nation’s aging infrastructure and provide states with more spending flexibility. The legislation also would dramatically increase fines for vehicle or equipment recalls and include mandates to address distracted driving, unintended acceleration and pedal placement and require installation of event data recorders. SEMA contends that current civil penalties are already higher than those imposed on manufacturers for many other types of consumer products, and the National Highway Traffic Safety Administration is already addressing the other issues. The legislation has been sent to the House of Representatives, which is attempting to draft its own bill for a five-year plan. The draft bill currently does not include the auto safety provisions. The government’s authority to fund highway programs expires on June 30.

Ethanol Fuel:

The EPA has begun approving applications by fuel producers to blend gasoline with 15% ethanol (E15). However, there are several other regulatory hurdles to be met before the fuel can be offered for sale. Gas stations will not be required to sell the fuel, and the federal government and most states have not yet enacted laws to shield the industry (gas stations, fuel producers, automakers, auto parts manufacturers, etc.) from lawsuits by consumers who allege that E15 caused mechanical breakdowns. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. A court is expected to rule this summer on a lawsuit challenging the EPA waivers. SEMA is working with a diverse coalition of other associations to oppose the introduction of E15.

Forest Service Planning Rule:

The U.S. Forest Service updated its “Planning Rule,” which provides guidance and directives for managing the country’s 155 national forests and 20 grasslands encompassing 193 million acres. The courts have rejected previous versions of the Planning Rule in recent years. SEMA joined with a number of other organizations representing the off-road community in opposing the latest version on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Lawmakers attending a recent U.S. House Natural Resources Subcommittee hearing expressed similar concerns, noting that the rule incorporates a number of undefined terms and does not ensure a “full mix of recreational opportunities.” The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. Forest managers will now begin applying the rule’s guidelines as they gradually update management rules for each individual forest and grassland.

California
Specially Constructed Vehicles:

For the past several years, SEMA has been working with the California legislature and state agencies to provide protection for owners of improperly or illegally titled and registered specially constructed vehicles (SPCNS). Under a looming threat of prosecution, this program was pursued to help vehicle owners and builders avoid a situation that could have led to confiscated cars and felony law enforcement actions. Beginning July 1, 2011, an amnesty program to allow proper registration of previously registered SPCNS went into effect. The program is slated to conclude on June 30, 2012. Working with the Bureau of Automotive Repair (BAR) and the Department of Motor Vehicles (DMV), SEMA has finally resolved program implementation problems on behalf of California SPCNS owners seeking amnesty. These solutions permit these owners and builders to demonstrate compliance with current BAR smog-check tailpipe emissions requirements in addition to providing amnesty for owners who have knowingly made false statements regarding the value of these vehicles, the year of manufacture or knowingly falsified any other facts in documents filed with the DMV or Highway Patrol.

California
Emissions Exemption:

SEMA-supported legislation to exempt all motor vehicles prior to the 1981 model year from the emissions inspection requirement has been granted reconsideration after failing to be approved by the Senate Transportation and Housing Committee on a 3-4 vote. The bill will be reconsidered in a future committee hearing. In 2004, legislation was enacted to repeal California’s rolling emissions-test exemption for vehicles 30 years old and older and replace it with a law requiring the lifetime testing of all 1976 and newer model-year vehicles.

Connecticut
Antique/Rare/Special-Interest Motor Vehicles:

SEMA-opposed legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” was approved by the Connecticut Joint Committee on Planning and Development by a narrow 10-9 vote. Under the bill, vehicles to be registered as antique, rare or special-interest motor vehicles would be required to be at least 30 years old. Currently, vehicles 20 years old or older are eligible for this status and special license plates. For the purpose of property taxes, the bill also increases the maximum assessment of these vehicles from $500 to $2,500. The bill will now be sent to the Connecticut House of Representatives for a vote by all members.

Hawaii
Low-Mileage Credit:

SEMA is supporting resolutions introduced in the Hawaii House of Representatives urging the city and county of Honolulu to create a 10% vehicle registration credit for residents who drive limited miles in their vehicles, such as rarely used hobby cars. The resolutions were introduced to offset the burden put on certain vehicle owners by increased registration fees. Under the resolutions, the credit would extend to any resident who is registering a vehicle and can provide the two most recent safety inspections (at least 11 months apart) showing that less than 3,000 miles were driven between the two inspections.

Michigan
Ethanol:

SEMA is supporting Michigan legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the labeling requirement. The bill provides that a person who violates the labeling requirement is liable for a civil fine up to $1,000 for each day the violation continues.

Nebraska
Special-Interest Vehicles:

SEMA-supported legislation to create a registration class and special license plate for special-interest motor vehicles was signed into law by Governor Dave Heineman. The new law authorizes owners of special-interest motor vehicles to operate them on Nebraska’s roads displaying a single license plate on the rear of the vehicle. Under the new law, special-interest motor vehicles are defined as those vehicles “of any age which are being collected, preserved, restored, or maintained by the owner as a leisure pursuit and not used for general transportation of persons or cargo.” Under a SEMA-drafted amendment, special-interest motor vehicles may be driven on public streets and roads for occasional transportation, public displays, parades and related pleasure or hobby activities. SEMA worked with the bill sponsor and staff to delete provisions in the original bill that would have required proof of membership in a recognized car club; forced owners to account for all daily-driver vehicles owned or operated by the applicant; obligated owners to a sworn affidavit that the vehicle would not be used for daily transportation; and mandated that these vehicles be essentially unaltered from the original manufacturer’s specifications.

New Jersey
Emissions Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA has now incorporated revisions to the State Implementation Plan (SIP) submitted by the New Jersey Department of Environmental Protection to include the extension of the new vehicle inspection exemption from four years to five years. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

Pennsylvania
Year-of-Manufacture Plates:

SEMA-supported legislation to provide vehicle owners with the option of using vintage, original model-year license plates on antique and classic vehicles was signed into law by Governor Tom Corbett. Under the bill, an application fee of $75 would be charged to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state between the years 1906 and 1975, must be provided by the vehicle owner and be legible from a reasonable distance. Under current law, antique-vehicle owners may apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is signed into law.

Texas Street
Rods/Custom Vehicles:

The Texas Department of Motor Vehicles (DMV) has issued its policies and procedures for issuance of titles and specialty license plates to owners who seek to register their vehicle as street rods or custom vehicles. The policy also provides for a basic safety equipment inspection to be performed by an Automotive Service Excellence (ASE) master technician. These procedures were drafted pursuant to the 2011 enactment into law of SEMA-model legislation. Originally slated to go into effect on September 1, 2011, the new law 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 law also allows 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. In addition, the law holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle. Unfortunately, due to a flawed interpretation of the law by the DMV, all vehicles seeking registration as street rods and custom vehicles must carry a title with a “Replica” brand—even those vehicles altered from original steel bodies. According to the DMV, any changes to that policy must be provided to the agency through amendments to the law. SEMA is currently in the process of contacting members of the Texas legislature to seek additional legislation to correct this flaw. The Texas legislature does not meet for a regular 2012 session, requiring legislation to be introduced in 2013. In the meantime, the new polices should accommodate owners of replica street rods and custom vehicles.

Utah
Vintage Travel Trailers:

A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was signed into law by Governor Gary Herbert. Under the law, vintage travel trailers would also be eligible for special group license plates and would be exempted from wheel cover, mudguard, flap, or splash-apron requirements. Slated to go into effect on July 1, 2012, the new law defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and is primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Virginia
License Tax:

SEMA helped defeat legislation that originally threatened to provide localities with the authority to raise from $100 to $500 the amount charged for an annual license tax for vehicles that do not display current license plates. Virginia Governor Bob McDonnell vetoed a substitute bill containing SEMA-drafted amendments. The SEMA amendments exempted from the license tax all vehicles and parts cars stored on private property for the purpose of restoration or repair.

West Virginia
Property Tax:

A bill to provide a cap on property taxes paid by owners of antique and classic motor vehicles was vetoed by Governor Early Ray Tomblin due to a technical issue. The bill had been amended and approved by the West Virginia State Legislature with a new $5,000 assessed value for all of these cars. Previous versions of the bill contained an assessed value provision of $1,000. Generally, the bill vetoed by the governor benefited antique and classic vehicle owners whose cars are worth more than $5,000. However, it would have penalized most antique and classic vehicle owners whose cars are worth less than $5,000. The legislature chose not to call an additional vote on the bill in an attempt to override the veto.

Wisconsin
Motor Vehicle Registration Rights:

Legislation that originally sought to provide legal registration to hobby vehicles with clear titles, required safety equipment and in good working order was signed into law by Governor Scott Walker. Due to opposition from the Wisconsin Department of Transportation, the bill was amended to now affect only former military vehicles. Several pro-hobby provisions of the bill with application to all hobby vehicles were eliminated. While the amended bill does not solve the many problems associated with registering a hobby car in Wisconsin, it still gained SEMA’s support since it improves the rules governing former military vehicles.

Small Public Companies:

President Obama signed into law a bipartisan bill designed to remove regulatory barriers for companies going public and seeking to attract investors. The SEMA-supported “Jumpstart Our Business Startups” Act makes it easier for small companies to comply with Securities and Exchange Commission (SEC) rules when securing outside capital investment. Companies will be able to file initial public offerings more quickly as regulations will be phased in over a period of five years. The legislation raises the threshold number of shareholders triggering SEC registration from 500 to 2,000 and increases the offering threshold from $5 million to $50 million in shares. Companies can raise capital using the Internet and social media so long as the website is registered with the SEC and investors are informed about a company’s financial condition and shareholder risks. Individual investments are limited to 5% of annual income for those earning under $100,000 a year and 10% for those earning above that amount. Companies with gross annual revenues of up to $1 billion can sell shares to the public while being exempted from some of the requirements of the Sarbanes-Oxley Act.

Certain Steel Wheels from China:

The U.S. International Trade Administration has issued final duty rates for certain steel wheels from China that are being sold at less than fair value in the United States. The subject wheels range from 18 to 24.5 inches in diameter and include rims and discs whether imported as an assembly or separately. The wheels are typically used in commercial vehicles (trucks, buses, trailers, etc.), but duty rates also apply to passenger car wheels within that size range. Calculations for the final dumping margins range from 44.96% to 193.54% ad valorem, and countervailing duties range from 25.66% to 38.32% ad valorem. The duties are on hold until the U.S. International Trade Commission confirms that the dumping and unfair subsidies are causing harm to U.S. industry.

Highway Bill:

The U.S. Senate passed its version of legislation to fund highway construction and other transportation projects over the next two years. SEMA supports the bill’s maintenance of current funding levels in order to address the nation’s aging infrastructure and provide states with more spending flexibility. The legislation also would dramatically increase fines for vehicle or equipment recalls and include mandates to address distracted driving, unintended acceleration and pedal placement and require installation of event data recorders. SEMA contends that current civil penalties are already higher than those imposed on manufacturers for many other types of consumer products, and the National Highway Traffic Safety Administration is already addressing the other issues. The legislation has been sent to the House of Representatives, which is attempting to draft its own bill for a five-year plan. The draft bill currently does not include the auto safety provisions. The government’s authority to fund highway programs expires on June 30.

Ethanol Fuel:

The EPA has begun approving applications by fuel producers to blend gasoline with 15% ethanol (E15). However, there are several other regulatory hurdles to be met before the fuel can be offered for sale. Gas stations will not be required to sell the fuel, and the federal government and most states have not yet enacted laws to shield the industry (gas stations, fuel producers, automakers, auto parts manufacturers, etc.) from lawsuits by consumers who allege that E15 caused mechanical breakdowns. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. A court is expected to rule this summer on a lawsuit challenging the EPA waivers. SEMA is working with a diverse coalition of other associations to oppose the introduction of E15.

Forest Service Planning Rule:

The U.S. Forest Service updated its “Planning Rule,” which provides guidance and directives for managing the country’s 155 national forests and 20 grasslands encompassing 193 million acres. The courts have rejected previous versions of the Planning Rule in recent years. SEMA joined with a number of other organizations representing the off-road community in opposing the latest version on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Lawmakers attending a recent U.S. House Natural Resources Subcommittee hearing expressed similar concerns, noting that the rule incorporates a number of undefined terms and does not ensure a “full mix of recreational opportunities.” The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. Forest managers will now begin applying the rule’s guidelines as they gradually update management rules for each individual forest and grassland.

SEMA News—June 2012

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