2002:The Year in Review

STATE UPDATE

SEMA’s determined pursuit of its pro-active legislative agenda persuaded state legislators to overhaul existing statutes and create brand new ones to safeguard and expand the specialty equipment aftermarket. The year 2002 brought a series of significant legislative and regulatory accomplishments for the industry and the vehicle enthusiast community on issues ranging from equipment standards to registration classifications to emissions test exemptions to scrappage laws. Our successes in 2002 once again demonstrated the benefits of active industry involvement and the grass roots potency of hobbyists across the country. To follow are a few of these successes.

Arizona Emissions Exemption:  SEMA joined with Arizona hobbyist groups to pursue an exemption from emission inspections for vehicles at least 15 years old which are insured as collectible or classic automobiles. Currently, vehicles manufactured after 1965 are required to be emissions inspected. The bill was amended to require that state regulators seek approval for the exemption from the U.S. EPA. The legislature also agreed on a measure to exempt drivers of historic trucks from the requirement that they hold a commercial driver’s license if the vehicle has been issued a historic license plate.Both measures were signed into law.

California Exhaust Noise:  Thanks to a new SEMA-sponsored law, California automobile hobbyists are now better equipped to fight unfair exhaust noise citations issued by state law enforcement officers. Legislation recently signed into law by Gov. Gray Davis to provide for a statewide exhaust noise testing program will allow motorists to prove their vehicle complies with state noise standards. The new law requires smog check referee stations to perform the test under Society of Automotive Engineers (SAE) test procedure J1169. These referee stations will issue certificates of compliance for vehicles when tests of their exhaust systems demonstrate that they emit no more than 95-decibels. The law also allows courts to dismiss citations for exhaust systems that are tested and for which a certificate of compliance is issued.

California “Specially Constructed” Vehicles:  A SEMA-supported bill to allow previously registered kit cars and replicas to qualify for the “specially constructed” designation was signed into law in California.The new provision expands a California law enacted last year to provide a more accurate model year designation and emissions-system certification for these specially constructed vehicles. In the past, only those vehicles that had never before been registered could take advantage of this classification. To determine the model year of a specially constructed vehicle, a smog test referee compares the vehicle to those of the era that the vehicle most closely resembles. If there is no close match, it is classified as a 1960 vehicle. Only those emission controls applicable to the model year and that can be reasonably accommodated by the vehicle are required. The registration program is limited to the first 500 specially constructed vehicles per year that meet the criteria.

California Scrappage: Following SEMA's continued work with the California Air Resources Board (CARB), a system has been set up to notify individuals who may want to buy scrapped vehicles and parts before they are destroyed. Through the state-sponsored program, consumers interested in scrapping their vehicles will contact an authorized dismantler to set up an appointment to bring the vehicle in for inspection. A list of the scheduled appointments will be compiled by the dismantler on a daily basis and e-mailed to members of the public who sign up to receive it.CARB will also amend its vehicle scrappage program to extend the waiting period before which these vehicles may be destroyed. In addition, CARB is proposing to delete the provision requiring dismantlers to first receive the permission of the previous vehicle owner before making the vehicle and its parts available for resale.

California Greenhouse Gas Reduction: Governor Davis signed into law a bill requiring the automakers to reduce "greenhouse gas" (GHG) emissions. The new law directs CARB to begin the regulatory process for cars and trucks by the end of 2005. Automakers vow to continue the battle to defeat this law in court. Automaker arguments rest on the fact that by limiting GHG emissions, California is effectively creating a state-level fuel economy standard-- a federal prerogative-- because GHG emissions are directly linked to fuel use.

Georgia Altered Suspensions:A bill that threatened to ban any vehicle whose suspension was altered more than two inches above or below the factory recommendation died in the Georgia Legislature. This law currently applies only to private passenger vehicles – not trucks. The bill also required lenses on taillights to meet federal standards and not be “covered or consist of anything other than reflective material installed as original factory equipment . . .”  In conversations with Georgia legislators, SEMA discouraged legislators from pursuing this measure.

Illinois Street Rods/Custom Vehicles:  Car hobbyists and the specialty aftermarket scored a major victory when SEMA model legislation to create titling and registration classes for street rods and custom vehicles was signed into law by Illinois Governor George Ryan. This new law provides for special license plates and exempts rods and customs from periodic inspections and emissions tests. It also allows for the use of non-original materials and creates a titling criterion that assigns these vehicles the same model year designation as the production vehicle it most closely resembles.

Illinois “Operable” Vehicles:  SEMA rallied the troops to defeat Illinois legislation that would have allowed county boards to declare certain operable vehicles on private property a nuisance and order their removal.Under current law, only inoperable vehicles can be targeted for removal.

Massachusetts Aftermarket Exhaust Systems:  Along with several member companies, SEMA successfully killed Massachusetts legislation that sought to prohibit the sale or installation of most modified exhaust systems. This is the same bill that was sent out for a study last year after SEMA voiced objections to the measure. The bill died when the Massachusetts legislature adjourned its regular session for the year.

New Hampshire Antique Cars:  A bill to exempt from “junkyard” control regulations antique vehicles owned and maintained by automotive collectors was passed by the New Hampshire Legislature and signed into law. Antique motor vehicles, defined as those over 25 years old, are only required to be stored and repaired by the owner out of public view. The new law also provides that one unregistered and uninspected motor vehicle not over 25-years old may be kept on the premises. However, the measure applies only to noncommercial antique vehicle restoration activities and limits to 5 the total number of vehicles stored outside.

New York GHG Emissions:  Following California's lead, the New York Assembly introduced legislation to require the Department of Environmental Conservation to regulate "greenhouse" gas (GHG) emissions from automobiles. The bill provided that the regulations must be consistent with California's laws and regulations and applied to 2009 model year and later vehicles. The new California law prohibits regulators from reducing speed limits, restricting vehicle size or imposing new taxes or fees.No committee action on the New York bill was scheduled.

Rhode Island Street Rods/Custom Vehicles:  Rhode Island’s Governor vetoed SEMA model legislation to create vehicle registration classifications for street rods and custom vehicles. The Rhode Island bill, which passed easily in the legislature, provided for special license plates, included appropriate year-break definitions, provided for the use of non-original materials and created tilting criteria that would have assigned these vehicles, including replicas, the year of manufacture that the body of the vehicle resembles. SEMA and Rhode Island hobbyists have vowed to pursue the bill again in 2003.

Vermont Scrappage Program:  SEMA successfully opposed two bills in Vermont that would have implemented statewide vehicle scrappage programs. One would have been financed with a pollution surcharge and diesel fuel tax. The other proposed to dispatch portable vehicle crushers to various locations in the state to accept vehicles for crushing. SEMA convinced legislators of the inefficiencies of scrappage programs and expressed concern for the denied availability of vintage cars and parts for restoration projects.

Vermont “Junkyard” Definition:  SEMA defeated a bill reintroduced in the Vermont legislature to expand the definition of “junkyard” to include any place of outdoor storage of four or more junk motor vehicles that are visible from a public highway. Under this definition, hobbyists working on multiple collector vehicles on private property would have been regulated as businesses.

Virginia “Smog Dog” Program:  SEMA convinced Virginia legislators to amend a bill that sought to force all owners of 1968 and newer vehicles to undertake an emissions inspection if on-road sensors deemed the vehicle out of compliance with applicable emissions standards. Virginia law currently provides an exemption from periodic emissions tests for vehicles 25 years old and older. These vehicles are not exempted from on-road tests. However, lawmakers enacted a SEMA amendment that exempts vehicles 25-years old or older registered as antiques from on-road testing.

FEDERAL UPDATE

In the past year, SEMA acted on a broad spectrum of federal legislative and regulatory issues critical to the association’s members. With notable exceptions, lawmakers on Capitol Hill remained largely trapped in partisan gridlock and unable to convert legislation into law. However, regulators continued to issue new rulemakings that impact the automotive aftermarket. The following is a status report on some of the more significant legislative and regulatory battles.

Federal Scrappage Legislation:  A SEMA-sponsored grassroots effort defeated a proposal to establish federally funded state-run scrappage programs across the country for vehicles over 15 years old. In the end, Senator Ben Nighthorse Campbell's (R-CO) amendment to kill the program was unanimously approved by the Senate.The scrappage provision was part of the Senate’s comprehensive energy policy bill. SEMA’s success in defeating the scrappage provision was testament to the effectiveness of the opposition generated by the association’s membership and the SEMA Action Network. SEMA voiced its gratitude to Senator Campbell, Co-Chairman of the Congressional Automotive Performance and Motorsports Caucus, who made the victory possible.

OBD Information:  The issue of sharing OE on-board diagnostic (OBD) information with the aftermarket is being addressed on multiple levels. The U.S. EPA and the California Air Resources Board are establishing guidelines and requirements intended to ensure that all aftermarket service and repair facilities have access to the same emission-related service information in the same manner as that provided by the manufacturers to their dealerships. The automakers have pledged to make the information available. Meanwhile, a coalition of aftermarket associations is pursuing "The Motor Vehicle Owner's Right To Repair Act" in the U.S. House and Senate to make information-sharing a law.

“Roadless Rule”:  In 2001, a federal judge overturned a Clinton Administration regulation to ban road building on 58.5 million acres of U.S. Forest Service (USFS) land. A U.S. Circuit Court is currently reviewing the judge’s decision. Meanwhile, legislation has been introduced in the U.S. House and Senate to make the “roadless rule” a law. SEMA is opposing the legislation and supporting the Bush Administration’s initiative to modify the roadless rule to permit more local input in forest management policy, taking into account the impact on local economies, tourism and industries such as off-road vehicle manufacturers, suppliers and retailers.

California OHV Use Ban:  Legislation has been introduced in the U.S. House and Senate to designate as "wilderness areas" another 2.5 million acres of public land in California.  The bill is a threat to off-highway vehicle enthusiasts and the related business community because motorized vehicles are denied access to lands designated as wilderness. Fourteen million acres of land in California already have the wilderness designation. SEMA has initiated a grassroots effort urging its membership to oppose the measure.

For additional 2002 legislative and regulatory successes affecting the performance market visit www.enjoythedrive.com Your Car and The Law.