From the Desk of Jerry Abboud, Executive Director

A New Beginning or The Beginning of the End - It's Time for YOU to Decide

The PDAC annual meeting is scheduled for Monday August 13, 2007. The meeting will be from 10AM to 2 PM at Fay Myers Motorcycle World Club Meeting Room. There is much to be discussed and addressed by the dealers. What follows is a general perspective on the important issues you face, why your organization needs you and why you need it, followed by an agenda.

Our Keynote Speaker will be Robert Sexton, Director of the Auto Industry Division, Department of Revenue. Bob will be discussing the new Powersports Legislation and licensing requirements along with changes to the Motor Vehicle Dealer Laws. This is a must attend session for all dealers wishing to understand and be in full compliance with the new laws.

Also identified as important dealer topics are taxation and registration of powersports products where the purchaser resides, GAP insurance increases, shoring up the franchise laws as OEM practices become more onerous, Noise Legislation for OHVs and Snowmobiles, looming exhaust emissions changes for street vehicles, public land access, the possible return of no-fault insurance and much, much more.

PDAC is the only organization that has a comprehensive grasp of these issues and how they affect dealers. PDAC is the only entity with the experience and resources to make a positive difference for your business using law and regulation. PDAC is the one friend you have when government goes out of control.

So what will be the reason you don't attend this year? You might be asked to join? You have to travel to the meeting? Someone else will carry the load? Nothing I do counts? None of these qualify as excuses for letting the industry go to hell. It is a simple fact; you participate, you support this 40 year old organization or you fend for yourselves.

This will either be the best attended, best forum we have ever had, or it may well signal the beginning of the end. It's 5 minutes to 2AM, last call, I account for over half of the 40 years and at last I have begun to question the sanity of a state association with only 1/3 of dealers participating.

The same individuals year in and year out cannot continue to do their part and yours.

This industry is more fragile than you will ever know. Not because of the economic roller coaster than can be Colorado, but because apathy will allow the safety kooks, the environmental bigots, and those without a clue to determine your future. We constantly teeter on the brink of running out of resources and yet PDAC is respected around the country as one of the best organizations of its kind. Even the Motorcycle Industry Council views us as one of the top state associations.

Ever see the MIC roll into town with their lobbyists to try and ram a state law down your throats? Ever wonder why? By now the 2/3s should understand what's at stake.

So what follows is the information on YOUR meeting:

Date: Monday August 13, 2007
Time: 10am to 2pm
Location: Fay Myers Motorcycle World, 9700 East Arapahoe Road, Greenwood Village, CO
RSVP To: www.evite.com
Agenda for the PDAC Annual Meeting
August 13, 2007
1. Introductions and opening remarks
2. Discussion of legislative issues

a. Sales Tax

b. GAP

c. OHV/Snowmobile noise restrictions

d. Changes to exhaust emissions laws for street bikes

e. Public lands access

f. Franchise Laws

g. No Fault Insurance

h. Definition of motorized bicycle
3. Keynote Speaker Bob Sexton, Director Auto Industry Division; Implementation of HB1081 and SB221
4. Lunch
5. Continuation of any morning business
6. Open Dealer comment session; let's hear from you
7. Members only meeting

a. Board elections

b. Bylaw changes
8. Adjourn

 


Wells Fargo exits powersports industry
Wells Fargo Specialty Finance alerted its dealers that it would discontinue offering indirect financing to RV, motorcycle, marine and powersports dealers, the company said in a statement July 13.

The statement included the text of a letter it sent to affected dealers, in which it announced it was terminating its dealer agreements as of Oct. 3. Wells Fargo will stop processing applications Aug. 4. Contracts approved as of Aug. 3 will be processed and funded in the ordinary course through Oct. 3.

"We regret that we will not be able to provide our financing services to you after these dates," the letter stated. "What’s most important is that you have sufficient time to identify alternative lending sources, and please keep in mind that Wells Fargo will continue to provide all our existing business banking services."

 


EPA frowns on Yellowstone snowmobile proposal
The Environmental Protection Agency lashed out against a new proposal for snowmobiling in Yellowstone National Park, saying it doesn’t go far enough in ensuring that air quality, human health, wildlife and quiet spaces are protected.

Earlier this year, the National Park Service released a draft plan that would allow 720 snowmobiles and 78 snowcoaches per day into Yellowstone. The machines would have to meet noise and pollution standards and snowmobilers would have to be with a commercial guide.

The EPA’s comments were among more than 110,000 letters, including those from state and local governments, to the Park Service on the draft plan. The proposal, which is expected to be finalized last year, is the latest attempt to resolve the long-running controversy over snowmobiling in Yellowstone and Grand Teton parks.


Supreme Court Ruling
The Supreme Court just ruled in favor of manufacturers in what essentially amounts to price fixing. This new ruling in Leegin v. PSKS overturns a 1911 case involving patent medicines but still smacks of snake oil in some folks' eyes. "It could shut out the discounters in the powersports market," concedes new MPN columnist and dealer principal Bill Little from Unique Powersports in Sullivan, Missouri. But being from the "Show Me" state, Bill remains a bit skeptical, "In the near future, I think this means dealers may need to sell through their non-current inventory pretty quickly."

 

The existing law was the one that mandated car makers put "manufacturers suggested retail price" stickers on everything rather than setting a true retail price across the board. Dissenting Justice Stephen Breyer admits the new ruling is confusing. "The only safe predictions to make about today's decision are that it will likely raise the price of goods at retail and that will create considerable legal turbulence." Washington State Motorcycle Dealer Association president Jim Boltz adds, "This may or may not be the best news I have heard this year — OEMs and others can now dictate/control how their products are priced and sold at retail, but is that a good thing?" For now, the jury is out, but let us know if this impacts your dealership in the months to come.


With 'no-fault coverage' now history, auto insurance premiums dip again
An announcement this week by the state's largest auto insurer that it will cut its rates shows that the General Assembly was right to end Colorado's mandate on motorists to carry costly "no-fault" medical coverage, says the Senate's Republican chief. The move by State Farm -- the ninth rate cut by the company since Colorado stopped making motorists buy extra insurance for their own injuries in auto accidents -- follows yet another attempt by legislative Democrats this year to bring back the no-fault system.

"Eighty-three percent of Coloradans already have health coverage, so no-fault basically double-charged the vast majority of motorists," said Senate GOP leader Andy McElhany, of Colorado Springs. "The old policy benefited few people yet drove up premiums for everybody."

State Farm's decision to lower its overall rates 7.2 percent, as reported by the news media on Monday, was attributed by the company to the current "tort" system of auto liability. Under that approach, the motorist at fault in an accident pays all of the other motorist's costs, including medical bills. Under the no-fault system that the legislature ended in 2003, all drivers had to carry extra medical insurance that not only covered trauma care in emergency rooms but even extended treatment by chiropractors and massage therapists. The coverage was paid out regardless of who was at fault.

"It was a real boon to some providers like aromatherapists but a raw deal for the rest of us on the road," McElhany said. He noted that in the four years since the state stopped requiring no-fault medical coverage, premiums with State Farm and other carriers have declined steadily.

Earlier this year, Democrats Lois Tochtrop in the Senate and Anne McGihon in the House introduced Senate Bill 193 to restore a version of the no-fault system. The bill's premise was that trauma care providers, especially small, rural paramedics services, are often left hanging for payments while waiting for blame to be assessed after they have treated auto-accident victims. However, the bill’s wide-ranging critics said there are far cheaper ways to address short-term concerns of rural responders.

The bill would have raised auto premiums an estimated $200 a year, which likely was one reason the measure died in a Senate committee.

Said McElhany, "Given the current line-up in charge of the legislature, you can almost bet this bill, or one that is pretty similar, will be back in the next session."


Attention Colorado Motor Vehicle Tire and Motorcycle Tire Retailers:
Effective July 1, 2007, the Waste Tire Recycling Development Fee rate will increase to $1.25 per tire. Retailers of new tires are required to collect the fee on every motor vehicle tire turned over to the retailer by a tire owner.

Additionally, beginning July 1, the retailer's invoice must show a separate line item for the Waste Tire Fee. The separate line item of the Waste Tire Fee on the invoice is not subject to sales tax.

Finally, effective July 1, 2007, motorcycle tires will be subject to the Waste Tire Fee.

Any retailers of motor vehicle and/or motorcycle tires must file the "Waste Tire Exchange Fee Return" (DR 1772) on the same date the retailer's "Colorado Retail Sales Tax Return" (DR 0100) is due.

For additional information, please see FYI General 13, "Waste Tire Recycling Development Fee" regarding this law change.

PDF Version: http://www.revenue.state.co.us/fyi/pdf/generl13.pdf

Web Version: http://www.revenue.state.co.us/fyi/html/generl13.html

The updated DR 1772 form will be available on the Colorado Taxation Web site on Monday, July 2.

The DR 1772 may be found on the Colorado Taxation Sales/Use Tax Forms Web page at http://www.revenue.state.co.us/TPS_Dir/wrap.asp?incl=salestaxforms

Office of Public Information & Education
Colorado Department of Revenue
Taxpayer Service Division
www.TaxColorado.com



Clinton Roadless Rule
You may have read the new development in the Blue Ribbon Coalition's alert that enviros in California are claiming no OHV recreation with the Clinton Roadless rule to which BRC responded:

"The 2001 Roadless Rule (a.k.a. Clinton Roadless Rule) DOES NOT prohibit or even discourage Off Highway Vehicle use, or prohibit the management, maintenance, mapping or marking of OHV systems in Inventoried Roadless Areas in any way whatsoever. The text of the "Clinton Roadless Rule" clearly allows for vehicle travel along classified roads and trails designated for vehicle use. 36 C.F.R. 294.11 & 12 (2001) (repealed)."

However, what is not addressed is that the enviros are correct that the Clinton Rule prohibits the rebuilding and realignment of classified roads except under extraordinary circumstances which do not include recreational access. This is the insidious nature of the Clinton Roadless Conservation Rule. Decommissioning roads will, over time eliminate access to trails. It is by design.

COHVCO was right on top of this issue from the beginning and the language in the Colorado Roadless Petition provides that recreational access roads maybe, rerouted and rebuilt along with the trails, thus taking this argument completely away from the greens and leaving recreation road management to the Forest Service. Let’s hope we can hold our language through the federal rulemaking process.

Here's an article about the ongoing dilemna in California in ATV Source:

Anti-recreation activists in California have long pushed State and Federal agencies to manage Inventoried Roadless Areas as "non-motorized." At recent meetings where BRC members and staff were in attendance, several of these activists have suggested that the 2001 Clinton Roadless Rule actually precludes all active management, such as trail maintenance, of OHV use in Roadless Areas.

We have come to expect this sort of thing from California's brand of anti-recreation extremist groups. However, BRC is much more concerned about reports of U.S. Forest Service personnel in opposition to proposed route maintenance in certain Roadless Areas. While we have not been able to verify or confirm the accuracy of these reports, we thought it important to issue a Land Use Advisory to all of our members in California and other states.

The 2001 Roadless Rule (a.k.a. Clinton Roadless Rule) DOES NOT prohibit or even discourage Off Highway Vehicle use, or prohibit the management, maintenance, mapping or marking of OHV systems in Inventoried Roadless Areas in any way whatsoever. The text of the "Clinton Roadless Rule" clearly allows for vehicle travel along classified roads and trails designated for vehicle use. 36 C.F.R. 294.11 & 12 (2001) (repealed).

To read the rest of the article, visit www.atvsource.com


Congressman celebrates Ride to Work Day
Like many motorcyclists, Tim Walberg celebrated Ride to Work Day by throwing a leg over a bike and heading to the office.

But unlike most of us, Walberg's trip to work today ended at the steps of the U.S. Capitol Building where he serves as a representative for Michigan's 7th Congressional District.

The longtime AMA member then delivered the following speech on the floor of the U.S. House of Representatives:

Today is National Ride Your Motorcycle to Work Day, and just a few minutes I ago, I proudly road a Harley-Davidson Road King to the steps of the Capitol Building.

Motorcycle riding has been a passion of mine since my 20th birthday, and as a proud member of the American Motorcyclist Association and the Harley Owners Group, I can attest that responsible riding has many unique recreational benefits for millions of Americans.

During this session of Congress, we are looking for ways to break our dependence on foreign oil, develop alternative fuels and increase domestic conservation.

Motorcycles are an excellent alternative to current forms of transportation because they offer both fuel efficiency and greater enjoyment for the commuter.

I encourage all Americans to learn more about the recreational and environmental benefits of responsible motorcycle riding by visiting the American Motorcyclist Association's website and availing themselves of the motorcycle rider-safety training program.

Ed Moreland, AMA Vice President of Government Relations, was present to greet Congressman Walberg and responded by saying, "We are thrilled that Representative Walberg has taken this opportunity to raise awareness about the benefits of motorcycles and Ride to Work Day. The motorcyclists of south-central Michigan should be proud to know that a true rider is carrying the message of motorcycling freedom, safety and way of life to the steps of Capitol Hill."

For more about Ride to Work Day, see www.ridetowork.org.



Board of Directors
Chairman, Kurt Finley - Colorado Powersports
Secretary-Treasurer, Jason White - Fay Myers Motorcycle World
Director, Donavan Facey - Xtreme Performance
Director, Dave Burke - Sun Enterprises
Director, Bill Comegys - Grand Prix Motorsports
Director, Brian Harris - Fort Collins Motorsports
Director, Jack Starr - RPM Motorsports
Director, Gary Wilkerson - Handlebar Cycle
Director, Mike Hendry - Foothills BMW/Triumph

Executive Director, Jerry Abboud
Members
All Sports Honda
Apex Motorsports
Aurora Honda
Colorado Powersports
Coyote Motorsports
Davis Service Center
Fay Meyers Motorcycle World
Foothills BMW/Triumph
Fort Collins Motorsports
Grand Junction HD
Grand Prix Motorsports
Greely HD, Honda, Yamaha
Handlebar Cycle
Hi Country Motorsports
Interstate Honda

Motoadventure
Motorcycle Accessories
Pikes Peak Harley Davidson
Rocky Mountain Kawasaki
RPM Motorsports
Sun Enterprises
Twin Peaks Motorsports
Vickery Motorsports
Xtreme Performance Center
Associates:
Universal Underwriters
Tucker Rocky Dist
PSN
Western Powersports
Retail Powersports Mang. Group


Disclaimer: PDAC is not authorized to dispense legal advice. The information contained in this newsletter is for informational purposes only. PDAC advises that dealers consult legal counsel on the specifics of any law or regulation to ensure full compliance.