2011 PDAC Newsletters

AGM meeting for PDAC set for August 24, 2011
The annual general meeting of the PDAC is set for Wednesday August 24, 2011 at the customer conference room at Fay Myers starting at 10:00AM.

The meeting will consist of 3 segments. A general meeting to which all and any (you do not have to be a member of PDAC to attend) at which the past year and activities will be reviewed, the mission of the organization discussed and feedback taken from the Dealer bodies. The second session will be a meeting of the members of PDAC (including new members who joined at the previous meeting) to participate in the regular board meeting and select the incoming board members for 2011/2012. At the end of this meeting the newly elected or re-elected members will meet in closed session to select the officers for the upcoming year.

YOU ARE INVITED TO ATTEND THIS MEETING. It is a vital and important part of the process of ensuring that the Dealers in Colorado have the correct representation as we protect our business environment.

Tough Times/Strong Actions Needed

Your PDAC board has also been a victim of this very tough economy and have been re-structuring costs as revenues from Members have decreased due to their downturn in revenues (which the member fees are based on). Recognizing revenue and expense realities and challenges caused by the recession, the PDAC board of directors decided the organization needed to stop purchasing the CIADA memberships on behalf of PDAC members for the foreseeable future. The board might restore the program in the future but, in the meantime, PDAC urges individual members to consider joining CIADA on their own as their annual memberships expire during the course of 2011
You can Quit Hiding Your Eyes, the 2011 General Assembly Comes to a Close
By Jerry Abboud

This session was a definite change of pace from the past few years. No tire disposal bills, no new business taxes or silly consumer legislation. It was however, extremely contentious and the bills impacting dealers literally hung around until the last three days of the session.

HB11-1188 by Rep. Liston and Se. Newell, requires 90 days notice if and including the reasons for cancellation or termination of a dealer agreement or modifying or replacing a dealer agreement in whole or in part if the modification would adversely alter the rights or obligations of thn e dealer under the current dealer agreement or the dealers investment. (applies to motor vehicles and powersports dealers)

The major amendment by PDAC on behalf of our dealers was not only making sure powersports dealers where included in the bill, but also lowering the threshold amount for facility improvements from $250,000 to $25,000 for motorcycle and powersports dealers based upon the concept of multiple lines and lower dollar volume. Had PDAC not provided this amendment and made sure of its passage, an OEM could have looked to requiring $250,000 per product line in facility improvements every 7 years. This bill was finaly sent to the Governor on the day before the end of the session.

HB11-1185 by Rep. Ramirez and Sen. Mitchell, which requires banks and lenders to provide a lien release and motor vehicle title within 15 days of the final payment on an auto loan, is headed to Colorado Governor John Hickenlooper for his signature. The House has concurred with the Senate amendments and re-passed the bill by a vote of 63 to 0 to 2 (Rep. McKinley and Rep. Kagan had excused absences).

This is a huge success for Colorado dealers and consumers and we appreciate all dealer participation in getting this legislation passed. We will let you know when the bill has been signed by Governor Hickenlooper and, once signed, it will be immediately enforceable.

HB11-1264 by Rep. Priola and Sen. White provide for a compulsory $7.20 powersports title and optional Dirtbike and ATV plate for $25.00 for use on unpaved roads. The bill was incredibly contentious for cities and counties and despite over 17 amendments the bill did pass out of the House and into the Senate but died on the last day of the session.

Rep. Priola will again run the bill in 2012 while PDAC attempts to negotiate a use pattern acceptable to local government. PDAC stresses the need for a powersports title to aid in financing and protecting customers and dealers alike.

SB11-208 by Sen. Schwartz and Rep. Sonnenberg was passed to merge the Colorado Division of Parks with the Colorado Division of Wildlife. This will have a powerful impact on outdoor recreation in Colorado. The purposes being to save money and consolidate resources although these goals lie in the future.

PDAC was able to make significant changes to provide for better opportunities for Parks to continue providing OHV programs.

PDAC Executive Director, Jerry Abboud, was selected to sit on the citizens advisory committee on the hiring of a new director for the newly created division of Parks and Wildlife.

Public Land Use Issue Heating up
By Jerry Abboud, Executive Director

Seems the Republican Congress has at least two bills in the House in D.C. to take back or prevent the taking of public lands out of multiple use management. First HR1581 by Kevin McCarthy of (CA) seeks to remove over 43 million acres of federal public lands from the list of Wilderness Study Areas (WSAs) and Inventoried Roadless Areas ( IRAs).

This Common-Sense Legislation Opens These Lands Up For Public Use And Enjoyment. This legislation simply implements the recommendations of BLM and USFS, and lifts the restrictive management practices on these specific 43 million acres of WSAs and IRAs. The bill directs that these lands be managed for multiple use, which includes increased recreational opportunities, responsible resource development and better access for firefighting capabilities. This legislation does not direct these lands to be used for any specific activity; rather, it allows local land managers and surrounding communities to determine through the local land management planning process whether these areas ought to be used for these activities or not.

This legislation takes the approach if the agencies themselves find the land unfit for Wilderness, why are millions being denied access on lands for which they pay taxes on so a select few can have their own little heaven? Bill to be heard in the next few weeks.

In 1906 Congress passed what is commonly referred to as the Antiquities Act. A number of Presidents particularly, Cinton, have used it to issue presidential orders (yes that means Congress doesnt get a say) to lock up millions of acres of land in the West. In anticipation of an Obama administration gift to the enviros Congressman Devin Nunes (CA) has authored bill HR758 to address the abuses of the Antiquities Act requiring the following before any Monument Proclamation will be approved:

  • Local public hearings

  • Analysis of economic impacts

  • Consultation with your local government

  • Congressional Approval

  • Smallest area possible-No More hundred thousand acre proclamations

  • Perhaps most important to each of us is that any restrictions the proposed Monument will place on water rights, hunting, recreational shooting, grazing, timber production, vegetation manipulation to maintain forest health, off-road vehicle use, hiking, horseback riding, and mineral and energy leases, claims, and permits, is narrowly tailored and essential to the proper care and management of the objects to be protected.
  • In short this would make for National Monument Designation Accountability and Transparency, which is also the name of this much needed legislation.

    Kids may yet gain access back to ride. The bll; Enhancing CPSC Authority and Discretion Act, recently passed a House subcommittee. This bill is useful, but falls short of the Kids Just Want to Ride Act l also being considered.

    Rep. Denny Rehberg (R-Mont.), author of H.R. 412, the Kids Just Want to Ride Act, said: "I appreciate the House Subcommittee on Commerce, Manufacturing and Trade's continued work to undo the consequences of the overreaching regulations created by the Consumer Product Safety Improvement Act. However, this legislation still does not go far enough in exempting youth-sized motorcycles and ATVs.

    Both bills continue through the process. If they pass into the senate the real work will begin. Be prepared to Contact Senators Bennett and Udall. PDAC will let you know.

    Meet the PDAC Board of Directors

    Every month in the PDAC newsletter, we'll be highlighting the backgrounds of two different members of the PDAC Board of Directors. It's a chance to learn a little more about the people involved in the organization and what they stand for. This month we've asked Jason White of Fay Myers Motorcycle World and Jack Starr of RPM Motorsports to tell us a little more about themselves and here's what they had to say.

    Jason White, Fay Myers Motorcycle World
    Fay Myers Motorcycle World is proud to have contributed to PDAC since it's inception over 40 years ago. "Running a company with the longevity of Fay Myers, 63 years to-date, we see the need for a group that helps protect dealer interests and involvement at the state legislature level" says Fay Myers GM, Jason White. Jason has been with the company since early 1996, starting out as their Finance Manager and climbing to General Manager in late 2004. His involvement in the PowerSports industry didn't start there, though. Jason started riding dirtbikes at the age of five and progressed to his first streetbike at age 16 a 1989 Honda Hurricane CBR600F.

    Jason's involvement with PDAC has ranged from board member to vice chairman to chairman. Fay Myers carries nine major brands and has had their share of dealing with the state's strict vehicle franchise laws, helmet laws and Sunday closings, to name a few. When asked about advice for other powersports dealers, Jason advises, "as someone with a finance background as well as experience in running a company with over 80 employees, I definitely see the need for PDAC in any-sized powersports company in Colorado."

    Jack Starr, RPM Motorsports
    Hello PDAC members, I would like to thank you all for the opportunity of being a board member for this organization. I am starting my 25th year in the industry here in Colorado. I began as a Lot Tech in April of 1985 for a dealership in Lakewood and have worked in nearly every position in the industry. I am the entering my 10th year in my current position as General Manager of RPM Motorsports. I have been involved with PDAC and the CMDA (Colorado Motorcycle Dealers Association) for the past 15 years.

    I welcome your input and insight on the challenges we face in todays market. I feel that it is important for us to stick together as an organization, and work together to bring in new members. Please feel free to contact me by phone anytime at 303-232-7576 X-26 or by email at jackstarr@rpmms.com