The Powersports Dealers Association of Colorado will hold its annual membership meeting on August 20th at 10 am. The meeting will be held in the Clubhouse at Fay Myers Motorcycle World in Greenwood Village and is open to all current PDAC members and any Colorado powersports dealers who might be interested in joining the organization. At this meeting we make sure all attendees are fully informed about the overall strategy and tactical planning of the PDAC board of directors.

I would like to encourage you to attend this meeting. As you can see elsewhere in this newsletter, the association’s past successes in passing and influencing legislation have proved a boon for quality powersports dealers across the state of Colorado. The challenges and opportunities PDAC faces in the next few years will also undoubtedly affect the entire powersports industry, retailers as well as customers, and every dealer in the state should play a part in determining what stand the association takes on the proposed laws and regulations that will impact the operation of their businesses.

PDAC has established itself as an effective advocate for powersports retailers in the state’s legislative and regulatory arenas. The cost of membership provides a high value when considering the quality and focus of our association’s efforts to make an impact on the laws and rules that will either help or hurt our retailing efforts for years to come.

Upcoming issues like possible changes to the franchise laws (which now include dirt bikes, ATVs, snowmobiles and personal watercraft, thanks to PDAC) and the possibility of titling and licensing off road vehicles will have long-lasting impacts on the retail powersports industry and we’d like to have every dealer in the state involved. If you’re not already involved, start by attending the annual meeting this August. And bring a dealer friend who doesn’t yet belong with you!

Kurt Finley

The 2008 legislative session was a busy one with insurance, motor vehicle and land use bills in abundance. The following shows legislation relative to our industry, the effects of the legislation, PDAC’s activities and the final disposition of the proposed legislation.

SB-11 This legislation provides for personal injury protection for motor vehicles. PDAC worked extensively on this legislation to obtain an exemption for street bikes as the cost of this coverage is astronomical. The bill was amended as needed and signed by the Governor with the street bike exemption on 06/05/08

SB-211 and HB-100 Both bills provided for either emergency medical coverage or personal injury protection for all motor vehicles. Similar to SB-11 and run simultaneously with it, PDAC also amended the industry out of both bills. All 3 bills were in play until the last few weeks of the session at which point they were postponed indefinitely and SB-11 was passed.

SB-244 This was a last minute attempt at major highway funding adding a personal property tax surcharge to all motor vehicles including trailers with an additional $25 registration increase. PDAC opposed this bill, as did many other interests except, of course, contractors, bridge builders, road construction suppliers, chambers of commerce, and concrete companies. The bill was postponed indefinitely. Some form of this type of legislation will return in 2009.

HB-1050 Prior to this legislation an individual wishing to operate a trike could only obtain a 2 wheel motorcycle license to legally operate the vehicle. This legislation provides for a new class of license for trikes where an individual can actually use a 3 wheeler to obtain that specific endorsement. Many people, who would not normally be able to ride a two-wheel vehicle, can ride a trike. However, the bill in its original form was drafted so as to change the entire criteria for obtaining a motorcycle endorsement. This drafting oversight could have resulted in a complete change to how a motorcycle endorsement is obtained. This error was corrected by PDAC and the bill is now law.

HB-1136 This bill is law. The background of this bill begins with SB07-070 that required the CO Bureau of Investigation to establish an internet-accessible verification for use by motor vehicle dealers, recyclers, automobile repair shops, licensed tow operators, and the public, the Colorado Motor Vehicle Verification System (CMVVS). The CBI is only required to establish and maintain a means for public access to the CMVVS, not to track stolen vehicles. A motor vehicle's vehicle identification number is used to determine whether a vehicle has been stolen. While the information that this system would provide is currently available to law enforcement, the CMVVS is not yet in operation. The CMVVS is administered by the Statewide Internet Portal Authority. The bill repeals current law requiring the Department of Revenue (DOR) to suspend a vehicle registration based upon the filing of an affidavit of theft by the owner of the stolen vehicle as of July 1, 2009. It requires the DOR and the county clerks, when a person applies to register or title a motor vehicle, to electronically verify that a motor vehicle has not been reported stolen with the Department of Public Safety. The requirement takes effect July 1, 2009. It is assumed that verification will be performed by using the Colorado Motor Vehicle Verification System. It also requires the DOR to establish procedures to notify local law enforcement if someone attempts to register a stolen vehicle. The bill includes the following provisions:

prohibits the DOR or the counties from registering a stolen vehicle until the rightful owner recovers it; and

exempts the DOR or county clerks from paying a fee to access the verification system

Note: Please contact your county clerk on the availability of this system.

SB-151 This bill, now law, requires training for those seeking to become used motor vehicle or powersports dealers. It does not apply to existing or new vehicle dealers. PDAC supported this bill as the need to train used dealers entering the market on the law and regulations, particularly for powersports products, is much needed.

SB-60 PDAC supported this bill as it reauthorizes the Automobile Theft Prevention Authority. This entity has been shown to have reduced the theft of all motor vehicles and thereby, one hopes the overall cost of insuring motorcycles.

SB-144 Creates a new definition of abandoned motor vehicle at a vehicle repair shop and a new procedure for obtaining title. I am providing a link to the new legislation for dealers to review. The process has changes from the old abandoned vehicle law that was repealed by this legislation. While not complicated, it does have a few hoops for the repair shop to jump through in order to obtain the title just like the old law. As an example, a motor vehicle that has been inspected by law enforcement is not allowed a title application if the inspection is more than a year old. It does not, however, preclude a follow-up inspection. As time allows we will be providing more specifics on this legislation.

Click here to read it.

HB-1069 This has been extensively covered, however, it provides for state enforcement of federal motorized travel management on a year-round basis. I have written an article for further review that can be found further below in this newsletter or at the COHVCO website.

SB-63 This bill, now law, will employ the 96db(A) stationary test for OHVs (99db(A) if manufactured before 01/01/98) and the stationary test for snowmobiles, J2567. Excessive noise is a huge problem that we deal with regularly. This law can help reduce excessive noise and provide a standard that is enforceable as opposed to one that may outlaw use of the vehicles on a county by county basis. Being a state law it supersedes county ordinances. The enforcement date is January 2010 giving those with excessively loud bikes and ATVs time to comply. Everything currently manufactured meets this new state law; ATVS, dirt bikes and snowmobiles. Closed course competition vehicles are not subject to the law unless used on public lands(just like spark arrestors). Dealers are not responsible for sound testing used vehicles.

If you are already a licensed motor vehicle dealer, please click here to download the appropriate forms and PDAC Helpful Hints for obtaining your powersports vehicle dealers license.

If you do not already have a motor vehicle dealers license, go to the Colorado Department of Revenue, Auto Industry Division website at www.revenue.state.co.us/dlr/home.asp to download the appropriate forms.