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OPINION – How to make your case in writing for protective legislation

I was pleased to meet with a large contingent of Nebraska motorcycle dealers in Lincoln earlier this month. A great turnout on a Sunday morning was driven by Robert Kay, Star City Cycle, in Lincoln.
I was asked to provide a market overview and an update on activities of other state associations. The dealers were there to take action and unanimously voted to reactivate the state association, under the auspices of the Nebraska Automobile Dealers Association.
The executive secretary of the auto dealers outlined the current franchise laws, which are very protective for motor vehicle dealers. However, there was no protection for retailers of ATVs and PWCs and the limited registration of these products allowed Nebraska consumers to cross state lines and avoid a 5.5 percent sales tax. An executive committee for the motorcycle dealers, who would become an independent division of the auto dealers, was elected to work on drafting legislation and regulations to be presented at the next session of the Nebraska state legislature.
I provided them with a preamble for the legislation that I had recently written. I have printed it here for the benefit of any dealer group presenting a bill to its respective legislature. I believe the following clearly states the position of the dealers and makes clear the need for protective legislation that is in the interests of the citizens of the state.
A message to the legislature
The distribution and retail sale of many products is, in the interest of the public well being, regulated by the state. Alcoholic beverages, pharmaceuticals, firearms and other products are subject to standards that assure they are provided to the public in a responsible manner.
For all the reasons we regulate these items, the state needs to do the same for motorcycles, ATVs and other motor-driven powersport products. Given the potential for serious injury and death, retailers of motorcycles, all-terrain vehicles (ATVs) and other powersport products need to be in a position to sell the appropriate product to each consumer and provide the requisite training and safety instruction.
By way of background it is important the legislature understand the nature of the retail motorcycle, ATV and powersport business. The retailers selling these products are licensed by the state as motor vehicle dealers and sell new vehicles under dealer agreements with the manufacturers or distributors. A very large investment and even larger personal guarantees are required. The typical retailer is an active hands-on operator with his or her entire net worth committed to the enterprise. There is only one source of product and that is from the OEM supplier.
The vast majority of retailers live in the community they serve. They are generally active users of the products they sell and have ongoing interaction with their customers. Given the extent of their commitment and the customer relationships, they desire to promote the safe and responsible use of everything they sell. It is essential that the state promulgate regulations that assure the local community dealer is able to do so.
The manufacturers of these products operate on a global basis. The worldwide distribution of product often does not allow for the consideration of local market conditions. Long-range production cycles will fill the supply pipe line and often create scenarios where the OEM needs to force the wholesale distribution of product that has not met sales expectations. This is where the interests of the public and the interests of the OEM conflict.
The local dealer is not in a position to effectively negotiate with an OEM supplier, and often finds himself under economic duress and forced to stock product in excessive quantities and/or models that are not appropriate for the local marketplace. Also the ability to qualify for advertising co-op and other programs is tied to buying the models the OEM wants a dealer to sell. If the dealer does not order in accordance with the OEM’s wishes, there’s always the threat the OEM?would appoint another local dealer.
When inappropriate or excessive amounts of product find their way into a local dealer’s inventory, the dealer is forced to retail that product and finds that the standards he/she wishes to maintain are compromised. The person best able to judge is the local dealer selling product to his neighbor.
We can not and do not accept the forced distribution of other potentially hazardous products in our state. OEMs will argue that product is always purchased at the discretion of the dealer. This is simply not a realistic argument given the control the OEM has without the presence of protective legislation. The OEM suppliers often state their desire for their products to be sold in a safe, sane and appropriate manner.
Please take action to enact legislation that will assure desired practices of the dealer and those professed by the OEM suppliers are a reality for the citizens of our state. psb

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