Policy Position

A primary goal for SEMA's Public and Government Affairs Office is to help our members thrive. Most SEMA members are small businesses. The federal government provides many resources to help small companies become more productive and successful. This resource below supplies links to these portals of information and links to some state materials as well.

Another primary purpose of SEMA's Government Affairs Office is to consolidate the strength and maximize the influence of SEMA member businesses on legislative and Federal policy issues of importance to the small business community. One way to achieve this goal is to disseminate information directly impacting our companies. This page contains many links on daily relevant laws, legislation, or regulatory issues. These matters include taxes, antitrust enforcement, warranties, employment issues, government procurement, environment, and small business financing mechanisms.

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Small Business Resources

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Policy Position

From 2016 through 2022, SEMA advocated for the Recognizing the Protection of Motorsports (RPM) Act, a bipartisan bill designed to protect Americans' rights to modify street vehicles – cars, trucks, and motorcycles – into racing vehicles. The RPM Act was introduced in response to an EPA proposed rulemaking and policy statement that modifying the emissions system of any motor vehicle converted into a dedicated racecar is illegal. The RPM Act, as drafted by the bill sponsors in coordination with SEMA, would have clarified in federal law that it is legal to make emissions-related changes to convert a street-legal vehicle into a dedicated, track-use-only racing vehicle.

Despite the strong bipartisan support that the RPM Act enjoyed, some of the key congressional negotiators were only willing to pass a watered-down version of the bill that would have placed unreasonable burdens on racers and motorsports parts businesses. In short, the proposed text was a significant departure from the bill's original intent and was not in the best interests of the racing community. SEMA has high standards and is unwilling to sacrifice its principles and support legislation that didn't help racers or the businesses that make motorsports possible.

SEMA will continue to advocate for the racing community and will work to identify ways to protect racers who modify street vehicles into racecars.

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SEMA & PRI Advocacy Update - March 2023

SEMA Statement on the Status of The Recognizing the Protection of Motorsports (RPM) Act

SEMA’s Right to Repair & Modify Principles

SEMA, on behalf of the specialty automotive aftermarket industry and community of automotive enthusiasts nationwide, believes that individuals’ right to repair and modify the vehicles they own is essential to a free nation and the future of the industry.

Every year, new barriers, whether legal or technological, hinder vehicle owners’ ability to work on their vehicles, seek repairs at independent automotive shops, and manufacture and install replacement and specialty parts, software, and services to enhance their vehicles' safety, performance, and comfort.

These barriers represent an ever-evolving challenge to vehicle owners and the thousands of businesses that make up the specialty automotive aftermarket industry, whose $337 billion annual economic impact is a core driver of the nation’s economy.

Historically, aftermarket modifications have been largely mechanical. However, modifying newer vehicles to improve performance, safety, reliability, and appearance requires aftermarket businesses to access a vehicle’s electronic control unit (ECU), On-Board Diagnostics Systems (OBD), and Advanced Driver Assistance Systems (ADAS) to ensure it understands how the parts and products installed interact with OEM systems. Accordingly, it is imperative that OEM data from testing and system calibration is available and able to accommodate vehicle modifications to maintain the integrity and performance of safety systems after a vehicle has been modified.

While many new ADAS features, such as lane departure warning, lane keep assist, forward collision warning, and automatic emergency braking, come standard in the latest models of vehicles, the technology automakers employ to support these systems varies greatly by model and OEM. Currently, vehicle manufacturers are not required to provide full vehicle lifecycle support, including instructions, application guides, proper mounting or functionality windows, or access to make changes outside of the original sensor location and configuration.

This presents a challenge to correctly and safely calibrate ADAS and ensure optimal performance after basic modifications, such as installing larger tires and wheels, lift kits, lowering kits, bumpers, grills, push bars, light bars, bike racks, and winches.

SEMA is committed to protecting the rights of vehicle owners and millions of automotive enthusiasts to choose where and with what parts and software their vehicles are repaired, customized, and modified.

It is imperative that any legislative, regulatory, or industry standards or agreements adhere to SEMA’s principles.

SEMA’s support for any “right to repair” legislation is contingent upon meeting the aftermarket industry’s needs in the following areas:

Access: As automotive technology continues to evolve, vehicle owners and the specialty automotive aftermarket industry, including businesses that manufacture and install specialty parts and software, must have access to the tools, repair procedures and information, configurable vehicle parameters, customization settings, software, technical and compatibility information, and wiring diagrams. Automakers must provide this access at fair and reasonable prices and subject to the same cryptographic or technological protections as their authorized dealers and service providers.

Calibration and recalibration: Specialty aftermarket businesses must have access to the information needed to calibrate and recalibrate vehicle systems, including ADAS, to ensure safe operation after a vehicle’s ride height and profile is modified, or if the vehicle has been customized.

Elimination of barriers: Motor vehicle manufacturers must be prevented from using technological and legal barriers to limit aftermarket parts manufacturers, vehicle repairers, and businesses that modify or customize vehicles to manufacture or install aftermarket parts, services, and software needed to repair, customize, or modify a vehicle.

A level playing field: Vehicle owners, aftermarket parts manufacturers, diagnostic tool manufacturers, and motor vehicle service businesses must have access to the same information and tools as OEM’s authorized vehicle service providers. Along these lines, such access must be provided in the same manner, time, method, cost (must be fair and reasonable), content set, and subject to the same cryptographic or technological protections, as vehicle manufacturers’ authorized vehicle service providers.

Owners’ data rights: Vehicle owners must have the right to access their vehicle’s safety and performance data and be able to share this information with the repairer or vehicle service provider of their choice.

CURRENT LEGISLATION

U.S. House of Representatives
H.R. 1566, introduced in February 2025
While the REPAIR Act (H.R. 1566) is designed to provide vehicle information and data to protect the future of the independent repair industry, the bill does not extend similar protections to individuals and businesses that modify and customize vehicles, nor does it provide access to the information needed to properly recalibrate ADAS systems after a vehicle has been modified.

• SEMA is neutral on the REPAIR Act and will advocate for expanding the legislation to protect the right to modify and customize vehicles.

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Policy Position

California Proposition 65 requires all businesses with more than ten employees to warn consumers if their products contain threshold amounts of chemicals causing cancer or reproductive harm. The warning requirement applies to any business in the distribution chain, including manufacturers, distributors and retailers, including out-of-state companies selling products in California.

While the California Attorney General or a district attorney can pursue enforcement, most suits are brought by private parties claiming to be "acting in the public interest," who will receive a portion of the fine or settlement ultimately assessed on the alleged violation. Too often, these suits feel like a shakedown as they are expensive to fight, and defendants are forced to settle.

SEMA can assist members in finding laboratories that can test their products for listed chemicals. Laboratory testing is relatively inexpensive and determines if your product contains a listed chemical and how much.

SEMA is actively promoting legislation and regulations to decrease the cost of Proposition 65 compliance and is working with the California Office of Environmental Health Hazard Assessment to push for less onerous labeling requirements. SEMA is also active in the Proposition 65 Coalition of the California Chamber of Commerce and is looking for any opportunity to create a friendlier regulatory environment in California.

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California Proposes New Rules Affecting Businesses Selling in the State

OEHHA Proposition 65 Page

Listed Chemicals

California Attorney General Proposition 65 website

List of AG Settlements Regarding Proposition 65

Current Proposition 65 Statutes

Proposition 65 Regulations

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