Polaris 2011 Annual Report Download - page 28

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products for youth provided that the metal alloys in these products met certain lead limits and information
regarding the lead content of the relevant products was submitted to the CPSC. The Stay was extended by the
CPSC through December 31, 2011. We complied with the terms of the Stay and continued to sell youth ATVs
and snowmobiles under the terms of the Stay through August 2011.
On August 12, 2011, the President signed into law an amendment to the Act (“Amendment”), which
exempts off-highway vehicles from the lead content provision and requires the CPSC to issue a final rule
regarding ATV safety within one year. Our youth ATVs and snowmobiles therefore are no longer subject to the
lead content requirements. The lead paint requirements in the Act remain in effect. We believe all our products
comply with the lead paint requirements.
We are a member of the Recreational Off-Highway Vehicle Association (“ROHVA”), which was
established to promote the safe and responsible use of side-by-side vehicles also known as Recreational
Off-Highway Vehicles (“ROVs”). Since early 2008, ROHVA has been engaged in a comprehensive process for
developing a voluntary standard for equipment, configuration and performance requirements of ROVs through
ANSI. Comments on the draft standard were actively solicited from the CPSC and other stakeholders as part of
the ANSI process. The standard, which addresses stability, occupant retention, and other safety performance
criteria, was approved and published by ANSI in March, 2010. The standard was then immediately opened for
maintenance and revision in accordance with the ANSI process to evaluate additional safety provisions.
In October 2009, the Consumer Product Safety Commission published an advance notice of proposed
rulemaking regarding ROVs. Our RANGER and RZR side-by-side vehicles are included in the ROV category. In
its notice, the CPSC stated that it was reviewing the risk of injury associated with ROVs and beginning a rule-
making procedure under the Consumer Product Safety Act. The CPSC also noted the draft ANSI standard
developed by ROHVA and expressed concerns with the draft standard in the areas of vehicle stability, vehicle
handling, and occupant retention and protection. We are a member of ROHVA, which submitted written
comments and a technical response to the CPSC notice. We, through ROHVA, also met with CPSC
Commissioners and staff on several occasions during 2010 and 2011 to provide updates on ROHVA’s efforts to
address CPSC concerns through changes to the voluntary ANSI standard relating to stability, occupant retention
and warnings. Comments on these changes were solicited from the CPSC and other stakeholders as part of the
ANSI process. The revised standard, which includes dynamic stability, occupant retention, and warning
requirements, was approved and published by ANSI in July, 2011. We are unable to predict the outcome of the
CPSC rule-making procedure and the ultimate impact of the procedure or any resulting rules on our business and
operating results.
We are a member of the International Snowmobile Manufacturers Association (“ISMA”), a trade
association formed to promote safety in the manufacture and use of snowmobiles, among other things. ISMA
members include all of the major snowmobile manufacturers. The ISMA members are also members of the
Snowmobile Safety and Certification Committee, which promulgated voluntary sound and safety standards for
snowmobiles that have been adopted as regulations in some states of the United States and in Canada. These
standards require testing and evaluation by an independent testing laboratory. We believe that our snowmobiles
have always complied with safety standards relevant to snowmobiles.
Motorcycles and small electric vehicles are subject to federal vehicle safety standards administered by
NHTSA and are also subject to various state vehicle safety standards. We believe that our motorcycles and SEVs
have complied with applicable federal and state safety standards.
Our products are also subject to international standards related to safety in places where we sell our products
outside the United States. We believe that our motorcycles, SEVs, ATVs, Off-Road side-by-side vehicles and
Snowmobiles have complied with applicable safety standards in the United States and other international
locations.
Use regulation. State and federal laws and regulations have been promulgated or are under consideration
relating to the use or manner of use of our products. Some states and localities have adopted, or are considering
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