From USA today...

By William M. Welch, USA TODAY
IRVINE, Calif. — A new federal law aimed at protecting children from
lead in toys has also forced a nationwide halt in sales of off-road
motorcycles and recreational vehicles built for young riders, killing
off a multimillion-dollar industry that was thriving despite the
recession.
Thousands of powersports dealers were told to halt sales of vehicles
designed for children 12 and younger because of new lead restrictions
in an act of Congress that took effect Feb. 10.

Even used vehicle sales are banned by law passed in response to lead
found in toys imported from China.

"We're out of business as far as the youth market goes," says Rick
Rizzon, owner of Rizzon Cycle in Middlesex, N.J. "It's crazy."

With the motor vehicle industry already hurting from recession, he
said the ban means a 20% drop in sales of youth off-road motorcycles
and the parts business for bikes already sold.

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Council | Joseph Martyak
The ban hits California especially hard. Off-roading is hugely popular
among families in the state and several state parks are devoted to
dirt riding.

Kevin Matty, finance director at Temecula Motorsports in Temecula,
Calif., (where the desert is a big draw for dirt bikers) estimates the
ban will wipe out half of his business sales.

"I thought it was a joke," Matty said, until the manufacturers told
him he had to take the youth vehicles off the showroom floor.

Economic repercussions

Passed by Congress after a series of reports concerning toys made in
China with lead, the law bans sale of products aimed at children if
they contain more than 600 parts per million of lead, says Joseph
Martyak, chief of staff to the acting chairman of the U.S. Consumer
Product Safety Commission.

Lead is found in steel and other metal alloys in the frame, motor and
multiple other parts, said Paul Vitrano, general counsel for the
Motorcycle Industry Council. The lead strengthens the metals and
resists corrosion.

Supporters of the law hailed its passage in August.

Rep. John Conyers, D-Mich., a bill co-sponsor, said at the time that
supporting the law "is a vote for industry accountability, regulatory
integrity, and most importantly, child safety."

Martyak said the wording of the law left the commission no choice but
to enforce the ban on youth cycles and ATVs even with no evidence
children would ingest or absorb the items. The industry has petitioned
the commission for an exemption.

The ban will have repercussions economically.

The Motorcycle Industry Council estimates nearly 100,000 youth bikes
were sold in the USA in 2008, though some were aimed at kids 13 and
older and not covered by the ban. Dealernews, an industry trade
publication, estimates that the value of inventory at U.S. dealers
that can no longer be sold probably exceeds $100 million.

Beyond current inventory, Kawasaki spokeswoman Jan Plessner said the
company has "millions and millions of dollars" worth of parts now in
the product pipeline to dealers that cannot be sold.

Most cycles and ATVs are made overseas, but there are tens of
thousands of jobs attached to the industry here. More than 13,000
powersports dealers sell products in the United States, according to
the Motorcycle Industry Council, employing an estimated 124,000
people. Vitrano says the industry estimates the retail market value
for all off-road cycles and ATVs is $14.5 billion a year, including
sales, service, parts, accessories and payroll.

'Are you kidding?'

Children appeared perplexed by the ban.

"Are you kidding? This is silly," says Zack Bartell, 12, who was
taking a dirt-bike riding lesson at School for Dirt's track next to
Kawasaki Motors' U.S. headquarters here. "There's no way I'm going to
stick a motorcycle part in my mouth."

The 12-and-under market is a huge focus for the industry because it
believes children who ride will grow up to be adult riders and
consumers as well. It builds bikes with single-cylinder motors as
small as 50cc that fit children.

Children as young as Karsyn Boyd, who said she was "6 and a quarter,"
were riding with ease after an hour or so of instruction, carving
figure eights, traversing hills and cutting around orange cones.

Vitrano says the ban will have a perverse effect: Rather than no
longer riding, kids who can't get a cycle their size may hop on a bike
made for older children or adults — one inappropriate and dangerous
for a smaller child.

Terry Dempsey, sales manager at Long Beach Motorsports in Long Beach,
Calif., said he sold $120,000 worth of youth bikes last year, plus
more in parts, service and accessories.

"We're already down 30% (from recession), and now we just lost another
10% to 15% of our customer base," Dempsey says.

The economy notwithstanding, enthusiasts say the ban needlessly kills
a family-oriented sport where children ride with their moms and dads
and, like other sports, can induce children to behave.

"I know if I keep my grades up, I can keep riding," says Zack, who
started riding at age 5.