Licensing, Education, Fees Top Agenda
In an otherwise light agenda for its regular May 14, 2007 meeting, the Virginia Motor Vehicle Dealer Board (MVDB) assessed a civil penalty of $1,000 on a dealer for paying an unlicensed F&I representative. The dealer claimed that he did not know that an F&I person must have a sales license.
As of July 1, 2006, Virginia law changed to require that F&I personnel and sales managers have sales licenses. All dealers are reminded of the need to do a regular monthly check to ensure that all employees receiving payments for sales of vehicles and F&I services are properly licensed.
After the regular meeting, the MVDB held two special meetings to address the following subjects:
Continuing Education. An ad hoc committee of the board discussed continuing education programs. Approximately three years ago, the Board adopted a requirement that all new dealer operators of independent dealerships attend a two-day course about the laws relating to motor vehicle sales. The MVDB has been impressed with the success of the program and it seeks to determine whether to expand this into continuing education.
The ad hoc committee of the board is exploring whether continuing education opportunities will be made available. This will primarily affect independent dealers since the committee recognized that franchise dealersê relationships with their franchisors and dealer associations provide a substantial opportunity for educational opportunities. The committee will continue to determine whether continuing education will be feasible and what incentives will be put in place to lead dealers to utilize the programs.
Fee Increases. As part of a public hearing under the Virginia Administrative Procedures Act, the MVDB also met to determine whether there was any public comment concerning the proposed increase in fees.
The boardês executive director explained that the fees have not been raised for over ten years. When the MVDB was formed, and fees were set, the expectation was that they would be good for six years before an increase was needed. By the time the new fees go into effect, it will have been twelve years without an increase.
The following rate structure was proposed:
Motor Vehicle Dealer Board: $200.00 annually, unchanged.
Permanent Supplemental License: $40.00 annually, unchanged.
Temporary Supplemental License: $40.00 annually, unchanged.
Motor Vehicle Dealer Salesperson License: $25.00 annually, increase from $20.00.
Dealer Operator Certificate of Qualification: $50.00 (one time fee), increase from $25.00.
Salesperson Certificate of Qualification, $50.00 (one time fee), increase from $25.00
Combined Dealer Operator and Salesperson Certificates of Qualification, $50.00 (one time fee), increase from $25.00.
Dealer License Plates
ãFirst two plates $30.00 each annually increase from $20.00 each annually.
ãThird and subsequent plates $26.00 each annually, increase from $15.00
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