PROPOSED RULEMAKING
STATE BOARD OF VEHICLE MANUFACTURERS, DEALERS AND SALESPERSONS
[49 PA. CODE CH. 19]
Established Place of Business for Dealers
[32 Pa.B. 5417] The State Board of Vehicle Manufacturers, Dealers and Salespersons (Board) proposes to amend § 19.18 (relating to established place of business for dealers) to read as set forth in Annex A.
The proposed rulemaking would amend § 19.18(3)(ii) to permit a licensed vehicle dealer to display up to five vehicles in a nonconforming area that is not open to the public.
Effective Date
The proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin.
Statutory Authority
The rulemaking is proposed under section 4(9) of the Board of Vehicles Act (act) (63 P. S. § 818.4(a)(9)).
Background and Need for the Proposed Rulemaking
Section 19.18(3) governs the dealership location's display area where the public is permitted and invited in the regular course of business to inspect or test drive vehicles offered for sale, purchase or exchange by the dealership. Subparagraphs (ii)--(iv) set forth requirements for outdoor display areas.
As a result of the present outdoor display requirements of § 19.18(3)(ii), vehicle dealers have been unable to lawfully display a vehicle in a ''showcase'' area, such as on the front lawn of the dealership or upon some structure. In today's competitive marketplace, many dealers have expressed an interest in being permitted to create a special, nonconforming display area for one or a few vehicles as a ''showcase'' for a particular vehicle or vehicles. The Board found the requests reasonable and proposes to amend § 19.18(3)(ii) to permit a dealer to create a ''showcase'' area for up to five vehicles. To satisfy public safety concerns associated with the grading and surfacing requirements for display lots, the Board proposes to require that a dealer who creates a nonconforming display exclude the public from the nonconforming display area.
Description of Proposed Rulemaking
The Board proposes to add a new sentence to § 19.18(3)(ii) that would permit dealers to display up to five vehicles in an area that does not conform to the grading and surfacing requirements of that section, so long as the public does not have access to the nonconforming area. The proposed exemption would allow dealers to showcase up to five vehicles in an area designed for commercial impact rather than for safe access by the public. The public safety concerns expressed in the act and in § 19.18(3)(ii) are satisfied because the regulation requires that the public may not have access to the nonconforming showcase area.
Compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation''
The Board sent this proposed rulemaking to major dealer organizations as required under the directives of Executive Order 1996-1, including the Pennsylvania Automotive Association, the Pennsylvania Independent Automobile Dealers Association (PIADA), the Pennsylvania Manufactured Housing Association and the Pennsylvania Motorcycle Dealers Association. Comments were received which agreed that the Board should authorize the display of vehicles on lawn fronts at dealerships. The PIADA, through its executive director, suggested a licensed dealer be permitted to display up to ten vehicles in nonconforming areas. The Board determined that the area required to display ten vehicles would be too large for the dealer to adequately monitor public access. In addition, the Board considered the impact the proposed rulemaking would have on the regulated community and on public safety and welfare. The Board finds that the proposed rulemaking addresses a compelling public interest as described in this Preamble and otherwise complies with Executive Order 1996-1.
Fiscal Impact and Paperwork Requirements
The proposed rulemaking will have no adverse fiscal impact on the Commonwealth or its political subdivisions. The proposed rulemaking will impose no additional paperwork requirements upon the Commonwealth, political subdivisions or the private sector.
Sunset Date
The Board continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on October 17, 2002, the Board submitted a copy of this proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. In addition to submitting the proposed rulemaking, the Board has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Board in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, if IRRC has objections to any portion of the proposed rulemaking, it will notify the Board within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria that have not been met by the portion of the proposed rulemaking to which an objection is made. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of objections raised.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Teresa Woodall, Board Administrator, State Board of Vehicle Manufacturers, Dealers and Salespersons, P. O. Box 2649, Harrisburg, PA 17105-2649, www.dos.state.pa.us within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin.
EDWARD J. CERNIC, Jr.,
ChairpersonFiscal Note: 16A-604. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND
VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND
OCCUPATIONAL AFFAIRS
CHAPTER 19. STATE BOARD OF
VEHICLE MANUFACTURERS, DEALERS
AND SALESPERSONS
DEALERSHIP LICENSE § 19.18. Established place of business for dealers.
A licensed dealer shall maintain an established place of business that meets the following criteria:
* * * * * (3) Display area. The dealership shall have a display area--whether indoors, outdoors or partly indoors and partly outdoors--where the public is permitted and invited in the regular course of business to inspect or test drive the vehicles that are being offered for sale, purchase or exchange by the dealership. The display area may not include areas of the dealership premises on which are placed vehicles that are wrecked or damaged, that are awaiting reconditioning or preparation for sale, purchase or exchange, that are being serviced or repaired, that are part of general inventory, or that are otherwise not being offered for sale, purchase or exchange to the public. The display area shall meet the following requirements:
* * * * * (ii) Grading and surfacing. An outdoor display area shall be properly graded. The outdoor display area of a dealership that buys, sells or exchanges vehicles shall be surfaced with concrete, asphalt, slag, brick, stone, aggregate, gravel, cinder or similar material. A dealership that otherwise complies with this paragraph may display up to five vehicles without regard for the grading or surfacing where those vehicles are displayed, so long as customers are not permitted to be present in the nonconforming area.
* * * * *
[Pa.B. Doc. No. 02-1948. Filed for public inspection November 1, 2002, 9:00 a.m.]
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