RULES AND REGULATIONS
Title 49—PROFESSIONAL AND VOCATIONAL STANDARDS
STATE BOARD OF VEHICLE MANUFACTURERS, DEALERS AND SALESPERSONS
[ 49 PA. CODE CH. 19 ]
Dealer Participation Fee
[52 Pa.B. 444]
[Saturday, January 22, 2022]The State Board of Vehicle Manufacturers, Dealers and Salespersons (Board) amends § 19.4 (relating to fees) to read as set forth in Annex A.
Effective Date
The amendment will be effective upon final-form publication in the Pennsylvania Bulletin.
Statutory Authority
Section 332.1(c) of the Board of Vehicles Act (act) (63 P.S. § 818.332a(c)), as amended under the act of October 24, 2018 (P.L. 816, No. 134), regarding recreational vehicle shows, recreational vehicle off-premise sales, recreational vehicle exhibitions and recreational vehicle rallies, requires an out-of-State recreational vehicle dealer to register with the Board before participating in a recreational vehicle show, off-premise sale, exhibition or rally in this Commonwealth. Section 332.1(c)(1)(v) of the act requires the registration to include payment of a participation fee.
Section 302(a)(9) of the act (63 P.S. § 818.302(a)(9)), regarding powers and duties of the Board, authorizes the Board to promulgate regulations, consistent with the act, that it deems necessary and proper to effectuate the provisions of the act. Additionally, under section 330(a) of the act (63 P.S. § 818.330(a)), regarding fees, the Board must set fees required under the provisions of the act by regulation.
Background and Need for the Amendment
Section 332.1(c) of the act permits recreational vehicle dealers licensed in another state or domiciled in another jurisdiction that does not require licensure of recreational vehicle dealers to participate in recreational vehicle shows, off-premise sales, exhibitions and rallies in this Commonwealth under certain circumstances and requires the out-of-State recreational vehicle dealer to register with the Board. Since this provision became effective, the Board has been receiving, reviewing and accepting these registration applications for each event in which an out-of-State recreational vehicle dealer intends to participate without charging a participation fee for this service.
Section 332.1(c)(7) of the act requires the out-of-State recreational vehicle dealer to engage in at least four of five business activities in a state that is contiguous to this Commonwealth. Those activities include: (1) accepting delivery of recreational vehicles from the manufacturer; (2) maintaining of inventory offered for sale to the public; (3) consummating and finalizing recreational vehicle sales; (4) service and repair of recreational vehicles; and (5) delivery of recreational vehicles to buyers along with titling, registration and collection of taxes. Section 318 of the act (63 P.S. § 818.318) also authorizes the Board to take disciplinary action against recreational vehicle dealers for violations of these provisions.
Before the act was amended in 2008 under the act of October 8, 2008 (P.L. 1086, No. 90) (Act 90), recreational vehicle dealers from states that did not provide for reciprocity with this Commonwealth would set up ''shell'' dealerships in contiguous states with reciprocity for the sole intent of participating in shows and other sales events in this Commonwealth. Many contiguous states did not have facility requirements for a recreational vehicle dealership. Consumers in this Commonwealth were led to believe they were buying from a full-service dealership in a contiguous state. However, the actual dealership and facilities necessary to pick up the recreational vehicle, and later service the recreational vehicle, may have been far beyond the borders of this Commonwealth.
The requirements mandated under section 332.1(c) of the act require expenditure of staff time to evaluate the applications for registration and ensure that reasonable protections are in place for consumers in this Commonwealth. To cover the cost of providing this service, the Board's regulations add a participation fee of $65. Currently, the Board processes these applications without collecting a participation fee. The purpose of this final-form rulemaking is to set a participation fee for out-of-State recreation vehicle dealer registrations.
Summary of Comments to the Proposed Rulemaking and the Board's Response
Comments from the public
There were no comments received from the public.
Comments from the House Professional Licensure Committee (HPLC)
There were no comments received from the HPLC.
Comments from the Independent Regulatory Review Commission (IRRC)
Under section 332.1(c) of the act, an out-of-State recreational vehicle dealer must register with the Board before participating in a recreational vehicle show, off-premise sale, exhibition or rally. The language of the act states that the registration must include payment of a ''participation fee.'' To be consistent with the terminology in the act, IRRC recommended that the Board replace ''registration'' with ''participation'' in the regulation. As a result of IRRC's comments, the Board revises § 19.4 from ''out-of-State recreation vehicle dealer registration'' to ''out-of-State recreation vehicle dealer participation fee,'' consistent with the wording of section 332.1(c) of the act.
IRRC commented that Act 90 established the requirements for recreational vehicle shows, off-premise sales, exhibitions and rallies. Act 90 provided for the participation of out-of-State recreational vehicle dealers in these types of events. IRRC suggested that the Board draft a separate rulemaking to ensure that the regulated community is informed and in compliance with the requirements of the act. By way of background, when Act 90 was enacted, the Board considered the law and concluded that, other than considering the implementation of a fee, the amendments under Act 90 did not require the promulgation of regulations to implement it because Act 90 and its requirements were sufficiently specific. Nevertheless, as suggested by IRRC, the Board will re-evaluate whether it should initiate a rulemaking to ensure that the regulated community is adequately informed regarding the requirements of the act. In the meantime, the Board will add additional information on its web site to ensure that the regulated community has sufficient information regarding the application process, including requirements for recreational vehicle shows, off-premise sales, exhibitions and rallies and the participation fee.
Fiscal Impact and Paperwork Requirements
Under this final-form rulemaking, out-of-State recreational vehicle dealers applying for registration will incur costs by having to pay a $65 participation fee for registration. Should an out-of-State recreational vehicle dealer return to this Commonwealth for another show the same year, they will be required to file another application with the Board. The Board anticipates approximately 100 applications per year, for a total fiscal impact of $6,500 annually. This final-form rulemaking should have no adverse fiscal impact on the Commonwealth, its political subdivisions or the private sector.
Because the Board has already been receiving and processing these applications without collecting a participation fee, other than making minor revisions to the application form, this final-form rulemaking will impose no additional paperwork requirements upon the Commonwealth, its 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 November 24, 2020, the Board submitted a copy of the proposed rulemaking and a copy of a Regulatory Analysis Form to IRRC and to the Chairpersons of the House Professional Licensure Committee (HPLC) and the Senate Consumer Protection and Professional Licensure Committee (SCP/PLC). A copy of this material is available to the public upon request.
Under section 5(c) of the Regulatory Review Act, the Board is required to provide to IRRC, the HPLC and the SCP/PLC copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board has considered all comments from IRRC. The Board did not receive any comments from the HPLC, SCP/PLC or the public.
On September 30, 2021 the Board delivered this final-form rulemaking to IRRC, the HPLC and the SCP/PLC. Under section 5.1(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on December 8, 2021, the final-form rulemaking was deemed approved by the HPLC and the SCP/PLC. Under section 5.1(e) of the Regulatory Review Act, IRRC met on December 9, 2021, and approved the final-form rulemaking.
Additional Information
Additional information may be obtained by contacting Janice Cline, Administrator, State Board of Vehicle Manufacturers, Dealers and Salespersons, P.O. Box 2649, Harrisburg, PA 17105-2649, ST-VEHICLE@PA.GOV.
Findings
The Board finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201 and 1202), referred to as the Commonwealth Documents Law and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2 (relating to notice of proposed rulemaking required; and adoption of regulations).
(2) A public comment period was provided as required by law and all comments were considered in drafting this final-form rulemaking.
(3) This final-form rulemaking does not include any amendments that would enlarge the scope of the proposed rulemaking published at 50 Pa.B. 7024 (December 12, 2020).
(4) This final-form regulation is necessary and appropriate for administration and enforcement of the act.
Order
The Board, acting under its authorizing statute, orders that:
(a) The regulations of the Board at 49 Pa. Code Chapter 19 are amended by amending § 19.4 to read as set forth in Annex A, with ellipses referring to the existing text of the regulation.
(b) The Board shall submit this final-form rulemaking to the Office of General Counsel and to the Office of Attorney General as required by law.
(c) The Board shall submit this final-from rulemaking to IRRC, the HPLC and the SCP/PLC for approval as required by law.
(d) The Board shall certify this final-form rulemaking and deposit it with the Legislative Reference Bureau as required by law.
(e) This final-form rulemaking shall take effect immediately upon publication in the Pennsylvania Bulletin.
KIRK A. DAVIS,
Chairperson(Editor's Note: For IRRC's approval order, see 51 Pa.B. 8061 (December 25, 2021).)
Fiscal Note: Fiscal Note 16A-6011 remains valid for the final adoption of the subject regulation.
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
GENERAL PROVISIONS § 19.4. Fees.
The following is the schedule of fees charged by the Board:
* * * * * Salesperson change of employer transfer applica-
tion$25 Out-of-State recreational vehicle dealer participa-
tion fee$65 Business name or post office address change
$30 * * * * *
[Pa.B. Doc. No. 22-114. Filed for public inspection January 21, 2022, 9:00 a.m.]
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