RULES AND REGULATIONS

Title 49—PROFESSIONAL AND VOCATIONAL STANDARDS

STATE BOARD OF VEHICLE MANUFACTURERS, DEALERS AND SALESPERSONS

[ 49 PA. CODE CH. 19 ]

Fee Increase

[53 Pa.B. 370]
[Saturday, January 14, 2023]

 The State Board of Vehicle Manufacturers, Dealers and Salespersons (Board) and the Commissioner of the Bureau of Professional and Occupational Affairs (Commissioner) amend § 19.4 (relating to fees) to read as set forth in Annex A.

Effective Date

 This final-form rulemaking will be effective upon publication in the Pennsylvania Bulletin. The increased biennial renewal fees will be implemented beginning with the June 1, 2023—May 31, 2025, biennial renewal period. Thereafter, the subsequent graduated increase will be implemented with the biennial renewal for June 1, 2025—May 31, 2027. The graduated increase in initial licensure application fees will be implemented on July 1, 2023, and again on July 1, 2025.

Statutory Authority

 Under section 302(a)(9) of the Board of Vehicles Act (act) (63 P.S. § 818.302(a)(9)), the Board is authorized to adopt, promulgate and enforce these rules and regulations consistent with the act as are deemed necessary and proper to effectuate the provisions of the act. Section 304 of the act (63 P.S. § 818.304) requires license holders to pay a biennial renewal fee. Section 321(c) of the act (63 P.S. § 818.321(c)) requires applications for licensure to be accompanied by the required fee. Under section 330(a) of the act (63 P.S. § 818.330(a)), all fees shall be fixed by the Board by regulation and shall be subject to review in accordance with the Regulatory Review Act (71 P.S. § 745.1—745.14). Section 330(a) further requires the Board to increase fees when revenues generated by fees, fines and civil penalties are insufficient to match expenditures over a 2-year period.

Background and Need for the Amendments

 This final-form rulemaking increases application fees to reflect updated costs of processing applications and increases all of the Board's biennial renewal fees to ensure its revenue meets or exceeds the Board's current and projected expenses. Section 330(a) of the act requires the Board to increase fees if the revenues generated by fees, fines and civil penalties imposed are not sufficient to meet the expenditures over a 2-year period. The Board raises approximately 93% of its revenue through initial application and renewal fees. The remaining 7% of its revenue comes from other fees, fines and civil penalties. The Board last increased its initial application fees in 2000 and license renewal fees in 2007.

 When the Board decided that a fee increase was necessary, the Department of State's Bureau of Finance and Operations (BFO) reported the Board's income and expenses since fiscal year (FY) 2017-2018. In FY 2017-2018, the Board incurred $2,963,270.71 in expenditures and generated only $947,667.84 in revenue, with a remaining balance of $1,130,724.10. In FY 2018-2019, the Board incurred $3,079,102.63 in expenditures and generated $4,584,031.19 in revenue, with a remaining balance of $2,635,652.66. In FY 2019-2020, the Board anticipated expenditures of $3,031,000 and generated $932,000 in revenue, with a remaining balance of $536,652.66. In FY 2020-2021, the Board anticipated expenditures of $3,171,000 and generated $4,007,000 in revenue, with a remaining balance of $1,372,652.66. In FY 2021-2022, the Board was projected to incur $3,122,000 in expenditures and generate $932,000 in revenue, with a deficit balance of ($817,347.34) at the end of FY 2021-2022. In FY 2022-2023, without a fee increase, the Board was projected to incur $3,266,000 in expenditures and generate $4,007,000 in revenue, resulting in a remaining balance of ($76,347.34). Finally, in FY 2023-2024, the Board is projected to incur $3,216,000 in expenditures and generate $932,000 in revenue, with a deficit balance of ($2,360,347.34) at the end of FY 2023-2024. Thus, the BFO's data demonstrated that the Board's revenue is not sufficient to meet or exceed its expenditures over a 2-year period. The BFO recommended, and the Board agreed, to amend a total of 16 fees, consisting of eight initial application fees and eight biennial renewal fees on a graduated basis.

 The Board released an exposure draft of a proposed annex reflecting fee increases for public comment from stakeholders, interested parties and representatives of the licensed professions on August 6, 2020. Thereafter, notice of the proposed rulemaking was published at 51 Pa.B. 3230 (June 12, 2021) for review and comment. Publication was followed by a 30-day public comment period during which the Board received no public comments. In addition, the House Professional Licensure Committee (HPLC) and Senate Consumer Protection/Professional Licensure Committee (SCP/PLC) did not submit comments. The Independent Regulatory Review Commission (IRRC) submitted comments as detailed as follows.

Summary of Comments and the Board and Commissioner's Response

Reasonableness of fee increases

 First, IRRC asked the Board to explain why increasing the initial application and renewal fees are reasonable. Regarding application fees, initial application fees for salespersons, manufacturer representatives or distributor representatives, manufacturers, manufacturer or distributor branches, distributors, dealers, auctions, and dealer branch lots were last increased in 2000. The Board, with the encouragement and support of the Bureau of Professional and Occupational Affairs (Bureau), determined that a re-evaluation of all application fees for all boards and commissions was appropriate. The Board evaluated all of its application fees and found that fees currently charged did not cover the costs to process applications. Boards and commissions under the Bureau determine initial application fees by calculating the cost to process applications. This approach is fair and reasonable because existing licensees, who pay biennial renewal fees, should not be burdened with financing the cost to process individual applications. As a part of the fee increase recommendations, the BFO recommended graduated application and biennial renewal fee increases so that the application fee increases are more reflective of actual costs to process applications and coincide more closely with the projected expenses for each biennium. The Board adopts the graduated fee schedule in an effort to minimize the impact of fee increases to licensees and to ensure that fee increases only occur when it is fiscally necessary to do so.

 When calculating application fees, boards rely on time study reports created within the Bureau that lay out each step in processing an application and the amount of time it takes to complete each step. That amount of time per application is multiplied by the total number of anticipated application requests for 1 year to get the total number of minutes per year necessary to process applications. (The number of minutes per year is multiplied by two since the increases are biennial.) Application fees are based on a formula that multiplies the number of minutes to perform the processing function by the pay rate for the classification of the personnel performing the function and adding a proportionate share of administrative overhead. As reflected in the fee report forms, Board counsel has a significant role in the initial application process. Applications that contain a criminal conviction history must be reviewed and approved by Board counsel. Depending on the applicant's criminal conviction, Board counsel may have to perform additional functions as part of the application process.

 The Board and the Commissioner submit that the graduated application fee increases are appropriate and reasonable because the increased fees are projected to cover the cost to process the applications for that biennial period. The Board carefully considered the best way to implement an increase in application fees and determined that a graduated fee schedule is favorable because it aligns the actual cost to process applications in each biennial period with the fee for that period. While the Board is reluctant to put additional fiscal burdens on its licensees and applicants, the increased fees are not significant when looking at the total increase in dollars. Moreover, even with the implementation of the graduated fee increase, the Board's fees are still comparable with other states. The Board and the Commissioner do not believe the increases will deter applicants from applying for licensure in this Commonwealth or put this Commonwealth at a competitive disadvantage. Biennial renewal fees were last increased in 2007. Biennial renewal fees go towards the costs of operating the board, which includes the Bureau, Commissioner and Revenue office costs, departmental services, board member expenses, legal office costs, hearing expenses and costs relating to enforcement and investigations. While the Board is cognizant of the desire of licensees to keep licensure fees low, the Board must balance that desire with the need to generate sufficient revenue to ensure the fiscal integrity of the Board and to assure that the Board is fiscally able to carry out its duties under the act.

Comparison to other States shows that fee increases are reasonable

 In comparing the Board's fees to other states, of the states in the Northeastern Region (Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, Rhode Island, Ohio, Massachusetts, Pennsylvania, Maryland and West Virginia), only Ohio, Maryland and West Virginia require licensure for salespersons, with applications fees of $10, $67.50 and $32—$60 ($25 examination fee plus $7 fee for every year to be licensed, up to 5 years), respectively. Maryland requires renewal every 3 years at $202.50, Ohio requires annual renewal at a cost of $10 and West Virginia licenses renew every 5 years at a cost of $10. The states that require initial licensure applications for salespersons charge fees ranging from $10 to $67.50. Pennsylvania currently charges a fee of $25 for a new salesperson application, with the proposed increase raising that fee to $65 effective July 1, 2023, and to $70 effective July 1, 2025. Only Ohio ($10) will have an initial salesperson license application fee lower than Pennsylvania. The states that charge salesperson license renewal fees range from $10 to $202.50. In addition, Pennsylvania currently charges a fee of $90 for a salesperson license renewal application, with the proposed increase raising that fee to $113 effective June 1, 2023, and to $141 effective June 1, 2025. Only Ohio ($10 annually) and West Virginia ($10) will have license renewal fees lower than Pennsylvania. However, based upon the Board's experience in the vehicle profession, it does not believe that the $10 to $60 difference in initial salesperson application fees and the $61.50 difference in salesperson renewal application fees will deter salesperson applicants or licensees from obtaining and renewing licenses.

 When considering this proposed fee increase, the Board conducted a comparison of application fees and renewal fees charged by surrounding states. The Board found that even by comparing the highest fee increases, the Commonwealth's application fees and renewal fees are still in line with fees charged in surrounding states. The application and renewal fees for dealers vary widely. The license application fees for dealers are: Connecticut $140, Delaware $100, Maine $150, Maryland $225, New Hampshire $250, New Jersey $257.50, New York $487.50, Massachusetts is set by each municipality, Ohio $254.75, Rhode Island $302.50, West Virginia $250 and Vermont $503. Not all of the states requiring licensure require renewal. The following states renew biennially: Connecticut (new car dealer $700; used car dealer $560), Maryland ($225), New York ($487.50) and Ohio ($254.75). The following states renew annually: New Hampshire ($400 + based upon number of dealer plates), New Jersey ($100), West Virginia ($250) and Vermont ($503). Connecticut, Maine and Pennsylvania are the only states that license dealer branch lots, with Connecticut and Maine charging $100. Pennsylvania currently charges a fee of $65 for new dealer and dealer branch lot applications, with the proposed increase raising those fees to $175 effective July 1, 2023, and to $190 effective July 1, 2025. Additionally, Pennsylvania currently charges a fee of $175 for a biennial renewal for dealers and dealer branch lots, with the proposed increase raising those fees to $219 effective June 1, 2023, and to $274 effective June 1, 2025. The states that require initial licensure applications for dealers charge fees ranging from $100 to $503. Connecticut ($140), Delaware ($100) and Maine ($150) will have initial license application fees lower than Pennsylvania. The states that charge license renewal fees range from $100 to $700. Connecticut ($100) and Maine ($150) will have license renewal fees lower than Pennsylvania. However, based upon the Board's experience in the vehicle profession, it does not believe that the $40 to $90 difference in dealer initial application fees and $124 difference in renewal application fees will deter dealer applicants or licensees from obtaining and renewing licenses.

 Connecticut, Delaware, Maine, Maryland, Ohio, New Jersey, Rhode Island and West Virginia require licensure of manufacturers. Manufacturers in those states charge initial licensure fees of $2,300; $75; $1,500; $180—$1,800 (depending on the number of cars made); $100; $257.50; $302.50 and $250, respectively. Of the previous states, only Connecticut, Delaware, Maryland and Rhode Island charge a biennial renewal of $2,300; $100; $180—$1,800 (depending on the number of cars made); and $302.50; respectively. Pennsylvania currently charges a fee of $30 for a manufacturer application, with the proposed increase raising those fees to $90 effective July 1, 2023, and to $100 effective July 1, 2025. Pennsylvania currently charges a fee of $250 for a biennial renewal for a manufacturer, with the proposed increase raising those fees to $313 effective June 1, 2023, and to $391 effective June 1, 2025. Additionally, of the states that license manufacturers, only Maryland and Pennsylvania charge a fee to license manufacturer branches; Maryland's manufacturer branch application fee is $1,800. Pennsylvania currently charges a fee of $30 for a manufacturer branch application, with the proposed increase raising those fees to $90 effective July 1, 2023, and to $100 effective July 1, 2025. For biennial renewal, Pennsylvania currently charges a fee of $175 for a manufacturer branch, with the proposed increase raising those fees to $219 effective June 1, 2023, and to $274 effective June 1, 2025. The states that require initial licensure applications for manufacturers charge fees ranging from $75 to $2,300. Only Delaware ($75) will have an initial license application fee lower than Pennsylvania. Delaware ($100) and Rhode Island ($302.50) are the only states that charge a manufacturer renewal fees that will be lower than Pennsylvania. Based upon the Board's experience in the vehicle profession, it does not believe that a $25 difference in initial fees and $88.50 to $291 in manufacturer renewal fees will deter manufacturer applicants or licensees from obtaining and renewing licenses.

 Ohio, Connecticut, Delaware, Massachusetts and Rhode Island require licensure of manufacturer representatives; in Massachusetts, manufacturer representatives are licensed at the municipal level. The application fee in Ohio is $154.75; in Connecticut and Delaware, manufacturer representatives are licensed by the Department of Revenue annually at $100 and $75, respectively; and in Rhode Island, the application fee is $102.50 and annually renews at a fee of $102.50. Pennsylvania currently charges a fee of $25 for a new manufacturer representative application, with the proposed increase raising that fee to $65 effective July 1, 2023, and to $70 effective July 1, 2025. Additionally, Pennsylvania currently charges a fee of $90 for a biennial renewal for a manufacturer representative, with the proposed increase raising that fee to $113 effective June 1, 2023, and to $141 effective June 1, 2025. The states that require initial licensure applications for manufacturer representatives charge fees ranging from $75 to $154.75, all of which remain higher than the proposed fee for Pennsylvania. The only state that charges a manufacturer representative license renewal fee is Rhode Island ($102.50). Based upon the Board's experience in the vehicle profession, it does not believe that an increase in manufacturer representative initial application fees and the $38.50 difference in vehicle manufacturer representative renewal application fees will deter manufacturer representative applicants or licensees from obtaining and renewing licenses.

 Maine, Ohio, New York and West Virginia are the only states licensing or requiring a permit for auctions. The fee in Maine is $150 annually. Ohio auction fees range from $100 for auctions to $7,500 for construction equipment auctions. New York auction fees range from $100—$500. The West Virginia auction fee is $250. Pennsylvania currently charges a fee of $65 for a new auction application, with the proposed increase raising that fee to $175 effective July 1, 2023, and to $190 effective July 1, 2025. Of the previously listed states that license auctions, Ohio and West Virginia charge a biennial renewal fee of $10. Pennsylvania currently charges an initial application fee of $65, with the proposed increase raising that fee to $175 effective July 1, 2023, and to $190 effective July 1, 2025. Additionally, Pennsylvania currently charges a renewal fee of $175 for an auction, with the proposed increase raising that fee to $219 effective June 1, 2023, and to $274 effective June 1, 2025. The states that require initial licensure applications for auctions charge fees ranging from $100 to $7,500. Only Ohio ($100 for auctions) will have an initial auction license application fee lower than Pennsylvania. Ohio ($10) and West Virginia ($10) are the only states that charge auction renewal fees that will be lower than Pennsylvania. Based upon the Board's experience in the vehicle profession, it does not believe that the $90 difference in auction initial application fees and $274 in auction renewal application fees will deter auction applicants or licensees from obtaining and renewing licenses.

 Delaware, Maine, Maryland and Ohio currently license distributors, with an initial licensure fee for Delaware of $100 per year (with an additional $75 for a wholesale license); Maine charging $1,500; Maryland fees ranging from $180—$1,800 (depending on the number of cars sold); and Ohio charging $154.75. Of the previous, only Delaware and Maryland charge a biennial renewal fee of $100 and $450, respectively. Pennsylvania currently charges a fee of $30 for a new distributor or distributor branch application, with the proposed increase raising those initial application fees to $90 effective July 1, 2023, and to $100 effective July 1, 2025. Additionally, Pennsylvania currently charges a fee of $175 for a biennial renewal for a distributor, with the proposed increase raising that fee to $219 effective June 1, 2023, and to $274 effective June 1, 2025. The states that require initial licensure applications for distributors charge fees ranging from $100 to $1,800. A state that charges a fee will not have initial distributor license application fees lower than Pennsylvania. Delaware ($100) is the only state that charges a distributor renewal fee that will be lower than Pennsylvania. Based upon the Board's experience in the vehicle profession, it does not believe that a distributor initial application fee increase and the $174 difference in distributor renewal fees will deter distributor applicants or licensees from obtaining and renewing licenses.

Controlling expenses

 IRRC asked the Board what steps have been taken to control expenses. The BFO meets with the Board annually to review its budget for the prior fiscal year and to suggest any measures they see that may assist the Board with minimizing costs. One area in which the Board has lowered its costs from previous years has been to limit the amount of travel that Board members take to various association meetings, both in-State and out-of-State, instead encouraging attendance virtually. The Board has also converted its meetings to a hybrid format, wherein Board members are permitted to attend either in-person or virtually. This has allowed the Board to decrease expenses related to hotel and mileage reimbursement for those Board members that choose to attend virtually.

 The majority of the Board's operational costs are personnel-related, and much of those costs are not within the Board's control. Staff are generally employees of the Commonwealth, most of whom are civil service personnel; many are in union positions. For these employees, the Board is bound by the negotiated contract. Personnel costs associated with investigation and enforcement depend largely on the number of complaints received that need to be investigated, and the number of those matters that result in disciplinary action. The Board has no control over the number of complaints that are filed against licensees and unlicensed individuals, nor may they control which matters are, or are not, prosecuted. Application fees are calculated to cover the cost of processing applications while the biennial fees are calculated to ensure that the Board can meet or exceed its operational costs.

The Board's fee increase represents the least burdensome alternative.

 Next, IRRC asked the Board to explain how the Board's fee increase represents the least burdensome alternative for applicants and existing licensees. As a part of the BFO's fee increase recommendations, the BFO recommended graduated application and biennial renewal fee increases so that the application fee increases are reflective of actual costs to process applications and so that biennial renewal fees coincide more closely with the projected expenses for each biennium. The Board adopts the graduated fee schedule in an effort to minimize the impact of fee increases to licensees and to ensure that fee increases only occur when it is fiscally necessary to do so.

 The Board considers this regulation to be the least burdensome and acceptable alternative, consistent with public health, safety and welfare. This increase is necessary to ensure the fiscal integrity of the Board and to assure that the Board's mandate to protect the health, safety and welfare of the public is carried out. The last time that the Board approved an increase in initial application fees was 2000 and biennial renewal fee increase was in 2007.

 When the BFO first alerted the Board that fee increases were necessary, the Board was looking at substantial increases in biennial renewal fees only. The Board later decided to incorporate increased fees for application fees to reflect the current costs to process those applications. The Board considered a one-time 20% increase in application and renewal fees and determined that a graduated increase offered the best protection of the Board against the loss of licensees resulting from the natural fluctuations in the industry and provision of resources to the Board for compliance with statutory requirements. However, the Board incorporated graduated fee increases for applications and biennial fees over the course of 2 biennial periods so that the fees for each biennium more accurately reflected the actual costs for each biennial period. The Board adopted what it believed to be the least burdensome acceptable fee structure as this method minimizes the impact of fee increases to licensees and ensures that fee increases only occur when it is fiscally necessary to do so.

Factors that have contributed to the rise in the number of investigations, open cases and disciplinary matters.

 Based, in part, on costs for this Board for investigations, legal services and hearings, the Board anticipates that its expenditures will continue to increase because the cost to operate the Board continues to grow due factors outside of the Department's control. Since FY 2011-2012, the Board's revenue has held stagnant, but the expenditures are now outpacing the revenues.

 Over the last few fiscal years, the Board has had some sizable increases to expenses for a variety of reasons. One of the largest financial impacts for the Board was the incorporation of The Pennsylvania Justice Network (JNET), due in part to the enactment of the act of February 15, 2018 (P.L. 14, No. 6) (Act 6 of 2018), which requires mandatory self-reporting of criminal convictions. The Board uses JNET to identify criminal convictions of licensees and to verify compliance with Act 6 of 2018's mandatory reporting requirement. Initially, the Board was one of three boards under the Bureau that incorporated JNET criminal notifications into their business processes. Across the three boards, there was a sizable 27.5% average increase in the number of complaints being processed and opened for prosecution. With the additional complaints, increased expenses due to higher prosecutions, investigations, expert witness usage and hearings resulted. Since incorporation of JNET, expenses have been relatively steady in all of these cost categories. More than likely, this new level of legal workload is one that will be part of the financial picture for the Board going forward, as the JNET reports that are submitted to the Board show no signs of slowing. The public is also permitted to submit complaints electronically by means of the Pennsylvania Licensing System (PALS) web site, which is a function that was not available in the past.

 IRRC also asked the Board if the open investigations, open cases and sanctions resulted in a substantial increase in fines and civil penalties. While the Board has the ability to assess fines, civil penalties, and attempts to recoup the cost of investigations, it does not have the ability to enforce that those fees be paid back to the Board, as that is a function limited to the Department of State's prosecution division. If the civil penalty has not been paid after 30 days, the Board may also forward the matter to the Attorney General's office for collection. Investigative costs have remained relatively level over the course of the past few fiscal years, while legal and hearing expenses have certainly increased over time. The fines, civil penalties and investigation recoupment were never designed to fully cover the cost of the work completed, therefore, the funds to complete these activities must be covered by the licensees.

 With the incorporation of JNET, the Board is now alerted to any licensee that may be arrested and convicted, whether that license is active or not. In the past, the Board would not be notified of these arrests and convictions until a licensee filed a renewal application or if a licensee self-reported. As a result, many new files are opened that were not opened prior to JNET. Of those new files, a large portion are closed when the arrest does not result in a conviction. Even when the Board imposes significant fines or civil penalties, the Board is not very successful in collecting those fines or civil penalties. For example, a salesperson is more likely to abandon their license and leave the profession than pay a large fine. Additionally, when the Board turns over a collection to the Office of Attorney General, the Board pays a 25% collection fee. Generally, the boards do not budget in a manner that depends on fines and civil penalties because as a revenue stream they are undependable.

Which newly enacted amendments require increased revenue necessary for the Board to carry out its obligations?

 IRRC asked the Board which newly enacted amendments to the act require increased revenue for the Board to carry out its obligations. The act was amended in 2018 to allow the Board to issue temporary permits for new dealers. The Board anticipated an increase in costs due to investigations that may arise for temporary permitholders. Additionally, the act was amended in 2018 to renumber each section as well as separate all sections related to recreational vehicles. The amendments created additional statutory conditions for out-of-State dealers participating in recreational vehicle (RV) shows, including posting of a bond and payment of a participation fee. These new requirements may impact investigative and legal costs due to responding to complaints regarding out-of-State RV dealers' participation and compliance with the act.

Information technology upgrade

 In addition to the legal increases, all 29 boards and commissions under the Bureau have undergone an information technology transformation upgrade with the incorporation of PALS. Expenses associated with PALS, including the initial build as well as ongoing maintenance, are proportionately spread across all entities based on licensee population to effectively share costs per licensee. While the initial build is in the past, it has contributed to higher administrative expenses for all boards and commissions during the last few fiscal years. Due to PALS' high functioning database with enhanced features over the Department's previous License 2000 platform, maintenance for this system requires a larger financial commitment from all boards and commissions than the previous system. The Board anticipates that the maintenance costs for the PALS system will decrease from its prior levels as the system becomes more consistent in its functionality.

Other Comments on the Regulatory Analysis Form

 IRRC commented that the Board did not attach to the Regulatory Analysis Form (RAF) the fee report forms for the biennial renewal fees. Renewal fees are not calculated on a per cost basis the way initial application fees are calculated. Thus, the Board does not create fee report forms to accompany renewal fee recommendations. Initial application fees are developed at cost fee whereas renewal fees are developed to generate revenue to meet or exceed the Board's expenditures.

 IRRC commented that the Board included inconsistent figures for the number of license renewals in questions 16 and 17 of the RAF. This error was caused by one section indicating annual figures and the other biennial figures. The revisions are made to each document. IRRC also asked the Board to update the dates of Board meetings in questions 14 and 30 of the RAF. The Board makes the suggested updates in the RAF.

 IRRC asked the Board to include in this final-form rulemaking the actual expenditure figure for FY 2019-2020. The actual expenses for FY 2019-2020 are $2,891,103.52. An updated Annual Board Budget Report is added to the RAF.

Titles of fees

 IRRC asked the Board to make certain that titles of fees are consistently used in the preamble, RAF and this final-form rulemaking. To make terms consistent among documents, the Board in the proposed rulemaking chose to revise the term ''factory'' to ''manufacturer'' in § 19.4 of the regulation. The Board would note that ''factory'' is an outdated term that was used interchangeably in the past with the term ''manufacturer.'' The term ''factory'' is no longer used within the industry and deleting it will allow the Board to update its terminology and provide consistency between the initial application fee section and the renewal fee section of § 19.4 of the regulations. The Board adds the word ''lot'' to the term ''dealer branch license'' in the license renewal fees and the word ''distributor'' to the term ''manufacturer branch license'' in the annex; the Board drafted this final-form rulemaking consistent with these amendments.

Fiscal Impact

 The final amendments will increase the application and biennial renewal fees for all licensees of the Board. Based upon current licensee counts, there are approximately 12 manufacturer or distributor branches; 57 auctions; 373 dealer branch lots; 6,252 dealers; 63 distributors; 296 manufacturers; 1,108 manufacturer or distributor representatives and 28,746 salespersons for a total of approximately 36,907 licensees who will be required to pay more to renew their licenses. Based upon these fee increases, the total economic impact per fiscal year is as follows:

FY 2022-2023: $1,292,908
FY 2023-2024: $290,310
FY 2024-2025: $1,267,670
FY 2025-2026: $37,035   
TOTAL    $2,887,923

 These fees may be paid by applicants and licensees, or an employer may elect to pay the application fee of an employee. This final-form rulemaking should have no other fiscal impact on the private sector, the general public or political subdivisions of the Commonwealth.

 This final-form rulemaking requires the Board to alter its online initial licensure applications and biennial renewal forms to reflect the new fees; however, the amendments will not create additional paperwork for the regulated community or for the private sector.

Sunset Date

 The Board continuously monitors the effectiveness of its regulations. Therefore, no sunset date has been assigned. Additionally, the BFO provides the Board with an annual report detailing the Board's financial condition. In this way, the Board continuously monitors the adequacy of its fee schedule.

Regulatory Review

 Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on May 26, 2021, the Board submitted a copy of the notice of proposed rulemaking, published at 51 Pa.B. 3230, to IRRC, the HPLC and the SCP/PLC for review and comment.

 Under section 5(c) of the Regulatory Review Act, the Board shall submit to IRRC, the HPLC and the SCP/PLC copies of 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 HPLC, the SCP/PLC and the public.

 Under section 5.1(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on November 30, 2022, 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 8, 2022, and approved the final-form rulemaking.

Additional information

 Additional information may be obtained by writing to Janice Cline, Board Administrator, State Board of Vehicle Manufacturers, Dealers and Salespersons, P.O. Box 2649, Harrisburg, PA 17105-2649, RA-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 any comments were considered in drafting this final-form rulemaking.

 (3) The amendments to this final-form rulemaking do not enlarge the original purpose for the proposed rulemaking published at 51 Pa.B. 3230.

 (4) These amendments to the regulations of the Board are necessary and appropriate for the regulation of the vehicle profession in the Commonwealth.

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 the Attorney General and the Office of General Counsel for approval as required by law.

 (C) The Board shall submit this final-form rulemaking to IRRC, the HPLC and the SCP/PLC as required by law.

 (D) The Board shall certify this final-form rulemaking and shall 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
State Board of Vehicle Manufacturers,
Dealers and Salespersons

ARION R. CLAGGETT, 
Acting Commissioner
Bureau of Professional and
Occupational Affairs

 (Editor's Note: See 52 Pa.B. 8009 (December 24, 2022) for IRRC's approval order.)

 Fiscal Note: Fiscal Note 16A-6015 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:

		Effective  July 1, 2023	Effective July 1, 2025
Salesperson license application	$25	$65	$70
Manufacturer representative or distributor representative license application	$25	$65	$70
Manufacturer license application	$30	$90	$100
Manufacturer or distributor branch license application	$30	$90	$100
Distributor license application	$30	$90	$100
Dealer license application	$65	$175	$190
Auction license application	$65	$175	$190
Dealer branch lot license application	$65	$175	$190

*  *  *  *  *

		June 1, 2023— May 31, 2025  Biennial Renewal Fee	June 1, 2025— May 31, 2027 Biennial Renewal Fee and thereafter
Biennial renewal—salesperson license	$90	$113	$141
Biennial renewal—manufacturer representative or distributor representative license	$90	$113	$141
Biennial renewal—manufacturer license	$250	$313	$391
Biennial renewal—manufacturer or distributor branch license	$175	$219	$274
Biennial renewal—distributor license	$175	$219	$274
Biennial renewal—dealer license	$175	$219	$274
Biennial renewal—auction license	$175	$219	$274
Biennial renewal—dealer branch lot license	$175	$219	$274

[Pa.B. Doc. No. 23-47. Filed for public inspection January 13, 2023, 9:00 a.m.]

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