Introduction and Board History
The 1995 General Assembly overwhelmingly adopted legislation sponsored by Governor Allen to shift the regulation and oversight of the new and used motor vehicle dealer industry from the Department of Motor Vehicles, to a professional board as described below. Oversight and regulation of motorcycle, trailer and recreational dealers continues to be performed by DMV.
The Board consists of nineteen members appointed by the Governor, subject to confirmation by the General Assembly. Initially, eight members were appointed for two-year terms and nine were appointed for four-year terms. The initial two-year appointments, which were created to institute a two-year, staggered appointment schedule, expired on July 1, 1997. The terms of the initial four-year members will expire on July 1, 1999. Board members may serve two four-year terms.
The statute creating the Board stipulates that nine members shall be licensed franchise motor vehicle dealers, and seven members shall be independent dealers. Further, the statute requires that of the seven independent dealers, one shall be primarily engaged in vehicle rental, and one in the motor vehicle salvage business. The other three members include a consumer with no connection to the motor vehicle dealer industry; the Commissioner of the Virginia Department of Agriculture and Consumer Services and the Commissioner of the Department of Motor Vehicles, who serves as the Board’s chairman.
Members of the Board represent all areas of the Commonwealth. In addition, they represent all levels of ownership. Board members include those that own several dealerships ("mega dealers") to those with small operations and just a few employees. This cross section ensures that all perspectives of the industry have a voice on the Board.
While the first Board appointments were effective as of July 1, 1995, it was not until January 1, 1996, that the transition from DMV was completed. From July through December, the Board hired an Executive Director and staff. Office space, furniture and equipment were secured and a host of other tasks were completed in this six-month time frame. Board members, along with a dedicated team from DMV and Board staff members, ensured a smooth transition.
Organizationally, the Board staff is divided into two functional areas: Field Operations and Headquarters Operations. The field operations consist of a supervisor and twelve field representatives who work out of their "home-offices" located throughout the Commonwealth. Educating dealers, salespersons and consumers is the primary focus of the field representatives. Enforcement becomes necessary only after continued, blatant disregard for laws.
The number one priority of the Dealer Board Headquarters Operations is to process initial and renewal applications of our licensees (dealers and salespersons). This work constitutes the highest volume and work effort of the Headquarters staff. As part of the licensing process, the Board issues dealer license plates and renewal decals as directed by DMV. In a typical year, the agency will process about 6,000 dealer-related license transactions, about 27,000 salesperson license transactions and issue over 62,000 dealer tags.
About 400 consumers, most by telephone, contact the Board staff each month concerning a problem they may be having with a dealership. In the latter part of FY 98, the Board began a new program to attempt to mediate and settle consumer problems over the telephone. This has proven to be a very successful program as most situations can be resolved with the introduction of mediation and a clear understanding of the problem by all parties involved. Board staff is providing this mediation and problem solving service.
The Motor Vehicle Dealer Board Committees
The following mandated committees act as an extension of the Board:
- Advertising
- Franchise Review and Advisory
- Licensing
- Transaction Recovery Fund
- Dealer Practices
- Finance
- Personnel
Other Related Information
- Codes and Regulations Governing the Motor Vehicle Dealer Board
- Terms and Definitions