Compliance Analysis Overview

Motor Vehicle Dealer Board Guidance Document for Obtaining Study Guides for the Salesperson and Dealer-Operator Tests

Current study guides indicated below are available at www.mvdb.virginia.gov and can be downloaded for use:

MVDB 34 Motor Vehicle Dealer-Operator Study Guide MVDB-35 Motor Vehicle Salesperson Study Guide

LI30-16

Revision 2.0

Motor Vehicle Dealer Board Guidance Document for Obtaining Study Guides for the Salesperson and Dealer-Operator Tests

Current study guides below are available at www.mvdb.virginia.gov and can be downloaded:

MVDB 34 Motor Vehicle Dealer-Operator Study Guide MVDB-35 Motor Vehicle Salesperson Study Guide

LI30-16

Revision 2.0

Motor Vehicle Dealer Board Guidelines For Maintaining Records And Storing Records Off-Site

All Motor Vehicle Dealers are required to keep the originals or a copy of all original records at the site (dealership) of origination for 12 months. After 12 months, they can be stored at another location. (See below for criteria on where and how they can be stored.)

• Upon request, the executive director may exempt a dealer from the requirement to keep the originals or a copy of the originals at the originating dealership when the location for the off site storage is no further than five miles from the originating dealer.
• Upon request, the executive director may exempt a dealer from the requirement to keep the originals or copies of the originals at the originating dealership when an electronic system is in place that allows immediate retrieval of documents imaged or otherwise maintained in electronic format at the site where they originated.

On-line dealers who own multiple dealerships and prefer to process all on-line transactions in a central location have five business days to return the original documents or a copy to the originating dealership once the on-line transaction is completed. (The original or a copy must be stored at the dealership for 12 months.)

Requirements for records stored off-site include the following

• The dealer must provide, in writing, the address where the records will be stored
• Records must be stored in Virginia and may not be stored in a residence.
• Records must be available without notice to the MVDB, Monday through Friday, 9:00 am to 5:00 pm.
• Upon request, records must be shipped to the originating dealership within five business days.
• Records must be retrievable by dealer number. (e.g.: All deal jackets from dealer 1224 for a given time period.)

Dealers must notify the Dealer Board in writing if they wish to store their records off-site as described in these guidelines. If the Board has any questions or believes the dealer should not be authorized to store records off-site, the Board staff will contact the dealer.

Any dealer found not in compliance with these guidelines could be subject to sanctions to include civil penalties, suspension or revocation or be required to keep all records on-site for the required five years.

Meeting Date: September 10, 2007

PR021-16

Revision 2.0

Motor Vehicle Dealer Board Guidelines For Maintaining Records And Storing Records Off-Site

All Motor Vehicle Dealers are required to keep the originals or a copy of all original records at the site (dealership) of origination for 12 months. After 12 months, they can be stored at another location. (See below for criteria on where and how they can be stored.)

• Upon request, the executive director may exempt dealers from keeping originals or copies at the originating dealership if storage is within five miles.
• The executive director may exempt dealers from keeping originals or copies if an electronic system allows immediate retrieval of documents at the original site.

Online dealers with multiple dealerships have five business days to return originals or copies to the originating dealership after transactions; records must be stored for 12 months.

Requirements for off-site stored records include:

• Dealers must provide in writing the storage address.
• Records must be stored in Virginia and not in residences.
• Records must be available without notice to MVDB, Monday–Friday, 9 am–5 pm.
• Upon request, records must be shipped to the originating dealership within five business days.
• Records must be retrievable by dealer number. (e.g.: All deal jackets from dealer 1224 for a given time period.)

Dealers must notify the Dealer Board in writing if they wish to store their records off-site as described in these guidelines. If the Board has any questions or believes the dealer should not be authorized to store records off-site, the Board staff will contact the dealer.

Non-compliant dealers may face sanctions, civil penalties, suspension, revocation, or be required to keep records on-site for five years.

Meeting Date: September 10, 2007

PR021-16

Revision 2.0

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Motor Vehicle Dealer Board

Freight Charges/Shipping Charges/Delivery Charges/Destinations Charges

Background During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee discussed scenarios that involved independent licensed dealers adding the cost of moving a preowned vehicle to the licensed dealer location.

Criteria for Freight, Shipping, Delivery, or Destination Charges This fee is commonly associated with new vehicles being delivered directly from the manufacturer to the franchise dealership or customer. It is included in the Manufacturer’s Suggested Retail Price (MSRP). This fee must be properly disclosed on all advertisements and will appear on the invoice from the manufacturer.

This fee cannot be charged on any preowned vehicle, nor can it be charged to the

customer for the movement or transport of the vehicle from another location to the licensed dealership location.

Applicable Laws § 46.2-1581. Regulated advertising practices. § 46.2-1582. Enforcement: regulations 24VAC22-30 Motor Vehicle Dealer Advertising Practices and Enforcement Regulations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV050-17 Revision 1.0

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Motor Vehicle Dealer Board

Freight Charges/Shipping Charges/Delivery Charges/Destinations Charges

During its review of the 2001 Internet Task Force Report, the 2017 committee discussed scenarios where independent licensed dealers added the cost of moving a preowned vehicle to the dealer location.

Criteria for Freight, Shipping, Delivery, or Destination Charges This fee, associated with new vehicle delivery from manufacturer to dealer or customer, is included in MSRP, must be disclosed in ads, and appears on the manufacturer’s invoice.

This fee cannot be charged on preowned vehicles or to the

customer for transporting the vehicle from another location to the dealership.

Applicable Laws: § 46.2-1581, § 46.2-1582, and regulations 24VAC22-30 on advertising practices and enforcement.

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV050-17 Revision 1.0

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Motor Vehicle Dealer Board

Public Comment Policy

A “Public Comment Period” shall be included on all meeting agendas and public comment shall be limited to that time period.

The issue being addressed by the individual making the public comment must be on the agenda for that meeting.

Public comment is limited to topics for which the opportunity for public comment on the issue being addressed has not been previously afforded to the public in another forum such as a public hearing.

The individual offering public comment shall limit their remarks to not more than five minutes.

If a group of citizens wish to comment on an issue/topic, they are asked to select one individual to speak for the group.

Exceptions to items one and two above can be made upon the motion of a Board member with a majority of the Board concurring.

Meeting Date: July 1995, May 1997

AD020-95 Revision 2

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Motor Vehicle Dealer Board

Public Comment Policy

A “Public Comment Period” shall be on all agendas, and public comment limited to that time.

The issue addressed by the public comment must be on the agenda.

Public comment is limited to topics not previously addressed in another forum like a public hearing.

Public commenters shall limit remarks to five minutes.

Groups should select one individual to speak for the group.

Exceptions to items one and two require a Board member motion and majority approval.

Meeting Date: July 1995, May 1997

AD020-95 Revision 2

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Motor Vehicle Dealer Board Guidance Memorandum to All Virginia Motor Vehicle Dealers Salespersons Must Be Employees

September 2018

The Code of Virginia defines a salesperson as follows

“. .. (i) any person who is hired as an employee by a motor vehicle dealer to sell or exchange motor vehicles and who receives or expects to receive a commission, fee, or any other consideration from the dealer; (ii) any person who supervises salespersons employed by a motor vehicle dealer, whether compensated by salary or by commission; (iii) any person, compensated by salary or commission by a motor vehicle dealer, who

negotiates with or induces a customer to enter into a security agreement on behalf of a dealer; or (iv) any person who is licensed as a motor vehicle dealer and who sells or exchanges motor vehicles. For purposes of this section, any person who is an independent contractor as defined by the United States Internal Revenue Code shall be deemed not to be a motor vehicle salesperson.”

Please be sure that anyone who performs any of the functions listed in the above definition is properly licensed. In addition, anyone licensed as a salesperson must be an employee of the dealership. Licensed salespersons may not be “independent contractors” and paid via IRS form “1099”

Form K-1 is used by members of a Corporation, LLC, or Partnership to report their share of the organization’s earnings (or loss). If a member of a Corporation, LLC, or Partnership is also a licensed salesperson, then by definition, they are also an employee and the organization must issue that employee an IRS Form W-2 at the end of the tax year. Therefore, a member of a Corporation, LLC, or

Partnership who is also a licensed salesperson may receive either a “K-1” and/or a “W-2” at the end of the tax year.

LI010-18 Revision 1.0

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Motor Vehicle Dealer Board Guidance Memorandum to All Virginia Motor Vehicle Dealers Salespersons Must Be Employees

September 2018

The Code of Virginia defines a salesperson as follows

… (i) any person hired as an employee by a motor vehicle dealer to sell or exchange motor vehicles and who receives or expects to receive a commission, fee, or consideration from the dealer; (ii) any person supervising salespersons employed by a motor vehicle dealer, whether paid by salary or commission; (iii) any person, paid by salary or commission by a motor vehicle dealer, who

negotiates or induces a customer to enter a security agreement for a dealer; or (iv) any licensed motor vehicle dealer who sells or exchanges vehicles. For this section, any person classified as an independent contractor under the IRS is not a motor vehicle salesperson.”

Ensure anyone performing listed functions is properly licensed. Licensed salespersons must be employees; they cannot be independent contractors paid via IRS Form 1099.

Form K-1 reports members’ share of earnings/losses in a Corporation, LLC, or Partnership. If a licensed salesperson is a member, they are also an employee, and the organization must issue a W-2 at year-end. Thus, a member of a Corporation, LLC, or

A licensed salesperson who is a Partnership member may receive a K-1 and/or W-2 at year-end.

LI010-18 Revision 1.0

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Motor Vehicle Dealer Board

Maximum Civil Penalty To Be Assessed

for Unlicensed Salespersons

per Administrative Action

January 11, 2021

Virginia Code Section § 46.2-1537 states that, “It shall be unlawful for any motor vehicle dealer or salesperson licensed under this chapter, directly or indirectly, to solicit the sale of a motor vehicle through a peculiarly interested person, or to pay, or cause to be paid, any commission or compensation in any form whatsoever to any person in connection with the sale of a motor vehicle, unless the person is duly licensed as a salesperson employed by the dealer. It shall also

be unlawful for any motor vehicle dealer to compensate, in any form whatsoever, any person acting in the capacity of a salesperson as defined in § 46.2-1500 unless that person is licensed as required by this chapter.”

Virginia Code Section § 46.2-1507 gives the Motor Vehicle Dealer Board the authority to assess civil penalties that do not exceed $1,000.00 for any single violation of Chapter 46.2 of the Code of Virginia. Each unlicensed salesperson constitutes a separate violation, and each individual sale may constitute a per occurrence violation.

Per this policy, the Board will continue to levy civil penalties, which will not exceed $25,000 for unlicensed salespersons per administrative action. The Board further resolved that Board staff

should take into consideration whether the dealership made an administrative error in applying for or renewing the salespersons license, and if found to be true, the per occurrence penalty will not be applied.

Nothing contained in this policy shall be used to interfere with an investigation by or on behalf of the staff leading to or designed to lead to a charge that will be the subject of an Informal Fact Finding Conference or a Formal Hearing.

Nothing contained in this policy shall be used to interfere with the right of a dealer to appeal any administrative action to an Informal Fact-Finding conference or a Formal hearing.

§ 46.2-1537 § 46.2-1507 Board Meeting January 11, 2021

PR041-21

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Motor Vehicle Dealer Board

Maximum Civil Penalty To Be Assessed

for Unlicensed Salespersons

per Administrative Action

January 11, 2021

Virginia Code § 46.2-1537 states it’s unlawful for licensed dealers or salespersons to solicit or pay commissions in connection with vehicle sales unless the recipient is licensed as a salesperson.

It is unlawful for dealers to compensate unlicensed persons acting as salespersons as defined in § 46.2-1500.

§ 46.2-1507 authorizes the Board to assess civil penalties up to $1,000 per violation; each unlicensed salesperson and sale counts as a separate violation.

The Board will levy civil penalties up to $25,000 per administrative action for unlicensed salespersons. Staff will consider dealership administrative errors in licensing.

If dealership errors in licensing are found, per occurrence penalties will not apply.

This policy does not interfere with staff investigations or charges leading to Informal Fact-Finding Conferences or Formal Hearings.

This policy does not restrict dealers' rights to appeal administrative actions to Informal Fact-Finding or Formal hearings.

§ 46.2-1537 § 46.2-1507 Board Meeting January 11, 2021

PR041-21

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Motor Vehicle Dealer Board Guidance Document

Transfer Fees

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee discussed scenarios that involved licensed dealers (franchise and independent) adding the cost of moving a preowned vehicle from a previous location to the licensed dealers’ facility to the cost of the vehicle.

Criteria for Transfer Fee: This fee is allowed when a dealership has multiple locations and the customer requests the vehicle be transferred to a specific location for potential purchase. The customer should be given the option of purchasing the vehicle at the dealership where the vehicle is located. However, if the customer requests that the vehicle be transferred to a dealership other than where the vehicle is located, the dealership may charge a transfer fee. The transfer fee should be reasonable and it must be disclosed to the customer prior to the transfer of the vehicle. Transfer fees are not applicable for vehicles coming from auctions.

Applicable Laws

§ 46.2-1529. Dealer records § 46.2-1516. Supplemental sales locations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV060-17 Revision 1.0

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Motor Vehicle Dealer Board Guidance Document

Transfer Fees

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force discussed scenarios where licensed dealers (franchise and independent) added the cost of moving a preowned vehicle to the dealer’s facility to the vehicle's cost.

Criteria for Transfer Fee: When a dealership has multiple locations and a customer requests transfer to a specific site for purchase, a reasonable, disclosed transfer fee may be charged if transferring to a different dealership. Fees do not apply to auction vehicles.

Applicable Laws

§ 46.2-1529. Dealer records § 46.2-1516. Supplemental sales locations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV060-17 Revision 1.0

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director

PURPOSE The purpose of FOIA is to promote an increased awareness by all persons of governmental activities. In furthering this policy, FOIA requires that the law be interpreted liberally, in favor of access, and that any

exemption allowing public records to be withheld must be interpreted narrowly. The Virginia Freedom of Information Act (FOIA), located in § 2.2-3700 et seq. of the Code of Virginia, guarantees citizens of the Commonwealth and representatives of the media access to public records held by public bodies, public officials, and public employees.

Policy Specifics

The MVDB’s Responsibilities in Responding to FOIA Requests

• The MVDB must respond to your request within five working days of receiving it. "Day One" is considered the day after your request is received. The five-day period does not include weekends, holidays, or other days when the MVDB is closed for business.
• The reason behind your request for public records from the MVDB is irrelevant, and you do not have to state why you want the records before we respond to your request. FOIA does, however, allow the MVDB to require you to provide your name and legal address.
• FOIA requires that the MVDB make one of the following responses to your request within the five-day time period:

1. We provide you with the records that you have requested in their entirety.
2. We withhold all of the records that you have requested, because all of the records are subject to a specific statutory exemption. If all of the records are being withheld, we must send you a response in writing. That writing must identify the volume and subject matter of the records being withheld, and state the specific section of the Code of Virginia that allows us to withhold the records.
3. We provide some of the records that you have requested, but withhold other records.

We cannot withhold an entire record if only a portion of it is subject to an exemption. In that instance, we may redact the portion of the record that may be withheld, and must

provide you with the remainder of the record. We must provide you with a written response stating the specific section of the Code of Virginia that allows portions of the requested records to be withheld.

4. We inform you in writing that the requested records cannot be found or do not exist (we do not have the records you requested). However, if we know that another public body has the requested records, we must include contact information for the other public body in our response to you.
5. If it is practically impossible for the MVDB to respond to your request within the five-day period, we must state this in writing, explaining the conditions that make the response impossible. This will allow us an additional seven working days to respond to your request, giving us a total of 12 working days to respond to your request. In the case of criminal investigative files requested pursuant to § 2.2-3706.1 of the Code of Virginia,

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director we are allowed an additional 60 working days to respond to your request, giving us a total of 65 working days to respond to your request.

• If you make a request for a very large number of records, and we feel that we cannot provide the records to you within 12 working days without disrupting our other organizational responsibilities, we may petition the court for additional time to respond to your request.

However, FOIA requires that we make a reasonable effort to reach an agreement with you concerning the production of the records before we go to court to ask for more time.

Charges

• A public body may make reasonable charges not to exceed its actual cost incurred in accessing, duplicating, supplying, or searching for the requested records. No public body shall impose any extraneous, intermediary, or surplus fees or expenses to recoup the general costs associated with creating or maintaining records or transacting the general business of the public body. Any duplicating fee charged by a public body shall not exceed the actual cost of duplication. Prior to conducting a search for records, the public body shall notify the requester in writing that the public body may make reasonable charges not to exceed its actual cost incurred in accessing, duplicating, supplying, or searching for requested records and inquire of the requester whether he would like to request a cost estimate in advance of the supplying of the requested records as set forth in subsection F of § 2.2-3704 of the Code of Virginia.
• You may have to pay for the records that you request from the MVDB. FOIA allows us to charge for the actual costs of responding to FOIA requests. This would include items like staff time spent searching for the requested records, copying costs, or any other costs directly related to supplying the requested records. Any charges cannot include general overhead costs.
• If we estimate that it will cost more than $200 to respond to your request, we may require you

to pay a deposit, not to exceed the amount of the estimate, before proceeding with your request. The five days that we have to respond to your request does not include the time between when we ask for a deposit and when you respond.

• You may request that we estimate in advance the charges for supplying the records that you have requested. This will allow you to know about any costs upfront, or give you the opportunity to modify your request in an attempt to lower the estimated costs. The five days that we have to respond to your request does not include the time between when we send you the estimate and when you respond. If you do not respond within 30 days, then your request will be deemed to be withdrawn.
• If you owe us money from a previous FOIA request that has remained unpaid for more than 30 days, the MVDB may require payment of the past-due bill before it will respond to your new FOIA request.

Types of Records

The following is a general description of the types of records held by the MVDB:

• Personnel records concerning employees and officials of the MVDB
• Records of contracts which the MVDB has entered into

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director

• Documents related to the licensing and administration of past or current licensed motor vehicle dealers in the Commonwealth of Virginia.

If you are unsure whether the MVDB has the record(s) you seek, please contact the MVDB directly at dboard@mvdb.virginia.gov, or 804-367-1100

Commonly Used Exemptions

The Code of Virginia allows any public body to withhold certain records from public disclosure. The MVDB commonly withholds records subject to the following exemptions:

• Personnel records (§ 2.2-3705.1 (1) of the Code of Virginia)
• Records subject to attorney-client privilege (§ 2.2-3705.1 (2)) or attorney work product (§ 2.2-3705.1 (3))
• Vendor proprietary information (§ 2.2-3705.1 (6))
• Records relating to the negotiation and award of a contract, prior to a contract being awarded (§

2. 2-3705.1 (12))

• Tests and examination scores (§ 2.2-3705 (1))
• All personal identifying information will be redacted such as social security numbers, driver’s

license numbers, home addresses, personal emails, and personal cell. (§ 2.2-3705.1 (10))

Forms and Related Documents

Authority

2. 2-3700

3. 2-3704

4. 2-3705

5. 2-3706

Approval and Revision History

07/01/1996 06/08/2023

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director

PURPOSE The purpose of FOIA is to promote awareness of governmental activities. FOIA requires the law be interpreted liberally for access, and that any

exemption allowing records to be withheld must be interpreted narrowly. Virginia FOIA § 2.2-3700 et seq. guarantees citizens and media access to public records held by public bodies, officials, and employees.

Policy Specifics

The MVDB’s Responsibilities in Responding to FOIA Requests

• The MVDB must respond within five working days of receipt, excluding weekends, holidays, or closure days. "Day One" is the day after receipt.
• Your reason for requesting records is irrelevant; FOIA allows MVDB to require your name and legal address.
• FOIA mandates MVDB respond within five days with one of the following:

1. We provide all requested records in full.
2. We withhold all requested records if exempt, providing written notice identifying volume, subject, and legal exemption section.
3. We provide some requested records, withholding others.

We cannot withhold an entire record if only part is exempt. In that case, we may redact the exempt portion and must

provide the remaining record. We must give a written response citing the specific Virginia Code section allowing withholding.

4. We notify in writing if records are missing or do not exist; if another body has them, we include contact info.
5. If response is practically impossible within five days, MVDB must state reasons in writing, allowing an additional seven days, totaling 12 days. For criminal files under § 2.2-3706.1,

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director we are allowed an additional 60 working days to respond to your request, giving us a total of 65 working days to respond to your request.

• For large requests exceeding 12 days' capacity, MVDB may petition court for extra response time.

FOIA requires us to make a reasonable effort to agree on record production before seeking court extension.

Charges

• Public bodies may charge actual costs for access, duplication, or search, not exceeding actual expenses. They must notify requesters of potential charges and offer cost estimates in advance.
• You may be charged for actual costs of staff time, copying, or direct expenses; overhead costs are excluded.
• If estimated cost exceeds $200, we may require you

You must pay a deposit, not exceeding the estimate, before we proceed. The five-day response period excludes the time between deposit request and response.

• You may request an advance cost estimate to clarify potential charges or modify your request. If no response within 30 days, request is withdrawn.
• Unpaid past FOIA bills over 30 days may delay response until paid.

Types of Records

Below is a general description of MVDB records:

• Personnel records of MVDB employees and officials.
• Records of MVDB contracts.

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MVDB FOIA Policy Administrative Group Effective Date: 07/01/1996 Approval date: July 1, 1996

Approved Revision Date 06/08/2023 Executive Director

• Documents on licensing and administration of Virginia motor vehicle dealers.

If unsure whether MVDB has the records, contact dboard@mvdb.virginia.gov or 804-367-1100.

Commonly Used Exemptions

Virginia Code allows public bodies to withhold certain records. MVDB commonly withholds records under these exemptions:

• Personnel records (§ 2.2-3705.1(1)).
• Privileged attorney-client or work product records (§ 2.2-3705.1(2)-(3)).
• Vendor proprietary information (§ 2.2-3705.1 (6))
• Records on contract negotiations and awards before award (§

2. 2-3705.1 (12))

• Tests and examination scores (§ 2.2-3705 (1))
• All personal identifiers, like SSNs and driver’s info, will be redacted.

license numbers, home addresses, personal emails, and personal cell. (§ 2.2-3705.1 (10))

Forms and Related Documents

Authority

2. 2-3700

3. 2-3704

4. 2-3705

5. 2-3706

Approval and Revision History

07/01/1996 06/08/2023

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Motor Vehicle Dealer Board Internet Privacy Policy

The Motor Vehicle Dealer Board is committed to protecting the privacy of our customers. The following information explains our current Internet privacy practices, but shall not be construed as a contractual promise. We reserve the right to amend these practices and procedures at any time without prior notice.

Disclaimer of Liability

MVDB provides this web site and the information it presents as a public service. MVDB attempts to maintain the highest accuracy of content on its web site. However, MVDB makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of this web site and expressly disclaims all liability, whether direct or indirect, for any loss or damage arising out of use, reference to, or reliance on any information presented on the web site.

MVDB makes no warranty, representation or undertaking of any kind, whether expressed or implied, with respect to the contents of the web site or its links to other web sites. The MVDB web site contains links to various other public and private web sites, whose privacy practices we

do not control. If you have questions or concerns about a site we link to, please read the privacy and security information for that site.

Reference in this web site to any product, process or service, or the use of any trade, firm or corporation name is for the information and convenience of the public and does not constitute a recommendation or endorsement by MVDB.

Links to Other Web Sites

Our web site contains links to other public and private web sites whose content and privacy practices we do not control. If you have questions or concerns about a site we link to, please read the privacy and security information for that site.

MVDB determines which external web sites are linked to. Links to external web sites and pages may be removed or replaced at the sole discretion of MVDB at any time without notice.

Privacy Policy

We protect our records in accordance with our obligations as defined by applicable Virginia statutes, including, but not limited to, the Government Data Collection and Dissemination Practices Act, the Virginia Freedom of Information Act, and by other applicable U.S. Federal Laws.

Essential Technical Information We Collect

It is the policy of the Commonwealth of Virginia, Motor Vehicle Dealer Board that personal information about citizens will be collected only to the extent necessary to provide the service or

AD100-16 Revision 2.0

[TABLE 1-1] The Motor Vehicle Dealer Board is committed to protecting the privacy of our customers. The following information explains our current Internet privacy practices, but shall not be construed as a contractual promise. We reserve the right to amend these practices and procedures at any time without prior notice.

[/TABLE]

[TABLE 1-2] MVDB provides this web site and the information it presents as a public service. MVDB attempts to maintain the highest accuracy of content on its web site. However, MVDB makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of this web site and expressly disclaims all liability, whether direct or indirect, for any loss or damage arising out of use, reference to, or reliance on any information presented on the web site.

MVDB makes no warranty, representation or undertaking of any kind, whether expressed or implied, with respect to the contents of the web site or its links to other web sites. The MVDB web site contains links to various other public and private web sites, whose privacy practices we do not control. If you have questions or concerns about a site we link to, please read the privacy and security information for that site.

Reference in this web site to any product, process or service, or the use of any trade, firm or corporation name is for the information and convenience of the public and does not constitute a recommendation or endorsement by MVDB.

Links to Other Web Sites Our web site contains links to other public and private web sites whose content and privacy practices we do not control. If you have questions or concerns about a site we link to, please read the privacy and security information for that site.

MVDB determines which external web sites are linked to. Links to external web sites and pages may be removed or replaced at the sole discretion of MVDB at any time without notice.

Privacy Policy We protect our records in accordance with our obligations as defined by applicable Virginia statutes, including, but not limited to, the Government Data Collection and Dissemination Practices Act, the Virginia Freedom of Information Act, and by other applicable U.S. Federal Laws.

Essential Technical Information We Collect

[/TABLE]

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Motor Vehicle Dealer Board Internet Privacy Policy

benefit desired; that only appropriate information be collected; that the citizen shall understand the reason the information is collected, and be able to examine their personal record that is maintained by a public body.

The Motor Vehicle Dealer Board website

• Does not place a “cookie” on your computer.

• Does not require you provide any personal information to download forms made available for your use.

• No other information is collected through our web site unless visitors on our site send us

an email or complete an online form requesting MVDB staff for services.

Executive Order 51 (99) and Code of Virginia § 2.1-380; § 2.2-3803

AD100-16 Revision 2.0

[TABLE 2-1] | • No other information is collected through our web site unless visitors on our site send us | an email or complete an online form requesting MVDB staff for services.

[/TABLE]

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Motor Vehicle Dealer Board Internet Privacy Policy

The Motor Vehicle Dealer Board is committed to protecting customer privacy. This explains current Internet privacy practices but is not a contractual promise. We may amend these practices at any time without notice.

Disclaimer of Liability

MVDB provides this site and its information as a public service. While MVDB strives for accuracy, it makes no guarantees about content accuracy, completeness, or adequacy and disclaims liability for any loss or damage from use or reliance on the site.

MVDB makes no warranty or representation regarding the site or its links. The site contains links to other public and private sites, whose privacy practices we

do not control. If you have questions about linked sites, please review their privacy and security info.

References to products, processes, services, or trade names are for public information and do not constitute MVDB endorsements.

Links to Other Web Sites

Our site links to other public and private sites whose content and privacy practices we do not control. For questions, review their privacy/security info.

MVDB determines and may remove or replace external links at any time without notice.

Privacy Policy

We protect records per Virginia statutes, including the Government Data Collection and Dissemination Practices Act, the Virginia Freedom of Information Act, and applicable U.S. Federal Laws.

Essential Technical Information We Collect

The Virginia Motor Vehicle Dealer Board's policy is to collect personal information only as necessary to provide services.

AD100-16 Revision 2.0

[TABLE 1-1] The Motor Vehicle Dealer Board is committed to protecting customer privacy. This explains current Internet privacy practices but is not a contractual promise. We may amend these practices at any time without notice.

[/TABLE]

[TABLE 1-2] MVDB offers this site as a public service. While striving for accuracy, MVDB disclaims liability for any loss or damage from use or reliance on site content.

MVDB makes no warranty or representation regarding the site or its links. Links to other sites have privacy practices we do not control. For concerns, review their privacy/security info.

Reference in this web site to any product, process or service, or the use of any trade, firm or corporation name is for the information and convenience of the public and does not constitute a recommendation or endorsement by MVDB.

Our site links to other public and private sites with unregulated content and privacy practices. For questions, review their privacy/security info.

MVDB determines which external web sites are linked to. Links to external web sites and pages may be removed or replaced at the sole discretion of MVDB at any time without notice.

We protect records per Virginia statutes, including the Government Data Collection and Dissemination Practices Act, the Virginia Freedom of Information Act, and applicable U.S. laws.

Essential Technical Information We Collect

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Motor Vehicle Dealer Board Internet Privacy Policy

The goal is to collect only appropriate information, ensure citizens understand why, and allow them to examine their records maintained by a public body.

The Motor Vehicle Dealer Board website

• Does not place a “cookie” on your computer.

• Does not require personal information to download forms.

• No other information is collected unless visitors contact us

by emailing or submitting an online form requesting services.

Executive Order 51 (99) and Virginia Code §§ 2.1-380, 2.2-3803

AD100-16 Revision 2.0

[TABLE 2-1] | No other info is collected unless visitors contact us via email or online form.

[/TABLE]

Motor Vehicle Dealer Board Guidance Document Board Meeting Cancellation Inclement Weather Policy November 2018 During its January 23, 2017 meeting, the Virginia Motor Vehicle Dealer Board (Board) discussed future cancellations of scheduled Board meetings.

Background

The Board was scheduled to meet on January 9, 2017. On January 7, 2017, the Richmond metropolitan area started receiving snow, forecasted up to 8 inches in some areas. In the late afternoon of January 8, 2017, Governor McAuliffe closed state offices in the Richmond metro area as a result of the snow and icy conditions. Upon learning that Richmond area state offices were closed on January 9, Board staff attempted to notify Board members of the area office closures. However, Board members who required overnight accommodations had already checked into their hotel rooms.

Presented to Board

a. The Board would delegate the authority to the Executive Director to cancel the meeting no later than noon on the Friday before scheduled meeting, and not be dependent on the Governor closing state offices in the Richmond area.

b. Cancelling by noon will allow the Board staff time to notify all Board members (via email or text message), notify respondents (phone call or email), DMV (meeting room, law enforcement and audio visual technicians), Attorney General’s Office, caterer, and hotel of the cancellation.

c. Cancelled meeting will be rescheduled for 4rd Monday of the month in which the meeting was originally scheduled.

Outcome

The consensus of the Board was for the Executive Director to move forward with this policy.

AD060-17 January 2017

Motor Vehicle Dealer Board Guidance Document Board Meeting Cancellation Inclement Weather Policy November 2018 During its January 23, 2017 meeting, the Virginia Motor Vehicle Dealer Board (Board) discussed future cancellations of scheduled Board meetings.

Background

The Board was scheduled to meet on January 9, 2017. On January 7, 2017, the Richmond metropolitan area started receiving snow, forecasted up to 8 inches in some areas. In the late afternoon of January 8, 2017, Governor McAuliffe closed state offices in the Richmond metro area as a result of the snow and icy conditions. Upon learning that Richmond area state offices were closed on January 9, Board staff attempted to notify Board members of the area office closures. However, Board members who required overnight accommodations had already checked into their hotel rooms.

Presented to Board

a. The Board delegates authority to the Executive Director to cancel the meeting no later than noon on the Friday before, regardless of Governor office closures.

b. Cancelling by noon allows staff to notify Board members, respondents, DMV, Attorney General’s Office, caterer, and hotel of the cancellation.

c. Cancelled meetings will be rescheduled for the 4th Monday of the original month.

Outcome

The Board consensus was for the Executive Director to proceed with this policy.

AD060-17 January 2017

Motor Vehicle Dealer Board Resolution on Educational and Warning Letters January 10, 2005 The following shall be the policy of the Motor Vehicle Dealer Board (“Board”) for sending educational and warning letters to licensees on matters other than advertising and not maintaining business hours.

WHEREAS

A.

Educational and warning letters to licensees are important tools in educating and advising licensees about the laws that apply to them;

B.

The Board has a procedure for staff issuance of letters for apparent advertising violations and not maintaining business hours; and

C.

The Board wishes to have a procedure for staff issuance of educational and warning letters for matters that do not involve advertising and not maintaining business hours where knowledge and understanding the facts involved may be disputed; now therefore it is hereby

RESOLVED that the Board adopts the following procedure concerning issuance by the staff of educational and warning letters to licensees:

The staff has full authority to send educational letters to a licensee provided that the educational letter must contain no findings of fact concerning the alleged actions of the licensee.

2. .

The staff may issue a warning letter to a licensee, provided that the warning letter is based upon facts and agreed to by the licensee in writing, and the facts justify a warning to the licensee.

If the licensee does not agree to facts justifying a warning letter, than an informal fact finding conference shall be convened.

Nothing contained in this resolution shall be used to interfere with an investigation by or on behalf of the staff leading to or designed to lead to a charge that will be the subject of an informal fact finding conference or a formal hearing.

PR040-05

Revision 1.0

Motor Vehicle Dealer Board Resolution on Educational and Warning Letters January 10, 2005 The Motor Vehicle Dealer Board (“Board”) policy for sending educational and warning letters to licensees on matters other than advertising and not maintaining business hours.

WHEREAS

A.

Educational and warning letters are key tools to educate and advise licensees about applicable laws;

B.

The Board has a procedure for staff issuance of letters for apparent advertising violations and not maintaining business hours; and

C.

The Board seeks a procedure for staff issuance of educational and warning letters on matters excluding advertising and business hours where facts may be disputed; now therefore it is hereby

RESOLVED that the Board adopts the following procedure for staff issuance of educational and warning letters to licensees:

Staff may send educational letters to licensees, which must contain no findings of fact concerning alleged actions.

2. .

Staff may issue warning letters based on facts agreed to in writing by the licensee, which justify a warning.

If the licensee disagrees with facts justifying a warning, an informal fact-finding conference shall be convened.

Nothing in this resolution shall interfere with staff investigations leading to charges or formal hearings.

PR040-05

Revision 1.0

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Motor Vehicle Dealer Board Guidance Document

Advertising - Removal of Vehicles from Website

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee, discussed scenarios that involved licensed dealers (franchise and independent) advertising vehicles on their websites after the vehicle has been sold.

Removal of Vehicles from Website

In addition to the Commonwealth’s advertising laws and regulations, guidance is being provided to dealerships regarding the removal of vehicles from the dealer’s website once the vehicle has been sold.

Upon selling a vehicle listed on its website, the dealer shall take action to remove the vehicle from the website within 5 business days. This is recommended to allow the dealership time to coordinate the removal of the vehicle from the website, to avoid misleading the customer and the appearance of bait and switch practices.

Applicable Advertising Laws and Regulations § 46.2-1581. Regulated advertising practices. § 46.2-1582. Enforcement: regulations 24VAC22-30 Motor Vehicle Dealer Advertising Practices and Enforcement Regulations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

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Motor Vehicle Dealer Board Guidance Document

Advertising - Removal of Vehicles from Website

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee discussed scenarios involving licensed dealers (franchise and independent) advertising vehicles on their websites after sale.

Removal of Vehicles from Website

Along with the Commonwealth’s advertising laws, guidance is provided to dealerships on removing sold vehicles from their websites.

Dealers shall remove sold vehicles from their website within 5 business days to prevent misleading customers and bait-and-switch practices.

Applicable laws: § 46.2-1581, § 46.2-1582, and regulations 24VAC22-30 on advertising practices and enforcement.

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

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Motor Vehicle Dealer Board

Meeting Documentation Policy

An audio recording will be made of all Board and Committee meetings. Tapes will be available to the public for the cost of the tape. Effective with the September 2002 meeting, all tapes will be retained for a period of 30 days after the meeting summary has been approved. As tapes retained under the old policy of retention for three years, reach the 3-year mark, they will be destroyed, and not sooner.

Staff will produce meeting summaries that will be distributed to Board members prior to the next meeting. These summaries will be available to the public once approved by the Board or the appropriate committee. Board Staff will maintain a file of all meeting summaries.

Board Meetings on Video

On the scheduled date for the Board Meeting, the meeting will be broadcast live starting at 9:00am. Users may stream this live video by clicking on http://www.dmvnow.com/about/#media/video/live_event.asp

Users must have a valid internet connection to stream live video from their computer or mobile device.

If you wish to view previous Board meetings videos click on http://www.dmvnow.com/about/#media/video/live_event.asp and scroll to the archived listing to choose the meeting choice. Videos are retained for one year.

The Board is not responsible for any technical difficulties that may arise and prevent the

video to be taped and/or posted on the website for the public.

Meeting Date: July 1995, March 1996, May 1997, September 2002 ; 2012

AD030-16 Revision 2

[TABLE 1-1] On the scheduled date for the Board Meeting, the meeting will be broadcast live starting at 9:00am. Users may stream this live video by clicking on http://www.dmvnow.com/about/#media/video/live_event.asp Users must have a valid internet connection to stream live video from their computer or mobile device.

If you wish to view previous Board meetings videos click on http://www.dmvnow.com/about/#media/video/live_event.asp and scroll to the archived listing to choose the meeting choice. Videos are retained for one year.

The Board is not responsible for any technical difficulties that may arise and prevent the video to be taped and/or posted on the website for the public.

[/TABLE]

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AD030-16 Revision 2

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Motor Vehicle Dealer Board

Meeting Documentation Policy

All Board and Committee meetings will be audio recorded. Tapes are public at cost. From September 2002, tapes are retained 30 days after meeting approval; old 3-year tapes will be destroyed after 3 years.

Staff will produce and distribute meeting summaries to Board members before the next meeting. Once approved, summaries are public. Staff will maintain a file of all summaries.

Board Meetings on Video

On the scheduled date, the Board Meeting will be broadcast live at 9:00am. Users can stream it at http://www.dmvnow.com/about/#media/video/live_event.asp

Users need a valid internet connection to stream live video from computers or mobile devices.

To view previous Board meeting videos, click http://www.dmvnow.com/about/#media/video/live_event.asp and select from archived listings. Videos are retained for one year.

The Board is not responsible for any technical difficulties that may prevent the

video to be taped and/or posted on the website for the public.

Meeting Date: July 1995, March 1996, May 1997, September 2002 ; 2012

AD030-16 Revision 2

[TABLE 1-1] On the scheduled date, the Board Meeting will be broadcast live at 9:00am. Users can stream it at http://www.dmvnow.com/about/#media/video/live_event.asp. A valid internet connection is required.

If you wish to view previous Board meetings videos click on http://www.dmvnow.com/about/#media/video/live_event.asp and scroll to the archived listing to choose the meeting choice. Videos are retained for one year.

The Board is not responsible for technical difficulties preventing video recording or posting on the website.

[/TABLE]

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AD030-16 Revision 2

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Motor Vehicle Dealer Board Advertising Policy

Deviations from Standard Practices

It is the intent of the Motor Vehicle Dealer Board to first educate the dealer community in

matters of advertising violations.

Keeping the “education first” intent in mind, the Motor Vehicle Dealer Board (MVDB) staff routinely publishes articles in the Board’s newsletter, Dealer Talk concerning identified trends in advertising violations, and clarification of advertising code and regulations.

Board staff also routinely reviews Internet and newsprint advertisements to ensure compliance with code and regulations. In those cases where there is an alleged violation, board staff initiates an educational phone call to the dealer to discuss the advertising issue, reviews the

alleged violation(s) and provide direction for revision of the advertisement as needed. There is no civil penalty assessed on the dealer since this was an educational phone call; however the call is entered into a database for tracking and historical referencing purposes. If there is a second alleged advertising violation this may warrant a warning letter to the dealer. A third alleged violation, after a warning letter has been issued, can result in a civil penalty of up to $1,000 (although a $500 civil penalty is typical).

There are times, however, when it may be necessary to deviate from the standard practice. In

those cases where

• It is apparent that an advertisement willfully attempts to deceive the consumer.
• The dealership consistently violates a particular advertising code (or any combination thereof).
• The responsible dealership contact refuses discussion with a responsible Board staff member concerning the violation.

The Executive Director shall administer corrective action ranging from a first written violation to levying a civil penalty against the dealer depending on the severity of the offense. The dealer has the option of requesting an informal fact finding conference if a civil penalty is assessed. As deemed necessary by the Executive Director, the matter may be brought before the Board for concurrence.

AV010-16 Revision 2.0

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Motor Vehicle Dealer Board Advertising Policy

Deviations from Standard Practices

The Motor Vehicle Dealer Board's intent is to first educate the dealer community in

matters of advertising violations.

Maintaining the “education first” goal, MVDB staff routinely publishes articles in Dealer Talk on advertising violation trends and clarifies advertising code and regulations.

Board staff reviews Internet and print ads for compliance. For alleged violations, staff makes educational calls to discuss issues, review the

The staff reviews violations, provides guidance, and records calls for tracking. A second violation may warrant a warning; a third after warning can lead to a civil penalty up to $1,000, typically $500.

However, deviations from standard practice may be necessary. In

those cases where

• It is apparent that an advertisement willfully attempts to deceive the consumer.
• The dealership repeatedly violates a specific advertising code or codes.
• The responsible dealership contact refuses to discuss the violation with Board staff.

The Executive Director may impose corrective actions, including civil penalties based on severity. Dealers can request an informal conference if penalized; the matter may be brought before the Board as needed.

AV010-16 Revision 2.0

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Motor Vehicle Dealer Board

Advertising Policy Advertising Display/Show Versus Display For Sale

Background It has been common practice for motor vehicle dealers to show motor vehicles in malls and airports. These types of static displays have been interpreted as a “show”. The Motor Vehicle Dealer Board has not required an off-site (temporary supplemental) license as long as no sales activity was taking place away from the licensed location.

In addition, some commercial establishments such as Costco and Sam’s Club have relationships with dealers whereby the dealers offer special pricing for members of these stores. Often times a vehicle will be on display at the entrance of the commercial establishment as an advertisement for the buying service. The only price posted on the vehicle would be the Monroney Sticker and no sales would be taking place at the store.

Criteria for Display/Shows The following criteria are used to differentiate between an Advertising Display/Show and display for sale requiring a supplemental off-site sales license. Situations meeting the listed criteria are deemed to be an Advertising Display/Show and would not require a supplemental license. Displays not meeting the criteria would require s supplemental license.

• Vehicle should not be readily visible from a public roadway.
• Advertising on the vehicle may only include the Monroney Sticker for a new motor vehicle and a Monroney like sticker (No larger than 8.5 inches by 11 inches.) and the buyers guide for used vehicles; the dealership or auto buying program name, address, and telephone number.
• The price of the vehicle should not be displayed anywhere on the vehicle other than on the Monroney Sticker for new motor vehicles or the Monroney like sticker

as described above for used motor vehicles.

• With the exception of the Monroney Sticker for new motor vehicles or the Monroney like sticker as described above for used motor vehicles or the dealership or auto buying program name, address, and telephone number, no advertising should be displayed or written on the vehicle.

Applicable Laws § 46.2-1515. Location to be specified; display of license; change of location § 46.2-1516. Supplemental sales locations

Meeting Date: September 14, 2009

AV020-09 Revision 2.0

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Motor Vehicle Dealer Board

Advertising Policy Advertising Display/Show Versus Display For Sale

Dealers often display vehicles in malls and airports, considered a “show”. No off-site license needed if no sales occur away from licensed location.

Stores like Costco and Sam’s Club have dealer relationships offering member discounts. Vehicles displayed at entrances as ads, with only Monroney Sticker posted; no sales at store.

Criteria differentiate between Advertising Display/Show and sale displays needing a supplemental license. Meets criteria: no license needed; does not: license required.

• Vehicle should not be readily visible from a public roadway.
• Advertising may include the Monroney Sticker for new vehicles, a Monroney-like sticker (max 8.5x11 inches), the buyers guide for used vehicles, and the dealership or auto buying program name, address, and phone number.
• The vehicle price should only be on the Monroney Sticker for new vehicles or the Monroney-like sticker.

as described above for used motor vehicles.

• Except for the Monroney Sticker, Monroney-like sticker, or dealership/auto buying program name, address, and phone number, no other advertising should be on the vehicle.

Applicable Laws § 46.2-1515. Location to be specified; display of license; change of location § 46.2-1516. Supplemental sales locations

Meeting Date: September 14, 2009

AV020-09 Revision 2.0

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Motor Vehicle Dealer Board

Temporary Supplemental (Off Site) Sales License

The Board may issue a Temporary Supplemental License to allow a dealer to display for sale or sell vehicles from a location other than his licensed location. (§ 46.2-1516 of the Code of Virginia)

• Applications (MVBB 22) for a Temporary Supplemental location should be submitted to

MVDB at least 15 days prior to the sale

• A Temporary Supplemental License cannot exceed a period of 7 days for Cars/Trucks; 14 days for Motorcycle, Recreational Vehicle, and Trailers
• No more than 8 off-site sales in a year and no more than one sale consecutively in the same jurisdiction for car/truck, motorcycle, and recreational vehicle dealers AND no more than one sale consecutively in the same jurisdiction.
• The dealer must submit documentation that the sale and the sale location are in

compliance with all local ordinances and requirements.

If the sale is to be held in a jurisdiction other than the jurisdiction where the applicant is licensed or a contiguous jurisdiction, then the dealer must notify all dealers in the location where the sale is to take place.

• Notification must be made in writing to all licensed dealers in the location where the

sale is to take place.

• The notice must be sent to all dealers at least 30 days in advance of the sale by certified mail.
• The purpose of the notice is to invite the other dealers to participate in the sale if they so desire.
• A list of dealers may be obtained at

http://www.mvdb.virginia.gov/dealers/search Enter your zip code or city/county for a listing of dealers in your jurisdiction

• A list of the dealers contacted and a copy of the letter sent to the dealers must be submitted with the application (MVDB 22)

Meeting Dates: November 1995, July 1996, November 1997, and December 1997 HB 235 adopted by General Assembly and signed by Governor July 1, 2012

PR030-16 Revision 2

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PR030-16 Revision 2

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Motor Vehicle Dealer Board

Temporary Supplemental (Off Site) Sales License

The Board may issue a Temporary Supplemental License allowing a dealer to display or sell vehicles from a location other than his licensed location. (§ 46.2-1516)

• Applications (MVBB 22) for a Temporary Supplemental location should be submitted to

MVDB at least 15 days prior to the sale

• A Temporary Supplemental License cannot exceed 7 days for Cars/Trucks; 14 days for Motorcycle, RV, and Trailers
• No more than 8 off-site sales annually and one consecutive sale in the same jurisdiction for car/truck, motorcycle, and RV dealers.
• The dealer must submit documentation that the sale and location are in

compliance with all local ordinances and requirements.

If the sale occurs outside the licensed or contiguous jurisdiction, the dealer must notify all dealers in the sale location.

• Notification must be in writing to all licensed dealers in the sale location.

sale occurs.

• The notice must be sent at least 30 days before the sale by certified mail.
• The notice invites other dealers to participate if they choose.
• A list of dealers may be obtained at

http://www.mvdb.virginia.gov/dealers/search Enter your zip code or city/county for dealer listings

• A list of contacted dealers and a copy of the sent letter must be submitted with application (MVDB 22).

Meeting Dates: November 1995, July 1996, November 1997, and December 1997 HB 235 adopted by General Assembly and signed by Governor July 1, 2012

PR030-16 Revision 2

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PR030-16 Revision 2

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Motor Vehicle Dealer Board

Rebate Advertising Guidelines

March 2015

Many of the rebates and incentives offered by manufacturers are not available to everyone. As such, it is misleading and confusing to advertise a vehicle for a price that includes rebates and incentives that everyone is not qualified to receive, or if incentives are mutually exclusive. (Example: $1,000 loyalty rebate and $1,000 first time buyer rebate). Adding a “disclaimer” that requires consumers to determine what incentives and rebates they qualify for, does not “fix” the fact that the advertised price does not

readily apply to everyone.

When advertising a price of a vehicle (Including on the Dealer’s WEB site.) the advertised price must be based on rebates/incentives that are available to ALL purchasers, or it must be clear and conspicuous to the reader which rebates, incentives and discounts would apply in their purchase...

We recommend the following format for advertising rebates, incentives and discounts that are not available to all:

Smith Motors

MSRP: $25,000

Discounts: $ 1,500 Military Rebate: $ 500 College Grad $ 500*

Smith Motors Price $22,500***

Standard Features include

Horn

Special Red Wheels Wood steering wheel Windshield wipers Spare Tire

AV030-15 Revision 1.0

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Motor Vehicle Dealer Board

Rebate Advertising Guidelines

March 2015

• Discount includes $1,000 Acme Rebate for qualified buyers who finance through Acme financing and $500 Smith Motors discount. To qualify for $500 military rebate, you or your spouse must be an active military member or have received an honorable discharge within the last 2 years. To qualify for College Grad Rebate, you or your spouse must have graduated from an accredited two or four year college within the last 2 years. *Price does not include $399 processing fee; $900 freight, taxes and registration fees.

In the above example, if the manufacturer offered a rebate of $750 in lieu of the $1,000 finance rebate, currently used in the discount, you would not be able to list both rebates, since they are mutually exclusive.

The above is a guideline. If you advertise a price, and purchasers must meet specific criteria to get those discounts, the conditions required to receive those discounts must be clear and conspicuous. Merely listing the rebates/incentives/discounts in a disclaimer or stating something to the effect that “not everyone will qualify for the advertised price” is not adequate. If the advertised price only includes rebates/incentives/discounts that are available to everyone; all you must do is list the rebates/incentives/discounts in your disclaimer.

The Federal Trade Commission (FTC) has strict advertising guidelines. Our guidelines may or not meet the FTC guidelines. Recently the NADA published a set of Advertising Guidelines. To review these guidelines visit https://www.dealercounsel.com/sites/default/files/news_release/2015/02/nada-dealer-advertising-guide-1-15.pdf .

In addition, finance incentives provided by the manufacturer are considered available to all, and can be listed in the disclaimer area with freight charges and dealer processing fee.

As a reminder, the processing fee and freight (when applicable), must be disclosed in an actual dollar amount, not just listed as “Price does not include processing fee or freight”.

AV030-15 Revision 1.0

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Motor Vehicle Dealer Board

Rebate Advertising Guidelines

March 2015

Many manufacturer rebates and incentives are not universally available. Advertising a vehicle price including non-available incentives is misleading. A disclaimer requiring consumers to determine qualification does not fix this.

readily apply to everyone.

When advertising a vehicle price (including on the dealer’s website), the price must be based on rebates/incentives available to all, or clearly specify which incentives apply to the purchaser.

We recommend this format for advertising rebates, incentives, and discounts not available to all:

Smith Motors

MSRP: $25,000

Discounts: $ 1,500 Military Rebate: $ 500 College Grad $ 500*

Smith Motors Price $22,500***

Standard Features include

Horn

Special Red Wheels Wood steering wheel Windshield wipers Spare Tire

AV030-15 Revision 1.0

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Motor Vehicle Dealer Board

Rebate Advertising Guidelines

March 2015

• Discount includes $1,000 Acme Rebate for qualified buyers who finance through Acme financing and $500 Smith Motors discount. To qualify for $500 military rebate, you or your spouse must be an active military member or have received an honorable discharge within the last 2 years. To qualify for College Grad Rebate, you or your spouse must have graduated from an accredited two or four year college within the last 2 years. *Price does not include $399 processing fee; $900 freight, taxes and registration fees.

In the example, if the manufacturer offers a $750 rebate instead of the $1,000 finance rebate, both cannot be listed as they are mutually exclusive.

This is a guideline. If specific criteria apply for discounts, conditions must be clear and conspicuous. Listing in a disclaimer that not everyone qualifies is insufficient. If the price includes only universally available rebates, list them in the disclaimer.

The FTC has strict advertising guidelines. Our guidelines may or may not align. NADA published guidelines at https://www.dealercounsel.com/sites/default/files/news_release/2015/02/nada-dealer-advertising-guide-1-15.pdf.

Manufacture-provided finance incentives are available to all and may be listed in the disclaimer with freight charges and dealer fees.

Processing fee and freight (when applicable) must be disclosed as actual dollar amounts, not as "Price does not include processing fee or freight".

AV030-15 Revision 1.0

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Motor Vehicle Dealer Board Process for Determining Sanctions

Adopted July 1999

For alleged violations that could lead to a denial, suspension or revocation as provided in Va. Code § 46.2-1575, (See below.) the Motor Vehicle Dealer Board will follow the process as outlined under Sections A and B of these guidelines.

1. Material misstatement or omission in application for license, dealer's license plates, certificate of dealer registration, certificate of qualification, or certificate of title;
2. Failure to comply subsequent to receipt of a written warning from the Department or the Board or any willful failure to comply with any provision of this chapter or any regulation promulgated by the Commissioner or the Board under this chapter;
3. Failure to have an established place of business as defined in § 46.2-1510 or failure to have as the dealer-operator an individual who holds a valid certificate of qualification;
4. Defrauding any retail buyer, to the buyer's damage, or any other person in the conduct of the licensee's or registrant's business;

5. Employment of fraudulent devices, methods or practices in connection with compliance with the requirements under the statutes of the Commonwealth with respect to the retaking of vehicles under retail installment contracts and the redemption and resale of those vehicles;

6. Having used deceptive acts or practices;

7. Knowingly advertising by any means any assertion, representation, or statement of fact which is untrue, misleading, or deceptive in any particular relating to the conduct of the business licensed or registered or for which a license or registration is sought;
8. Having been convicted of any fraudulent act in connection with the business of selling vehicles or any consumer-related fraud;
9. Having been convicted of any criminal act involving the business of selling vehicles; 10. Willfully retaining in his possession title to a motor vehicle that has not been completely and legally assigned to him; 11. Failure to comply with any provision of Chapter 4.1 (§ 36-85.2 et seq.) of Title 36 or any regulation promulgated pursuant to that chapter; 12. Leasing, renting, lending, or otherwise allowing the use of a dealer's license plate by persons not specifically authorized under this title; 13. Having been convicted of a felony; 14. Failure to submit to the Department, within thirty days from the date of sale,

any application, tax, or fee collected for the Department on behalf of a buyer; 15. Having been convicted of larceny of a vehicle or receipt or sale of a stolen vehicle; 16. Having been convicted of odometer tampering or any related violation; 17. If a salvage dealer, salvage pool, or rebuilder, failing to comply with any provision of Chapter 16 (§ 46.2-1600 et seq.) of this title or any regulation promulgated by the Commissioner under that chapter; or 18. Failing to maintain automobile liability insurance, issued by a company licensed to do business in the Commonwealth, or a certificate of self-insurance as AD010-99 Revision 2.0

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defined in § 46.2-368, with respect to each dealer's license plate issued to the dealer by the Department.

SECTION A

DENIAL OF AN APPLICATION FOR

A LICENSE, CERTIFICATE OR REGISTRATION

UNDER SECTION 46.2-1514,

If the Program Manager (PM), in reviewing an application, believes there is basis to deny the application, the PM shall report such basis to the Executive Director (ED). If the ED agrees with the PM, a letter will be sent to the applicant by the ED stating there is a basis to deny the application; however, the applicant has the right to an informal fact finding conference or he/she may waive their right to a conference and request a formal hearing.

If the applicant chooses to have a conference, a hearing officer will conduct the conference and make a recommendation to the ED. The applicant will receive a copy of the recommendation. The ED will then send a letter to the applicant informing the applicant of the determination made by the ED. If the ED grants a license, a copy of the hearing officer’s report and a copy of the letter sent to the applicant will be sent to all Board members.

If the applicant waives his right to an informal fact finding conference or appeals the determination made by the ED following the informal conference, then the hearing officer will schedule a formal hearing and make a recommendation to the Board. The

applicant will receive a copy of the recommendation. Once the Board makes its determination the ED will inform the applicant in writing of the Board’s determination.

The letter will inform the applicant that they may appeal the decision to Circuit Court.

SECTION B

SUSPENSION OR REVOCATION OF A

CERTIFICATE, REGISTRATION OR LICENSE UNDER

SECTION 46.2-1575

If evidence indicates that a licensee of the Board appears to have committed a violation that could result in the denial, suspension or revocation of a certificate, registration or license, the ED shall send a letter to the licensee outlining the allegations. The letter will state that a hearing officer will be in contact in order to schedule an informal fact finding conference. The letter will also note that the licensee may waive their right to a conference and move ahead by scheduling a formal hearing.

If the licensee requests an informal conference, a hearing officer will conduct the conference and make a recommendation to the ED. The applicant will receive a copy of the recommendation. The ED will then send a letter to the applicant, informing the applicant of the determination made by the ED. A copy of this letter and the hearing officer’s report will be sent to all Board members.

2

--- Page 3 ---

If the applicant waives his right to an informal fact finding conference or appeals the determination made by the ED following the informal conference, a hearing officer will schedule a formal hearing and make a recommendation to the Board. The applicant will receive a copy of the recommendation. Once the Board makes its determination the ED will inform the applicant in writing of the Board’s determination. The letter will inform the applicant that they may appeal the decision to Circuit Court.

For alleged violations of the Motor Vehicle Dealer Act (Chapter 15 of Title 46.2 of the Code of Virginia), which could lead to the imposition of civil penalties the Motor Vehicle Dealer Board will follow the process a outlined under Sections C

and D below.

SECTION C

VIOLATIONS OF ARTICLE 9. DEALER ADVERTISING AND

SECTION 46.2-1533, BUSINESS HOURS

The ED will determine the level of civil penalty which may be imposed. A letter will be sent to the dealer. The letter will clearly state that the dealer has the right to an informal fact finding conference; however, he may waive that right by paying the civil penalty.

If the dealer requests an informal conference, a hearing officer will conduct the conference and make a recommendation to the Board. The dealer will receive a copy of the recommendation. Once the Board makes its determination the ED will inform the dealer in writing of the Board’s determination. The letter will inform the dealer that they may appeal the decision to Circuit Court.

SECTION D

VIOLATIONS OF THE MOTOR VEHICLE DEALER ACT (CHAPTER 15 OF TITLE

46.2 OF THE CODE OF VIRGINIA) WHERE THE ED DOES NOT DETERMINE THE

LEVEL OF CIVIL PENALTY PRIOR TO AN INFORMAL FACT FINDING

CONFERENCE

If evidence indicates that a licensee of the Board appears to have committed a violation that could result in the assessment of a civil penalty (other than for advertising or minimum business hours) the ED shall send a letter to the licensee outlining the allegations. The letter will state that a hearing officer will be in contact in order to schedule an informal fact finding conference. The letter will also note that if the licensee fails to respond or fails to appear at the conference, the conference will be held in his absence.

If the licensee requests an informal conference, the hearing officer will conduct the

conference and make a recommendation to the Board. The applicant will receive a copy of the recommendation. Once the Board makes its determination the ED will inform the applicant in writing of the Board’s determination. The letter will inform the applicant that they may appeal the decision to Circuit Court.

3

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Motor Vehicle Dealer Board Process for Determining Sanctions

Adopted July 1999

For violations potentially leading to denial, suspension, or revocation under Va. Code § 46.2-1575, the Motor Vehicle Dealer Board will follow Sections A and B of these guidelines.

1. Material misstatement or omission in application for license, dealer's plates, registration, qualification, or title;
2. Failure to comply after written warning from Department or Board or willful failure to follow this chapter or regulations;
3. Failure to maintain a place of business as defined in § 46.2-1510 or have a qualified dealer-operator;
4. Defrauding retail buyers or others in business conduct, causing damage;

5. Employment of fraudulent devices or practices related to compliance with statutes on vehicle retaking, redemption, or resale;

6. Having used deceptive acts or practices;

7. Knowingly advertising false, misleading, or deceptive statements related to licensed or registered business;
8. Convicted of fraudulent acts related to vehicle sales or consumer fraud;
9. Convicted of vehicle-related crimes; willfully retaining unassigned vehicle titles; failing to comply with Chapter 4.1 or regulations; unauthorized use of dealer plates; convicted of a felony; failing to report sales within 30 days;

any application, tax, or fee collected for the Department on behalf of a buyer; 15. Having been convicted of larceny of a vehicle or receipt or sale of a stolen vehicle; 16. Having been convicted of odometer tampering or any related violation; 17. If a salvage dealer, salvage pool, or rebuilder, failing to comply with any provision of Chapter 16 (§ 46.2-1600 et seq.) of this title or any regulation promulgated by the Commissioner under that chapter; or 18. Failing to maintain automobile liability insurance, issued by a company licensed to do business in the Commonwealth, or a certificate of self-insurance as AD010-99 Revision 2.0

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Defined in § 46.2-368 regarding each dealer's license plate issued by the Department.

SECTION A

DENIAL OF AN APPLICATION FOR

A LICENSE, CERTIFICATE OR REGISTRATION

UNDER SECTION 46.2-1514,

If the Program Manager (PM) finds grounds to deny an application, they report to the Executive Director (ED). If the ED agrees, a denial letter is sent, and the applicant may request an informal conference or waive it for a formal hearing.

If the applicant requests a conference, a hearing officer will conduct it and recommend to the ED, who will notify the applicant of the decision. If granted, reports and letters are sent to all Board members.

If the applicant waives the informal conference or appeals the ED's decision, a hearing officer will schedule a formal hearing and recommend to the Board.

The applicant receives the recommendation; after the Board's decision, the ED informs the applicant in writing.

The letter states the applicant may appeal to Circuit Court.

SECTION B

SUSPENSION OR REVOCATION OF A

CERTIFICATE, REGISTRATION OR LICENSE UNDER

SECTION 46.2-1575

If evidence suggests a licensee committed violations risking denial, suspension, or revocation, the ED sends an allegations letter, noting a hearing officer will schedule an informal conference or the licensee may waive to proceed to a formal hearing.

If the licensee requests an informal conference, a hearing officer will conduct it and recommend to the ED, who will notify the licensee. Reports and letters are sent to all Board members.

2

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If the applicant waives the informal conference or appeals the ED's decision, a formal hearing is scheduled, and the Board's decision is communicated, with appeal rights stated.

For violations of the Motor Vehicle Dealer Act (Chapter 15, Title 46.2), potentially leading to civil penalties, the Board follows the process outlined in Sections C

and D below.

SECTION C

VIOLATIONS OF ARTICLE 9. DEALER ADVERTISING AND

SECTION 46.2-1533, BUSINESS HOURS

The ED determines the civil penalty level; a letter to the dealer states the right to an informal conference, which can be waived by paying the penalty.

If requested, a hearing officer conducts an informal conference and recommends to the Board, which then informs the dealer of the decision and appeal rights.

SECTION D

VIOLATIONS OF THE MOTOR VEHICLE DEALER ACT (CHAPTER 15 OF TITLE

46.2 OF THE CODE OF VIRGINIA) WHERE THE ED DOES NOT DETERMINE THE

LEVEL OF CIVIL PENALTY PRIOR TO AN INFORMAL FACT FINDING

CONFERENCE

If evidence suggests a licensee committed violations (excluding advertising or hours), the ED sends an allegations letter, noting a hearing officer will schedule an informal conference or proceed in their absence if unresponsive.

If requested, the hearing officer will conduct the

The conference results in a recommendation; the Board's decision is communicated to the applicant, who may appeal to Circuit Court.

3

Motor Vehicle Dealer Board Adjudicated Cases Policy (Non-Transaction Recovery Fund)

To conserve Motor Vehicle Dealer Board (MVDB) resources that they may be used more effectively in cases not involving Transaction Recovery Fund, the Board provides the following guidance to the staff:

• When a final judgment or decision resulting from litigation or arbitration involving a licensed dealer has been issued, staff will seek advice from the Board as to whether or not to conduct a formal or informal hearing.

• Staff may proceed with hearing action without Board advice in those specific cases where it is believed that the dealer’s activities:

o Pose a danger to the public.

OR

o Are ongoing.

Meeting Date: May, 2006

AD130-16

Revision 1.0

Motor Vehicle Dealer Board Adjudicated Cases Policy (Non-Transaction Recovery Fund)

To conserve MVDB resources for cases not involving the Transaction Recovery Fund, the Board provides staff guidance:

• When a final judgment or arbitration decision involves a licensed dealer, staff will seek Board advice on conducting a hearing.

• Staff may proceed with hearings without Board advice if dealer activities:

o Pose a public danger.

OR

o Are ongoing.

Meeting Date: May, 2006

AD130-16

Revision 1.0

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Motor Vehicle Dealer Board Guidelines for Review of Application for

Salesperson and Dealer-Operator Licenses Where the Applicant has a Criminal Record Adopted March 17, 1998

The primary goal of the application review process is to “screen out” applicants whose past conduct indicates that they should not be licensed as a motor vehicle salesperson or as a dealer-operator. This action is necessary in order to protect the interests of retail motor vehicle consumers and the integrity of the Motor Vehicle Dealer Transaction Recovery Fund.

In recommending or resolving disposition of applications by applicants with a criminal history, the Board, hearing officer and staff, where relevant, will consider each of the following factors:

1. A conviction of any of the following offenses, by itself, may be grounds for denial:

• Any criminal offense classified as a felony
• Any criminal act involving the business of selling vehicles
• Any fraudulent act in connection with the business of selling vehicles or any consumer-related fraud
• Larceny of a vehicle or receipt or sale of a stolen vehicle
• Odometer tampering or any related violation

2. If the applicant has been convicted of any such violations, the reviewer will first consider whether the applicant is, at the time of application and subsequent hearings, under court supervision or probation and if so, the date of the underlying conviction(s), the date of release from court supervision or probation and the reports of probation officers which might be submitted by or on behalf of the applicant.

In addition, the reviewer shall also consider, where relevant

3. The nature and seriousness of the conviction(s);
4. The age of the applicant at the time of the offense(s) and the length of time since the most recent offense was committed;
5. The extent of the applicant’s criminal record, including the number, nature and date of all criminal convictions;
6. The impact of the criminal behavior which led to the conviction(s), upon the community and

the victim(s) of the offense(s);

5. Severity of the sanctions imposed by the court(s) for the violations;
6. Any evidence offered by or on behalf of the applicant in support of his application and any other factors which may be considered relevant by the hearing officer, Board or staff and
7. The credibility and demeanor of the witnesses.

The hearing officer, Board and staff will articulate and explain in any written recommendation or decision those particular factors especially emphasized or relied upon in reaching a recommendation or decision.

LI010-98 Revision 1.0

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Motor Vehicle Dealer Board Guidelines for Review of Application for

Salesperson and Dealer-Operator Licenses Where the Applicant has a Criminal Record Adopted March 17, 1998

The primary goal of the application review is to “screen out” applicants whose past conduct disqualifies them from licensing as motor vehicle salespersons or dealer-operators, protecting consumers and the Dealer Transaction Recovery Fund.

In recommending or resolving applications with criminal history, the Board, hearing officer, and staff will consider the following factors:

1. A conviction of any of the following offenses may be grounds for denial:

• Any felony criminal offense
• Any criminal act involving vehicle sales
• Any fraudulent act related to vehicle sales or consumer fraud
• Larceny, receipt, or sale of stolen vehicles
• Odometer tampering or any related violation

2. If convicted, the reviewer will consider whether the applicant is under court supervision or probation, including conviction dates, release dates, and probation reports.

Additionally, the reviewer shall consider, where relevant

3. Nature and seriousness of convictions;
4. Applicant's age at offense and time since last offense;
5. Extent of criminal record, including number, nature, and dates of convictions;
6. Impact of criminal behavior on the community and

the victim(s) of the offense(s);

5. Severity of court sanctions for violations;
6. Evidence supporting the application and other relevant factors considered by the hearing officer, Board, or staff.
7. Witness credibility and demeanor.

The hearing officer, Board, and staff will explain in written recommendations or decisions the factors especially emphasized or relied upon.

LI010-98 Revision 1.0

Motor Vehicle Dealer Board Variance for Hours of Operation Policy Dealers are required to remain open 20 hours per week, of which 10 must be between the hours of 9:00 and 5:00, Monday through Friday. The Board may modify these requirements on good cause when a request is made in writing. (§ 46.2-1533 of the Code of Virginia)

• Requests for a variance are to be coordinated through the Executive Director and must always be in writing (FAX or email is acceptable). The request should be submitted at least two weeks in advance of the requested date to begin the nonconforming hours of operation.
• Permanent variances shall not to be granted.
• Normally, a variance should not be granted for fewer than 10 hours per week. The Executive Director may grant a variance for fewer than 10 hours only for extreme circumstances. For example, the Executive Director may grant a variance for a dealer to close for a short vacation or recovery from a medical situation. In these cases the dealer will either post a sign at the dealership indicating when he will reopen or post a sign as to how the dealer can be contacted.
• Requests for a variance which do not have an end date may be granted by the Executive Director and then brought before the Board for further consideration. These variances should not be for fewer than 10 hours per week. A Board field representative will perform an inspection prior to bringing the case before the Board. If the Board extends the variance for good cause, such variance should not extend beyond the applicant’s next renewal month.

The Board staff will track authorized variances and will bring them to the Board for reconsideration at the Board meeting just prior to the applicant's renewal month. For Example, if a dealer, whose license expires in December, requests a variance in April which has no end date, the ED would grant the variance through the end of May. The request would be brought before the Board at its meeting scheduled for May. The Board could then extend the variance through December. Board staff would then place this variance on the agenda for the November Board meeting for reconsideration.

Meeting Date: November 1995, January 1997, March 1997, May 1997 Update to requests via email on 12/22/2016

.

PR010-16

Revision 2.0

PR010-16

Revision 2.0

Motor Vehicle Dealer Board Variance for Hours of Operation Policy Dealers are required to remain open 20 hours per week, of which 10 must be between the hours of 9:00 and 5:00, Monday through Friday. The Board may modify these requirements on good cause when a request is made in writing. (§ 46.2-1533 of the Code of Virginia)

• Requests for a variance are to be coordinated through the Executive Director and must always be in writing (FAX or email is acceptable). The request should be submitted at least two weeks in advance of the requested date to begin the nonconforming hours of operation.
• Permanent variances shall not to be granted.
• Normally, a variance should not be granted for fewer than 10 hours per week. The Executive Director may grant a variance for fewer than 10 hours only for extreme circumstances. For example, the Executive Director may grant a variance for a dealer to close for a short vacation or recovery from a medical situation. In these cases the dealer will either post a sign at the dealership indicating when he will reopen or post a sign as to how the dealer can be contacted.
• Requests for a variance which do not have an end date may be granted by the Executive Director and then brought before the Board for further consideration. These variances should not be for fewer than 10 hours per week. A Board field representative will perform an inspection prior to bringing the case before the Board. If the Board extends the variance for good cause, such variance should not extend beyond the applicant’s next renewal month.

The Board staff will track authorized variances and will bring them to the Board for reconsideration at the Board meeting just prior to the applicant's renewal month. For Example, if a dealer, whose license expires in December, requests a variance in April which has no end date, the ED would grant the variance through the end of May. The request would be brought before the Board at its meeting scheduled for May. The Board could then extend the variance through December. Board staff would then place this variance on the agenda for the November Board meeting for reconsideration.

Meeting Date: November 1995, January 1997, March 1997, May 1997 Update to requests via email on 12/22/2016

.

PR010-16

Revision 2.0

PR010-16

Revision 2.0

--- Page 1 ---

PR040-16

COMMONWEALTH of VIRGINIA

Motor Vehicle Dealer Board

Guidance Memorandum to All Virginia Motor Vehicle Dealers

July 12, 2012

TrueCar

TrueCar's billing model for Virginia dealers was formulated over a period of many months and presented for discussion at the July 9, 2012 Motor Vehicle Dealer Board (Board) meeting. The Board discussed this model and adopted the following resolution:

The Motor Vehicle Dealer Board does not believe that dealers participating in the TrueCar model presented at the July Board meeting

would be in violation of VA Code Section 46. 2-1537.

VA Code Section 46.2-1537 is known as the "anti bird dogging law". This section of the Code prohibits dealers from compensating anyone who is not licensed as salesperson for the dealership. (For your information the law is quoted at the end of this memorandum.)

The Board determined that the pricing model presented at the July meeting did not constitute compensating an unlicensed individual in connection with the sale of a motor vehicle. The pricing model is based on a "flat fee" that may be adjusted every six months and is determined by the location of the dealership and line-make. The actual fee charged by TrueCar and any retroactive billing by TrueCar is not under the purview of the Motor Vehicle Dealer Board.

Dealix

Dealers are reminded that VA Code Section 46.2-1537 states that it is unlawful for any motor vehicle dealer to solicit the sale of a motor vehicle or to compensate any person in connection with the sale of a motor vehicle, unless the person is licensed as a salesperson employed by the dealer. (For your information the

law is quoted at the end of this memorandum.) This includes prohibiting dealers from paying third parties on a "per lead" basis. However, dealers may compensate an unlicensed third-party vendor by a flat payment structure (e.g., per month) rather than per sale, per referral or any other transactional basis.

(OVER)

2201 West Broad Street • Suite 104 • Richmond, Virginia 23220 Telephone: (804) 367-1100 Fax Number: (804) 367-1053

--- Page 2 ---

Guidance Memorandum Page 2 of2 July 12, 2012

Recently, it was brought to our attention that Dea/ix may be charging Virginia dealers on a per lead basis. The following are quotes from their WEB site:

• With Dea/ix, dealers pay only when they receive high quality leads from car buyers who are seriously interested in the vehicles they're selling. There are no fixed monthly charges or up-front fees.
• Risk-Free: Pay Only for Leads - UsedCars.com [This is one of the WEB address consumers use to search for vehicles through Dealix.] is the only major used car retailing program where dealers pay only when they receive high quality leads

from buyers requesting information on a specific vehicle in their inventory

This billing model appears to be contrary to Virginia law. If you have a contract with Dealix (Including UsedCars.com), we urge you to review your contract as it relates to billing.

INSURANCE

Virginia law requires that each dealer license plate issued to you have liability insurance. As part of our routine visits/inspections of dealerships, our field representatives verify that all dealer plates are insured.

We have discovered that many dealers are under insured. That is, the number of dealer plates insured is less than the number of dealer plates issued to the dealership.

We urge you to verify with your insurance agent that the number of dealer plates noted/listed on your policy is the same as the number of plates issued to you by the Motor Vehicle Dealer Board. (For example, if you have been issued 20 dealer plates your insurance policy should state you have insurance for 20 dealer plates.)

§ 46.2-1537. Prohibited solicitation and compensation.

It shall be unlawful for any motor vehicle dealer or salesperson licensed under this chapter, directly or indirectly, to solicit the sale of a motor vehicle through a pecuniarily interested

person, or to pay, or cause to be paid, any commission or compensation in any form whatsoever to any person in connection with the sale of a motor vehicle, unless the person is duly licensed as a salesperson employed by the dealer. It shall also be unlawful for any motor vehicle dealer to compensate, in any form whatsoever, any person acting in the capacity of a salesperson as defined in§ 46.2-1500 unless that person is licensed as required by this chapter.

PR040-16

--- Page 1 ---

PR040-16

COMMONWEALTH of VIRGINIA

Motor Vehicle Dealer Board

Guidance Memorandum to All Virginia Motor Vehicle Dealers

July 12, 2012

TrueCar

TrueCar's billing model for VA dealers was developed over months and discussed at the July 9, 2012 Dealer Board meeting, which adopted the following resolution:

The Dealer Board does not believe dealers in the July TrueCar model

would violate VA Code Section 46.2-1537.

VA Code § 46.2-1537, known as the "anti bird dogging law," prohibits dealers from paying unlicensed persons for sales. The law is quoted at the memorandum's end.

The Board found the July pricing model did not compensate unlicensed individuals. It is based on a semiannual adjustable "flat fee" by location and line-make, excluding TrueCar's actual or retroactive charges.

Dealix

Dealers are reminded that VA Code Section 46.2-1537 states that it is unlawful for any motor vehicle dealer to solicit the sale of a motor vehicle or to compensate any person in connection with the sale of a motor vehicle, unless the person is licensed as a salesperson employed by the dealer. (For your information the

law is quoted at the end of this memorandum.) This includes prohibiting dealers from paying third parties on a "per lead" basis. However, dealers may compensate an unlicensed third-party vendor by a flat payment structure (e.g., per month) rather than per sale, per referral or any other transactional basis.

(OVER)

2201 West Broad Street • Suite 104 • Richmond, Virginia 23220 Telephone: (804) 367-1100 Fax Number: (804) 367-1053

--- Page 2 ---

Guidance Memorandum Page 2 of2 July 12, 2012

It was recently brought to our attention that Dealix may charge VA dealers per lead. Quotes from their website follow:

• With Dealix, dealers pay only for high-quality, interested buyer leads; no fixed monthly or upfront fees.
• Risk-Free: Pay Only for Leads - UsedCars.com [This is one of the WEB address consumers use to search for vehicles through Dealix.] is the only major used car retailing program where dealers pay only when they receive high quality leads

from buyers requesting specific vehicle info

This billing model may violate VA law. Review your Dealix (including UsedCars.com) contract regarding billing.

INSURANCE

VA law requires each dealer plate to be insured. Our inspectors verify this during routine visits.

Many dealers are underinsured; insured plates are fewer than issued plates.

Verify with your insurer that policy coverage matches issued plates (e.g., 20 plates = 20 insured).

§ 46.2-1537. Prohibited solicitation and compensation.

It shall be unlawful for any motor vehicle dealer or salesperson licensed under this chapter, directly or indirectly, to solicit the sale of a motor vehicle through a pecuniarily interested

person, or to pay, or cause to be paid, any commission or compensation in any form whatsoever to any person in connection with the sale of a motor vehicle, unless the person is duly licensed as a salesperson employed by the dealer. It shall also be unlawful for any motor vehicle dealer to compensate, in any form whatsoever, any person acting in the capacity of a salesperson as defined in§ 46.2-1500 unless that person is licensed as required by this chapter.

PR040-16

--- Page 1 ---

Motor Vehicle Dealer Board Guidance Document

Advertising – Vehicle Location

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee, discussed scenarios that involved licensed dealers (franchise and independent) advertising the same vehicle(s) for multiple locations, and advertising vehicles at a location when the vehicle is not physically at the advertised location.

These advertising actions are considered misleading, and bait and switch tactics.

Advertising: Dealers are responsible for their advertisements, regardless of the format and media (print, internet, videos, electronic, YouTube, etc.).

In addition to the Motor Vehicle Dealer advertising laws and regulations, clarity is being provided to dealerships regarding advertising of vehicles for dealerships with more than one location, and vehicles being advertised at a location when the vehicle is physically located somewhere else.

When a dealership advertises vehicles for sale the advertisement should clearly identify the location of each vehicle listed in the advertisement and that vehicle should physically be located at the advertised location.

Applicable Laws and Regulations § 46.2-1581. Regulated advertising practices.

§ 46.2-1582. Enforcement: regulations 24VAC22-30 Motor Vehicle Dealer Advertising Practices and Enforcement Regulations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV040-17 Revision 1.0

--- Page 1 ---

Motor Vehicle Dealer Board Guidance Document

Advertising – Vehicle Location

Background: During its review of the 2001 Internet Task Force Report, the 2017 Internet Task Force committee discussed scenarios where licensed dealers (franchise and independent) advertise the same vehicle(s) at multiple locations or at a location where the vehicle isn't physically present.

These advertising actions are considered misleading, and bait and switch tactics.

Advertising: Dealers are responsible for their advertisements, regardless of the format and media (print, internet, videos, electronic, YouTube, etc.).

In addition to advertising laws and regulations, clarity is provided to dealerships with multiple locations about advertising vehicles at a location where the vehicle isn't physically present.

When a dealership advertises vehicles, the ad should clearly identify each vehicle's location, and the vehicle must be physically at the advertised location.

Applicable Laws and Regulations § 46.2-1581. Regulated advertising practices.

§ 46.2-1582. Enforcement: regulations 24VAC22-30 Motor Vehicle Dealer Advertising Practices and Enforcement Regulations

Motor Vehicle Dealer Board Actions

Advertising Committee Discussion: November 13, 2017 Advertising Committee Approval: November 13, 2017 Full Board Discussion: November 13, 2017 Full Board Approval: January 8, 2018

AV040-17 Revision 1.0

--- Page 1 ---

Motor Vehicle Dealer Board

Bonding Requirements for Virginia Dealers

October 27, 2000

At the March Transaction Recovery Fund and Board meetings, there was a discussion on Bonding requirements when a Dealer opens a second dealership.

The consensus of the Board was that if the dealer had been in business more than three years and was no longer required to have a bond, a bond would not be

required if he/she opened a second location.

If the dealer had been in business for less than three years and was still required to have a bond for the original location, then a second bond would be needed for the second location.

It is not unusual for the staff to receive an application for a new dealership that includes as a partner, an individual who is an owner or partner in another dealership that is no longer required to pay a bond. In these situations, the business, corporate and trading names are completely different as well as the ownership structure. The only thing that the new and existing dealership have in common is a particular individual is a partner in both.

Oftentimes, within a very short period of time of opening the new dealership (sometimes the very next day), staff will receive an application to change the listed partners. This list no longer includes the individual who owned the dealership that was

used to receive an exemption from the bonding requirement.

I am seeking confirmation that in order to receive the bond exemption, the corporate structure and corporate name of the dealerships must be the same. Further, in order to maintain that exemption, at least one officer shall be in common with both dealerships for at least three years.

Board meeting: March 13, 2000

PR035-00 Revision 1.0

--- Page 1 ---

Motor Vehicle Dealer Board

Bonding Requirements for Virginia Dealers

October 27, 2000

At the March Transaction Recovery Fund and Board meetings, there was a discussion on Bonding requirements when a Dealer opens a second dealership.

The Board consensus was that if the dealer had been in business over three years and no longer needed a bond, a bond would not be

required if he/she opened a second location.

If the dealer had been in business less than three years and still needed a bond for the original location, a second bond would be required for the second location.

Staff often receive applications for new dealerships with a partner who owns or partners in another dealership no longer requiring a bond. The business, corporate, and trading names differ, as does ownership; the only commonality is the individual as a partner in both.

Often, shortly after opening (sometimes the next day), staff receive applications to change listed partners, excluding the individual who owned the dealership that was

used to receive an exemption from the bonding requirement.

I seek confirmation that to qualify for the bond exemption, the corporate structure and name must be the same, and at least one officer must be common to both dealerships for three years.

Board meeting: March 13, 2000

PR035-00 Revision 1.0

--- Page 1 ---

Motor Vehicle Dealer Board

Guidance Memorandum

Maintaining Business Hours

Converting Authorized Closing Days to Hours

History: §46.2-1533 of the Virginia Code requires motor vehicle dealers to be open for business for a minimum of 20 hours per week, with at least 10 of those hours occurring between the hours of 9 a.m. – 5 p.m. Monday – Friday. The Motor Vehicle Dealer Board further authorized

dealerships the opportunity to close their dealerships for 20 days per year based on their renewal month. The Motor Vehicle Dealer Board staff is charged with maintaining and updating dealership closures. All dealerships are responsible for submitting their closures to the Motor Vehicle Dealer Board staff.

Problem: When developed, the system currently used to capture authorized closings was not designed to capture hours. Instead, the system was designed to capture whole days or nothing at all. Over the years the Board staff has used various methods and calculations to determine when to

subtract hours from a dealership’s authorized closing account. This process penalizes dealerships.

Solution: The Dealer Board’s Executive Director tasked the agency’s IT resource to develop a process based on hours to capture dealerships authorized closings.

Effective October 1, 2019, we will start using Modification to the Authorized Closings will allow dealerships to close based on half-hour increments. Below are the groupings for dealerships

that determine Authorized Closing Hours and the hours that make a single day for dealer closings.

Full Time and Part Time dealership definition (in hours)

Full Time Dealerships ( FT )

• (FT) dealerships open (40) hours a week or more.

• (FT) dealerships will have (160) hours of Authorized Closings.

• (FT) dealerships have a cap of (8) hours of deduction per single day if they exceed more than 8 operational hours within the day.

Part Time Dealerships ( PT 30 )

• (PT30) dealerships open less than (40) hours a week but greater than (29) hours a week.

• (PT30) dealerships will have (120) hours of Authorized Closings.

• (PT30) dealerships do not have a cap on hours of deduction per single day.

Whether a dealership is open 4 hours or 10 hours within a single day, the amount of hour loss for an entire day is the operational hours for that day.

PR070-19 Revision 2.0 --- Page 2 ---

Motor Vehicle Dealer Board

Guidance Memorandum

Maintaining Business Hours

Converting Authorized Closing Days to Hours

Part Time Dealerships ( PT 20 )

• (PT20) dealerships open less than (30) hours a week.

• (PT20) dealerships will have (80) hours of Authorized Closings.

• (PT20) dealerships do not have a cap on hours of deduction per single day.

Whether a dealership is open 4 hours or 10 hours within a single day, the amount of hour loss for an entire day is the operational hours for that day.

Converting of Days to Hours: Dealerships with current days in Authorized Closings: Dealerships with current days taken in the Authorized Closings will be converted to hours taken. This conversion will be based on

the dealerships grouping whether they are FT, PT30 / PT20. 1 day = the number of hours open in a single business day.

If a dealership is an FT (Full Time) dealership, a full day will not exceed 8 hours for the day.

If a dealership is a PT30 / PT20 dealership, a full day will consist of the number of hours during a given day of operation whether it is 2, 4, 6, 8, 9, or more hours.

Example: FT Dealership

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours 5 8 8 8 8 10 5 Deduction Deduction Deduction Deduction Deduction Deduction Deduction 5 8 8 8 8 8 5

Example: PT30 / PT20 Dealership

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours 0 5 4 0 2 10 5 Deduction Deduction Deduction Deduction Deduction Deduction Deduction 0 5 4 0 2 10 5

Authority

§ 46.2-1533 January 2018 Board Meeting September 2019 Board Meeting

PR070-19 Revision 2.0 [TABLE 2-1] Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours 5 | 8 | 8 | 8 | 8 | 10 | 5 Deduction | Deduction | Deduction | Deduction | Deduction | Deduction | Deduction 5 | 8 | 8 | 8 | 8 | 8 | 5

[/TABLE]

[TABLE 2-2] Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours 0 | 5 | 4 | 0 | 2 | 10 | 5 Deduction | Deduction | Deduction | Deduction | Deduction | Deduction | Deduction 0 | 5 | 4 | 0 | 2 | 10 | 5

[/TABLE]

--- Page 1 ---

Motor Vehicle Dealer Board

Guidance Memorandum

Maintaining Business Hours

Converting Authorized Closing Days to Hours

History: §46.2-1533 of Virginia Code mandates dealers be open at least 20 hours weekly, with 10 hours between 9 a.m. – 5 p.m. Mon–Fri. The Motor Vehicle Dealer Board further authorized

dealerships may close up to 20 days annually based on renewal month. The Motor Vehicle Dealer Board staff maintains and updates closures. All dealerships must submit closures to the Board staff.

Problem: The system used to record authorized closings was not designed for hours, only whole days or none. The Board staff has used various methods over the years to

subtract hours from a dealership’s authorized closing account, penalizing dealerships.

Solution: The Executive Director tasked IT to develop an hour-based process to record dealership authorized closings.

Effective October 1, 2019, modifications to Authorized Closings will allow dealerships to close in half-hour increments. Below are the dealership groupings

that determine Authorized Closing Hours and the hours constituting a single closing day.

Full Time and Part Time dealership definition (in hours)

Full Time Dealerships (FT)

• (FT) dealerships open 40+ hours weekly.

• (FT) dealerships will have (160) hours of Authorized Closings.

• (FT) dealerships have a cap of 8 hours of deduction per day if they exceed 8 operational hours.

Part Time Dealerships (PT 30)

• (PT30) dealerships open less than 40 hours but more than 29 hours weekly.

• (PT30) dealerships will have (120) hours of Authorized Closings.

• (PT30) dealerships have no daily deduction cap.

Regardless of 4 or 10 hours open daily, the daily hour loss equals operational hours.

PR070-19 Revision 2.0 --- Page 2 ---

Motor Vehicle Dealer Board

Guidance Memorandum

Maintaining Business Hours

Converting Authorized Closing Days to Hours

Part Time Dealerships (PT 20)

• (PT20) dealerships open less than (30) hours a week.

• (PT20) dealerships will have (80) hours of Authorized Closings.

• (PT20) dealerships have no daily deduction cap.

Whether a dealership is open 4 hours or 10 hours within a single day, the amount of hour loss for an entire day is the operational hours for that day.

Converting Days to Hours: Dealerships' current Authorized Closing days will convert to hours based on

the dealership group (FT, PT30, PT20). 1 day equals the hours open in a business day.

FT dealerships' full days will not exceed 8 hours.

PT30/PT20 dealerships' full days equal the hours of operation, e.g., 2, 4, 6, 8, or more hours.

Example: FT Dealership

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours 5 8 8 8 8 10 5 Deduction Deduction Deduction Deduction Deduction Deduction Deduction 5 8 8 8 8 8 5

Example: PT30/PT20 Dealership

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours Open Hours 0 5 4 0 2 10 5 Deduction Deduction Deduction Deduction Deduction Deduction Deduction 0 5 4 0 2 10 5

Authority

§ 46.2-1533 Jan 2018, Sept 2019 Board Meetings

PR070-19 Revision 2.0 [TABLE 2-1] Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours 5 | 8 | 8 | 8 | 8 | 10 | 5 Deduction | Deduction | Deduction | Deduction | Deduction | Deduction | Deduction 5 | 8 | 8 | 8 | 8 | 8 | 5

[/TABLE]

[TABLE 2-2] Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours | Open Hours 0 | 5 | 4 | 0 | 2 | 10 | 5 Deduction | Deduction | Deduction | Deduction | Deduction | Deduction | Deduction 0 | 5 | 4 | 0 | 2 | 10 | 5

[/TABLE]

--- Page 1 ---

Motor Vehicle Dealer Board Guidance Memorandum to All Virginia Motor Vehicle Dealers Dealers must have internet connection and email address effective July 1, 2013

The General Assembly passed new Legislation to be included in § 46.2-1510.4 “on and after July 1, 2013, an Internet connection and email address;”

Effective July 1, 2013, all Virginia Motor Vehicle Dealers will be required to have an Internet connection and email address at their established place of business during business hours. The purpose of this legislation is to increase efficiencies, facilitate

better communication, and reduce costs for all parties.

This memorandum provides guidance to “internet connection” and email address guidelines for Dealers to be in compliance by July 1, 2013.

In general, as defined “Internet access” is the means by which individual terminals, computers, mobile devices, and local area networks are connected to the global Internet. Basically, it is a source through which Internet users can access Internet services. Internet access is usually sold by Internet Service Providers (ISP’s) that use

many different technologies offering a wide range of data rates to the end user.

Internet Service Providers (ISP) to establish the Internet Connection

1. Dealers can choose their Internet service provider (ISP) that will allow Internet connectivity within the Dealer’s established place of business during their business hours. The Internet connectivity will be required to communicate with the MVDB and DMV electronically. The Dealer must establish the ISP account in

the official Business or Trade as Name of the Dealership. Your ISP should be able to assist with establishing the business account for your Dealership.

For example: If you choose Verizon FiOS, the Verizon Account must be established in the Business Name, not an individual.

The ISP can provide Internet connections through the following means. Although this list is not all inclusive, from studies presented to the Board, these are the most common means for which Dealers in Virginia will be able to establish an Internet Connection with an ISP.

2. Broadband

3. Wireless

4. Satellite
5. Cable,
6. Dial-up

(Over)

--- Page 2 ---

When Dealers have this Internet service established, Dealers may use devices to connect to the internet as a way of communicating to MVDB and DMV using a computer, table, Smartphone (mobile) devices, modem, and other wireless networking devices. This is not an all inclusive list, but are the more common devices Dealers

currently, and can use as a means to communicate to the Board and to DMV.

This memorandum also provides guidance on Dealer’s email addresses.

In general, an email address identifies an email box to which email messages are delivered.

Effective July 1, 2013 Dealers will be required to have a valid official email address for sending an email communications to the Board and DMV on a consistent basis. This official email address should be designated as the Business email address and NOT be identified to a specific individual/person. An

example of a business “official” email address is MountainValleyCars@aol.com at the dealership. The Board recommends you should not have an email address associated with an individual/employee such as Jane.doe@aol.com since a person may leave the dealership causing difficulty with communicating to the Board and the

Dealer having to establish a new email address. Please note it is the Dealer’s responsibility to always have access to this email address for sending and receiving emails to the Board and DMV.

An email address can be established inexpensively or even free through Google (Gmail), Yahoo, AOL, etc., to establish an email account. Your internet service provider can even provide assistance once you set up an email address.

In summary there are three important keynotes

1. The internet connection must be at your established at your place of business

and operating during your normal business hours.

2. If you decide your smart phones (mobile device) is how you will be communicating to the Board and DMV via the internet the Smartphone must be present (onsite) at the established place of business during your normal business hours. The Smartphone account must be in the name of the

Dealership.

3. Internet and email authentication a. The Board has the responsibility to verify your internet connection and your email address. This will normally be done by working by with your field

representative in your area. In general this will be a simple process by having the Dealer send and receive an email at your established place of business.

For all new Dealerships opening on or after July 1, 2013 you will need to have the internet connection established with your internet service provided and a

PR060-16 Revision 2.0

--- Page 3 ---

valid business “official” email address as part of the opening inspection process prior to the field representative inspection. b. Go to our website www.mvdb.virginia.gov and sign up for the Dealer Talk Newsletter, using your “official” Dealer email.

c. Use the MVDB-10 form during license renewal, or for any changes, to transmit to the Board the Dealer’s “official” email.

Letter sent to all VA Dealers 02/13/2013

PR060-16 Revision 2.0

--- Page 1 ---

Motor Vehicle Dealer Board Guidance Memorandum to All Virginia Motor Vehicle Dealers Dealers must have internet connection and email address effective July 1, 2013

The General Assembly passed legislation in § 46.2-1510.4 requiring an Internet connection and email address on and after July 1, 2013

Effective July 1, 2013, all Virginia Motor Vehicle Dealers must have an Internet connection and email address at their business during business hours to increase efficiencies, facilitate

better communication, and reduce costs for all parties.

This memorandum provides guidance on “internet connection” and email address requirements for Dealers to comply by July 1, 2013.

“Internet access” is the means by which terminals, computers, mobile devices, and LANs connect to the Internet, usually sold by ISPs offering various data rates.

many technologies offering various data rates to users.

Internet Service Providers (ISP) to establish the Internet Connection

1. Dealers may choose an ISP to provide Internet connectivity at their established place of business during business hours, necessary for electronic communication with MVDB and DMV. The Dealer must establish the ISP account in

the official Business or Trade Name of the Dealership. Your ISP can assist in establishing the business account.

For example: Verizon FiOS accounts must be in the Business Name, not an individual.

ISPs provide Internet connections via various means; these are the most common for Virginia Dealers, though not all-inclusive.

2. Broadband

3. Wireless

4. Satellite
5. Cable,
6. Dial-up

(Over)

--- Page 2 ---

Once Dealers establish Internet service, they may use devices like computers, tablets, smartphones, modems, and wireless devices to communicate with MVDB and DMV. This list is not exhaustive but includes common devices.

currently, and can be used to communicate with the Board and DMV.

This memorandum also provides guidance on Dealer’s email addresses.

An email address identifies an email inbox for message delivery.

Effective July 1, 2013, Dealers must have a valid official business email address for communication with the Board and DMV, not linked to an individual.

An example: MountainValleyCars@aol.com. The Board recommends avoiding personal email addresses like Jane.doe@aol.com, as personnel changes may hinder communication.

Dealers must establish and maintain access to their official email addresses for communication with the Board and DMV.

Email accounts can be created inexpensively or free via providers like Gmail, Yahoo, AOL, with ISP assistance if needed.

In summary there are three important keynotes

1. The internet connection must be at your established place of business.

and operating during your normal business hours.

2. If using a smartphone to communicate with the Board and DMV via the internet, it must be onsite during business hours. The smartphone account must be in the name of the

Dealership.

3. Internet and email authentication: The Board will verify your internet connection and email address, typically working with your field

Designate a local representative; generally, sending and receiving emails at your business suffices.

New Dealerships opening on or after July 1, 2013 must establish Internet connection and a

PR060-16 Revision 2.0

--- Page 3 ---

A valid official email address must be part of the opening inspection before the field inspection. Also, sign up for the Dealer Talk Newsletter at www.mvdb.virginia.gov using this email.

Use the MVDB-10 form during license renewal or changes to transmit the Dealer’s official email to the Board.

Letter sent to all VA Dealers 02/13/2013

PR060-16 Revision 2.0

--- Page 1 ---

Motor Vehicle Dealer Board

Meeting Dates and Times Policy

The Board will meet on the second Monday of each of the following months: January, March, May, July, September and November.

The Board chairman may call additional Board Meetings as necessary.

Statutory and standing committees will begin at 9:00 am the day of the regularly scheduled Board Meeting.

Board Meeting Order

Indicated below are the Board Committees in meeting order and principal responsibilities. Each committee will be called to order at the conclusion of the previous committee meeting unless there are special circumstances or changes from the Board Committee members.

Dealer Practices Committee - Monday, 9:00 am

• The Dealer Practices Committee, advises the Board and the Board staff on issues related to the conduct of business

• Receives and identifies dealer practice issues

• Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board

Licensing Committee – follows Dealer Practices Committee

• The Licensing Committee advises the Board and the Board staff on matters relating to the licensing of dealers, dealer-operators and salespersons.

• Reviews and makes recommendations to the Board on individual licensing actions proposed by the Executive Director which are required to come before the Board.

• Receives and identifies dealer-licensing issues. Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board.

AD050-96 Revision 1

[TABLE 1-1] Indicated below are the Board Committees in meeting order and principal responsibilities. Each committee will be called to order at the conclusion of the previous committee meeting unless there are special circumstances or changes from the Board Committee members.

Dealer Practices Committee - Monday, 9:00 am

[/TABLE]

[TABLE 1-2]

• The Dealer Practices Committee, advises the Board and the Board staff on issues related to the conduct of business
• Receives and identifies dealer practice issues
• Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board

[/TABLE]

[TABLE 1-3]

• The Licensing Committee advises the Board and the Board staff on matters relating to the licensing of dealers, dealer-operators and salespersons.
• Reviews and makes recommendations to the Board on individual licensing actions proposed by the Executive Director which are required to come before the Board.
• Receives and identifies dealer-licensing issues. Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board.

[/TABLE]

--- Page 2 ---

Advertising Committee – follows Licensing Committee

• Advises the Board and the Board staff on matters relating to motor vehicle dealer

advertising

• Receives and identifies advertising issues Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board

• Reviews staff reports on advertising complaints and violations

• Presents summary reports to the Board

• Directs the advertising staff on how they monitor and identify advertising violations and consumer complaints concerning advertising

Transaction Recovery Fund Committee

• Monitors the activities and solvency of the Motor Vehicle Transaction Recover Fund (MVTRF) and report findings to the Board

• Reviews staff reports and recommendations concerning actions against the Fund

• Makes recommendations to the Board on claims against the Fund

FULL BOARD – Meets after Transaction Recovery Fund Committee

Members

The following committees meet on an ad-hoc basis as deemed necessary by the Board as follows:

Franchise Review and Advisory Committee

• Advises the DMV Commissioner, through the Board, of any violations of Article 7 (Franchises) of the Motor Vehicle Dealer Act. (See § 46.2-1573.C.)

• Assists the Commissioner in assembling panels, comprised of three Board members, as described in § 46.2-1573.D.8.

Finance Committee

• Monitors the income and expenses of the Board and recommends adjustments in order to ensure the financial solvency of the Board

• Directs the preparation of a financial report to be distributed to Board members periodically. Presents a summary report to the Board at Board meetings

Members will be determined if necessary.

AD050-96 Revision 1

[TABLE 2-1]

• Advises the Board and the Board staff on matters relating to motor vehicle dealer advertising
• Receives and identifies advertising issues Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board
• Reviews staff reports on advertising complaints and violations
• Presents summary reports to the Board
• Directs the advertising staff on how they monitor and identify advertising violations and consumer complaints concerning advertising

[/TABLE]

[TABLE 2-2]

• Monitors the activities and solvency of the Motor Vehicle Transaction Recover Fund (MVTRF) and report findings to the Board
• Reviews staff reports and recommendations concerning actions against the Fund
• Makes recommendations to the Board on claims against the Fund

[/TABLE]

[TABLE 2-3] FULL BOARD – Meets after Transaction Recovery Fund Committee Members: The following committees meet on an ad-hoc basis as deemed necessary by the Board as follows: Franchise Review and Advisory Committee

[/TABLE]

[TABLE 2-4]

• Advises the DMV Commissioner, through the Board, of any violations of Article 7 (Franchises) of the Motor Vehicle Dealer Act. (See § 46.2-1573.C.)
• Assists the Commissioner in assembling panels, comprised of three Board members, as described in § 46.2-1573.D.8.

[/TABLE]

[TABLE 2-5] Finance Committee

[/TABLE]

[TABLE 2-6]

• Monitors the income and expenses of the Board and recommends adjustments in order to ensure the financial solvency of the Board
• Directs the preparation of a financial report to be distributed to Board members periodically. Presents a summary report to the Board at Board meetings

[/TABLE]

--- Page 3 ---

Personnel Committee

• Advises the Executive Director in procuring needed staff, equipment, and other requirements necessary to ensure the internal Board office has the personnel and materials needed to meet Board objectives

• Advises the Executive Director in personnel matters as needed

Members will be determined if necessary.

Meeting Date: July1995, January 1996, November 1996, May 1997, May 2001, January 2010

AD050-96 Revision 1

[TABLE 3-1] Personnel Committee

[/TABLE]

[TABLE 3-2]

• Advises the Executive Director in procuring needed staff, equipment, and other requirements necessary to ensure the internal Board office has the personnel and materials needed to meet Board objectives
• Advises the Executive Director in personnel matters as needed

[/TABLE]

[TABLE 3-3] Members will be determined if necessary.

[/TABLE]

--- Page 1 ---

Motor Vehicle Dealer Board

Meeting Dates and Times Policy

The Board meets on the second Monday of January, March, May, July, September, and November.

The Board chairman may call additional Board Meetings as necessary.

Statutory and standing committees will begin at 9:00 am the day of the regularly scheduled Board Meeting.

Board Meeting Order

Below are the Board Committees in meeting order and responsibilities. Each starts after the previous unless exceptions occur.

Dealer Practices Committee - Monday, 9:00 am

• The Dealer Practices Committee advises the Board and staff on conduct issues

• Receives and identifies dealer practice issues

• Discusses and investigates issues as needed to recommend policies and procedures to the Board

Licensing Committee – follows Dealer Practices Committee

• The Licensing Committee advises the Board and staff on dealer, dealer-operator, and salesperson licensing.

• Reviews and recommends to the Board on licensing actions proposed by the Executive Director.

• Receives and identifies dealer-licensing issues. Discusses and investigates issues as needed to recommend policies and procedures to the Board.

AD050-96 Revision 1

Table 1-1 lists Board Committees in order and responsibilities; each starts after the previous unless exceptions occur.

Dealer Practices Committee - Monday, 9:00 am

[/TABLE]

[TABLE 1-2]

• The Dealer Practices Committee advises the Board and staff on conduct issues
• Receives and identifies dealer practice issues
• Discusses and investigates issues, as needed, in order to make policy and procedural recommendations to the Board

[/TABLE]

[TABLE 1-3]

• The Licensing Committee advises the Board and staff on dealer, dealer-operator, and salesperson licensing.
• Reviews and recommends to the Board on licensing actions proposed by the Executive Director.
• Receives and identifies dealer licensing issues; discusses and investigates as needed to recommend policies to the Board.

[/TABLE]

--- Page 2 ---

Advertising Committee – follows Licensing Committee

• Advises the Board and staff on motor vehicle dealer matters

advertising

• Receives and identifies advertising issues; discusses and investigates as needed to recommend policies to the Board

• Reviews staff reports on advertising complaints and violations

• Presents summary reports to the Board

• Directs staff on monitoring and identifying advertising violations and consumer complaints

Transaction Recovery Fund Committee

• Monitors the MVTRF activities and solvency, reporting findings to the Board

• Reviews staff reports and recommendations concerning actions against the Fund

• Makes recommendations to the Board on claims against the Fund

FULL BOARD – Meets after Transaction Recovery Fund Committee

Members

The following committees meet ad hoc as needed by the Board:

Franchise Review and Advisory Committee

• Advises the DMV Commissioner, through the Board, of any violations of Article 7 (Franchises) of the Motor Vehicle Dealer Act. (See § 46.2-1573.C.)

• Assists the Commissioner in assembling panels, comprised of three Board members, as described in § 46.2-1573.D.8.

Finance Committee

• Monitors the Board's income and expenses and recommends adjustments to ensure financial solvency

• Directs preparation of periodic financial reports for Board members and presents summaries at meetings

Members will be determined if necessary.

AD050-96 Revision 1

[TABLE 2-1]

• Advises the Board and staff on motor vehicle dealer advertising
• Receives and identifies advertising issues; discusses and investigates as needed to recommend policies to the Board
• Reviews staff reports on advertising complaints and violations
• Presents summary reports to the Board
• Directs staff on monitoring and identifying advertising violations and consumer complaints

[/TABLE]

[TABLE 2-2]

• Monitors the MVTRF activities and solvency, reporting findings to the Board
• Reviews staff reports and recommendations concerning actions against the Fund
• Makes recommendations to the Board on claims against the Fund

[/TABLE]

[TABLE 2-3] FULL BOARD – Meets after Transaction Recovery Fund Committee. The following committees meet as needed: Franchise Review and Advisory Committee

[/TABLE]

[TABLE 2-4]

• Advises the DMV Commissioner, through the Board, of any violations of Article 7 (Franchises) of the Motor Vehicle Dealer Act. (See § 46.2-1573.C.)
• Assists the Commissioner in assembling panels, comprised of three Board members, as described in § 46.2-1573.D.8.

[/TABLE]

[TABLE 2-5] Finance Committee

[/TABLE]

[TABLE 2-6]

• Monitors the Board's income and expenses and recommends adjustments to ensure financial solvency
• Directs preparation of periodic financial reports for Board members and presents summaries at meetings

[/TABLE]

--- Page 3 ---

Personnel Committee

• Advises the Executive Director on procuring staff, equipment, and resources needed for the Board's objectives

• Advises the Executive Director in personnel matters as needed

Members will be determined if necessary.

Meeting Date: July1995, January 1996, November 1996, May 1997, May 2001, January 2010

AD050-96 Revision 1

[TABLE 3-1] Personnel Committee

[/TABLE]

[TABLE 3-2]

• Advises the Executive Director on procuring staff, equipment, and resources needed for the Board's objectives
• Advises the Executive Director in personnel matters as needed

[/TABLE]

[TABLE 3-3] Members will be determined if necessary.

[/TABLE]