PRINTER'S NO. 1988
No. 1640 Session of 1979
INTRODUCED BY CAPPABIANCA, SWIFT, PRATT, STUBAN AND DOMBROWSKI,
JULY 10, 1979
REFERRED TO COMMITTEE ON TRANSPORTATION, JULY 11, 1979
AN ACT
1 Amending the act of September 9, 1965 (P.L.499, No.254),
2 entitled, as amended "An act providing for and regulating the
3 registration and licensing of motor vehicle and mobilehome
4 manufacturers, dealers and salesmen, fixing fees, creating
5 the State Board of Motor Vehicle Salesmen, imposing powers
6 and duties on the Department of State, the Commissioner of
7 Professional and Occupational Affairs and the board and
8 prescribing unlawful acts and penalties and making an
9 appropriation," further defining the terms "board", "dealer"
10 and "mobilehome dealer" and granting the board additional
11 powers relating to the establishment or relocation of certain
12 dealerships.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Clauses (1), (3) and (3.1), of section 3, act of
16 September 9, 1965 (P.L.499, No.254), known as the "Motor Vehicle
17 Manufacturer's, Dealer's and Salesman's License Act," section 3
18 reenacted and amended December 21, 1973 (P.L.408, No.144), are
19 amended to read:
20 Section 3. Definitions.--The following words and phrases
21 when used in this act shall, for the purpose of this act, have
22 the following meanings, respectively, except in those instances
23 where the context clearly indicates a different meaning:
1 (1) "Board" means the State Board of Motor Vehicle
2 Manufacturers, Dealers and Salesmen, which shall consist of ten
3 persons to be appointed by the Governor with the advice and
4 consent of the Senate within ninety days, which shall aid and
5 assist in the administration of this act. The members of the
6 board shall be residents of Pennsylvania. The Commissioner of
7 Professional and Occupational Affairs shall be an ex officio
8 member of the said board. Three members of the board shall be
9 new car dealers, as defined in [the act of April 29, 1959
10 (P.L.58, No.32), known as "The Vehicle Code,"] clause (3) who
11 have been registered in the "Dealer's Class" under [section 409
12 of "The Vehicle Code"] 75 Pa.C.S. § 1335 (relating to
13 registration plates for manufacturers and dealers) for a period
14 of at least five years immediately preceding their appointment.
15 Two members of the board shall be used car dealers, as defined
16 in ["The Vehicle Code"] clause (3) who have been registered in
17 the "Dealer's Class" under [section 409 of "The Vehicle Code"]
18 75 Pa.C.S. § 1335 (relating to registration plates for
19 manufacturers and dealers) for a period of at least five years
20 immediately preceding their appointment. One member shall be a
21 mobilehome dealer who has been registered in the "Dealer's
22 Class" under [section 409 of "The Vehicle Code"] 75 Pa.C.S. §
23 1335 (relating to registration plates for manufacturers and
24 dealers) for a period of at least five years preceding his
25 appointment. The mobilehome dealer member provided for herein
26 shall be appointed for a term of three years. One member shall
27 be a motor vehicle salesman, as defined hereinafter, who for a
28 period of at least five years immediately preceding his
29 appointment has been actively engaged in the sale of new or used
30 motor vehicles and who is not at the time of his appointment a
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1 new car dealer or used car dealer or an officer of a corporation
2 registered in the "Dealer's Class" or a member of a partnership
3 registered in the "Dealer's Class." They shall be appointed for
4 terms of three years. Three members shall be members of the
5 general public having no connection with the motor vehicle
6 business. The three public members of the board shall be
7 appointed for terms of three years. Of the public members
8 initially appointed, one shall be appointed for a term of one
9 year, one for a term of two years and one for a term of three
10 years. One member of the board shall be elected chairman and one
11 of whom shall be elected secretary. Of the members initially
12 appointed, two shall be appointed for terms of one year, two for
13 terms of two years and two for terms of three years, and shall
14 hold office until their successors are appointed and qualified.
15 In the event that any member shall die, resign or be removed
16 from office during his term of office, his successor shall be
17 appointed and hold office for the unexpired term. The members
18 shall receive thirty dollars ($30) per diem for each day
19 actually engaged in attendance at meetings of the board. The
20 members shall also receive the amount of actual traveling, hotel
21 and other necessary expenses incurred in the performance of
22 their duties under this act.
23 * * *
24 (3) "Dealer" means any person defined as a (i) new car
25 dealer who is a person actively engaged in and devoting a
26 substantial portion of his time in the business of buying,
27 selling or exchanging new and used motor vehicles, trailers or
28 semitrailers on commission or otherwise, who maintains a
29 salesroom or garage devoted principally to the motor vehicle
30 business and an established place of business, and who holds an
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1 agreement in writing with a manufacturer, importer or
2 distributor, giving such person selling rights for new motor
3 vehicles, trailers or semitrailers or who is a manufacturer of
4 motor vehicles, trailers or semitrailers or who is an importer
5 or distributor of new motor vehicles, trailers or semitrailers
6 who holds an agreement in writing with the manufacturer of motor
7 vehicles, trailers and semitrailers, or (ii) used car dealer [in
8 "The Vehicle Code."] who is a person actively and principally
9 engaged in and devoting a substantial portion of his time to the
10 business of buying, selling or exchanging used motor vehicles,
11 tractors, trailers or semitrailers, and who maintains a
12 salesroom, garage, or used car lot, actually occupied by such
13 person and maintains an established place of business, which
14 established place of business shall include at least a two bay
15 garage equipped to perform the usual and normal repair and
16 servicing of motor vehicles or said dealer shall by written
17 contract have available to him at all times such repair and
18 servicing facilities and upon which or adjacent thereto is a
19 building or a portion of a building, owned or rented by such
20 person, where his books and records are kept, and which is
21 devoted principally to the motor vehicle business, in which the
22 repair of motor vehicles is subordinate or incidental to the
23 business of buying, selling, or exchanging the same. For the
24 purposes of this act, "dealer" shall also include any person who
25 buys, sells or exchanges house trailers or recreational vehicles
26 at retail, whether or not such activity is a principal or
27 substantial portion of his business.
28 (3.1) "Mobilehome dealer" means any person defined as a new
29 mobilehome dealer or used mobilehome dealer [in "The Vehicle
30 Code"] actively and principally engaged in and devoting a
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1 substantial portion of his time to the business of buying,
2 selling or exchanging of new or used mobilehomes, house trailers
3 or office trailers on commission, or otherwise, who maintains a
4 minimum useable display area of five thousand (5,000) square
5 feet devoted principally to the mobilehome, house trailer or
6 office trailer business, who maintains an established place of
7 business and who holds in the case of a new mobilehome dealer an
8 agreement in writing with a manufacturer giving such person
9 selling rights for new mobilehomes, house trailers or office
10 trailers and who is qualified to be registered in the "Dealer's
11 Class" under [section 409 of "The Vehicle Code"] 75 Pa. C.S. §
12 1335 (relating to registration plates for manufacturers and
13 dealers).
14 * * *
15 Section 2. Clause (2) of section 5 of the act, section 5
16 reenacted and amended December 21, 1973 (P.L.408, No.144), is
17 amended by adding a subclause to read:
18 Section 5. Powers and Duties of the State Board of Motor
19 Vehicle Manufacturers, Dealers and Salesmen.--The board shall
20 have power and its duty shall be:
21 * * *
22 (2) To investigate on its own initiative or upon the
23 verified complaint in writing of any person any allegations of
24 the wrongful act or acts of any licensee or person required to
25 be licensed hereunder and shall have the power to suspend or
26 revoke licenses issued by the board if after due notice and
27 hearing the person charged is found guilty of committing or
28 attempting to commit the following acts:
29 * * *
30 (xvii) (a) Except as provided in paragraph (c) of this
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1 subclause, being a manufacturer, factory branch or a distributor
2 that seeks to enter into a franchise or agreement establishing
3 an additional new motor vehicle dealership within a relevant
4 market area where the same line-make is then represented, or
5 relocating an existing motor vehicle dealership, the
6 manufacturer, factory branch or distributor shall in writing
7 first notify the board and each dealer in such line-make in the
8 relevant market area of the intention to establish an additional
9 dealership or to relocate an existing dealership within or into
10 that market area. Within fifteen days of receiving such notice
11 or within fifteen days after the end of any appeal procedure
12 provided by the manufacturer, factory branch or distributor, any
13 such dealer may file with the board a protest to the
14 establishing or relocating of the dealership. When such a
15 protest is filed, the board shall inform the manufacturer,
16 factory branch, or distributor that a timely protest has been
17 filed, that a hearing is required, and that the manufacturer,
18 factory branch, or distributor shall not establish or relocate
19 the proposed dealership until the board has held a hearing nor
20 thereafter, if the board has determined that there is good cause
21 for not permitting such dealership. In the event of multiple
22 protests, hearings may be consolidated to expedite the
23 disposition of the issue.
24 (b) For the purposes of this section, the reopening in a
25 relevant market area of a dealership that has not been in
26 operation for one year or more shall be deemed the establishment
27 of an additional motor vehicle dealership.
28 (c) With respect to the relocation of an existing
29 dealership, subsection (a) shall not apply to any relocation
30 which is less than one mile from the existing location of the
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1 dealership and which is to a location within the same relevant
2 market area within the same city where the existing dealership
3 is located.
4 (d) With respect to the establishment of a branch office for
5 selling vehicles at a fair, exposition, or similar exhibit that
6 does not exceed thirty days, subsection (a) shall not apply.
7 * * *
8 Section 3. This act shall take effect in 60 days.
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