THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, February 3, 1995 TAG: 9502030549
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY ROBERT LITTLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 67 lines
Virginia car dealers, steering clear of the opposition that swamped many of Gov. George F. Allen's other legislative proposals, won a pair of victories Thursday that could lead to industry self-regulation.
Two plans to let new- and used-car dealers in the state form a panel to essentially regulate themselves passed easily onto the floors of both General Assembly chambers.
The bills would create a 19-member panel - including nine new-car dealers, seven used-car dealers, two government officials and a consumer - and give it authority to set fees, levy fines, grant licenses, investigate fraud and perform other regulatory responsibilities within the automobile industry.
The plans had broad support. The Department of Motor Vehicles, which regulates car dealers, testified in favor of the idea. So did several car dealers. Committees in both houses of the legislature approved the plan with little opposition.
The lobbyist for a consumer group, however, accused the governor, the car dealers and the legislature of an ambush.
``We are going to replace one publicly accountable official with a board of 19 members and 30 committees,'' said Jean Ann Fox, president of the Virginia Citizens Consumer Council.
``And we never even had a public hearing.''
Identical versions of the proposal were heard Thursday in both the House Roads and Senate Transportation committees, the first time the bills had come up for public debate.
In fact, sponsors added 29 pages of amendments to the plan just before it was passed Thursday. Copies of the complete proposal had not been printed by the timethe two committees took a vote.
But officials within the Allen administration and the automobile industry have worked for months to craft a plan that they say would streamline the government regulatory process.
The new Motor Vehicle Dealer Board, appointed by the governor, would finance itself with fees collected for dealership licenses, salesperson licenses and dealership license plates.
The panel would set the standards for licensing dealers and salespeople, and have the authority to hold hearings and revoke licenses. A staff would be hired to inspect dealerships for conformance to industry regulations.
Sen. Kenneth W. Stolle, R-Virginia Beach, sponsor of the Senate bill, predicted that the plan would cut government costs and make for better regulations because they would be approved by people who know the industry.
``That's why we allow doctors and lawyers to regulate their businesses,'' Stolle said.
Fox predicted that the measure would create a powerful special-interest panel that would care little about consumers and only about the needs of car dealers.
``Car dealers are not doctors or lawyers,'' said Fox, who testified at both hearings Thursday.
``There is no graduate school requirement or education requirement. All you have to do to be a salesman is pass an open-book test, pay $25 and not be a felon or out on parole.''
With Thursday's votes, the plan advanced to the floor of both the Senate and House of Delegates. The plans must pass both chambers to become law, and full votes should come by early next week.
KEYWORDS: GENERAL ASSEMBLY by CNB