Doc Fee Increase

The DMV Dealer Advisory Board held a meeting on May 23, 2024, and voted unanimously to increase the documentary (doc) fee cap from $499 to $575. A $76 increase! Dennis Sheets made a motion to increase the cap to $575, and the motion was immediately seconded by Wally Thornhill. This increase will take effect July 1, 2024.

In addition, the Dealer Advisory Board recommended beginning July 1, 2025, that the doc fee be tied to the Bureau of Labor Statistics consumer price index moving forward. The Dealer Advisory Board will continue to meet and approve the CPI increases annually and we will inform the dealer body of any adjustments.

WVADA and the DMV Dealer Advisory Board have been working closely together for the past several months to deliver a win to West Virginia dealers by adjusting the doc fee to reflect a fair and equitable rate that is competitive with our surrounding states.

This is a huge win for WVADA and its dealers!

Updated Franchise Law — Effective June 5, 2024

As we continue enjoying the summer season, I’d like to take a moment to reflect on the past few months and the exciting times ahead. As we move through the rest of 2024 and prepare for the 2025 legislative session, our association and our dealers need to continue to build strong relationships with our legislative representatives. We had obstacles to overcome this past session but were able to push through to get our number one priority bill, the franchise bill, passed! The bill passed the Senate within the first week unanimously; the bill finally passed the House of Delegates: 87 -13. Sen. Rupie Phillips was the lead sponsor of our bill this session and he absolutely delivered every step of the way. “The dealer franchise model has proven time and time again that it is the absolute best model for consumers,” said Phillips. “I was honored to be the lead sponsor and appreciate the local economic impacts franchise dealers bring to their communities.”

Here’s a brief summary of SB 173:
SB 173 Modifying certain guidelines for motor vehicle dealers, distributors, wholesalers, and manufacturers, otherwise known as our franchise bill.

• Clarifies timeline for manufacturer to dispute the motor vehicle dealers request for adjustment to parts and labor rates. W. Va. Code 17A-6A-8a(g)
• Clarifies that the 15-year period on dealer facilities apply to any subsequent dealer who obtains ownership.
• Prohibits a manufacturer from amending the dealer agreement without the motor vehicle dealer’s consent. W. Va. Code 17A-6A-10(a)(12)
• Clarifies amanufacturer obligation to provide a dealer with all of its makes and models, regardless of whether the model is electric, hybrid, gas or other means of propulsion. W. Va. Code 17A-6A-10(b)(2)
• Prohibits a manufacturer from exercising a right of first refusal when a motor vehicle dealer enters into a transaction to sell. W. Va. Code 17A-6A-10(b)(20).
• Clarifies that a manufacturer may not interfere or prejudice a dealer to set his own prices, trade-in values, financing terms and the price of voluntary protection products. W. Va. Code 17A-6A-10(h)(2) to (5).
• Prohibits a manufacturer from treating a franchised motor vehicle dealer as simply an agent for the manufacturer as it relates to the sale and lease of motor vehicles. W. Va. Code 17A-6A-10(j).
• Clarifies the application to a “dealer data systems vendor” to make consistent with prior statutory definition in W. Va. Code 17A-6A-15a.

Other WVADA bills of interest that passed:

• HB 5178 Permitting car dealerships in this state to utilize a search engine to determine if buyers of vehicles have valid vehicle insurance.

This bill permits dealers to utilize the Insurance Verification System (IVS) to verify a consumer’s insurance in real time. This system can be tied to the current Vehicles Registration System (VRS) which is the system that is administered by the DMV and currently utilized by every West Virginia dealership.

This bill will help assist dealerships and their employees with the verification of customers insurance, especially, after hours and on weekends.

• SB 583 Relating to employer liability and damages in civil actions involving commercial motor vehicles.

Under current law, there is no cap on any type of damages in a personal injury or wrongful death claim arising out of a vehicular accident with a commercial motor vehicle. This bill places a $5 million cap on noneconomic damages against an employer defendant. Of note, that cap is per plaintiff and per occurrence on personal injury and wrongful death claims.

For an employer defendant to take advantage of the cap, it must have liability insurance in the amount of at least $3 million. The cap would also not apply in certain circumstances where, at the time of the incident, the operator of the commercial motor vehicle: (1) was under the influence of drugs or alcohol; (2) subsequently refused to submit to a breathalyzer exam per West Virginia law; (3) was driving in excess of the hours permitted under state/federal law; (4) was engaging in reckless driving; (5) was operating an overloaded vehicle; or (6) engaged in distracted driving.

There is an indexing provision for the cap, which is similar to the medical malpractice caps. Specifically, the cap would be adjusted upward annually using the consumer price index, but it could not exceed 150% of the original $5 million figure.

The section was effective on July 1, 2024, and only applies to claims arising after that date.

Successful Convention

We recently wrapped up our 91st Dealer Family Convention at Kiawah Island Golf Resort! The convention was an incredible event that hopefully left all of us feeling energized.

The convention is an incredible opportunity for learning, networking and collective growth within our industry while also having a good time. I cannot emphasize enough the importance of attending events like these, and I encourage you and your team to join us. Together, we can drive our industry forward.

I’d like to thank each and every one of you — our awesome dealer body and your families — as well as our gracious vendor partners who allowed this event to happen. We wouldn’t be able to have such a successful event without every one of you.

Please mark your calendars now for next year’s family convention at the Greenbrier on June 8-11, 2025.

As always, thank you for your continued support and participation. I hope everyone is having a memorable and enjoyable summer!