HD14 - Motor Vehicle Dealer Internet Access Study - December 2011


Executive Summary:
All motor vehicle dealers are required to have an established place of business that is equipped with a desk, chairs, filing space, a working telephone, working utilities including electricity and provisions for space heating. Given the reliance on the internet and email by government agencies and businesses for communicating quickly, economically and efficiently with each other as well as with consumers, the Motor Vehicle Dealer Board (MVDB) worked with Delegate Carrico to introduce a bill to the 2011 General Assembly that that would have required as of July 1, 2011, all newly licensed dealers to have an Internet connection and an email address and that by July 1, 2012, all dealers have an Internet connection and an email address. The Department of Motor Vehicles determined that the dealers licensed by them should also be included in this requirement and the proposal was amended to do so.

A Senate floor amendment changed the dates that dealers would be required to have an Internet connection and an email address to July 1, 2013. The amendment also added the following enactment clause:

"That the Motor Vehicle Dealer Board in consultation with the Department of Motor Vehicles shall study the provisions of this act requiring that motor vehicle dealers, T&M vehicle dealers, trailer dealers, and motorcycle dealers, on and after July 1, 2013, be equipped with an Internet connection and an email address and advise the Governor and the General Assembly of the desirability and feasibility of these provisions on or before December 1, 2011."

The services of Point Management Group were secured to assist in conducting this study.

The study found that:

• All MVDB licensed dealers have access to either fixed line broadband or dial-up Internet service. (2.2% have dial-up Internet access only and no fixed line broadband access.)

• All DMV licensed dealers have access to fixed line broadband service.

• The average monthly cost for Dial-up Internet service for standard speed is $10 and high speed service is $12.00.

• The average monthly cost for fixed line broadband standard speed service is approximately $22 and $40 for high speed service.

Recommendations

• All new MVDB and DMV dealers should have dial-up Internet access at a minimum.

• Each MVDB and DMV dealer should acquire an Internet email address.

• Each MVDB and DMV dealer is to maintain an active Internet email address.