2005-2008

As the Alberta Motor Vehicle Industry Council (AMVIC) moves into its seventh year of operation, the following highlight some of the coming year actions that are detailed in the following pages:

•  Subject to increased revenue from other sources, hire two investigators and one support staff. Investigative staff, including support personnel, will total 13 and will enable AMVIC to visit each licensed business annually as well as responding to consumer complaints within 48 hours of receipt.
•  Negotiate with Alberta Government the ability to use the government CPIC terminal for obtaining criminal record reports. Utilization of the terminal will assist AMVIC in achieving criminal checks on all applications and reduce turn-around time.
•  Implement policy that will require all out-of-province persons to be fully registered with AMVIC, including successful completion of the salespersons course, prior to selling vehicles in Alberta.
• Continue discussions with Government services in order that:

  	Towable recreational vehicles are included in AMVIC’s mandate.
  	Purchasers of written-off vehicles must be an AMVIC licensee.
  	Reporting and recording of vehicle odometer readings is mandatory.
  	Continuous motor vehicle registration is mandatory.
  	Approval is received to implement a penalty schedule for late renewals and for new businesses operating for three or more months without an AMVIC license.

•  Complete discussions and contract negotiations with Alberta Recycling Management Authority (ARMA) whereby AMVIC will visit and ‘audit’ all motor vehicle businesses that are selling tires. Such an arrangement will assist ARMA in monitoring legislative requirements and will enable AMVIC to generate additional revenue.
•  Augment communication with stakeholders and public by producing 4 newsletters in the year, 6 broadcast Faxes and submitting articles for newspapers.

•  AMVIC has two offices, with the Head Office being located in Edmonton and a smaller office serving investigators in Calgary. Two of the field investigators are working from offices in their residence.
•  A nine member Board of Directors directs the organization and is comprised of four persons representing the founding organizations, two government appointees representing the public-at-large and three members-at-large from the industry.
•  Current staff compliment is eighteen full time and two part time employees.
•  The Manager of Licensing and Finance coordinates all licensing and financial activities. Five full time and two part time employees carry out the licensing functions. One individual is dedicated to administering the Salesperson education program.
•  The Manager of Investigation coordinates the activities of nine people – three investigators in both Edmonton and Calgary, an investigator in Grande Prairie, an investigator located south of Calgary and an individual who is dedicated to handling inbound complaint calls and inquiries.

•  Subject to increase revenue from other sources, hire two investigators and one additional support staff. (2005)

•  Motor vehicle businesses are licensed under four categories, being Automotive Sales, Automobile Leasing, Automotive Consignment and Automotive Repair.
•  Consignment licensees are required as of January 1, 2005 to provide a $50,000 bond or irrevocable letter of credit.
•  Businesses pay an annual licensing fee of $175 per category to a maximum of $350. Automotive Salespersons are required to be registered and the annual fee is $100.
•  During the 2004 calendar year, an average of 4,583 businesses were licensed and an average of 6,474 salespersons were registered. It is estimated that 10% of motor vehicle businesses are operating without a valid licence – this includes those that are “curbing” cars, “back alley” mechanics and salespersons that are working without registration
•  Policies and procedures are in place for individuals and businesses to complete application for licensing. All forms are available on the AMVIC web site. All applications are screened and a checklist of requirements is reviewed prior to a licence being granted. Criminal record checks are done occasionally.
•  Where there is a concern about an application, a process is in place to conduct an administrative hearing to determine the suitability of the applicant. Applicants deemed not suitable for licensing are given an opportunity to appeal the decision.
•  Licence renewals and applications are processed within 2 weeks of receipt.
•  Listing of Licensed Salespersons are sent with each Business Licence renewal.
•  The number of licences issued are presented at each Board meeting.
•  Licence renewals are issued for a year based on anniversary date, not when the requirements were met.

•  All businesses and salespersons operating in the Alberta motor vehicle marketplace are licensed by AMVIC.
•  Businesses and sales people are provided with prompt, courteous and efficient service 100% of the time.
•  Do criminal record checks on all applications.
•  Businesses that sell towable recreational vehicles are included in licensing regulations.
•  New salespeople register immediately upon entry in the industry

•  Meet with government to develop a plan to use their CPIC terminal for obtaining criminal record reports. (April 2005)

•  Most consumer complaints come via the toll free telephone number or email.
•  Investigations are focused on unfair practices pursuant to the Fair Trading Act and Criminal Code for fraud as well as unlicensed businesses and salespeople.
•  384 Fair Trading Act and 19 Criminal Code charges were laid in 2004.
•  The vast majority of investigations are reactive and occur as the result of a complaint.
•  Proactive investigation work is starting to increase as the number of investigators has increased.
•  Vehicle history is not easily attainable which results in an increasing number of instances where individuals are altering or hiding history.
•  For 2004, approximately $1,800,000 was obtained in restitution for victims of unfair trade practices.

•  Investigators will visit all motor vehicle businesses annually.
•  A vehicle history system in Alberta that serves as a deterrent to fraud in the buying and selling of vehicles.
•  All complaints are acknowledged and reviewed within 48 hours of receipt.
•  Motor Vehicle dealers will only deal with motor vehicle dealers who are licensed by AMVIC.

•  Investigators will attend RCMP fraud investigators course and mediation training (December 2005)
•  Investigators will continue to allocate resources to ensure the identification of businesses and salespeople operating without a licence remains a top priority. (Ongoing)
•  Visit half the motor vehicle businesses in the province during the 2005 year to ensure licensing is in order. When additional resourcing is in place, visit annually each motor vehicle business in Alberta. (December 2005)

•  AMVIC is responsible for administration of the one-day Salesperson course. One full time person is assigned to coordinate the program.
•  In calendar year 2004, 1,308 individuals took the $160 one-day Salesperson Course, which contributed $214,000 to annual revenue.
•  A correspondence course is offered to those unable to attend classroom sessions.
•  Due to the very high turnover in motor vehicle Salespersons, it is anticipated there will be an ongoing requirement for training approximately 1,350 persons each year.
•  The training manual used for the Salesperson Course was rewritten in 2003 to reflect new legislation – specifically the new Traffic Safety Act.
•  Out of province sales organizations run sales events at new car dealerships throughout the province.
•  Profits from the Salesperson Courses will continue to assist in funding all AMVIC activities.

•  AMVIC’s web site includes press releases, newsletters, various reports and statistical measures.
•  Two newsletters were sent out in the fiscal year.
•  The general public, and many in the motor vehicle industry, have a very low awareness of AMVIC as an organization and of its mandate.
•  The Executive Director is active in attending industry functions and meetings.
•  AMVIC Brochures and Tip sheets are provided to “Reality Choice” - a course given to High School students regarding vehicle purchasing.
•  Broadcast FAXes are being sent to industry, government and media when significant events occur.

•  AMVIC will provide ongoing and consistent communication with all licensees, as well as consumers and MLA’s.
•  Increased consumer awareness that all businesses and salespersons are required to be licensed.
•  Activities and results of the investigative team are captured and communicated by newsletter, website and presentations at stakeholder meetings.
•  Automotive businesses, salespersons, and consumers look to AMVIC to resolve complaints and to investigate unfair practices and illegal activities.

•  Many of the initiatives, that AMVIC would like implemented, require government assistance and/or legislative change.
•  Provincial Government involvement in the Motor Vehicle sector is fragmented. AMVIC issues a business licence, Alberta Learning checks the business for qualified technicians, Alberta Environment checks the business (via TRMA) for tire recycling, Alberta Environment (via Oil Recycling Association) checks the business for used oil disposal, Alberta Transportation (via Permit Pro) issues an Out of Province Inspection station licence.
•  After a charge has been laid, prosecution is delegated to whichever crown prosecutor is available.
•  The Motor Vehicle Inspection Program (MVIP) Stations and Commercial Vehicle Inspection Program (CVIP) Stations are licensed but not under the AMVIC license.

•  Provincial government seeks AMVIC input for any government initiatives that impact the motor vehicle marketplace.
•  Government vehicle registration system that identifies unlicensed salespeople and vendors.
•  Government interaction with motor vehicle businesses will be highly coordinated.
•  Clarity around Crown Prosecution for the Fair Trading Act.
•  Businesses that sell towable recreational vehicles are included in licensing regulations.
•  AMVIC issues the business license to MVIP and CVIP stations in Alberta.

•  Licensing fees increased in 2004 to $175 for single business, $350 for multiple business and $100 for salespersons
•  Net income for the fiscal year 2004/2005 is projected to be $228,000
•  For the current year, cash gain from operations is projected to be $269,000 vs. capital expenditures of $75,000.
•  A reserve fund of $370,000, representing 3 months of operation, is in place.
•  Discussions have occurred with the Alberta Recycling Management Authority for AMVIC to perform contract work in visiting motor vehicle businesses that are selling tires.