General Assembly Committee Bill No. 703
January Session, 2011 LCO No. 3109
*03109SB00703TRA*
Referred to Committee on Transportation
Introduced by:
(TRA)
General Assembly
Committee Bill No. 703
January Session, 2011
LCO No. 3109
*03109SB00703TRA*
Referred to Committee on Transportation
Introduced by:
(TRA)
AN ACT REDUCING THE SURETY BOND REQUIREMENT FOR A USED CAR DEALER'S LICENSE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (b) of section 14-52 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
(b) (1) Except as provided in subsection (c) of this section, each applicant for a repairer's or a limited repairer's license shall furnish a surety bond in the amount of five thousand dollars.
(2) Except as provided in subsection (c) of this section, each applicant for a new car dealer's [or a used car dealer's] license shall furnish a surety bond in the amount of fifty thousand dollars and each applicant for a used car dealer's license shall furnish a surety bond in the amount of twenty thousand dollars.
(3) Each applicant for a leasing or rental license issued pursuant to section 14-15, who is engaged in the leasing or renting of motor vehicles for periods of thirty days or more shall furnish a surety bond in the amount of ten thousand dollars.
(4) Each such bond required under subdivisions (1) to (3), inclusive, of this subsection shall be conditioned upon the applicant or licensee complying with the provisions of any state or federal law or regulation relating to the conduct of such business and provided as indemnity for any loss sustained by any person by reason of any acts of the licensee constituting grounds for suspension or revocation of the license or such licensee going out of business. Such bond shall be executed in the name of the state of Connecticut for the benefit of any aggrieved party, but the penalty of the bond shall not be invoked except upon order of the commissioner after a hearing held before said commissioner in accordance with the provisions of chapter 54.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2011 14-52(b)
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2011
14-52(b)
Statement of Purpose:
To reduce the surety bond required from an applicant for a used car dealer's license from fifty thousand dollars to twenty thousand dollars.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]
Co-Sponsors: SEN. GUGLIELMO, 35th Dist.
Co-Sponsors:
SEN. GUGLIELMO, 35th Dist.
S.B. 703