Connecticut House Bill HB05310

Connecticut 2018 Regular Session

• Introduced: 2/28/18
• Refer: 2/28/18
• Report Pass: 3/23/18
• Refer: 3/29/18
• Report Pass: 4/5/18
• Refer: 4/10/18
• Report Pass: 4/17/18

Caption

An Act Concerning The Licensing Of New And Used Car Dealers.

Impact

If enacted, HB 05310 would significantly impact the current statutes associated with motor vehicle sales by tightening the regulations that govern how dealers operate. By placing restrictions on manufacturers who wish to act as dealers, the bill seeks to protect traditional dealerships from potential competition from vertically integrated manufacturers. Additionally, the focus on electrical vehicle manufacturers indicates a legislative push toward sustainable transportation options, thus integrating modern priorities into state economic planning and regulations.

Summary

House Bill 05310 aims to amend the existing framework governing the licensing of new and used car dealers in the state. The bill introduces specific eligibility criteria for manufacturers seeking to obtain dealer licenses, particularly focusing on manufacturers of electric vehicles. Furthermore, it specifies conditions under which manufacturers may hold dealer licenses and establishes important guidelines for the relationship between manufacturers, dealers, and consumers involved in the sale of motor vehicles. The overarching goal of this legislation is to create a more transparent and fair licensing process that reflects the evolving automotive landscape in the state.

Sentiment

Reactions to the bill appear to be mixed among stakeholders. Supporters, particularly those within the traditional dealership community, view the legislation as a necessary step toward maintaining a level playing field in the market. Conversely, there are concerns from some quarters that the restrictions may be overly stringent, potentially hampering innovation within the automotive sector, especially among emerging electric vehicle manufacturers who may wish to enter the market without traditional dealership constraints. This division reflects broader conversations about balancing regulatory oversight with fostering innovation.

Contention

A point of contention surrounding HB 05310 is the bill's provisions regarding franchise agreements and the degree to which they restrict manufacturer operations. Critics argue that limiting manufacturers from holding dealer licenses could hinder market competition and consumer choice, particularly in the case of electric vehicles where manufacturers like Tesla advocate for direct sales to consumers. Thus, the pursuit of a fair licensing structure may face challenges from advocates of direct sales models.