LCO No. 1453 1 of 15 General Assembly Raised Bill No. 139 February Session, 2020 LCO No. 1453 Referred to Committee on GENERAL LAW Introduced by: (GL) AN ACT CONCERNING CH ANGES TO CONSUMER PR OTECTION STATUTES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 21a-219 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2020): 2 (a) No health club contract shall have a term for a period longer than 3 twenty-four months. If a health club offers a contract of more than 4 twelve months' term, it shall offer a twelve-month contract. If a health 5 club sells a membership contract of more than twelve months' term, the 6 health club shall not collect payment, in cash or its equivalent of more 7 than fifty per cent of the entire consideration for the contract in advance 8 of rendering services. The remainder of the cost of the contract shall be 9 collected by the health club on a pro rata monthly basis during the term 10 of the health club contract. Each contract shall have the prices for all 11 contracts printed thereon. 12 (b) Written notice that a contract will automatically renew shall be 13 provided by the health club to the consumer at the time of entering into 14 the contract. No contract shall contain an automatic renewal clause 15 Raised Bill No. 139 LCO No. 1453 2 of 15 except for a renewal for a period not to exceed one month. If such 16 contract contains such a one-month automatic renewal clause, such 17 renewal shall become effective only upon payment of the renewal price 18 and such contract shall permit the buyer to cancel any further renewal 19 upon no more than one month's notice, except that for any such contract 20 where the term of the contract is forty-five days or longer, written notice 21 that the contract is soon subject to auto-renewal shall be provided by the 22 health club to the consumer not sooner than sixty days prior to the 23 expiration of term of the contract and not later than forty-five days prior 24 to the expiration of the term of the contract. The price of any such 25 renewal shall not increase or decrease unless the contract: (1) Discloses 26 the amount of such increase or decrease or the method of calculating 27 such increase or decrease in the price of such renewal, or (2) such 28 information is otherwise provided to the buyer, in writing, no less than 29 one month prior to such renewal, except that for any such contract 30 where the term of the contract is forty-five days or longer, such 31 information shall be provided by the health club to the consumer not 32 sooner than sixty days prior to the expiration of term of the contract and 33 not later than forty-five days prior to the expiration of the term of the 34 contract. Any renewal option for continued membership must be 35 accepted by the buyer in writing, by electronic mail or facsimile and 36 shall become effective only upon payment of the renewal price. 37 (c) Each health club shall post the prices and the three-day 38 cancellation provisions, the disability provisions and the twenty-five 39 mile moving provisions of all contracts in a conspicuous place where the 40 contract is entered into. 41 Sec. 2. Section 42-179 of the general statutes is repealed and the 42 following is substituted in lieu thereof (Effective October 1, 2020): 43 (a) As used in this chapter: (1) "Consumer" means the purchaser, 44 other than for purposes of resale, of a motor vehicle, a lessee of a motor 45 vehicle, any person to whom such motor vehicle is transferred during 46 the duration of an express warranty applicable to such motor vehicle, 47 and any person entitled by the terms of such warranty to enforce the 48 Raised Bill No. 139 LCO No. 1453 3 of 15 obligations of the warranty; and (2) "motor vehicle" means a passenger 49 motor vehicle, a passenger and commercial motor vehicle or a 50 motorcycle, as defined in section 14-1, which is sold or leased in this 51 state. 52 (b) If a new motor vehicle does not conform to all applicable express 53 warranties, and the consumer reports the nonconformity to the 54 manufacturer, its agent or its authorized dealer during the period of two 55 years following the date of original delivery of the motor vehicle to a 56 consumer or during the period of the first twenty-four thousand miles 57 of operation, whichever period ends first, the manufacturer, its agent or 58 its authorized dealer shall make such repairs as are necessary to 59 conform the vehicle to such express warranties, notwithstanding the 60 fact that such repairs are made after the expiration of the applicable 61 period. 62 (c) No consumer shall be required to notify the manufacturer of a 63 claim under this section and sections 42-181 to 42-184, inclusive, as 64 amended by this act, unless the manufacturer has clearly and 65 conspicuously disclosed to the consumer, in the warranty or owner's 66 manual, that written notification of the nonconformity is required 67 before the consumer may be eligible for a refund or replacement of the 68 vehicle. The manufacturer shall include with the warranty or owner's 69 manual the name and address to which the consumer shall send such 70 written notification. 71 (d) If the manufacturer or its agents or authorized dealers are unable 72 to conform the motor vehicle to any applicable express warranty by 73 repairing or correcting any defect or condition which substantially 74 impairs the use, safety or value of the motor vehicle to the consumer 75 after a reasonable number of attempts, the manufacturer shall replace 76 the motor vehicle with a new motor vehicle acceptable to the consumer, 77 or accept return of the vehicle from the consumer and refund to the 78 consumer, lessor and lienholder, if any, as their interests may appear, 79 the following: (1) The full contract price, including but not limited to, 80 charges for undercoating, dealer preparation and transportation and 81 Raised Bill No. 139 LCO No. 1453 4 of 15 installed options, (2) all collateral charges, including but not limited to, 82 sales tax, license and registration fees, and similar government charges, 83 (3) all finance charges incurred by the consumer after he first reports the 84 nonconformity to the manufacturer, agent or dealer and during any 85 subsequent period when the vehicle is out of service by reason of repair, 86 and (4) all incidental damages, [as defined in section 42a-2-715,] less a 87 reasonable allowance for the consumer's use of the vehicle, if applicable. 88 Incidental damages include, but are not limited to, compensation for 89 any commercially reasonable charges or expenses with respect to: (A) 90 Inspection, receipt, transportation, care or custody of the motor vehicle, 91 (B) covering, returning or disposition of the motor vehicle, (C) 92 reasonable efforts to minimize or avoid the consequences of financial 93 default related to the motor vehicle, and (D) effectuating other remedies 94 after a defect or condition that substantially impaired the motor vehicle 95 has been reported to a dealership or manufacturer. No authorized 96 dealer shall be held liable by the manufacturer for any refunds or vehicle 97 replacements in the absence of evidence indicating that dealership 98 repairs have been carried out in a manner inconsistent with the 99 manufacturers' instructions. Refunds or replacements shall be made to 100 the consumer, lessor and lienholder if any, as their interests may appear. 101 A reasonable allowance for use shall be that amount obtained by 102 multiplying the total contract price of the vehicle by a fraction having as 103 its denominator one hundred twenty thousand and having as its 104 numerator the number of miles that the vehicle traveled prior to the 105 manufacturer's acceptance of its return. It shall be an affirmative defense 106 to any claim under this section (1) that an alleged nonconformity does 107 not substantially impair such use, safety or value or (2) that a 108 nonconformity is the result of abuse, neglect or unauthorized 109 modifications or alterations of a motor vehicle by a consumer. 110 (e) It shall be presumed that a reasonable number of attempts have 111 been undertaken to conform a motor vehicle to the applicable express 112 warranties, if (1) the same nonconformity has been subject to repair four 113 or more times by the manufacturer or its agents or authorized dealers 114 during the period of two years following the date of original delivery of 115 Raised Bill No. 139 LCO No. 1453 5 of 15 the motor vehicle to a consumer or during the period of the first twenty-116 four thousand miles of operation, whichever period ends first, but such 117 nonconformity continues to exist or (2) the vehicle is out of service by 118 reason of repair for a cumulative total of thirty or more calendar days 119 during the applicable period, determined pursuant to subdivision (1) of 120 this subsection. Such two-year period and such thirty-day period shall 121 be extended by any period of time during which repair services are not 122 available to the consumer because of a war, invasion, strike or fire, flood 123 or other natural disaster. No claim shall be made under this section 124 unless at least one attempt to repair a nonconformity has been made by 125 the manufacturer or its agent or an authorized dealer or unless such 126 manufacturer, its agent or an authorized dealer has refused to attempt 127 to repair such nonconformity. 128 (f) If a motor vehicle has a nonconformity which results in a condition 129 which is likely to cause death or serious bodily injury if the vehicle is 130 driven, it shall be presumed that a reasonable number of attempts have 131 been undertaken to conform such vehicle to the applicable express 132 warranties if the nonconformity has been subject to repair at least twice 133 by the manufacturer or its agents or authorized dealers within the 134 express warranty term or during the period of one year following the 135 date of the original delivery of the motor vehicle to a consumer, 136 whichever period ends first, but such nonconformity continues to exist. 137 The term of an express warranty and such one-year period shall be 138 extended by any period of time during which repair services are not 139 available to the consumer because of war, invasion, strike or fire, flood 140 or other natural disaster. 141 (g) (1) No motor vehicle which is returned to any person pursuant to 142 any provision of this chapter or in settlement of any dispute related to 143 any complaint made under the provisions of this chapter and which 144 requires replacement or refund shall be resold, transferred or leased in 145 the state without clear and conspicuous written disclosure of the fact 146 that such motor vehicle was so returned prior to resale or lease. Such 147 disclosure shall be affixed to the motor vehicle and shall be included in 148 any contract for sale or lease. The Commissioner of Motor Vehicles shall, 149 Raised Bill No. 139 LCO No. 1453 6 of 15 by regulations adopted in accordance with the provisions of chapter 54, 150 prescribe the form and content of any such disclosure statement and 151 establish provisions by which the commissioner may remove such 152 written disclosure after such time as the commissioner may determine 153 that such motor vehicle is no longer defective. (2) [If] For any motor 154 vehicle subject to a complaint made under the provisions of this chapter, 155 if a manufacturer accepts the return of a motor vehicle or compensates 156 any person who accepts the return of a motor vehicle, [pursuant to 157 subdivision (1) of this subsection] whether the return is pursuant to an 158 arbitration award or settlement, such manufacturer shall stamp the 159 words ["MANUFACTURER BUYBACK "] "MANUFACTURER 160 BUYBACK-LEMON" clearly and conspicuously on the face of the 161 original title in letters at least one-quarter inch high and, within ten days 162 of receipt of the title, shall submit a copy of the stamped title to the 163 Department of Motor Vehicles. The Department of Motor Vehicles shall 164 maintain a listing of such buyback vehicles and in the case of any request 165 for a title for a buyback vehicle, shall cause the words 166 ["MANUFACTURER BUYBACK "] "MANUFACTURER BUYBACK -167 LEMON" to appear clearly and conspicuously on the face of the new 168 title in letters which are at least one-quarter inch high. Any person who 169 applies for a title shall disclose to the department the fact that such 170 vehicle was returned as set forth in this subsection. (3) If a manufacturer 171 accepts the return of a motor vehicle from a consumer due to a 172 nonconformity or defect, in exchange for a refund or a replacement 173 vehicle, whether as a result of an administrative or judicial 174 determination, an arbitration proceeding or a voluntary settlement, the 175 manufacturer shall notify the Department of Motor Vehicles and shall 176 provide the department with all relevant information, including the 177 year, make, model, vehicle identification number and prior title number 178 of the vehicle. Such manufacturer shall stamp the words 179 "MANUFACTURER BUYBACK -LEMON" clearly and conspicuously 180 on the face of the original title in letters at least one-quarter-inch high, 181 and, within ten days of receipt of the title, shall submit a copy of the 182 stamped title to the Department of Motor Vehicles. The Commissioner 183 of Motor Vehicles shall adopt regulations in accordance with chapter 54 184 Raised Bill No. 139 LCO No. 1453 7 of 15 specifying the format and time period in which such information shall 185 be provided and the nature of any additional information which the 186 commissioner may require. (4) The provisions of this subsection shall 187 apply to motor vehicles originally returned in another state from a 188 consumer due to a nonconformity or defect in exchange for a refund or 189 replacement vehicle and which a lessor or transferor with actual 190 knowledge subsequently sells, transfers or leases in this state. If a 191 manufacturer fails to brand a title pursuant to this subsection within ten 192 days of assuming possession of the motor vehicle or compensating any 193 person who accepts the return, the Department of Consumer Protection 194 may impose on the manufacturer a fine not to exceed ten thousand 195 dollars. Any such fine collected shall be deposited into the new 196 automobile warranties account established pursuant to section 42-190, 197 as amended by this act. 198 (h) All express and implied warranties arising from the sale of a new 199 motor vehicle shall be subject to the provisions of part 3 of article 2 of 200 title 42a. 201 (i) Nothing in this section shall in any way limit the rights or remedies 202 which are otherwise available to a consumer under any other law. 203 (j) If a manufacturer has established an informal dispute settlement 204 procedure which is certified by the Attorney General as complying in 205 all respects with the provisions of Title 16 Code of Federal Regulations 206 Part 703, as in effect on October 1, 1982, and with the provisions of 207 subsection (b) of section 42-182, the provisions of subsection (d) of this 208 section concerning refunds or replacement shall not apply to any 209 consumer who has not first resorted to such procedure. 210 Sec. 3. Section 42-181 of the general statutes is repealed and the 211 following is substituted in lieu thereof (Effective October 1, 2020): 212 (a) The Department of Consumer Protection, shall provide an 213 independent arbitration procedure for the settlement of disputes 214 between consumers and manufacturers of motor vehicles which do not 215 conform to all applicable warranties under the terms of section 42-179, 216 Raised Bill No. 139 LCO No. 1453 8 of 15 as amended by this act. The Commissioner of Consumer Protection shall 217 appoint as arbitrators individuals who shall not be employees or 218 independent contractors with any business involved in the 219 manufacture, distribution, sale or service of any motor vehicle. The 220 arbitrator shall be a member of an arbitration organization and shall 221 serve with compensation. The Department of Consumer Protection may 222 refer an arbitration dispute to the American Arbitration Association or 223 other arbitration organization in accordance with regulations adopted 224 in accordance with the provisions of chapter 54, provided such 225 organization and any arbitrators appointed by such organization to hear 226 cases shall not be affiliated with any motor vehicle manufacturer, 227 distributor, dealer or repairer. Such arbitration organizations shall 228 comply with the provisions of subsections (b) and (c) of this section. 229 (b) If any motor vehicle purchased at any time on or after October 1, 230 1984, or leased at any time on or after June 17, 1987, fails to conform to 231 such applicable warranties as defined in said section 42-179, as amended 232 by this act, a consumer may bring a grievance to an arbitrator if the 233 manufacturer of the vehicle has not established an informal dispute 234 settlement procedure which the Attorney General has certified as 235 complying in all respects with the requirements of said section 42-179, 236 as amended by this act. The consumer may initiate a request for 237 arbitration by calling a toll-free telephone number designated by the 238 commissioner or by requesting an arbitration hearing in writing. The 239 consumer shall file, on forms prescribed by the commissioner, any 240 information deemed relevant to the resolution of the dispute and shall 241 return the form accompanied by a filing fee of fifty dollars. Prior to 242 submitting the complaint to an arbitrator, the Department of Consumer 243 Protection shall conduct an initial review of the complaint. The 244 department shall determine whether the complaint should be accepted 245 or rejected for arbitration based on whether it alleges that the 246 manufacturer has failed to comply with section 42-179, as amended by 247 this act. The filing fee shall be refunded if the department determines 248 that a complaint does not allege a violation of any applicable warranty 249 under the requirements of said section 42-179, as amended by this act. 250 Raised Bill No. 139 LCO No. 1453 9 of 15 Upon acceptance of the complaint, the commissioner shall notify the 251 manufacturer of the filing of a request for arbitration and shall obtain 252 from the manufacturer, in writing on a form prescribed by the 253 commissioner, any information deemed relevant to the resolution of the 254 dispute. The manufacturer shall return the form within fifteen days of 255 receipt, together with a filing fee of two hundred fifty dollars. Upon 256 written agreement of the parties, signed after the consumer has initiated 257 a request for arbitration, the case may be presented to the arbitrator 258 solely based on the written documents submitted by such parties. A 259 lessee who brings a grievance to an arbitrator under this section shall, 260 upon filing the complaint form provided for in this section, provide the 261 lessor with notice by registered or certified mail, return receipt 262 requested, and the lessor may petition the arbitrator to be made a party 263 to the arbitration proceedings. Initial determinations to reject a 264 complaint for arbitration shall be submitted to an arbitrator for a final 265 decision upon receipt of a written request from the consumer for a 266 review of the initial eligibility determination and a filing fee of fifty 267 dollars. If a complaint is accepted for arbitration, an arbitrator may 268 determine that a complaint does not allege that the manufacturer has 269 failed to comply with section 42-179, as amended by this act at any time 270 before such arbitrator renders its decision on the merits of the dispute. 271 The fee accompanying the consumer's complaint form shall be refunded 272 to the consumer and the fee accompanying the form filed by the 273 manufacturer shall be refunded to the manufacturer if the arbitrator 274 determines that a complaint does not allege a violation of the provisions 275 of section 42-179, as amended by this act. 276 (c) The Department of Consumer Protection shall investigate, gather 277 and organize all information necessary for a fair and timely decision in 278 each dispute. The commissioner may issue subpoenas on behalf of any 279 arbitrator to compel the attendance of witnesses and the production of 280 documents, papers and records relevant to the dispute. The department 281 shall forward a copy of all written testimony, including all documentary 282 evidence, to an independent technical expert certified by the National 283 Institute of Automotive Service Excellence or having a degree or other 284 Raised Bill No. 139 LCO No. 1453 10 of 15 credentials from a nationally recognized organization or institution 285 attesting to automotive expertise, who shall review such material and 286 be available to advise and consult with the arbitrator. An arbitrator 287 shall, as expeditiously as possible, but not later than sixty days after the 288 time the consumer files the complaint form together with the filing fee, 289 render a fair decision based on the information gathered and disclose 290 his or her findings and the reasons therefor to the parties involved. The 291 failure of the arbitrator to render a decision within sixty days shall not 292 void any subsequent decision or otherwise limit the powers of the 293 arbitrator. The arbitrator shall base his or her determination of liability 294 solely on whether the manufacturer has failed to comply with section 295 42-179, as amended by this act. The arbitration decision shall be final 296 and binding as to the rights of the parties pursuant to section 42-179, as 297 amended by this act, subject only to judicial review as set forth in this 298 subsection. The decision shall provide appropriate remedies, including, 299 but not limited to, one or more of the following: 300 (1) Replacement of the vehicle with an identical or comparable new 301 vehicle acceptable to the consumer; 302 (2) Refund of the full contract price, plus collateral charges as 303 specified in subsection (d) of section 42-179, as amended by this act; 304 (3) Reimbursement for expenses and compensation for incidental 305 damages as specified in subsection (d) of section 42-179, as amended by 306 this act; 307 (4) Any other remedies available under the applicable warranties, 308 section 42-179, as amended by this act, this section and sections 42-182 309 to 42-184, inclusive, or the Magnuson-Moss Warranty-Federal Trade 310 Commission Improvement Act, 88 Stat. 2183 (1975), 15 USC 2301 et seq., 311 as in effect on October 1, 1982, other than repair of the vehicle. The 312 decision shall specify a date for performance and completion of all 313 awarded remedies. Notwithstanding any provision of the general 314 statutes or any regulation to the contrary, the Department of Consumer 315 Protection shall not amend, reverse, rescind or revoke any decision or 316 Raised Bill No. 139 LCO No. 1453 11 of 15 action of an arbitrator. The department shall contact the consumer, 317 within ten business days after the date for performance, to determine 318 whether performance has occurred. The manufacturer shall act in good 319 faith in abiding by any arbitration decision. In addition, either party to 320 the arbitration may make application to the superior court for the 321 judicial district in which one of the parties resides or, when the court is 322 not in session, any judge thereof for an order confirming, vacating, 323 modifying or correcting any award, in accordance with the provisions 324 of this section and sections 52-417, 52-418, 52-419 and 52-420. Upon filing 325 such application the moving party shall mail a copy of the application 326 to the Attorney General and, upon entry of any judgment or decree, 327 shall mail a copy of such judgment or decree to the Attorney General. A 328 review of such application shall be confined to the record of the 329 proceedings before the arbitrator. The court shall conduct a de novo 330 review of the questions of law raised in the application. In addition to 331 the grounds set forth in sections 52-418 and 52-419, the court shall 332 consider questions of fact raised in the application. In reviewing 333 questions of fact, the court shall uphold the award unless it determines 334 that the factual findings of the arbitrator are not supported by 335 substantial evidence in the record and that the substantial rights of the 336 moving party have been prejudiced. If the arbitrator fails to state 337 findings or reasons for the award, or the stated findings or reasons are 338 inadequate, the court shall search the record to determine whether a 339 basis exists to uphold the award. If it is determined by the court that the 340 manufacturer has acted without good cause in bringing an appeal of an 341 award, the court, in its discretion, may grant to the consumer his costs 342 and reasonable attorney's fees. If the manufacturer fails to perform all 343 awarded remedies by the date for performance specified by the 344 arbitrator, and the enforcement of the award has not been stayed 345 pursuant to subsection (c) of section 52-420, then each additional day the 346 manufacturer wilfully fails to comply shall be deemed a separate 347 violation for purposes of section 42-184. If the manufacturer fails to 348 perform regarding all awarded remedies by the date of performance 349 specified by the arbitrator, and enforcement of the award has not been 350 stayed pursuant to subsection (c) of section 52-240, the department may 351 Raised Bill No. 139 LCO No. 1453 12 of 15 impose a fine not to exceed one thousand dollars per day until the 352 manufacturer fully performs as specified by the award. Any such fines 353 collected shall be deposited into the new automobile warranties account 354 established pursuant to section 42-190, as amended by this act. 355 (d) The department shall maintain such records of each dispute as the 356 commissioner may require, including an index of disputes by brand 357 name and model. The department shall annually compile and maintain 358 statistics indicating the record of manufacturer compliance with 359 arbitration decisions and the number of refunds or replacements 360 awarded. A copy of the statistical summary shall be filed with the 361 Commissioner of Motor Vehicles and shall be considered a factor in 362 determining the issuance of any manufacturer license as required under 363 section 14-67a. The summary shall be a public record. 364 (e) If a manufacturer has not established an informal dispute 365 settlement procedure certified by the Attorney General as complying 366 with the requirements of said section 42-179, as amended by this act, 367 public notice of the availability of the department's automobile dispute 368 settlement procedure shall be prominently posted in the place of 369 business of each new car dealer licensed by the Department of Motor 370 Vehicles to engage in the sale of such manufacturer's new motor 371 vehicles. Display of such public notice shall be a condition of licensure 372 under sections 14-52 and 14-64. The Commissioner of Consumer 373 Protection shall determine the size, type face, form and wording of the 374 sign required by this section, which shall include the toll-free telephone 375 number and the address to which requests for the department's 376 arbitration services may be sent. 377 (f) Any consumer injured by the operation of any procedure which 378 does not conform with procedures established by a manufacturer 379 pursuant to subsection (b) of section 42-182 and the provisions of Title 380 16 Code of Federal Regulations Part 703, as in effect on October 1, 1982, 381 may appeal any decision rendered as the result of such a procedure by 382 requesting arbitration de novo of the dispute by an arbitrator. Filing 383 procedures and fees for appeals shall be the same as those required in 384 Raised Bill No. 139 LCO No. 1453 13 of 15 subsection (b) of this section. The findings of the manufacturer's 385 informal dispute settlement procedure may be admissible in evidence 386 at such arbitration and in any civil action subsequently arising out of 387 any warranty obligation or matter related to the dispute. Any consumer 388 so injured may, in addition, request the Attorney General to investigate 389 the manufacturer's procedure to determine whether its certification 390 shall be suspended or revoked after proper notice and hearing. The 391 Attorney General shall establish procedures for processing such 392 consumer complaints and maintain a record of the disposition of such 393 complaints, which record shall be included in the annual report 394 prepared in accordance with the provisions of subsection (a) of section 395 42-182. 396 (g) The Commissioner of Consumer Protection shall adopt 397 regulations, in accordance with the provisions of chapter 54, to carry out 398 the purposes of this section. Written copies of the regulations and 399 appropriate arbitration hearing procedures shall be provided to any 400 person upon request. 401 (h) After a consumer submits the forms and fee pursuant to 402 subsection (b) of this section and until such time that a decision or 403 settlement is rendered, the consumer shall notify any individual or 404 entity to whom he or she sells the motor vehicle that an action is pending 405 with the department pursuant to this section. Such notice shall be given 406 prior to the buyer's execution of the bill of sale, and shall include any 407 case number or reference number provided by the department to the 408 consumer. The consumer shall (1) notify the department not later than 409 five days after the buyer's execution of the bill of sale that the motor 410 vehicle has been sold, (2) provide the department with the name and 411 contact information of the buyer, and (3) attest that notice of the pending 412 action was given to the buyer prior to the buyer's execution of the bill of 413 sale. 414 Sec. 4. Section 42-190 of the general statutes is repealed and the 415 following is substituted in lieu thereof (Effective October 1, 2020): 416 Raised Bill No. 139 LCO No. 1453 14 of 15 (a) A new automobile warranties account surcharge is hereby 417 imposed on the sale or lease of each new motor vehicle, as defined in 418 section 42-179, as amended by this act, sold or leased in this state by any 419 person licensed to offer such vehicles for sale under section 14-52. Such 420 surcharge shall be in addition to any tax otherwise applicable to any 421 such sales transaction. 422 (b) The surcharge assessed pursuant to this section shall be at a rate 423 of three dollars per motor vehicle, as defined in section 42-179, as 424 amended by this act. Such surcharge shall be collected by each licensee 425 under section 14-52 engaged in the sale or lease of motor vehicles, as 426 defined in section 42-179, as amended by this act, in this state. Such 427 licensee shall pay the surcharges assessed during the prior calendar year 428 to the Department of Consumer Protection in an annual lump sum 429 payment on or before March thirty-first of each year. Said department 430 may assess a late fee of two dollars per vehicle. 431 (c) Proceeds collected from surcharges assessed under this section 432 shall be deposited in the new automobile warranties account established 433 pursuant to subsection (d) of this section. 434 (d) There is established a separate, nonlapsing account, within the 435 General Fund, to be known as the "new automobile warranties account". 436 The account may contain any moneys required by law to be deposited 437 in the account. The moneys in said account shall be allocated to the 438 Department of Consumer Protection to carry out the purposes of this 439 chapter. 440 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2020 21a-219 Sec. 2 October 1, 2020 42-179 Sec. 3 October 1, 2020 42-181 Sec. 4 October 1, 2020 42-190 Raised Bill No. 139 LCO No. 1453 15 of 15 Statement of Purpose: To amend consumer protection statutes concerning health clubs and the automobile lemon law. [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.]