Connecticut 2020 2020 Regular Session

Connecticut Senate Bill SB00139 Introduced / Bill

Filed 02/18/2020

                        
 
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 Section 21a-219 of the general statutes is repealed and the 1 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.]