LCO 5774 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-R02-
SB.docx
1 of 8
General Assembly Committee Bill No. 127
January Session, 2021
LCO No. 5774
Referred to Committee on TRANSPORTATION
Introduced by:
(TRA)
AN ACT CONCERNING TH E SALE OF ELECTRIC VEHICLES IN THE
STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 14-52b of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2021): 2
(a) In the event a manufacturer licensed in accordance with the 3
provisions of section 14-67a, as amended by this act, cancels, terminates 4
or fails to renew any franchise, as defined in section 42-133r, as amended 5
by this act, with a new car dealer, as defined in section 14-51, as 6
amended by this act, the Commissioner of Motor Vehicles, upon receipt 7
of written notice of such action by the manufacturer, shall, unless the 8
dealer holds one or more additional franchises, demand that such new 9
car dealer surrender such license to the commissioner. If such action is 10
contested by such dealer in accordance with the provisions of sections 11
42-133r to 42-133ee, inclusive, as amended by this act, the commissioner 12
shall not demand surrender of such license, and no replacement motor 13
vehicle dealer shall be named for the dealer's point or location, except in 14
accordance with subdivision (10) of section 42-133cc, until the 15 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
2 of 8
proceedings to contest such action by the manufacturer are finally 16
determined after all means of administrative, judicial and appellate 17
review have been exhausted and the decision is adverse to the dealer. 18
(b) Except as provided in subsections (c) [and (d)] to (e), inclusive, of 19
this section, no person, firm or corporation licensed as a manufacturer 20
in accordance with the provisions of section 14-67a, as amended by this 21
act, may be the holder of a new or used car dealer's license issued in 22
accordance with the provisions of section 14-52, except a manufacturer 23
may operate as a dealer on a temporary basis in accordance with the 24
provisions of subdivision (8) of section 42-133cc. The provisions of this 25
subsection shall apply to any firm or corporation that is owned or 26
controlled by a manufacturer, as determined by the commissioner. Any 27
applicant for a new or used car dealer license that is denied a license 28
under the provisions of this subsection shall be entitled to a hearing in 29
accordance with the provisions of chapter 54. 30
(c) [Notwithstanding the provisions of subsection (b) of this section, 31
the] The commissioner may issue a used car dealer's license to a person, 32
firm or corporation, owned or controlled by a manufacturer, engaged 33
primarily in the business of rental of motor vehicles and industrial and 34
construction equipment, provided: (1) Motor vehicles offered for sale by 35
any such person, firm or corporation are limited to motor vehicles that 36
have been previously used exclusively and regularly in the conduct of 37
the business or motor vehicles traded in by purchasers of such 38
previously used motor vehicles, (2) any warranty repairs performed by 39
such person, firm or corporation are limited to motor vehicles that such 40
person, firm or corporation owns, has previously owned, or has taken 41
in trade, and (3) any retail financing provided or arranged by such 42
person, firm or corporation is limited to vehicles sold by such person, 43
firm or corporation. 44
(d) The commissioner may extend the period of a license issued to a 45
manufacturer to operate a dealership on a temporary basis, in 46
accordance with the provisions of subsection (b) of this section and 47
subdivision (8) of section 42-133cc, for not more than one additional 48 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
3 of 8
year, up to a maximum period of two years, if the commissioner is 49
satisfied that such manufacturer has made and is continuing to make 50
bona fide efforts to sell and transfer the dealership to a person, firm or 51
corporation that is qualified to hold a new or used dealer's license. 52
(e) (1) For the purposes of this subsection, "manufacturer" means a 53
person, firm or corporation licensed as a manufacturer in accordance 54
with the provisions of section 14-67a, as amended by this act, and any 55
subsidiary, affiliate or entity owned or controlled by such manufacturer. 56
(2) The commissioner may issue a new or used car dealer's license to 57
a manufacturer, provided such manufacturer: (A) Does not have a 58
franchise agreement with any new car dealer in the state; (B) 59
manufactures only electric vehicles; (C) sells at retail only motor vehicles 60
manufactured by such manufacturer; (D) does not hold a controlling 61
interest in another manufacturer, or a subsidiary, affiliate or entity 62
owned or controlled by such other manufacturer, that is licensed as a 63
dealer under this subsection; and (E) is not owned or controlled by 64
another manufacturer, or a subsidiary, affiliate or entity owned or 65
controlled by such other manufacturer, that is licensed as a dealer under 66
this subsection. 67
Sec. 2. Subdivisions (1) and (2) of subsection (a) of section 14-51 of the 68
general statutes are repealed and the following is substituted in lieu 69
thereof (Effective October 1, 2021): 70
(1) "New car dealer" includes (A) any person, firm or corporation 71
engaged in the business of merchandising new motor vehicles under a 72
manufacturer's or importer's contract for each such make of vehicle, 73
[who] and (B) any person, firm or corporation licensed as a 74
manufacturer, as defined in subsection (e) of section 14-52b, as amended 75
by this act, that is engaged in the business of merchandising new motor 76
vehicles and licensed as a new car dealer as provided in said subsection. 77
Such person, firm or corporation may, incidental to such business, sell 78
used motor vehicles and repair motor vehicles, [. Such person] and shall 79
be qualified to conduct such business in accordance with the 80 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
4 of 8
requirements of section 14-52a. 81
(2) "Used car dealer" includes (A) any person, firm or corporation 82
engaged in the business of merchandising motor vehicles other than 83
new, [who] and (B) any person, firm or corporation licensed as a 84
manufacturer, as defined in subsection (e) of section 14-52b, as amended 85
by this act, that is engaged in the business of merchandising motor 86
vehicles other than new and licensed as a used car dealer as provided in 87
said subsection. Such person, firm or corporation may, incidental to 88
such business, repair motor vehicles. A used car dealer does not include 89
any person, firm or corporation engaged in the business of leasing or 90
renting motor vehicles that offers for sale or sells used motor vehicles 91
incidental to its primary business, if [(A)] such person, firm or 92
corporation is licensed in accordance with the provisions of section 14-93
15, and [(B)] the motor vehicles that it offers for sale were formerly the 94
subject of one or more lease agreements to which it was a party and the 95
actual or prospective purchaser is the original lessee pursuant to a 96
purchase option specified in a lease agreement. Such person, firm or 97
corporation shall be qualified to conduct such business in accordance 98
with the requirements of section 14-52a. 99
Sec. 3. Section 14-67a of the general statutes is repealed and the 100
following is substituted in lieu thereof (Effective October 1, 2021): 101
(a) No person, firm or corporation shall engage in the business of 102
manufacturing motor vehicles for sale in this state without having been 103
issued a manufacturer's license, which license shall expire biennially on 104
the last day of June. Application for such license or renewal thereof may 105
be made to the Commissioner of Motor Vehicles in such form as the 106
commissioner shall require. The commissioner may require with such 107
application all of the following, which [he] the commissioner may 108
consider in determining the fitness of such applicant to engage in 109
business as a manufacturer of motor vehicles for sale in this state: 110
(1) Information relating to the applicant's solvency and [his] financial 111
standing; 112 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
5 of 8
(2) A certified copy of any warranty made by the manufacturer or any 113
other party in whom title to such motor vehicle may have been vested 114
prior to possession of such motor vehicle being transferred to a person 115
licensed under the provisions of this section; 116
(3) A copy of the applicant's standard franchise agreement and all 117
supplements thereto, together with a list of the applicant's authorized 118
dealers or distributors in this state and their [address] addresses. Such 119
applicant shall notify the commissioner immediately of the 120
appointment of any additional dealers or distributors or any revisions 121
of or additions to the basic franchise agreement on file with [him] the 122
commissioner, or of any individual dealer or distributor supplements to 123
such agreement. The provisions of this subdivision shall not apply to 124
any manufacturer licensed as a new or used car dealer pursuant to 125
subsection (e) of section 14-52b, as amended by this act; 126
(4) A certified copy of the delivery and preparation obligations of the 127
applicant's new car dealers, which obligations shall constitute such new 128
car dealers' only responsibility for product liability between the dealer 129
and the manufacturer; 130
(5) An affidavit stating the rates such applicant pays or agrees to pay 131
any authorized new car dealer for parts and labor used and expended 132
by such authorized new car dealer for the manufacturer under delivery 133
and preparation obligations under the new car warranty; 134
(6) A biennial license fee of two thousand three hundred dollars, 135
which fee shall not be subject to refund or proration; and 136
(7) Any other pertinent matter commensurate with the safeguarding 137
of the public interest. 138
(b) An application for renewal of such license filed with the 139
commissioner after the expiration date of such license shall be 140
accompanied by a late fee of two hundred fifty dollars. The 141
commissioner shall not renew any license under this section which has 142
expired for more than forty-five days. 143 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
6 of 8
Sec. 4. Section 42-133r of the general statutes is repealed and the 144
following is substituted in lieu thereof (Effective October 1, 2021): 145
As used in [sections 42-133r] this section and sections 42-133s to 42-146
133ee, inclusive, unless the context indicates a different meaning: 147
(1) "Manufacturer" means any person who manufactures or 148
assembles new motor vehicles, or imports motor vehicles for 149
distribution to dealers or through distributors, or factory branches, but 150
does not include any manufacturer licensed as a new or used car dealer 151
pursuant to subsection (e) of section 14-52b, as amended by this act. 152
(2) "Distributor" means any person who offers for sale, sells or 153
distributes any new motor vehicle to dealers or who maintains factory 154
representatives or who controls any person, firm, association, joint 155
venture corporation or trust, who offers for sale, sells or distributes any 156
new motor vehicle to dealers. 157
(3) "Factory branch" means a branch office maintained by a 158
manufacturer for the purpose of selling, or offering for sale, motor 159
vehicles to a distributor or dealer, or for directing or supervising factory 160
or distributor representatives. 161
(4) "Owner" means any person holding an ownership interest in a 162
business entity operating as a dealer or under a franchise as defined in 163
this section either as a corporation, partnership or sole proprietorship. 164
To the extent that the rights of any owner under [sections 42-133r] this 165
section and sections 42-133s to 42-133ee, inclusive, conflict with the 166
rights of any other owner, such rights shall accrue in priority order 167
based on the percentage of ownership interest held by each owner with 168
the owner having the greatest ownership interest having first priority 169
and succeeding priority accruing to other owners in the descending 170
order of their percentage of ownership interest. 171
(5) "Dealership facilities" means real estate, buildings, fixtures and 172
improvements which are used in the course of business under a 173
franchise by a new motor vehicle dealer. 174 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
7 of 8
(6) "Dealer" means any person engaged in the business of selling, 175
offering to sell, soliciting or advertising the sale of new motor vehicles 176
and who holds a valid sales and service agreement, franchise or 177
contract, granted by a manufacturer or distributor for the retail sale of 178
the manufacturer's or distributor's new motor vehicles. 179
(7) "Motor vehicle" means a self-propelled vehicle intended primarily 180
for use and operation on the public highways, other than a farm tractor 181
or other machinery or tools used in the production, harvesting and care 182
of farm products. 183
(8) "New motor vehicle" means a motor vehicle which has been sold 184
to a new motor vehicle dealer and which has not been used for other 185
than demonstration purposes and on which the original title has not 186
been issued from the new motor vehicle dealer. 187
(9) "Established place of business" means a permanent, commercial 188
building easily accessible and open to the public at reasonable times and 189
at which the business of a new motor vehicle dealer, including the 190
display and repair of vehicles, may be lawfully carried on. 191
(10) "Franchise" means a written agreement or contract between a 192
manufacturer or distributor and a dealer which purports to fix the legal 193
rights and liabilities of the parties to such agreement or contract, and 194
pursuant to which the dealer purchases and resells the franchise 195
product or leases or rents the dealership premises. 196
(11) "Good faith" means honesty in fact and the observance of 197
reasonable commercial standards of fair dealing in the trade. 198
(12) "Designated family member" means the spouse, child, 199
grandchild, parent, brother or sister of an owner who, in the case of the 200
owner's death, is entitled to inherit the ownership interest in the dealer 201
under the terms of the owner's will, or who has been nominated in any 202
other written instrument, or who, in the case of an incapacitated owner 203
of a dealer, has been appointed by a court as the legal representative of 204
the dealer's property. 205 Committee Bill No. 127
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-
R02-SB.docx }
8 of 8
(13) "Person" means a natural person, partnership, corporation, 206
limited liability company, association, trust, estate or any other legal 207
entity. 208
(14) "Relevant market area" means the area within a radius of 209
fourteen miles around an existing dealer or the area of responsibility 210
defined in a franchise, whichever is greater. 211
(15) "Commissioner" means the Commissioner of Motor Vehicles. 212
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2021 14-52b
Sec. 2 October 1, 2021 14-51(a)(1) and (2)
Sec. 3 October 1, 2021 14-67a
Sec. 4 October 1, 2021 42-133r
TRA Joint Favorable