Connecticut House Bill HB07097

Connecticut 2017 Regular Session

• Introduced: 2/16/17
• Refer: 2/16/17
• Report Pass: 3/17/17
• Refer: 3/24/17
• Report Pass: 3/30/17
• Refer: 5/5/17
• Report Pass: 5/8/17

Caption

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

Impact

The legislation impacts state laws related to the automotive trade by setting clearer guidelines on the relationship between manufacturers and dealers. It specifically addresses the cancellation of dealer franchises, ensuring that licenses cannot be revoked without thorough review processes. This points towards a more regulated environment for car dealerships, emphasizing the protection of existing dealers against arbitrary actions by manufacturers, which may significantly affect their businesses.

Summary

House Bill 07097 focuses on the licensing of new and used car dealers in Connecticut. The bill aims to amend existing regulations by detailing the conditions under which manufacturers must operate in relation to dealers. A significant change proposed is that car manufacturers can be licensed as dealers if they do not hold franchise agreements with other dealers in the state and primarily manufacture electric vehicles. This provision is designed to facilitate the entry of electric vehicle manufacturers into the marketplace and enhance competition in the auto industry.

Sentiment

The sentiment surrounding HB 07097 appears to be cautiously positive among proponents who champion the growth of electric vehicle sales and support for new manufacturers. However, there is some concern among traditional car dealers regarding potential conflict and market saturation with the influx of new manufacturers gaining dealer licenses. This generates a mixed sentiment where some stakeholders see opportunity while others express caution over regulatory shifts and competition dynamics.

Contention

Notable points of contention include the implications of allowing manufacturers to hold dealer licenses, which could be viewed as a competitive advantage for certain companies, particularly those producing electric vehicles. Critics of the bill argue that this could undermine existing dealers and lead to a fragmented market. Additionally, the revision of franchise agreement protocols raises questions about the balance of power between manufacturers and dealers, especially concerning the cancellation and renewal of franchises, which could result in potential abuse if not properly regulated.