Connecticut House Bill HB07142

Connecticut 2019 Regular Session

• Introduced: 2/20/19
• Refer: 2/20/19

Caption

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

Summary

House Bill 7142 amends existing statutes regarding the licensing of new and used car dealers in the state, specifically focusing on manufacturers of electric vehicles. The bill authorizes the Commissioner of Motor Vehicles to issue dealer licenses to manufacturers who exclusively produce electric vehicles, provided they meet certain criteria, including not holding a franchise agreement with any traditional car dealer and being previously licensed as a manufacturer by a specific date. This move seeks to promote electric vehicle sales in the state while streamlining the legal requirements for manufacturers entering the dealership space. The bill's supporters argue that enabling electric vehicle manufacturers to operate without the constraints of traditional dealership models will encourage competition and innovation in the growing electric vehicle market. It is considered an important step towards reducing dependency on fossil fuels and enhancing consumer choice for environmentally friendly vehicles. By allowing licensed electric vehicle manufacturers to manage their own dealerships, the bill aims to empower new players in the auto industry who prioritize sustainability. However, there has been some contention surrounding the bill, primarily from traditional automakers and dealer associations concerned about the impact of allowing manufacturers direct access to retail markets. Critics fear this could undermine existing dealerships that operate on traditional sale models, potentially leading to job losses and reduced support for consumers accustomed to the dealership experience. Some legislators have voiced that the bill might lead to a monopoly-like situation for electric vehicle manufacturers, diminishing local dealers' roles. If enacted, the bill will specifically amend Sections related to dealer licensing (14-51 and 14-52b), ensuring that all manufacturers comply with the newly established guidelines for operating a dealership while still maintaining consumer protections. The changes are set to take effect on July 1, 2019, allowing stakeholders time to adapt to the new regulations regarding dealer operations and the franchise system for selling motor vehicles.