Connecticut 2021 Regular Session Status: In Committee 5 D cosponsors

SB 127 — AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN THE STATE.

Last action — FILE NO. 419

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

162 added · 29 removed

162 line(s) added, 29 removed.

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General Assembly Committee Bill No.
Senate General Assembly File No.
127 January Session, 2021 LCO No.
419 January Session, 2021 Senate Bill No.
5774 Referred to Committee on TRANSPORTATION Introduced by:
127 Senate, April 13, 2021 The Committee on Transportation reported through SEN.
(TRA) AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN THE STATE.
HASKELL of the 26th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.
AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN THE STATE.
If such action is contested by such dealer in accordance with the provisions of sections 42-133r to 42-133ee, inclusive, as amended by this act, the commissioner shall not demand surrender of such license, and no replacement motor vehicle dealer shall be named for the dealer's point or location, except in accordance with subdivision (10) of section 42-133cc, until the LCO 5774 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-R01 of 8 SB.docx Committee Bill No.
If such action is contested by such dealer in accordance with the provisions of sections 42-133r to 42-133ee, inclusive, as amended by this act, the commissioner shall not demand surrender of such license, and no replacement motor vehicle dealer shall be named for the dealer's point or location, except in SB127 / File No.
127 proceedings to contest such action by the manufacturer are finally determined after all means of administrative, judicial and appellate review have been exhausted and the decision is adverse to the dealer.
419 1 SB127 File No.
419 accordance with subdivision (10) of section 42-133cc, until the proceedings to contest such action by the manufacturer are finally determined after all means of administrative, judicial and appellate review have been exhausted and the decision is adverse to the dealer.
(d) The commissioner may extend the period of a license issued to a manufacturer to operate a dealership on a temporary basis, in accordance with the provisions of subsection (b) of this section and subdivision (8) of section 42-133cc, for not more than one additional LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-2 of 8 R02-SB.docx } Committee Bill No.
(d) The commissioner may extend the period of a license issued to a manufacturer to operate a dealership on a temporary basis, in accordance with the provisions of subsection (b) of this section and SB127 / File No.
127 year, up to a maximum period of two years, if the commissioner is satisfied that such manufacturer has made and is continuing to make bona fide efforts to sell and transfer the dealership to a person, firm or corporation that is qualified to hold a new or used dealer's license.
419 2 SB127 File No.
419 subdivision (8) of section 42-133cc, for not more than one additional year, up to a maximum period of two years, if the commissioner is satisfied that such manufacturer has made and is continuing to make bona fide efforts to sell and transfer the dealership to a person, firm or corporation that is qualified to hold a new or used dealer's license.
Such person] and shall be qualified to conduct such business in accordance with the LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00123 of 8 R02-SB.docx } Committee Bill No.
Such person] and shall be qualified to conduct such business in accordance with the SB127 / File No.
127 requirements of section 14-52a.
419 3 SB127 File No.
419 requirements of section 14-52a.
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127-4 of 8 R02-SB.docx } Committee Bill No.
SB127 / File No.
127 (2)A certifiedcopyofany warranty madebythemanufacturer or any other party in whom title to such motor vehicle may have been vested prior to possession of such motor vehicle being transferred to a person licensed under the provisions of this section;
419 4 SB127 File No.
419 (2)A certifiedcopyofany warranty madebythemanufacturer or any other party in whom title to such motor vehicle may have been vested prior to possession of such motor vehicle being transferred to a person licensed under the provisions of this section;
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00125 of 8 R02-SB.docx } Committee Bill No.
SB127 / File No.
127 Sec.
419 5 SB127 File No.
419 Sec.
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00126 of 8 R02-SB.docx } Committee Bill No.
SB127 / File No.
127 (6) "Dealer" means any person engaged in the business of selling, offering to sell, soliciting or advertising the sale of new motor vehicles and who holds a valid sales and service agreement, franchise or contract, granted by a manufacturer or distributor for the retail sale of the manufacturer's or distributor's new motor vehicles.
419 6 SB127 File No.
419 (6) "Dealer" means any person engaged in the business of selling, offering to sell, soliciting or advertising the sale of new motor vehicles and who holds a valid sales and service agreement, franchise or contract, granted by a manufacturer or distributor for the retail sale of the manufacturer's or distributor's new motor vehicles.
LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127 of 8 R02-SB.docx } Committee Bill No.
SB127 / File No.
127 (13) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate or any other legal entity.
419 7 SB127 File No.
419 (13) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate or any other legal entity.
4 October 1, 2021 42-133r TRA Joint Favorable LCO 5774 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00127- 8 of 8 R02-SB.docx }
4 October 1, 2021 42-133r TRA Joint Favorable SB127 / File No.
419 8 SB127 File No.
419 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Department of Motor Vehicles TF - Revenue Up to Up to Gain 20,000 20,000 Resources of the General Fund GF - Revenue Potential Potential Gain Note:
GF=General Fund;
TF=Transportation Fund Municipal Impact:
None Explanation The bill results in a potential revenue gain of up to $20,000 to the Special Transportation Fund by expanding car dealer license eligibility to additional manufacturers, which is dependent on the number of licenses issued by the Department of Motor vehicles.
The bill also increases the potential sales tax revenue to the General Fund.
The actual revenue gain in sales tax would be dependent upon any potential shift in consumer purchases from out-of-state to in-state.
Connecticut requires sales tax to be paid on vehicles registered for less than thirty days in another state upon registration of the vehicle in this state.
However, Connecticut does provide a credit for out-of-state sales taxes paid if the registrant provides supporting documentation.
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Oftheadjacentstates,Massachusettsistheonlyonethatchargessales tax on the purchase of motor vehicles by nonresidents.
1 Vehicle 1New York State does not currently tax purchases of motor vehicles by nonresidents.
Rhode Island does not charge Connecticut residents on the purchase of motor vehicles.
SB127 / File No.
419 9 SB127 File No.
419 purchases from Massachusetts are therefore likely to qualify for the sales tax credit for out-of-state purchases.
Any potential shift in sales from Massachusetts to Connecticut under this bill would result in the full sales tax payment in Connecticut (rather than an out-of-state sales tax credit) which results in a potential revenue gain.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
SB127 / File No.
419 10 SB127 File No.
419 OLR Bill Analysis SB 127 AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN THE STATE.
SUMMARY This bill expands the ability of certain licensed motor vehicle manufacturersto selltheir vehiclesdirectly toconsumers inConnecticut under specific conditions.
It does this by authorizing the motor vehicles commissioner to issue a new or used car dealer’s license to a manufacturer that meets certain requirements.
Current law bars motor vehicle manufacturers from holding a new or used car dealer’s license except that:
1.
the motor vehicles commissioner may issue a used car dealer’s license to a person, firm, or corporation owned or controlled by a manufacturer, primarily inthebusinessofrenting motor vehicles and industrial and construction equipment under certain conditions, and 2.
a manufacturer may operate a dealership for up to one year (or two years if the commissioner makes certain determinations).
The bill also makes technical and conforming changes.
EFFECTIVE DATE:
October 1, 2021 MOTOR VEHICLE MANUFACTURER DIRECT SALE CRITERIA To qualify for a new or used car dealer’s license under the bill, a licensed manufacturer:
1.
cannot have a franchise agreement with a new car dealer in Connecticut;
SB127 / File No.
419 11 SB127 File No.
419 2.
must manufacture only “electric vehicles” (which the bill does not define);
3.
must sell at retail only vehicles it makes;
and 4.
cannot hold a controlling interest in or be owned or controlled by (a) another manufacturer or (b) a subsidiary, affiliate, or entity owned or controlled by another manufacturer, licensed as a dealer under the bill.
The bill exempts a manufacturer who meets these qualifications from motor vehicle franchise laws (see BACKGROUND).
Under the bill, a “manufacturer” is any person, firm, or corporation licensed as a motor vehicle manufacturer under state law and any subsidiary, affiliate, or entity it owns or controls.
The bill expands the statutory definitions of “new car dealer” and “used car dealer” to include such a manufacturer and generally subjects the manufacturer to the rules governing these dealers.
Under the bill, if a manufacturer is licensed as a new car dealer, it may also repair vehicles and sell used vehicles;
if licensed as a used car dealer, it may also repair vehicles.
BACKGROUND Motor Vehicle Franchises and Dealerships Under the laws governing motor vehicle franchises, a motor vehicle manufacturer makes or assembles new motor vehicles or imports them for distribution to dealers or through distributors or factory branches.
A dealer sells motor vehicles and holds a valid sales and service agreement, franchise, or contract with a manufacturer or distributor for retail sale of the manufacturer’s or distributor’s new motor vehicles (CGS § 42-133r).
The motor vehicle franchise laws set out, among other things, the respective obligations of manufacturers and dealerships (CGS §§ 42- 133r to 42-133ee).
They generally prohibit a manufacturer from unfairly competing with a dealer who sells the manufacturer’s “line make” of vehicles (e.g., Toyota or Ford) and is operating under an agreement or SB127 / File No.
419 12 SB127 File No.
419 franchise with the manufacturer in the relevant market area (CGS § 42- 133cc(8)).
Motor Vehicle Dealer Laws and Regulations Motor vehicle dealers are subject to laws governing vehicle sales, registration, and recordkeeping, among other things.
The Department of Motor Vehicles (DMV) requires new and used car dealers to pay a biennial license fee of $700 and $560, respectively.
New and used car dealers also must post a $50,000 cash or surety bond and comply with applicable state and federal laws.
The commissioner may refuse to grant or renew a license if the dealer, or an officer or major stockholder of the dealer, has been convicted of violating any laws pertaining to the business or certain other crimes, such as fraud (CGS §§ 14-52 & 14-52a).
Dealers must follow motor vehicle laws and regulations in such areas as use of dealer plates, record-keeping, sales agreements, vehicle registration, and customer complaints (Conn.
Agencies Regs.
§ 14-63-1 et seq.).
Manufacturer Under the motor vehicle statutes, a manufacturer generally is (1) a person, whether or not a Connecticut resident, engaged in the business of constructing or assembling new motor vehicles of a type required to be registered by the commissioner for operation upon any highway (except a utility trailer), which are offered for sale in Connecticut, or (2) a personwho distributesnewmotor vehicles to newcar dealerslicensed in Connecticut (CGS § 14-1(53)).
The law prohibits any person, firm, or corporation from engaging in the business of manufacturing motor vehicles without receiving a manufacturer’s license, which expires biennially on June 30.
Applicants for a manufacturer’s license must apply to DMV and pay a biennial license fee of $2,300 (CGS § 14-67a(a)).
COMMITTEE ACTION SB127 / File No.
419 13 SB127 File No.
419 Transportation Committee Joint Favorable Yea 25 Nay 10 (03/24/2021) SB127 / File No.
419 14
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Action History

  1. FILE NO. 419

  2. SENATE CALENDAR NUMBER 259

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/12/21

  6. FILED WITH LCO

  7. Joint Favorable

  8. Joint Favorable

  9. REF. TO JOINT COMM. ON Transportation

  10. DRAFTED BY COMMITTEE

  11. Vote to Draft

  12. PUBLIC HEARING 0219

  13. Reserved for Subject Matter Public Hearing

  14. REF. TO JOINT COMM. ON Transportation

Sponsors

Sponsorship breakdown

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9 sponsors · 0 co-sponsors · 178 not signed on

Sponsors (9)

Co-sponsors (0)

None.

Not signed on (178)

178 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 127?
SB 127 is sponsored by Kerry S. Wood (Democratic), Wood, Terrie E., Haskell, Will, Josh Elliott (Democratic), Jonathan Steinberg (Democratic), Aimee Berger-Girvalo (Democratic), Christopher Rosario (Democratic), Michel, David, and Hennessy, John "jack" F..
What is the current status of SB 127?
This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 127?
Track SB 127 free on One Click Politics — get push/email alerts when it moves.

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