Connecticut 2022 Regular Session Status: In Committee 7 D cosponsors

SB 214 — AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN THE STATE.

Last action — FILE NO. 397

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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 2022 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

322 added · 178 removed

322 line(s) added, 178 removed.

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General Assembly Raised Bill No.
Senate General Assembly File No.
214 February Session, 2022 LCO No.
397 February Session, 2022 Substitute Senate Bill No.
1759 Referred to Committee on TRANSPORTATION Introduced by:
214 Senate, April 11, 2022 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 substitute 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 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 sSB214 / File No.
1759 1 of 8 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.
397 1 sSB214 File No.
397 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 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 sSB214 / File No.
1759 2 of 8 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.
397 2 sSB214 File No.
(e) (1) For the purposes of this subsection, "manufacturer" means a person, firm or corporation licensed as a manufacturer in accordance with the provisions of section 14-67a, as amended by this act, and any subsidiary, affiliate orentity ownedor controlledby such manufacturer.
397 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.
(e) (1) For the purposes of this subsection, "manufacturer" means a person, firm or corporation licensed as a manufacturer in accordance with the provisions of section 14-67a, as amended by this act, and any subsidiary, affiliate orentity ownedor controlledby such manufacturer, and "battery electric vehicle" has the same meaning as provided in section 16-19eee.
(B) manufacturers only electric vehicles;
(B) manufactures only battery electric vehicles;
Such person, firm or corporation may, incidental to such business, sell used motor vehicles and repair motor vehicles, [.
Such person, firm or corporation may, incidental to such business, sell sSB214 / File No.
397 3 sSB214 File No.
397 used motor vehicles and repair motor vehicles, [.
LCO No.
(2) "Used car dealer" includes (A) any person, firm or corporation engaged in the business of merchandising motor vehicles other than new, [who] and (B) any person, firm or corporation licensed as a manufacturer, asdefinedinsubsection(e)of section14-52b,asamended by this act, that is engaged in the business of merchandising motor vehicles other than new and licensed as a used car dealer as provided in said subsection.
1759 3 of 8 (2) "Used car dealer" includes (A) any person, firm or corporation engaged in the business of merchandising motor vehicles other than new, [who] and (B) any person, firm or corporation licensed as a manufacturer, asdefinedinsubsection(e)of section14-52b,asamended by this act, that is engaged in the business of merchandising motor vehicles other than new and licensed as a used car dealer as provided in said subsection.
(1) Information relating to the applicant's solvency and [his] financial standing;
(1) Information relating to the applicant's solvency and [his] financial sSB214 / File No.
(2)A certifiedcopyofany warranty madebythemanufacturer or any other party in whom title to such motor vehicle may have been vested LCO No.
397 4 sSB214 File No.
1759 4 of 8 prior to possession of such motor vehicle being transferred to a person licensed under the provisions of this section;
397 standing;
(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;
The commissioner shall not renew any license under this section which has expired for more than forty-five days.
The commissioner shall not renew any license under this section which has sSB214 / File No.
397 5 sSB214 File No.
397 expired for more than forty-five days.
LCO No.
As used in this section and sections [42-133r] 42-133s to 42-133ee, inclusive, unless the context indicates a different meaning:
1759 5 of 8 As used in this section and sections [42-133r] 42-133s to 42-133ee, inclusive, unless the context indicates a different meaning:
(5) "Dealership facilities" means real estate, buildings, fixtures and improvements which are used in the course of business under a franchise by a new motor vehicle dealer.
(5) "Dealership facilities" means real estate, buildings, fixtures and improvements which are used in the course of business under a sSB214 / File No.
(6) "Dealer" means any person engaged in the business of selling, offering to sell, soliciting or advertising the sale of new motor vehicles LCO No.
397 6 sSB214 File No.
1759 6 of 8 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.
397 franchise by a new motor vehicle dealer.
(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.
(12) "Designated family member" means the spouse, child, grandchild, parent, brother or sister of an owner who, in the case of the owner's death, is entitled to inherit the ownership interest in the dealer under the terms of the owner's will, or who has been nominated in any other written instrument, or who, in the case of an incapacitated owner of a dealer, has been appointed by a court as the legal representative of the dealer's property.
(12) "Designated family member" means the spouse, child, grandchild, parent, brother or sister of an owner who, in the case of the owner's death, is entitled to inherit the ownership interest in the dealer under the terms of the owner's will, or who has been nominated in any other written instrument, or who, in the case of an incapacitated owner of a dealer, has been appointed by a court as the legal representative of sSB214 / File No.
(13) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate or any other legal LCO No.
397 7 sSB214 File No.
1759 7 of 8 entity.
397 the dealer's property.
(13) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate or any other legal entity.
2 October 1, 2022 14-51(a)(1) and (2) October 1, 2022 Sec.
2 October 1, 2022 14-51(a)(1) and (2) Sec.
3 14-67a Sec.
3 October 1, 2022 14-67a Sec.
4 October 1, 2022 42-133r Statement of Purpose:
4 October 1, 2022 42-133r TRA Joint Favorable Subst.
To permit electric vehicle manufacturers to sell electric vehicles directly to the consumer.
sSB214 / File No.
[Proposed deletions are enclosed in brackets.
397 8 sSB214 File No.
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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.] LCO No.
397 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.
1759 8 of 8
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 23 $ FY 24 $ Motor Vehicle Dept.
TF - Revenue Up to Up to Gain 20,000 20,000 Resources of the General Fund GF - Revenue Potential Potential Gain Note:
TF=Transportation Fund;
GF=General 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.
Oftheadjacentstates,Massachusettsistheonlyonethatchargessales tax on the purchase of motor vehicles by nonresidents.
1 Vehicle purchases from Massachusetts are therefore likely to qualify for the 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.
sSB214 / File No.
397 9 sSB214 File No.
397 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.
sSB214 / File No.
397 10 sSB214 File No.
397 OLR Bill Analysis sSB 214 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 toconsumersinConnecticut under specific conditions.
It does this by authorizing the Department of Motor Vehicles (DMV) commissioner to issue a new or used car dealer’s license to a manufacturer meeting certain requirements.
Current law bars motor vehicle manufacturers from holding a new or used car dealer’s license except that:
1.
the DMV 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, 2022 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;
sSB214 / File No.
397 11 sSB214 File No.
397 2.
must manufacture only “battery electric vehicles;” 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 entityownedor controlledby anothermanufacturer andlicensed as a dealer under the bill.
By law and under the bill, a “battery electric vehicle” operates solely by use of a battery or battery pack or is primarily powered by an electric battery or battery pack and uses a flywheel or capacitor that stores energy produced by an electric motor or through regenerative braking to assist in its operation (CGS § 16-19eee).
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 sSB214 / File No.
397 12 sSB214 File No.
397 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 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.
DMV requires new and used car dealers to pay a biennial license fee of $700 and $560, respectively.
These dealers also must post a $50,000 surety bond and comply with applicable state and federal laws, such as submitting to national and state criminal history record checks (but see BACKGROUND,forrelatedbill).The commissionermayrefusetogrant 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.
She may also consider certain civil judgments against dealer and repairer license applicants when deciding whether to grant or renew those licenses (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.).
Related Bill sSB 333, §§ 2 & 3, favorably reported by the Transportation Committee, increases the surety bond amounts for applicants of new or used car dealer’s licenses from $50,000 to $60,000 and requires applicants to be fingerprinted.
COMMITTEE ACTION Transportation Committee sSB214 / File No.
397 13 sSB214 File No.
397 Joint Favorable Substitute Yea 21 Nay 14 (03/24/2022) sSB214 / File No.
397 14
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Action History

  1. FILE NO. 397

  2. SENATE CALENDAR NUMBER 279

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

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/11/22

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0314

  9. REF. TO JOINT COMM. ON Transportation

Sponsors

Sponsorship breakdown

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14 sponsors · 0 co-sponsors · 173 not signed on

Sponsors (14)

Co-sponsors (0)

None.

Not signed on (173)

173 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 214?
SB 214 is sponsored by Scott, Tony J, Jennifer Leeper (Democratic), Delany, Hubert D., Jillian Gilchrest (Democratic), Hampton, John K., Lucy Dathan (Democratic), Brandon Chafee (Democratic), Haskell, Will, Morrin Bello, Amy, Michel, David, Josh Elliott (Democratic), Travis Simms (Democratic), Wood, Terrie E., and Anne M. Hughes (Democratic).
What is the current status of SB 214?
This bill died with 2022 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 214?
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