Connecticut 2024 Regular Session Status: In Committee Bipartisan · 3 D · 1 R cosponsors

HB 5203 — AN ACT CONCERNING THE OFFERING PRICE OF A MOTOR VEHICLE AND AUTOMOBILE DEALER CONVEYANCE FEES.

Last action — FILE NO. 323

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

This bill died with 2024 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This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

305 added · 72 removed

305 line(s) added, 72 removed.

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General Assembly Raised Bill No.
House of Representatives General Assembly File No.
5203 February Session, 2024 LCO No.
323 February Session, 2024 Substitute House Bill No.
1443 Referred to Committee on TRANSPORTATION Introduced by:
5203 House of Representatives, April 8, 2024 The Committee on Transportation reported through REP.
(TRA) AN ACT CONCERNING AUTOMOBILE DEALER CONVEYANCE FEES.
LEMAR of the 96th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.
AN ACT CONCERNING THE OFFERING PRICE OF A MOTOR VEHICLE AND AUTOMOBILE DEALER CONVEYANCE FEES.
Subsections (a) and (b) of section 14-62 of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2024):
Section 14-62 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2024):
(a) Each sale shall be evidenced by an order properly signed by both the buyer and seller, a copy of which shall be furnished to the buyer when executed, and an invoice upon delivery of the motor vehicle, both of which shall contain the following information:
(a) For the purposes of this section, (1) "offering price" means the full cash price for which a dealer will sell or finance a motor vehicle to any buyer, provided the dealer may exclude only required government charges;
(1) Make of vehicle;(2) year of model, whether sold as new or used, and on invoice the identification number;
and (2) "government charges" means any fees or charges imposed by any federal, state or local government agency or department, including taxes,license andregistrationcosts,inspectionor certification costs and any other such fees or charges.
[(a)] (b) Each sale shall be evidenced by an order properly signed by boththebuyerandseller,acopyofwhichshallbefurnishedtothebuyer when executed, and an invoice upon delivery of the motor vehicle, both of which shall contain the following information:
(1) Make of vehicle;(2) sHB5203 / File No.
323 1 sHB5203 File No.
323 year of model, whether sold as new or used, and on invoice the identification number;
(4) cash selling price;
(4) [cash selling] agreed-upon price, excluding only required government charges;
(5) finance charges, and (A) if these charges do not include insurance, the words "No Insurance" shall LCO No.
(5) finance charges, and (A) if these charges do not include insurance, the words "No Insurance" shall appear at this point, and (B) if these charges include insurance, a statement shall appear at this point giving theexact typeof coverage;(6) allowance on motor vehicle traded in, if any, and description of the same;
1443 1 of 3 Raised Bill No.5203 appear at this point, and (B) if these charges include insurance, a statement shall appear at this point giving theexact typeof coverage;(6) allowance on motor vehicle traded in, if any, and description of the same;
(7) required government charges;
(7) stamped or printed in a size equal to at least ten-point bold typeonthefaceofboth theorderandinvoiceoneofthefollowingforms:
(8) stamped or printed in a size equal to at least ten-point bold type on the face of both the order and invoice one of the following forms:
(8) if the motor vehicle is new but has been subject to use by the seller or use in connection with [his] the seller's business as a dealer, the word "demonstrator" shall be clearlydisplayedonthefaceofboththeorderandinvoice;(9)anydealer conveyance fee or processing fee and a statement that such fee is not payable to thestate of Connecticut printedin at least ten-point boldtype on the face of both the order and invoice;
[(8)] (9) if the motor vehicle is new but has been subject to use by the seller or use in connection with [his] the seller's business as a dealer, the word "demonstrator" shall be clearly displayed on the face of both order and invoice;
and (10) the dealer's legal name, address and license number.
[(9) any dealer conveyance fee or processing fee and a statement that such fee is not payable to thestate of Connecticut printedin at least ten-point boldtype on the face of both order and invoice;] and (10) the dealer's legal name, address and license number.
For the purposes of this [subdivision] section, "dealer conveyance fee" or "processing fee" means a fee charged by a dealer to recover reasonable costs for processing all documentation and performing services related to the closing of a sale, including, but not limited to, the registration and transfer of ownership of the motor vehicle which is the subject of the sale.
[For the purposes of this subdivision, "dealer conveyance fee" or "processing fee" means a fee charged by a dealer to recover reasonable costs for processing all documentation and performing services related to the closing of a sale, including, but not limited to, the registration and transfer of ownership of the motor vehicle which is the subject of the sale.] The form used by a dealer for theorder andinvoice shallnot beprintedinadvance ofdiscussions with a prospective buyer to include the amount of any vehicle identification sHB5203 / File No.
(b) (1) The form used by a dealer for the order and invoice shall not beprinted inadvance ofdiscussions witha prospective buyer to include the amount of a dealer conveyance fee, processing fee, vehicle identification etching service fee or any other fee that is negotiable or for an optional service.
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The selling price quoted by any dealer to a prospective buyer shall include, separately stated, the amount of the dealer conveyance fee and that such fee is negotiable.
323 etching service fee or any other fee for an optional service.
No dealer conveyance fee shall be added to the selling price at the time the order is signed by the buyer.
[(b)] (c) (1) [The selling price quoted by any dealer to a prospective buyer shall include, separately stated, the amount of the dealer conveyance fee and that such fee is negotiable.
(2) No dealer may charge a dealer conveyance fee or processing fee that is greater than one per cent of the selling price of the motor vehicle.
No dealer conveyance fee shall be added to the selling price at the time the order is signed by the buyer.] The dealer shall disclose the offering price in any verbal or written communication with a prospective buyer that includes a reference, expressly or by implication, regarding a specific motor vehicle or any monetary amount or financing term for any motor vehicle.
LCO No.
(2) No dealer shall include in the [selling] offering price a dealer preparation charge for any item or service for which the dealer is reimbursed by the manufacturer or any item or service not specifically ordered by the buyer and itemized on the invoice.
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[(c) Each dealer shall provide a written statement to the buyer and prominently display a sign in the area of such dealer's place of business in which sales are negotiated which shall specify the amount of any conveyance or processing fee charged by such dealer, the services performed by the dealer for such fee, that such fee is negotiable, that such fee is not payable to the state of Connecticut and that the buyer may elect, where appropriate, to submit the documentation requiredfor the registration and transfer of ownership of the motor vehicle which is the subject of the sale to the Commissioner of Motor Vehicles, in which case the dealer shall reduce such fee by a proportional amount.
5203 [(2)] (3) No dealer shall include in the selling price a dealer preparation charge for any item or service for which the dealer is reimbursed by the manufacturer or any item or service not specifically ordered by the buyer and itemized on the invoice.
The Commissioner of Motor Vehicles shall determine the size, typeface and arrangement of such information.] (d) No dealer licensed under the provisions of section 14-52 shall sell any used motor vehicle without furnishing to the buyer, at the time of sale, a valid certificate of title, the assignment and warranty of title by such dealer or other evidence of title issued by another state or country, where applicable, disclosing the existence of any lien, security interest in or other encumbrance on the vehicle.
Any dealer that violates this subsection shall be guilty of a class B misdemeanor.
sHB5203 / File No.
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323 (e)Noperson,firmorcorporationshallsellamotorvehicleatapublic or private auction without furnishing to the buyer, at the time of sale, a valid certificate of title, the assignment and warranty of title by such person, firm or corporation, or other evidence of title issued by another state or country, where applicable, disclosing the existence of any lien, security interest in or other encumbrance on the vehicle.
(f) The provisions of subsection (d) of this section shall not apply to the sale of any used motor vehicle by a new car dealer to a person, firm or corporation which, pursuant to a lease contract option, purchases such vehicle at the end of the lease term provided (1) such vehicle is registered in this state in accordance with the provisions of section 14- 12, (2) the certificate of title for such vehicle is in the possession of a lessor licensed under the provisions of section 14-15, (3) subsequent to such sale, such vehicle is registered in the name of the prior lessee, and (4) such dealer obtains the certificate of title from such lessor and transmits all necessary documents and fees to the commissioner not later than ten days following the issuance of a motor vehicle registration for such vehicle.
(g) Before offering any used motor vehicle for retail sale, the selling dealer shall complete a comprehensive safety inspection of such vehicle.
Such safety inspection shall cover all applicable equipment and components contained in sections 14-80 to 14-106d, inclusive, and such inspection shall be evidenced on a form approved by the commissioner.
The selling dealer shall attest to such form under the penalty of false statement, as prescribed in section 53a-157b, and shall state that the vehicle has undergone any necessary repairs and has been deemed to be in condition for legal operation on any highway of this state.
In the event defects are found but not repaired, and the vehicle is not subject to any warranty under section 42-221, the selling dealer shall note all such defects on the form and may sell such vehicle in "as is" condition.
Any vehicle sold in "as is" condition with one or more defects in the equipment or components shall have the retail purchase order, invoice, title and assignment documents prominently marked as "not in condition for legal operation on the highways" with an explanation of sHB5203 / File No.
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323 defects noted on such retail purchase order, invoice and safety inspection form.
A dealer selling any vehicle pursuant to this subsection shall require a purchaser to acknowledge the vehicle condition by obtaining such purchaser's signature on the retail purchase order, invoice and safety inspection forms, copies of which shall be furnished to the buyer upon execution.
No dealer shall charge any fee to a customer for the completion of such safety inspection or for any repairs required to remedy defects discovered during such safety inspection pursuant to this subsection, except that nothing herein shall (1) limit or otherwise regulate the retail sales price charged by a dealer for a vehicle thathasbeeninspectedorrepairedpriortosale;or(2)negateorpreempt any provisions of chapter 743f.
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This subsection shall not apply to fees for any inspectionor any workperformedunder thetermsofaleasebuy back.
Any dealer that fails to conduct the safety inspection required in this subsection shall be guilty of a class B misdemeanor.
(h) No dealer licensed under section 14-52 shall deliver or permit a retailpurchaser to takepossessionor delivery ofany used motor vehicle until such purchaser has paid in full for the vehicle or until financing offered by the dealer for such vehicle has been approved by the lending institution or other entity through which any financing agreement has been made.
Any dealer that violates this subsection shall be guilty of a class B misdemeanor.
Sec.
2.
Section 14-62a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2024):
(a) [No dealer licensed under the provisions of section 14-52 shall advertise the price of any motor vehicle unless the stated price in such advertisement includes the federal tax, the cost of delivery, dealer preparation and any other charges of any nature, except that such advertisement shall (1) state in at least eight-point bold type that any state or localtax,registrationfeesor dealer conveyance feeor processing fee, as defined in subsection (a) of section 14-62, is excluded from such advertised price, and (2) separately state, in at least eight-point bold type, immediately next to the phrase "Dealer Conveyance Fee", the sHB5203 / File No.
323 5 sHB5203 File No.
323 amount of such dealer conveyance fee or processing fee.] As used in this section, "offering price" has the same meaning as provided in section 14- 62, as amended by this act.
In connection with the sale or financing of any motor vehicle, a dealer licensed under the provisions of section 14- 52 shall disclose the offering price in any advertisement that references, expressly or by implication, a specific motor vehicle or any monetary amount or financing terms for any vehicle.
(b) Any new or used car dealer violating the provisions of this section shall be fined not more than one thousand dollars.
The Commissioner of Motor Vehicles may suspend or revoke, in accordance with section 14-64, the license of any such dealer violating the provisions of this section.
Section 1 October 1, 2024 14-62(a) and (b) Statement of Purpose:
October 1, 2024 Section 1 14-62 Sec.
To (1) limit the amount a dealer may charge for a conveyance fee or processing fee when selling or leasing a motor vehicle, and (2) prohibit a dealer from printing the order and invoice for the purchase of a motor vehicle with negotiable fees in advance of discussions with a prospective buyer.
2 October 1, 2024 14-62a TRA Joint Favorable Subst.
[Proposed deletions are enclosed in brackets.
sHB5203 / File No.
Proposed additions are indicated by underline, except underlined.]e entire text of a bill or resolution or a section of a bill or resolution is new, it is not LCO No.
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323 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 25 $ FY 26 $ Resources of the General Fund GF - Potential Minimal Minimal Revenue Gain Note:
GF=General Fund Municipal Impact:
None Explanation The bill defines the “offering price” of a motor vehicle to include any charges less government-required taxes and fees.
In effect, the offering price includes both the baseline price of the motor vehicle and the conveyance fee charged by the dealership.
There is no anticipated impact as the bill does not impose limits on the vehicle price or fees that may be charged by a dealership.
The bill also makes changes to how a dealer communicates with prospective buyers which results in a potential revenue gain to the General Fund from fines to the extent that violations occur.
Since FY 14, less than 200 similar violations have been recorded.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to violations.
1Since FY 24, $3,500 has been collected in fines for similar violations.
sHB5203 / File No.
323 7 sHB5203 File No.
323 OLR Bill Analysis sHB 5203 AN ACT CONCERNING THE OFFERING PRICE OF A MOTOR VEHICLE AND AUTOMOBILE DEALER CONVEYANCE FEES.
This bill requires auto dealers to include the additional fees or charges they require buyers to pay in the vehicle price they disclose in advertisements, communication with prospective buyers, and the order and invoice for a vehicle purchase.
Under the bill, this “offering price” is the full cash price for which a dealer will sell or finance a vehicle to any buyer, except that a dealer may choose to exclude only required government-imposed charges (e.g., taxes and registration fees) from the price.
Principally, the bill’s offering price disclosure requirement changes how dealers must advertise and disclose their “dealer conveyance fee.” (A dealer conveyance fee is a fee a dealer charges to recover reasonable costs for processing documents and performing services related to a motor vehicle sale, including registration and ownership transfer.) Current lawgenerallyexplicitly requiresdealersto excludethisfeefrom the sales price and disclose information on thefee in a specified manner.
Under the bill, dealers must include any dealer conveyance fee they require buyers to pay in the price they advertise or quote to buyers.
The bill also prohibits dealers from pre-printing forms for the order and invoice that include vehicle identification number (VIN) etching fees or fees for other optional services before discussions with a prospective buyer.
Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE:
October 1, 2024 sHB5203 / File No.
323 8 sHB5203 File No.
323 ADVERTISEMENT Current law requires auto dealers to include federal tax, delivery costs, and dealer preparation charges in a motor vehicle’s advertised price.
They must also (1) state in at least eight-point bold type that any state or local tax, registration fees, or dealer conveyance or processing fee is excluded from the advertised price and (2) separately state, in the same size font, the dealer conveyance or processing fee immediately next to the phrase “dealer conveyance fee.” The bill repeals these provisions and instead requires that a vehicle’s advertised price include the conveyance fee.
It does so by requiring auto dealers, in connection with the sale or financing of any vehicle, to disclose the vehicle’s offering price in any advertisement that expressly orimplicitlyreferencesaspecificmotorvehicleoranymonetaryamount or financing terms for any vehicle.
Dealers who violate this requirement may be fined up to $1,000 and face suspension or revocation of their dealer’s license.
COMMUNICATION WITH PROSPECTIVE BUYERS Current law requires that the selling price a dealer quotes to a prospective buyer separately state the dealer conveyance fee amount and that the fee is negotiable.
It prohibits dealers from adding the fee to the selling price.
The bill instead requires dealers to disclose a vehicle’s offering price in any verbal or written communication with prospective buyers that expressly or implicitly references a specific motor vehicle or any monetary amount or financing terms for any vehicle.
In doing so, it requires dealers to include any conveyance fee they require buyers to pay in the price they quote to buyers.
The bill also eliminates requirements that dealers give buyers a statement, and display a sign at the dealership, with specified information about their dealer conveyance fee.
Under current law, the statement and sign must state (1) the conveyance fee amount, (2) the services performed for the fee, (3) that the fee is negotiable, (4) that the sHB5203 / File No.
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323 fee is not payable to the state, and (5) that buyers may choose to submit registration and title documentation to DMV (Department of Motor Vehicles) on their own.
ORDER AND INVOICE Existing law requires dealers to give buyers an order for a motor vehicle sale and an invoice upon delivery, and specifies the information the order and invoice must contain.
Current law requires the order and invoice to state separately from the selling price the amount of any dealer conveyance fee or processing fee along with a statement that the fee is not payable to the state.
The bill repeals this requirement.
Instead, the bill requires the order and invoice to include the agreed- upon price (rather than the cash selling price, as under current law), excluding only required government charges.
It also requires the order and invoice to specify required government charges.
BACKGROUND Related Bill sSB 3 (File 182), favorably reported by the General Law Committee, generally prohibits businesses that offer to sell, lease, or provide consumer goodsor servicesfromadvertising,displaying,or offeringthe good or service at a price unless it includes any charges and fees other than taxes.
COMMITTEE ACTION Transportation Committee Joint Favorable Substitute Yea 23 Nay 12 (03/20/2024) sHB5203 / File No.
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Action History

  1. FILE NO. 323

  2. HOUSE CALENDAR NUMBER 218

  3. FAV. RPT., TABLED FOR HOUSE CALENDAR

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/08/24

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0226

  9. REF. TO JOINT COMM. ON Transportation

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5 sponsors · 0 co-sponsors · 182 not signed on

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Not signed on (182)

182 members have not signed on to this bill.

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Frequently asked questions

Who sponsors HB 5203?
HB 5203 is sponsored by Henri Martin (Republican), David Michel, Travis Simms (Democratic), Gary A. Turco (Democratic), and Geraldo C. Reyes (Democratic).
What is the current status of HB 5203?
This bill died with 2024 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 HB 5203?
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