§ 14-52 — New car dealer's, used car dealer's and repairer's licenses. Surety bonds. Penalty.

Connecticut § 14-52

• Jurisdiction: Connecticut
• Title 14: Motor Vehicles. Use of the Highway By Vehicles. Gasoline
• Ch. 246: Motor Vehicles

Text

(a) No person, firm or corporation may engage in the business of the buying, selling, offering for sale or brokerage of any motor vehicle or the repairing of any motor vehicle without having been issued a new car dealer's, a used car dealer's or a repairer's license. The license fee for each such license, payable to the Commissioner of Motor Vehicles, shall be as follows: (1) New motor vehicle dealer, seven hundred dollars; (2) used motor vehicle dealer, five hundred sixty dollars; and (3) repairer, three hundred forty dollars. Each such license shall be renewed biennially according to renewal schedules established by the commissioner to effect staggered renewal of all such licenses. If the adoption of a staggered system results in the expiration of any license more or less than one year from its issuance, the commissioner may charge a prorated amount for such license fee. Not less than forty-five days prior to the date of expiration of each such license, the commissioner shall send or transmit to each licensee, in a manner determined by the commissioner, an application for renewal. Any licensee which has not filed the application for renewal accompanied by the prescribed fee prior to the date of expiration of its license shall cease to engage in business. An application for renewal filed with the commissioner after the date of expiration shall be accompanied by a late fee of one hundred dollars. The commissioner shall not renew any license under this subsection which has expired for more than forty-five days. (b) (1) Except as provided in subsection (c) of this section, each applicant for a repairer's license shall furnish a surety bond in the amount of twenty-five thousand dollars. (2) Except as provided in subsection (c) of this section, each applicant for a new car dealer's or a used car dealer's license shall furnish a surety bond in the amount of sixty thousand dollars. (3) Each applicant for a leasing or rental license issued pursuant to section 14-15 , who is engaged in the leasing or renting of motor vehicles for periods of thirty days or more, shall furnish a surety bond in the amount of fifteen thousand dollars. (4) Each such bond required under subdivisions (1) to (3), inclusive, of this subsection shall be conditioned upon the applicant or licensee complying with the provisions of any state or federal law or regulation relating to the conduct of such business and provided as indemnity for any loss sustained by any customer by reason of any acts of the licensee constituting grounds for suspension or revocation of the license or such licensee going out of business. Each surety bond shall be executed in the name of the state of Connecticut for the benefit of any aggrieved customer, but the penalty of the bond shall not be invoked except upon order of the commissioner after a hearing held before said commissioner in accordance with the provisions of chapter 54. For purposes of this subdivision, “customer” does not include (A) any person, firm or corporation that finances a licensed dealer's motor vehicle inventory, or (B) any licensed dealer, in such person's capacity as a dealer, who buys motor vehicles from, or sells motor vehicles to, another licensed dealer. (5) The commissioner shall assess an administrative fee of two hundred dollars against any licensee for failing to provide proof of bond renewal or replacement on or before the date of the expiration of the existing bond. Such fee shall be in addition to the license suspension or revocation penalties and the civil penalties to which the licensee is subject pursuant to section 14-64 . (c) The commissioner may request information from any applicant for a repairer's license or used car dealer's license concerning the financial status and ability of such applicant to comply with the requirements of this subpart and the regulations adopted thereunder. The commissioner shall review such information to determine if the applicant has sufficient financial resources to conduct the business in a manner consistent with the reasonable security and protection of its customers in regard to the duties and responsibilities imposed by the provisions of this subpart and the regulations adopted thereunder. The commissioner may refuse to issue a license if the applicant fails to provide any such information requested or, if, after review by the commissioner, the commissioner is not satisfied as to such applicant's financial status. The commissioner may, in any case deemed appropriate, grant a license on condition that the applicant post a surety bond, in accordance with the provisions of subsection (b) of this section, in an amount prescribed by the commissioner that is greater than the minimum amount required by the applicable provisions of said subsection (b). Any applicant aggrieved by any decision of the commissioner made pursuant to this subsection shall be afforded an opportunity for hearing in accordance with the provisions of chapter 54. The commissioner may adopt regulations in accordance with chapter 54 to carry out the provisions of this subsection. (d) Any person, firm or corporation engaging in the business of the buying, selling, offering for sale or brokerage of any motor vehicle or of the repairing of any motor vehicle without a license shall be guilty of a class B misdemeanor. (e) The Commissioner of Motor Vehicles shall transmit to the Commissioner of Revenue Services and the Commissioner of Energy and Environmental Protection a summary of any complaint that the Commissioner of Motor Vehicles receives alleging that a person, firm or corporation is engaging in the business of the buying, selling, offering for sale or brokerage of any motor vehicle or of the repairing of any motor vehicle without a license. See Sec. 14-67 l re motor vehicle junk yard licenses. See Sec. 14-331 re revocation or suspension of gasoline dealer's or distributor's license.

Legislative History

(1949 Rev., S. 2392; 1953, S. 1308d; 1961, P.A. 581, S. 10; 1967, P.A. 384; P.A. 75-577, S. 25, 126; P.A. 77-305; 77-376, S. 1, 3; P.A. 81-172, S. 4; P.A. 83-489, S. 8, 17; P.A. 84-254, S. 37, 62; 84-391, S. 5, 8; 84-508; 84-528, S. 1; P.A. 85-613, S. 29, 154; P.A. 86-58; June Sp. Sess. P.A. 91-13, S. 6, 21; P.A. 93-164, S. 2; P.A. 95-301; P.A. 96-167, S. 8; P.A. 02-70, S. 22; P.A. 10-110, S. 12; P.A. 11-213, S. 22, 57; P.A. 12-81, S. 7; P.A. 14-130, S. 14; June Sp. Sess. P.A. 15-5, S. 210; P.A. 17-79, S. 9; P.A. 21-106, S. 19; P.A. 22-44, S. 2; P.A. 23-40, S. 3.) History: 1961 act increased license fees; 1967 act included brokerage of motor vehicles in activities requiring license; P.A. 75-577 added provision that failure to secure license is an infraction; P.A. 77-305 deleted provision re infraction; P.A. 77-376 increased fee for new motor vehicle dealer from $25 to $50, for used motor vehicle dealer from $20 to $40 and for repairer from $12 to $24; P.A. 81-172 included a provision for a limited repairer's license; P.A. 83-489 doubled license fees; P.A. 84-254 increased the license fees scheduling increases to take effect as of July first of 1985, 1989, 1991 and 1993, and made editorial change for grammatical correctness in sentence following Subdiv. (3), substituting “shall” for “to”; P.A. 84-391 provided for the staggered renewal of dealers' and repairers' licenses, deleting provision whereby licenses ran from day of issuance to last day of February next following; P.A. 84-508 specified that license fee is payable to motor vehicles commissioner and added Subsec. (b) requiring an applicant for a dealer's or repairer's license to furnish a surety bond; P.A. 84-528 added Subsec. (c) providing that any person, firm or corporation repairing motor vehicles without a license shall be guilty of a class C misdemeanor; P.A. 85-613 made technical change in Subsec. (a)(3); P.A. 86-58 amended Subsec. (b)(3) to provide that surety bond penalty may be invoked upon order of motor vehicle commissioner after administrative hearing and eliminated reference to court adjudication; June Sp. Sess. P.A. 91-13 increased new motor vehicle dealer license fee from $225 to $560 and $700 after July 1, 1993, increased the used motor vehicle license fee from $225 to $450 and $500 after July 1, 1993, increased the repairer or limited repairer license fee from $235 to $270 and $340 after July 1, 1993, changed renewal requirement of each license from annual to biennial and deleted obsolete fee increases; P.A. 93-164 amended Subsec. (b) by increasing the repairer's and limited repairer's license surety bond from $2,500 to $5,000, increasing the new car dealer's and used car dealer's license surety bond from $5,000 to $20,000 and inserting new Subdiv. (3) requiring an applicant for a leasing or rental license pursuant to Sec. 14-15 to furnish a $10,000 surety bond, renumbering and revising former Subdiv. (3) accordingly; P.A. 95-301 amended Subsec. (c) to change penalty for unlicensed motor vehicle repair business, from class C misdemeanor to class B misdemeanor, and added Subsec. (d) re transmission of summaries of complaints re such unlicensed businesses; P.A. 96-167 amended Subsec. (a) to add provisions re mailing of application for renewal, failure to file such application with fee, imposition of $100 late fee for application filed after date of license expiration and to provide that commissioner shall not renew license which has expired for more than 45 days; P.A. 02-70 amended Subsec. (a) to delete provisions re fees applicable prior to July 1, 1993, and re payment of fees to commissioner, amended Subsec. (b) to add an exception re Subsec. (c) in Subdivs. (1) and (2) and to make a technical change for purposes of gender neutrality in Subdiv. (4), inserted new Subsec. (c) to allow commissioner to request financial information from any applicant for a repairer's license or used car dealer's license, to review the information to determine if the applicant has sufficient financial resources to conduct business, to allow commissioner to refuse to issue a license if the applicant fails to provide information or if the commissioner is unsatisfied as to the applicant's financial status, to allow commissioner to grant a license on condition that applicant post a surety bond, to provide opportunity for a hearing and to allow commissioner to adopt regulations, redesignated existing Subsecs. (c) and (d) as Subsecs. (d) and (e), amended Subsec. (d) to make the buying, selling, offering for sale or brokerage of any motor vehicle without a license a class B misdemeanor and amended Subsec. (e) to require commissioner to transmit to the Revenue Services and Environmental Protection Commissioners a summary of any complaint alleging the buying, selling, offering for sale or brokerage of any motor vehicle without a license and to make a technical change for purposes of gender neutrality; P.A. 10-110 amended Subsec. (b)(2) to increase surety bond amount from $20,000 to $50,000; P.A. 11-213 amended Subsec. (a) to replace “mail” with “send or transmit” and add “in a manner determined by the commissioner” re renewal applications, amended Subsecs. (b) and (c) to insert “cash bond” and amended Subsec. (b)(4) to require each cash bond to be deposited with commissioner, effective July 13, 2011 (Revisor's note: In Subsec. (e), “Commissioner of Environmental Protection” was changed editorially by the Revisors to “Commissioner of Energy and Environmental Protection” to conform with changes made by P.A. 11-80, S. 1); P.A. 12-81 amended Subsec. (b) to add Subdiv. (5) re assessment of $50 fee for failing to continuously maintain bond requirements; P.A. 14-130 amended Subsec. (b)(4) by replacing references to person and party with references to customer, and by adding provision re persons and entities excluded from definition of “customer”, effective July 1, 2014; June Sp. Sess. P.A. 15-5 amended Subsec. (b)(5) to add “administrative” re fee and to substitute provision re failure to provide proof of bond renewal or replacement for provision re failure to continuously maintain bond requirements, effective June 30, 2015; P.A. 17-79 amended Subsec. (b)(5) by increasing fee from $50 to $200 for failure to provide proof of bond renewal or replacement, effective July 1, 2017; P.A. 21-106 amended Subsecs. (b) and (c) to remove provisions re cash bond; P.A. 22-44 amended Subsec. (b) to remove provision re limited repairer's license and increase surety bond from $5,000 to $25,000 in Subdiv. (1), add new Subdiv. (2) re limited repairer's license, redesignate existing Subdivs. (2) to (5) as Subdivs. (3) to (6), amend redesignated Subdiv. (3) to increase surety bond from $50,000 to $60,000, amend redesignated Subdiv. (4) to increase surety bond from $10,000 to $15,000 and make a technical and conforming change, effective July 1, 2022; P.A. 23-40 amended Subsec. (a) to delete references to limited repairer's license, amended Subsec. (b) to delete former Subdiv. (2) re surety bond for limited repairer's license and redesignate existing Subdivs. (3) to (6) as Subdivs. (2) to (5) and made technical and conforming changes, effective January 1, 2024. Cited. 134 C. 151; 143 C. 634; 154 C. 540; 218 C. 265. Surety bond furnished in accordance with section does not provide indemnity for that portion of a civil judgment incorporating award of attorney's fees or award of punitive damages. 267 C. 524. Cited. 9 CA 686. Punitive damages are not provided for by section; plaintiff was not entitled to recover punitive damages and attorney's fees in the calculation of “loss”. 70 CA 790. Failure to obtain license will preclude repairer from enforcing a contract for repair. 36 CS 321.