Transportation Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-6682

Title:

AN ACT CONCERNING THE LICENSING OF NEW AND USED CAR DEALERS.

Vote Date:

3/18/2015

Vote Action:

Joint Favorable Substitute

PH Date:

2/6/2015

File No.:

SPONSORS OF BILL:

Transportation Committee

REASONS FOR BILL:

HB-6682 allows manufactures that produce only electric vehicles, to sell its vehicles in the state. Manufacturers that produce and sell, have a franchise agreement with car dealers in the state, and or sells new or used cars in the state at more than 3 dealers would not be allowed to operate in the state.

RESPONSE FROM ADMINISTRATION/AGENCY:

None Expressed

NATURE AND SOURCES OF SUPPORT:

Diarmuid O'Connell- Tesla VP of Business Development: Supports this bill because it benefits consumers, allowing them to choose how they buy their Tesla. Additionally Tesla's model “provides consumers with all the same warranty, liability, and consumer protections provided by law and applicable to all licensed operations.”

NATURE AND SOURCES OF OPPOSITION:

Lynn Ward- President and CEO of the Waterbury Regional Chamber: The Waterbury Regional Chamber values the importance of competition and making repairs accessible at convenient locations. These key components of the current franchise model are in jeopardy with the passing of HB-6682.

Tamera Jackson-Owner of Jackson Chevrolet in Middletown, CT: Threatens the current franchise model, which is beneficial to the consumer.

Robert Hensley (Simsbury,CT): Is against HB-6682 for fear that Tesla may go belly up, therefore leaving owners of its vehicles without a way to service their vehicles. If Tesla sold thru the Franchise model and went belly up, at least owners would have a local franchise that can still service them.

Jeff Aiosa-President of Carriage House Mercedes Benz of New London: Opposes this bill on the grounds that it will have a negative impact on consumer, jobs and small business in the state. The bill will provide loopholes to Tesla that would allow Tesla to circumvent selling thru dealers and thereby giving them an unfair advantage. This advantage threatens the livelihood of locally owned and new dealers as well as 13,000 employees.

James Fleming-President of the Connecticut Automotive Retailers Association: Opposes this bill on the grounds that a “corporate loophole is a risky business and will circumvent longstanding consumer protections and jeopardize local businesses that have operated under these laws in good faith for over 40 years.”

Reported by: Walter L. Morton IV

Date: March. 19th,2015