Conn. Gen. Stat. § 14-52

Current through legislation from 2024 effective through May 9, 2024.

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

(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.

Conn. Gen. Stat. § 14-52

(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 .)

Amended by P.A. 23-0040,S. 3 of the Connecticut Acts of the 2023 Regular Session, eff. 1/1/2024.

Amended by P.A. 22-0044, S. 2 of the Connecticut Acts of the 2022 Regular Session, eff. 7/1/2022.

Amended by P.A. 21-0106, S. 19 of the Connecticut Acts of the 2021 Regular Session, eff. 10/1/2021.

Amended by P.A. 17-0079, S. 9 of the Connecticut Acts of the 2017 Regular Session, eff. 7/1/2017.

Amended by P.A. 15-0005, S. 210 of the Connecticut Acts of the 2015 Special Session, eff. 7/6/2015.

Amended by P.A. 14-0130, S. 14 of the Connecticut Acts of the 2014 Regular Session, eff. 7/1/2014.

Amended by P.A. 12-0081, S. 7 of the the 2012 Regular Session, eff. 10/1/2012.

Amended by P.A. 11-0213, S. 57 of the the 2011 Regular Session, eff. 7/13/2011.

Amended by P.A. 11-0213, S. 22 of the the 2011 Regular Session, eff. 7/13/2011.

Amended by P.A. 10-0110, S. 12 of the February 2010 Regular Session, eff. 10/1/2010.

Cited. 134 C. 151 ; 143 Conn. 634 ; 154 Conn. 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 Conn.App. 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 Conn.Supp. 321 .

See Sec. 14-67l re motor vehicle junk yard licenses. See Sec. 14-331 re revocation or suspension of gasoline dealer's or distributor's license.