OLR Bill Analysis

HB 5946

AN ACT CONCERNING UNAUTHORIZED MOTOR VEHICLE RECYCLING.

SUMMARY:

This bill prohibits individuals from advertising or offering motor vehicle recycling services unless he or she is properly licensed. The bill does not apply to non-profit entities. A violation is an unfair trade practice.

EFFECTIVE DATE: October 1, 2009

BACKGROUND

Motor Vehicle Recycler Licensing Requirements

A “motor vehicle recycler's business” or “motor vehicle recycler's yard” includes any business and any place of storage or deposit storing (1) two or more unregistered motor vehicles no longer intended, or in condition, for legal use on the public highways; (2) used parts of motor vehicles; (3) old iron, metal, glass, paper, cordage, or other waste; (4) or discarded or secondhand material which has been or was intended to be a part of any motor vehicle, the sum of which parts or material is equal in bulk to two or more motor vehicles.

To obtain a motor vehicle recycler's license, applicants must obtain a certificate of approval of the town, city, or borough where the yard or business is located. Applicants must then present to the motor vehicles commissioner (1) the certificate, (2) a $ 280 location examination fee, (3) a $ 705 location license fee. The commissioner may refuse to grant a license if the applicant, or an officer or major stockholder, has been convicted of a violation of any laws pertaining to the business of a motor vehicle dealer, repairer, or recycler. An applicant must also (1) certify that the property to be used is in compliance with all applicable statutes and regulations and (2) gain location approval from the environmental protection commissioner.

Connecticut Unfair Trade Practices Act

The law prohibits businesses from engaging in unfair and deceptive acts or practices. CUTPA allows the consumer protection commissioner to issue regulations defining what constitutes an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $ 5,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance. The act also allows individuals to sue. Courts may issue restraining orders; award actual and punitive damages, costs, and reasonable attorneys fees; and impose civil penalties of up to $ 5,000 for willful violations and $ 25,000 for violation of a restraining order.

COMMITTEE ACTION

General Law Committee

Joint Favorable

Yea

19

Nay

0

(03/10/2009)