Bill Summary – FastDemocracy

General Assembly                      Raised Bill No. 139
       February Session, 2020               LCO No. 1453
     Referred to Committee on GENERAL LAW
     Introduced by:
       (GL)
 AN ACT CONCERNING CHANGES TO CONSUMER PROTECTION
 STATUTES.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
       Section 1. Section 21a-219 of the general statutes is repealed and the
    following is substituted in lieu thereof (Effective October 1, 2020):
      (a) No health club contract shall have a term for a period longer than
   twenty-four months. If a health club offers a contract of more than
   twelve months' term, it shall offer a twelve-month contract. If a health
   club sells a membership contract of more than twelve months' term, the
   health club shall not collect payment, in cash or its equivalent of more
   than fifty per cent of the entire consideration for the contract in advance
   of rendering services. The remainder of the cost of the contract shall be
   collected by the health club on a pro rata monthly basis during the term
   of the health club contract. Each contract shall have the prices for all
   contracts printed thereon.
      (b) Written notice that a contract will automatically renew shall be
   provided by the health club to the consumer at the time of entering into
   the contract. No contract shall contain an automatic renewal clause
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 except for a renewal for a period not to exceed one month. If such
 contract contains such a one-month automatic renewal clause, such
 renewal shall become effective only upon payment of the renewal price
 and such contract shall permit the buyer to cancel any further renewal
 upon no more than one month's notice, except that for any such contract
 where the term of the contract is forty-five days or longer, written notice
 that the contract is soon subject to auto-renewal shall be provided by the
 health club to the consumer not sooner than sixty days prior to the
 expiration of term of the contract and not later than forty-five days prior
 to the expiration of the term of the contract. The price of any such
 renewal shall not increase or decrease unless the contract: (1) Discloses
 the amount of such increase or decrease or the method of calculating
 such increase or decrease in the price of such renewal, or (2) such
 information is otherwise provided to the buyer, in writing, no less than
 one month prior to such renewal, except that for any such contract
 where the term of the contract is forty-five days or longer, such
 information shall be provided by the health club to the consumer not
 sooner than sixty days prior to the expiration of term of the contract and
 not later than forty-five days prior to the expiration of the term of the
 contract. Any renewal option for continued membership must be
 accepted by the buyer in writing, by electronic mail or facsimile and
 shall become effective only upon payment of the renewal price.
   (c) Each health club shall post the prices and the three-day
 cancellation provisions, the disability provisions and the twenty-five
 mile moving provisions of all contracts in a conspicuous place where the
 contract is entered into.
    Sec. 2. Section 42-179 of the general statutes is repealed and the
 following is substituted in lieu thereof (Effective October 1, 2020):
    (a) As used in this chapter: (1) "Consumer" means the purchaser,
 other than for purposes of resale, of a motor vehicle, a lessee of a motor
 vehicle, any person to whom such motor vehicle is transferred during
 the duration of an express warranty applicable to such motor vehicle,
 and any person entitled by the terms of such warranty to enforce the
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 obligations of the warranty; and (2) "motor vehicle" means a passenger
 motor vehicle, a passenger and commercial motor vehicle or a
 motorcycle, as defined in section 14-1, which is sold or leased in this
 state.
    (b) If a new motor vehicle does not conform to all applicable express
 warranties, and the consumer reports the nonconformity to the
 manufacturer, its agent or its authorized dealer during the period of two
 years following the date of original delivery of the motor vehicle to a
 consumer or during the period of the first twenty-four thousand miles
 of operation, whichever period ends first, the manufacturer, its agent or
 its authorized dealer shall make such repairs as are necessary to
 conform the vehicle to such express warranties, notwithstanding the
 fact that such repairs are made after the expiration of the applicable
 period.
    (c) No consumer shall be required to notify the manufacturer of a
 claim under this section and sections 42-181 to 42-184, inclusive, as
 amended by this act, unless the manufacturer has clearly and
 conspicuously disclosed to the consumer, in the warranty or owner's
 manual, that written notification of the nonconformity is required
 before the consumer may be eligible for a refund or replacement of the
 vehicle. The manufacturer shall include with the warranty or owner's
 manual the name and address to which the consumer shall send such
 written notification.
    (d) If the manufacturer or its agents or authorized dealers are unable
 to conform the motor vehicle to any applicable express warranty by
 repairing or correcting any defect or condition which substantially
 impairs the use, safety or value of the motor vehicle to the consumer
 after a reasonable number of attempts, the manufacturer shall replace
 the motor vehicle with a new motor vehicle acceptable to the consumer,
 or accept return of the vehicle from the consumer and refund to the
 consumer, lessor and lienholder, if any, as their interests may appear,
 the following: (1) The full contract price, including but not limited to,
 charges for undercoating, dealer preparation and transportation and
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 installed options, (2) all collateral charges, including but not limited to,
 sales tax, license and registration fees, and similar government charges,
 (3) all finance charges incurred by the consumer after he first reports the
 nonconformity to the manufacturer, agent or dealer and during any
 subsequent period when the vehicle is out of service by reason of repair,
 and (4) all incidental damages, [as defined in section 42a-2-715,] less a
 reasonable allowance for the consumer's use of the vehicle, if applicable.
 Incidental damages include, but are not limited to, compensation for
 any commercially reasonable charges or expenses with respect to: (A)
 Inspection, receipt, transportation, care or custody of the motor vehicle,
 (B) covering, returning or disposition of the motor vehicle, (C)
 reasonable efforts to minimize or avoid the consequences of financial
 default related to the motor vehicle, and (D) effectuating other remedies
 after a defect or condition that substantially impaired the motor vehicle
 has been reported to a dealership or manufacturer. No authorized
 dealer shall be held liable by the manufacturer for any refunds or vehicle
 replacements in the absence of evidence indicating that dealership
 repairs have been carried out in a manner inconsistent with the
 manufacturers' instructions. Refunds or replacements shall be made to
 the consumer, lessor and lienholder if any, as their interests may appear.
 A reasonable allowance for use shall be that amount obtained by
 multiplying the total contract price of the vehicle by a fraction having as
 its denominator one hundred twenty thousand and having as its
 numerator the number of miles that the vehicle traveled prior to the
 manufacturer's acceptance of its return. It shall be an affirmative defense
 to any claim under this section (1) that an alleged nonconformity does
 not substantially impair such use, safety or value or (2) that a
 nonconformity is the result of abuse, neglect or unauthorized
 modifications or alterations of a motor vehicle by a consumer.
    (e) It shall be presumed that a reasonable number of attempts have
 been undertaken to conform a motor vehicle to the applicable express
 warranties, if (1) the same nonconformity has been subject to repair four
 or more times by the manufacturer or its agents or authorized dealers
 during the period of two years following the date of original delivery of
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 the motor vehicle to a consumer or during the period of the first twenty-
 four thousand miles of operation, whichever period ends first, but such
 nonconformity continues to exist or (2) the vehicle is out of service by
 reason of repair for a cumulative total of thirty or more calendar days
 during the applicable period, determined pursuant to subdivision (1) of
 this subsection. Such two-year period and such thirty-day period shall
 be extended by any period of time during which repair services are not
 available to the consumer because of a war, invasion, strike or fire, flood
 or other natural disaster. No claim shall be made under this section
 unless at least one attempt to repair a nonconformity has been made by
 the manufacturer or its agent or an authorized dealer or unless such
 manufacturer, its agent or an authorized dealer has refused to attempt
 to repair such nonconformity.
    (f) If a motor vehicle has a nonconformity which results in a condition
 which is likely to cause death or serious bodily injury if the vehicle is
 driven, it shall be presumed that a reasonable number of attempts have
 been undertaken to conform such vehicle to the applicable express
 warranties if the nonconformity has been subject to repair at least twice
 by the manufacturer or its agents or authorized dealers within the
 express warranty term or during the period of one year following the
 date of the original delivery of the motor vehicle to a consumer,
 whichever period ends first, but such nonconformity continues to exist.
 The term of an express warranty and such one-year period shall be
 extended by any period of time during which repair services are not
 available to the consumer because of war, invasion, strike or fire, flood
 or other natural disaster.
    (g) (1) No motor vehicle which is returned to any person pursuant to
 any provision of this chapter or in settlement of any dispute related to
 any complaint made under the provisions of this chapter and which
 requires replacement or refund shall be resold, transferred or leased in
 the state without clear and conspicuous written disclosure of the fact
 that such motor vehicle was so returned prior to resale or lease. Such
 disclosure shall be affixed to the motor vehicle and shall be included in
 any contract for sale or lease. The Commissioner of Motor Vehicles shall,
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 by regulations adopted in accordance with the provisions of chapter 54,
 prescribe the form and content of any such disclosure statement and
 establish provisions by which the commissioner may remove such
 written disclosure after such time as the commissioner may determine
 that such motor vehicle is no longer defective. (2) [If] For any motor
 vehicle subject to a complaint made under the provisions of this chapter,
 if a manufacturer accepts the return of a motor vehicle or compensates
 any person who accepts the return of a motor vehicle, [pursuant to
 subdivision (1) of this subsection] whether the return is pursuant to an
 arbitration award or settlement, such manufacturer shall stamp the
 words        ["MANUFACTURER             BUYBACK"]       "MANUFACTURER
 BUYBACK-LEMON" clearly and conspicuously on the face of the
 original title in letters at least one-quarter inch high and, within ten days
 of receipt of the title, shall submit a copy of the stamped title to the
 Department of Motor Vehicles. The Department of Motor Vehicles shall
 maintain a listing of such buyback vehicles and in the case of any request
 for a title for a buyback vehicle, shall cause the words
 ["MANUFACTURER BUYBACK"] "MANUFACTURER BUYBACK-
 LEMON" to appear clearly and conspicuously on the face of the new
 title in letters which are at least one-quarter inch high. Any person who
 applies for a title shall disclose to the department the fact that such
 vehicle was returned as set forth in this subsection. (3) If a manufacturer
 accepts the return of a motor vehicle from a consumer due to a
 nonconformity or defect, in exchange for a refund or a replacement
 vehicle, whether as a result of an administrative or judicial
 determination, an arbitration proceeding or a voluntary settlement, the
 manufacturer shall notify the Department of Motor Vehicles and shall
 provide the department with all relevant information, including the
 year, make, model, vehicle identification number and prior title number
 of the vehicle. Such manufacturer shall stamp the words
 "MANUFACTURER BUYBACK-LEMON" clearly and conspicuously
 on the face of the original title in letters at least one-quarter-inch high,
 and, within ten days of receipt of the title, shall submit a copy of the
 stamped title to the Department of Motor Vehicles. The Commissioner
 of Motor Vehicles shall adopt regulations in accordance with chapter 54
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 specifying the format and time period in which such information shall
 be provided and the nature of any additional information which the
 commissioner may require. (4) The provisions of this subsection shall
 apply to motor vehicles originally returned in another state from a
 consumer due to a nonconformity or defect in exchange for a refund or
 replacement vehicle and which a lessor or transferor with actual
 knowledge subsequently sells, transfers or leases in this state. If a
 manufacturer fails to brand a title pursuant to this subsection within ten
 days of assuming possession of the motor vehicle or compensating any
 person who accepts the return, the Department of Consumer Protection
 may impose on the manufacturer a fine not to exceed ten thousand
 dollars. Any such fine collected shall be deposited into the new
 automobile warranties account established pursuant to section 42-190,
 as amended by this act.
     (h) All express and implied warranties arising from the sale of a new
 motor vehicle shall be subject to the provisions of part 3 of article 2 of
 title 42a.
   (i) Nothing in this section shall in any way limit the rights or remedies
 which are otherwise available to a consumer under any other law.
    (j) If a manufacturer has established an informal dispute settlement
 procedure which is certified by the Attorney General as complying in
 all respects with the provisions of Title 16 Code of Federal Regulations
 Part 703, as in effect on October 1, 1982, and with the provisions of
 subsection (b) of section 42-182, the provisions of subsection (d) of this
 section concerning refunds or replacement shall not apply to any
 consumer who has not first resorted to such procedure.
    Sec. 3. Section 42-181 of the general statutes is repealed and the
 following is substituted in lieu thereof (Effective October 1, 2020):
   (a) The Department of Consumer Protection, shall provide an
 independent arbitration procedure for the settlement of disputes
 between consumers and manufacturers of motor vehicles which do not
 conform to all applicable warranties under the terms of section 42-179,
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 as amended by this act. The Commissioner of Consumer Protection shall
 appoint as arbitrators individuals who shall not be employees or
 independent contractors with any business involved in the
 manufacture, distribution, sale or service of any motor vehicle. The
 arbitrator shall be a member of an arbitration organization and shall
 serve with compensation. The Department of Consumer Protection may
 refer an arbitration dispute to the American Arbitration Association or
 other arbitration organization in accordance with regulations adopted
 in accordance with the provisions of chapter 54, provided such
 organization and any arbitrators appointed by such organization to hear
 cases shall not be affiliated with any motor vehicle manufacturer,
 distributor, dealer or repairer. Such arbitration organizations shall
 comply with the provisions of subsections (b) and (c) of this section.
    (b) If any motor vehicle purchased at any time on or after October 1,
 1984, or leased at any time on or after June 17,