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Minutes for SB99 - Committee on Transportation
Short Title
Increasing the bond amount required for a vehicle dealer license.
Minutes Content for Thu, Mar 11, 2021
Staff briefed the Committee on the bill's content. (Attachment 9)
Chairman Proehl recognized Don McNeely. (Attachment 10) Mr. McNeely said this bill would increase the surety bond associated with the Kansas dealer license from $30,000 to $50,000. He said with average new vehicles retail sales price now being $35,608 and used vehicle retail sales price being $20,586, they believe increasing the surety bond amount to $50,000 would be appropriate. He said it appears that $50,000 is the average surety bond amount for licensure across the country,
The Chairman recognized LeeAnn Phelps. (Attachment 11) She said currently licensed dealerships are required to obtain and hold a bond in the amount of $30,000. The Division of Vehicles would like to increase the amount of the bond required for licensure to $50,000 which requires changes to Kansas statutes. She said this legislation is needed to cover the increasing rise in vehicle prices. Ms. Phelps said the current bond amount of $30,000 was set in the 1980's when vehicle prices were much lower. She said the bonds are in place for the benefit of wronged retail consumers and require a court judgment to access bond funds.
There were no other proponents, opponents or neutrals so the Chairman closed the hearing on SB99.
Chairman Proehl called for approval of the Committee Minutes for meetings on January 26 and 28, February 2, 3, 4, 10, 11, 16, 17, 18, and 23, 2021. Representative Ballard moved approval of the Minutes, seconded by Representative Hoheisel. Motion carried.
Announcements
The Chairman announced that the next meeting will be on March 16 at which time the Committee will do Final Action on SB19, SB26, SB67, SB68, SB69, SB95 and SB99.
Adjournment
There being no further business before the Committee the meeting was adjourned.
