Bill Text: NJ A2554 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires sellers of used motor vehicles to complete and submit form.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-02-04 - Introduced, Referred to Assembly Consumer Affairs Committee [A2554 Detail]
Download: New_Jersey-2016-A2554-Introduced.html
Sponsored by:
Assemblywoman NANCY F. MUNOZ
District 21 (Morris, Somerset and Union)
SYNOPSIS
Requires sellers of used motor vehicles to complete and submit form.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sale of used motor vehicles, amending R.S.39:10-9, and supplementing chapter 10 of Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.39:10-9 is amended to read as follows:
39:10-9. When a used motor vehicle is sold in this State, the seller shall[, except]:
a. Except as provided in [section] R.S.39:10-15 [of this Title], execute and deliver to the purchaser, an assignment of the certificate of ownership or an assignment of the bill of sale issued prior to October 1, 1946, or, in the event the vehicle is subject to a security interest, or for some other reason the original certificate of ownership is not in the possession of the seller, and where the purchaser is a licensed New Jersey motor vehicle dealer, the seller may execute a secure power of attorney as required under the federal Truth in Mileage Act of 1986, Pub.L.99-579 (49 U.S.C. s.32705) or such other documents as the chief administrator may require, authorizing the licensed dealer to execute the original title upon obtaining possession of same. If a security interest exists at the time of such sale and will continue in effect afterwards or if, in connection with such sale, a security interest is taken or retained by the seller to secure all or a part of the purchase price of the motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable the purchaser to acquire rights in the motor vehicle, the name and the business or residence address of the secured party or his assignee shall be noted on the certificate of ownership. If the seller is a licensed New Jersey motor vehicle dealer, the seller shall not be required to deliver an assignment or certificate of ownership at the time of sale, provided that the dealer has satisfied all liens noted on the certificate of title and has the right to title as of the time of sale, and provided that the dealer represents and attests to the same in a writing to be delivered to the purchaser at the time of sale. Nothing in this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes; and
b. Notify the New Jersey Motor Vehicle Commission of the sale, by completing, executing, and submitting to the commission a form provided by the chief administrator. To complete the sale, the purchaser shall also execute and date the form. The form shall state in a clear and conspicuous manner that, in the event that the purchaser does not register the vehicle, the seller may be held liable as the vehicle's owner for fines, penalties, and towing and storage charges if the form is not completed and submitted to the commission. In addition to any information the chief administrator deems appropriate, the form shall require:
1) The name, address, date of birth, social security number, and driver identification number, if applicable, of the seller;
2) The manufacturer's vehicle identification number;
3) If the vehicle was registered in this State by the seller, the current or most recent registration number; and
4) Any of the following information known about the purchaser:
a) Name;
b) Address;
c) Date of birth;
d) Social security number; and
e) Driver identification number, if applicable.
(cf: P.L.2007, c.335, s.23)
2. (New section) The chief administrator shall develop and undertake a public education campaign to inform the public of the requirement to notify the commission of the sale of a vehicle as required by this act and the fact that if such notification is not made, the seller may be held liable as the owner of the vehicle for fines, penalties, and towing and storage charges. The campaign shall include posting appropriate posters or signs in all commission facilities and offices and including a notice with all motor vehicle registration renewals. The notices, posters, and signs shall be designed by the chief administrator.
3. This act shall take effect on the first day of the seventh month next following enactment, but the Chief Administrator of the New Jersey Motor Vehicle Commission may take such anticipatory administrative action in advance as shall be necessary for the timely implementation of this act.
STATEMENT
This bill would require sellers of used motor vehicles to notify the New Jersey Motor Vehicle Commission (MVC) of the sale by completing, executing, and submitting a form provided by the chief administrator. To complete the sale, the purchaser would also be required to execute and date the form. The form would state in a clear and conspicuous manner that, in the event that the purchaser does not register the vehicle, the seller may be held liable as the vehicle's owner for fines, penalties, and towing and storage charges if the form is not completed and submitted to the commission. The form would require the seller's relevant personal information, the vehicle identification number, the current or most recent registration number, and any relevant personal information known about the purchaser. The chief administrator would be required to develop and undertake a public education campaign to inform the public of the requirement to complete and submit the form required by this act.
Currently, the only notification to the MVC of a vehicle's sale occurs when the purchaser presents the signed-over title in the process of obtaining a new registration. However, if the purchaser does not register the vehicle and proceeds to violate parking and certain traffic laws or regulations, the corresponding tickets are forwarded to the owner on record with the commission. Similarly, if the vehicle is towed or impounded, the charges are billed to the previous owner of the vehicle. This bill rectifies this problem and protects sellers of used motor vehicles by providing them with a separate means of notifying the MVC of the sale.
