Bill Text: NJ S1727 | 2024-2025 | Regular Session | Introduced
Bill Title: "Used Motor Vehicle Dealer Licensing Act."
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Commerce Committee [S1727 Detail]
Download: New_Jersey-2024-S1727-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
SYNOPSIS
"Used Motor Vehicle Dealer Licensing Act."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the licensure of certain motor vehicle dealers, supplementing Title 45 of the Revised Statutes, and revising various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) This act shall be known and may be cited as the "Used Motor Vehicle Dealer Licensing Act."
2. (New section) The Legislature finds and declares that the public interest requires greater regulation of used motor vehicle dealers and the establishment of a State board charged with establishing clear licensure standards and providing proper and effective oversight of the State's used motor vehicle dealership community. In addition, the health and welfare of the residents of the State will be protected by identifying to the public those individuals who are qualified and legally authorized to engage in the business of selling, buying, or dealing used motor vehicles.
3. (New section) As used in this act:
"Board" means the State Board of Used Motor Vehicle Dealers established pursuant to section 4 of this act.
"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Licensed used motor vehicle dealer" means a person who is licensed as a retail used motor vehicle dealer, wholesale used motor vehicle dealer, or retail-wholesale used motor vehicle dealer pursuant to the provisions of this act.
"New motor vehicle" means only a newly manufactured motor vehicle, except a nonconventional type motor vehicle, and includes all vehicles propelled otherwise than by muscular power, and motorcycles, motorized bicycles, trailers and tractors, and manufactured homes not subject to real property taxation pursuant to P.L.1983, c.400 (C.54:4-1.2 et seq.), except vehicles that run only upon rails or tracks and manufactured homes subject to real property taxation.
"Nonconventional type motor vehicle" means every vehicle not designed or used primarily for the transportation of persons or property and only incidentally operated or moved over a highway, and any other motor vehicle deemed by the Chief Administrator of the New Jersey Motor Vehicle Commission to be included in the category of nonconventional type motor vehicles pursuant to regulations, including, but not limited to, ditch-digging apparatus; well-boring apparatus; road and general purpose construction and
maintenance machinery; asphalt spreaders; bituminous mixers; bucket loaders; ditchers; leveling graders; finishing machines; motor graders; road rollers; scarifiers; earth-moving carryalls; scrapers; power shovels; drag lines; self-propelled cranes; earth-moving equipment; trailers and semitrailers which weigh less than 2,500 pounds, except that no mobile or manufactured home or travel trailer shall be classified as a nonconventional type motor vehicle; motorized wheelchairs; motorized lawn mowers; bogies; farm equipment having a factory shipping weight of less than 1,500 pounds, whether or not motorized, including farm tractors within that weight limitation; industrial tractors; scooters; go-carts; gas buggies; and golf carts.
"Person" means an individual, corporation, partnership, association or any other business entity.
"Used motor vehicle" means every motor vehicle and motorized bicycle, except a nonconventional type motor vehicle, for which title to, or possession of, has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand" within the ordinary meaning thereof, and includes every motor vehicle and motorized bicycle other than a new motor vehicle, a nonconventional type motor vehicle or a manufactured home subject to real property taxation.
"Used motor vehicle dealer" means a person engaged in the business of selling, buying or dealing in only used motor vehicles at retail, wholesale, or retail and wholesale.
4. (New section) There is created within the Division of Consumer Affairs in the Department of Law and Public Safety the State Board of Used Motor Vehicle Dealers. The board shall consist of eight members who are residents of the State, three of whom shall be public members and one of whom shall be a State executive department member appointed pursuant to the provisions of P.L.1971, c.60 (C.45:1-2.1 et seq.). In addition, three members shall be, except for the members first appointed, used motor vehicle dealers licensed under the provisions of this act, and shall have been actively engaged in business as a used motor vehicle dealer in the State for at least five years immediately preceding their appointment. The remaining member shall be an employee of a used motor vehicle auction company and shall be, except for the member first appointed, a used motor vehicle dealer licensed under the provisions of this act, who has been actively engaged in business as a used motor vehicle dealer in the State for at least five years immediately preceding the member's appointment.
The Governor shall appoint the three public members and the State executive department member and shall appoint the remaining four members with the advice and consent of the Senate. Each member, other than the State executive department member, shall be appointed for a term of three years, except that of the used motor vehicle dealer members first appointed, two shall serve for a term of three years, one shall serve for a term of two years and one shall serve for a term of one year. Any vacancy in the membership of the board shall be filled for the unexpired term in the manner provided by the original appointment. No member of the board may serve more than two successive terms in addition to any unexpired term to which he has been appointed. The Governor may remove any member of the board, other than the State executive department member, for cause.
5. (New section) Members of the board shall be compensated and reimbursed for expenses and provided with office and meeting facilities pursuant to section 2 of P.L.1977, c.285 (C.45:1-2.5).
6. (New section) The board shall organize within 30 days after the appointment of its members and shall annually elect from among its members a chairperson and vice-chairperson, and a secretary who need not be a member of the board. The board shall meet at least once every two months and may hold additional meetings as necessary to discharge its duties. A majority of the board membership shall constitute a quorum.
7. (New section) The board shall:
a. Review the qualifications of applicants for licensure;
b. Adopt a code of ethics;
c. Establish all necessary criteria for licensing retail used motor vehicle dealers, wholesale used motor vehicle dealers, and retail-wholesale used motor vehicle dealers;
d. Certify all locations that serve as a multi-used motor vehicle dealer location;
e. Issue and renew licenses for used motor vehicle dealers pursuant to this act;
f. Refuse to issue or suspend, revoke or fail to renew the license of a used motor vehicle dealer pursuant to the provisions of P.L.1978, c.73 (C.45:1-14 et seq.);
g. Maintain a record of every used motor vehicle dealer licensed in this State, their place of business, place of residence, and the date and number of their license;
h. Prescribe or change the charges for licenses, renewals, and other services it performs pursuant to P.L.1974, c.46 (C.45:1-3.1 et seq.);
i. Inspect and audit licensed used motor vehicle dealers and multi-used motor vehicle dealer locations;
j. Establish information-sharing agreements with regulatory authorities in other states or jurisdictions in order to determine whether licensed used motor vehicle dealers, or applicants for licensure, in this State have had a similar license, certificate, or any other form of permission to engage in business as a used motor vehicle dealer, suspended or revoked for reasonable cause in other states or jurisdictions;
k. Disseminate informational material to instruct and assist the used motor vehicle dealer community with regard to best practices in the industry, as well as the types of activities that constitute statutory and regulatory violations;
l. Establish a reasonable number of actual annual used motor vehicle transactions necessary to maintain licensure as a wholesale used motor vehicle dealer;
m. Establish a system for accurately tracking dealer-to-dealer transactions that allows for the use of paper transaction documents for out-of-state purchasers and links the transaction records to a vehicle's title-of-ownership record, so that used motor vehicle dealers and regulatory authorities may readily process, store, review, and audit the full record of a motor vehicle's retail and wholesale transaction history;
n. Establish a process by which a used motor vehicle dealer holding a valid license pursuant to R.S.39:10-19, prior to the date of enactment of this act, is eligible for expedited licensure approval consistent with the provisions of this act;
o. Ensure that a licensed used motor vehicle dealer complies with the provisions of P.L.1971, c.76 (C.39:10-26 et seq.); and
p. Adopt and promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act.
8. (New section) No person shall engage in business as a used motor vehicle dealer whether compensated or not unless:
a. the person holds a valid license issued in this State pursuant to the provisions of this act; or
b. the transaction involves an in-State purchaser, who is a used motor vehicle dealer licensed under the provisions of this act, and a person who holds a valid used motor vehicle dealer license issued by another state.
9. (New section) To be eligible to be licensed as a retail used motor vehicle dealer, a wholesale used motor vehicle dealer, or a retail-wholesale used motor vehicle dealer, an applicant shall fulfill the following requirements:
a. Be at least 18 years of age;
b. Be of good moral character;
c. Hold a valid New Jersey driver's license demonstrating proof of residency or be an officer of a publicly traded or privately held company with a minimum of 500 domestic employees and hold a valid driver's license in the jurisdiction of the company's corporate headquarters;
d. Have an established place of business; and
e. Undergo a criminal history record background check, including fingerprint comparison, conducted through the Federal Bureau of Investigation and the State Bureau of Identification in the Division of State Police.
The board is authorized to receive criminal history record information from the Federal Bureau of Investigation for use in licensing. Each applicant for licensure shall submit to the board the applicant's name, address, fingerprints, and written consent for a criminal history record background check to be performed. The board is authorized to receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.
For the purposes of this section, an established place of business shall include a trailer if the trailer is connected to utilities and remains in the same location for at least six months of the year.
10. (New section) a. No applicant shall be eligible for licensure as a used motor vehicle dealer, and no licensed used motor vehicle dealer shall be eligible for license renewal, if the applicant or licensee has been convicted under the laws of this State of an offense involving dishonesty, fraud, or misrepresentation, or of a crime of the first or second degree, but nothing in this section shall be deemed to supersede P.L.1968, c.282 (C.2A:168A-1 et seq.).
b. No applicant shall be eligible for licensure as a used motor vehicle dealer, and no licensed used motor vehicle dealer shall be eligible for license renewal, if the applicant or licensee has been convicted under the laws of another state, or of the United States, of an offense involving dishonesty, fraud, or misrepresentation, or of a crime that, if committed in this State, would be similar to a crime of the first or second degree, but nothing in this section shall be deemed to supersede P.L.1968, c.282 (C.2A:168A-1 et seq.).
c. No applicant shall be eligible for licensure as a used motor vehicle dealer, and no licensed used motor vehicle dealer shall be eligible for license renewal, unless the applicant or licensee has provided to the board the following:
(1) a letter of reference from a bank or other appropriate financial institution indicating that the applicant or licensee maintains accounts in a manner consistent with standard banking practices;
(2) a notarized statement certifying that no monies are due to local, state, or federal tax authorities by the applicant or licensee; and
(3) written evidence of any orders, judgments, agreements, or other instruments that show the status or final disposition of any civil actions brought against the applicant or licensee that have concluded within the last seven years or any criminal actions brought against the applicant or licensee.
11. (New section) a. The board shall issue a license to any applicant who, in the opinion of the board, has satisfactorily met all the requirements of this act.
b. All licenses shall be issued for up to a two-year period upon the payment of the licensure fee prescribed by the board, and shall be renewed upon filing of a renewal application and the payment of a licensure fee.
12. (New section) No person, business entity or its employees, agents or representatives shall use the titles "used motor vehicle dealer," "used car dealer," or any other title, designation, words, letters, abbreviations, or insignia indicating the business of a used motor vehicle dealer unless licensed to engage in business as a used motor vehicle dealer under the provisions of this act.
13. Section 4 of P.L.1999, c.90 (C.2C:33-26) is amended to read as follows:
4. Except as provided in
section 1 of P.L.2011, c.29
(C.39:10-38), a person who engages in the business of buying, selling, or
exchanging motor vehicles or who opens a place of business and attempts to
engage in such conduct on a Sunday commits a disorderly persons offense. The
first offense is punishable by a fine not to exceed $100 or imprisonment for a
period of not more than 10 days or both; the second offense is punishable by a
fine not to exceed $500 or imprisonment for a period of not more than 30 days
or both; the third or each subsequent offense is punishable by a fine of $750
or imprisonment for a period of six months or both. If the person is a
licensed dealer in new or used motor vehicles in this State, under the
provisions of chapter 10, Title 39 of the Revised Statutes or under P.L.
,
c. (C. ) (pending before the Legislature as this bill), the person shall
also be subject to suspension or revocation of his dealer's license to engage
in the business of buying, selling, or exchanging motor vehicles in this State
as provided in [Title
39, chapter 10, section 20,]
R.S.39:10-20 or under P.L. , c. (C. ) (pending before the Legislature
as this bill) for violation of this statute. Nothing contained in this
section shall be construed to prohibit a person from accepting a deposit to
secure the sale of a recreational vehicle, as defined in section 1 of P.L.1999,
c.284 (C.54:4-1.18), at an off-site sale authorized pursuant to section 2 of
P.L.2005, c.351 (C.39:10-19.2), on a Sunday. Nothing contained in this section
shall be construed to prohibit a dealer, engaged in the business of selling
motorcycles and licensed pursuant to R.S.39:10-19, and who holds a franchise
from a manufacturer of new motorcycles from engaging in the business of buying,
selling, or exchanging motorcycles on a Sunday, except that such a dealer shall
be prohibited from engaging in the business of buying, selling, or exchanging
motorcycles on a Sunday in a county where Sunday sales are prohibited pursuant
to sections 14 through 18 of P.L.1999, c.90 (C.40A:64-1 [et seq.] through
C.40A:64-5) and for a violation of this prohibition shall be subject to the
penalties provided in this section for the buying, selling, or exchanging of
motor vehicles on a Sunday. As used in this section, the terms
"dealer," "motor vehicle," and "motorcycle" shall
have the meaning set forth in R.S.39:1-1.
(cf: P.L.2011, c.29, s.2)
14. Section 18 of P.L.1983, c.105 (C.39:4-14.3r) is amended to read as follows:
18. Requiring a motorized bicycle dealer to be licensed as a motor vehicle dealer under R.S. 39:10-19 or P.L. , c. (C. ) (pending before the Legislature as this bill) for the purposes of [this act] P.L.1983, c.105 (C.39:4-14.3i et al.) shall not mean that he is a motor vehicle dealer for the purpose of meeting any restrictions or regulations contained in a planning or zoning ordinance under the "Municipal Land Use Law," P.L.1975, c.291 (C. 40:55D-1 et seq.).
(cf: P.L.1983, c.105, s.18)
15. R.S.39:10-11 is amended to read as follows:
39:10-11. A. The purchaser
of a motor vehicle in this State, other than a dealer licensed pursuant to the
provisions of
R.S.39:10-19 or P.L. , c. (C. ) (pending before the Legislature as
this bill), shall, within 10 working days after its purchase, submit to the
[director] chief
administrator evidence of the purchase. Upon presentation to the [director] chief
administrator of the certificate of origin, or certificate of ownership, or
bill of sale issued prior to October 1, 1946, with proper assignment and
certification of the seller, a record of the transaction shall be made and
filed. A certificate of ownership shall be issued by the [director] chief administrator
and delivered to the buyer, in case of a sale not subject to a security
interest, and the [director] chief
administrator shall collect a fee of $20 for the issuance and filing
thereof.
B. In the case of a sale subject to a security interest, a certificate of ownership, with the name and address of the holder of the encumbrance or secured party or his assignee recorded thereon, shall be delivered to the holder of the encumbrance or secured party or his assignee and a copy thereof shall be delivered to the buyer. The [director] chief administrator shall collect a fee of $30 for his services in issuing a certificate and copy thereof, and for making a record of and filing the record of the transaction, pursuant to this subsection.
C. Except as hereinafter in this section otherwise expressly provided, whenever a security interest is created in a motor vehicle, other than a security interest which is required to be noted on the certificate of origin or the certificate of ownership, as provided in R.S.39:10-8 and R.S.39:10-9, there shall be filed with the [director] chief administrator the certificate of ownership of the motor vehicle, together with a financing statement on a form prescribed by the [director] chief administrator. The [director] chief administrator shall make and file a record of the transaction and shall issue a certificate of ownership, recording the name and address of the secured party or his assignee thereon, and shall deliver it to the secured party or his assignee. A copy of the certificate of ownership so issued shall be delivered to the buyer. The [director] chief administrator shall collect a fee of $20 for his services in issuing a certificate and copy thereof and for making a record of and filing the record of the transaction, pursuant to this subsection.
D. The financing statement
required to be filed pursuant to subsection C. [hereof] of this section shall be
signed only by the buyer, shall not be required to be acknowledged or proved,
and shall show, in addition to such matters as the [director] chief
administrator may require for the proper identification of the motor
vehicle affected, the date of the security agreement, and the names and
addresses of the parties thereto. Nothing in this section
[39:10-11
contained]
shall be construed as requiring that the security agreement or a copy thereof,
or any proof of execution thereof other than that contained in the financing
statement, shall be presented to the [director] chief
administrator. When the buyer is a corporation, it shall be sufficient if
the financing statement is signed by any officer thereof, or by any agent
designated by the corporation for that purpose, and it shall not be necessary
that the financing statement recite the authorization of the agent. When there
is more than one buyer, it shall be sufficient if the financing statement is
signed by any one of them.
E. Nothing in subsections C. and D. of 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, nor shall anything in the said subsections apply to interests in personal property subject to chapter 28 of Title 46 of the Revised Statutes.
F. In addition to the fees elsewhere in this section provided for, there shall be paid to the [director] chief administrator at the time a certificate of ownership is issued a fee of $10 for notice of satisfaction of the lien or encumbrance of the record or abstract, or of the termination of the security interest, where the motor vehicle is subject to a lien or encumbrance or a security interest as provided in R.S.39:10-14.
G. Notwithstanding any other provision of this chapter, when any dealer licensed under the provisions of R.S.39:10-19 or P.L. , c. (C. ) (pending before the Legislature as this bill) is the purchaser of a motor vehicle in this State, he may, within 10 working days after its purchase, submit to the [director] chief administrator the evidence of purchase. Upon presentation of the certificate of ownership with proper assignment and certification of the seller to the [director] chief administrator, a record of the transaction shall be made and filed. A certificate of ownership shall be issued by the [director] chief administrator and delivered to such purchaser, and the [director] chief administrator shall collect a fee of $10 for the issuing and filing thereof.
If a dealer does not submit the evidence of purchase, upon resale of the motor vehicle he shall execute and attach to the certificate of ownership a dealer reassignment certificate. The [director] chief administrator shall issue dealer reassignment certificates in lots upon payment of a fee of $10 for each certificate.
H. Any purchaser of a motor vehicle who fails to comply with the provisions of this section shall pay to the [director] chief administrator a penalty of $25 plus the issuing and filing fee.
I. The failure of any person to comply with the requirements of this section shall not constitute a misdemeanor within the provisions of R.S.39:10-24, nor shall such failure affect the validity of any instrument creating or reserving a security interest in a motor vehicle, as between the parties to such instrument.
J. The notation of the name and business or residence address of a secured party or his assignee, on the certificate of origin or on the certificate of ownership, as provided in R.S.39:10-8 and R.S.39:10-9, and the presentation to the [director] chief administrator, in accordance with R.S.39:10-11, of the certificate of origin or certificate of ownership so noted, and the compliance with the requirements of subsections C. and D. of R.S.39:10-11 shall be in lieu of all filing requirements imposed by chapter 9 of Title 12A of the New Jersey Statutes and shall constitute the perfection of a security interest in the motor vehicle, and the rights and remedies of the debtors and the secured parties in respect to such security interest shall, except as otherwise expressly provided in this chapter, be subject to and governed by chapter 9 of Title 12A of the New Jersey Statutes.
(cf: P.L.1994, c.60, s.26)
16. R.S.39:10-19 is amended to read as follows:
39:10-19. No person shall
engage in the business of buying, selling or dealing in motor vehicles in this
State, nor shall a person engage in activity that would qualify the person as a
leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61),
unless: a. the person is a licensed real estate broker acting as an agent or
broker in the sale of mobile homes without their own motor power other than
recreation vehicles as defined in section 3 of P.L.1990, c.103 (C.39:3-10.11),
or manufactured homes as defined in section 3 of P.L.1983, c.400 (C.54:4-1.4);
or b. the person is authorized to do so under the provisions of this chapter
and P.L.1985, c.361 (C.56:10-26 et seq.). Notwithstanding this section or
any law or regulation to the contrary, no person shall engage in business as a
used motor vehicle dealer unless licensed pursuant to P.L. ,
c. (C. ) (pending before the Legislature as this bill) upon
the effective date of that act, and the provisions of this section shall not
apply to used motor vehicle dealers on or after the date of enactment of
P.L. , c. (C. ) (pending before the Legislature as this bill).
The chief administrator may, upon application in such form as the chief administrator prescribes, license any proper person as such dealer or leasing dealer. A licensed real estate broker shall be entitled to act as an agent or broker in the sale of a mobile or manufactured home as defined in subsection a. of this section without obtaining a license from the chief administrator. For the purposes of this chapter, a "licensed real estate broker" means a real estate broker licensed by the New Jersey Real Estate Commission pursuant to the provisions of chapter 15 of Title 45 of the Revised Statutes. Any sale or transfer of a mobile or manufactured home, in which a licensed real estate broker acts as a broker or agent pursuant to this section, which sale or transfer is subject to any other requirements of R.S.39:10-1 et seq., shall comply with all of those requirements.
No person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, shall be eligible to receive a license. For the purposes of this section, each applicant for a license shall submit to the chief administrator the applicant's name, address, fingerprints, and written consent for a criminal history record background check to be performed. The chief administrator is hereby authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations, for purposes of facilitating determinations concerning licensure eligibility. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the chief administrator in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
Each applicant for a license shall at the time such license is issued have established and maintained, or by that application shall agree to establish and maintain, within 90 days after the issuance thereof, a place of business consisting of a permanent building not less than 1,000 square feet in floor space located in the State of New Jersey to be used principally for the servicing and display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules and regulations made by the board governing the equipment, use, and operation of motor vehicles within the State. However, a leasing dealer, who is not engaged in the business of buying, selling, or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business.
A license fee of $200 shall be paid by an applicant upon the applicant's initial application for a license. The chief administrator may renew an applicant's license upon application for renewal on a form prescribed by the chief administrator and accompanied by a renewal fee of $200. Every license shall expire 24 months from the date on which it is issued. The chief administrator may, at the chief administrator's discretion and for good cause shown, extend an applicant's license for an additional period not to exceed 12 months from the date on which it is scheduled to expire. The chief administrator may, at the chief administrator's discretion and for good cause shown, issue a license which shall expire on a date fixed by the chief administrator. The fee for licenses with an expiration date fixed by the chief administrator shall be fixed by the chief administrator in an amount proportionately less or greater than the fee established herein.
For the purposes of this section, a leasing dealer or an assignee of a leasing dealer whose leasing activities are limited to buying motor vehicles for the purpose of leasing them and selling motor vehicles at the termination of a lease shall not be deemed to be engaged in the business of buying, selling, or dealing in motor vehicles in this State.
(cf: P.L.2015, c.24, s.1)
17. Section 1 of P.L.2005, c.351 (C.39:10-19.1) is amended to read as follows:
1. As used in [this act] P.L.2005, c.351 (C.39:10-19.1 et seq.):
"Off-site sale" means the display and sale of new or used recreational vehicles by a recreational vehicle dealer, licensed under the provisions of R.S.39:10-19, or used motor vehicles registered in New Jersey by a used motor vehicle dealer, licensed [under the provisions of R.S.39:10-19] pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), at a location other than the dealer's established place of business. An "off-site sale" includes any off-site display of vehicles at which a recreational vehicle or used motor vehicle dealer has a sales person or employee present. For the purposes of [this act] P.L.2005, c.351 (C.39:10-19.1 et seq.), "off-site sale" does not include:
a. An off-site display of vehicles at which a recreational vehicle or used motor vehicle dealer has no sales personnel present;
b. The sale of a vehicle at an auction at which only wholesale purchases are permitted; or
c. The use of telephones, telephone call-forwarding, email, internet websites or other internet communications which allow a licensed dealer or dealership employee to communicate with customers while either the customer or the dealer or employee thereof is not present at the licensed physical location of the dealership, provided the contract for the sale of a vehicle is finalized and the sale transaction completed at the licensed location.
"Sponsoring organization" means:
a. a credit union, automobile club, or other such not for profit organization or entity that makes the opportunity to attend and purchase a motor vehicle at an off-site sale available to its members; or
b. a trade show coordinator, or other such organization, entity, or individual that makes the opportunity to attend and purchase a recreational vehicle at an off-site sale available to ticketed individuals.
(cf: P.L.2007, c.335, s.25)
18. Section 2 of P.L.2005, c.351 (C.39:10-19.2) is amended to read as follows:
2. Notwithstanding any other provision of law to the contrary, a recreational vehicle or used motor vehicle dealer, licensed under the provisions of R.S.39:10-19, or a used motor vehicle dealer, licensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), may hold an off-site sale provided he is granted a final permit to do so pursuant to section 3 of [this act] P.L.2005, c.351 (C.39:10-19.3).
(cf: P.L.2005, c.351, s.2)
19. Section 3 of P.L.2005, c.351 (C.39:10-19.3) is amended to read as follows:
3. a. The Chief Administrator of the New Jersey Motor Vehicle Commission may issue a provisional permit, subject to a fee, for an off-site sale to a licensed recreational vehicle or used motor vehicle dealer, provided:
(1) No more than one permit for a particular location is issued during any calendar quarter;
(2) A completed application and fee, in an amount determined by the chief administrator, is received by the commission at least 15 days prior to the first day of the sale;
(3) The applicant is a recreational
vehicle or [used
motor vehicle]
dealer, licensed under the provisions of R.S.39:10-19, or a used motor
vehicle dealer, licensed pursuant to P.L. ,
c. (C. ) (pending before
the Legislature as this bill), in good standing;
(4) The sale is not conducted within 1,000 feet of the established place of business of any motor vehicle dealer licensed under the provisions of R.S.39:10-19 or P.L. , c. (C. ) (pending before the Legislature as this bill);
(5) The display and sale of vehicles is conducted for no more than five consecutive days; and
(6) The sale is not open to the general public, but limited to members of the sponsoring organization or in the case of the off-site sales of recreational vehicles, only to ticketed individuals.
b. Following the issuance of a provisional permit for an off-site sale, and in the event that the chief administrator determines that neither the dealer, the sponsoring organization, nor the off-site sale location has an unsatisfactory history of violations of Title 39, the chief administrator shall issue a final permit for an off-site sale to the applicant, provided the dealer applicant delivers to the commission, no later than five days prior to the sale, a surety bond in the amount of $500,000 in the case of a permit for an off-site sale to a licensed used motor vehicle dealer; or $10,000 in the case of a permit for an off-site sale to a licensed recreational vehicle dealer issued by a company authorized to transact surety business in this State and payable to the New Jersey Motor Vehicle Commission. If a surety bond is cancelled or terminated for any reason prior to the end date of the sale, the company that issued the surety bond shall immediately notify the chief administrator of the cancellation or termination. The dealer applicant shall immediately obtain and file with the chief administrator a replacement surety bond prior to the end date of the sale that shall cover the uninsured term of the sale. In lieu of a surety bond, a dealer applicant may submit a notarized copy of a certificate of self-insurance issued pursuant to section 30 of P.L.1952, c.173 (C.39:6-52).
(cf: P.L.2008, c.73, s.1)
20. R.S.39:11-9 is amended to read as follows:
39:11-9. Every person owning or operating a motor vehicle junk business or motor vehicle junk yard and who is also licensed as a motor vehicle dealer pursuant to the provisions of R.S.39:10-19 or as a used motor vehicle dealer pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall certify to the commission, upon the sale by him of a motor vehicle, that, at the time of the sale, the motor vehicle was or was not, as the case may be, in suitable condition to be operated on the highways.
(cf: P.L.2009, c.298, s.12)
21. Section 1 of P.L.1971, c.60 (C.45:1-2.1) is amended to read as follows:
1. The provisions of this act shall apply to the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the New Jersey Real Estate Commission, the State Board of Court Reporting, the State Board of Veterinary Medical Examiners, the Radiologic Technology Board of Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, the State Board of Social Work Examiners, the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors, the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board, the State Board of Physical Therapy Examiners, the Orthotics and Prosthetics Board of Examiners, the New Jersey Cemetery Board, the State Board of Polysomnography, the New Jersey Board of Massage and Bodywork Therapy, the Genetic Counseling Advisory Committee, the State Board of Used Motor Vehicle Dealers, and any other entity hereafter created under Title 45 to license or otherwise regulate a profession or occupation.
(cf: P.L.2012, c.331, s.16)
22. Section 1 of P.L.1974, c.46 (C.45:1-3.1) is amended to read as follows:
1. The provisions of this act shall apply to the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the State Board of Court Reporting, the State Board of Veterinary Medical Examiners, the Radiologic Technology Board of Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, the New Jersey Cemetery Board, the State Board of Social Work Examiners, the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors, the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board, the State Board of Physical Therapy Examiners, the State Board of Polysomnography, the Orthotics and Prosthetics Board of Examiners, the New Jersey Board of Massage and Bodywork Therapy, the Genetic Counseling Advisory Committee, the State Board of Used Motor Vehicle Dealers and any other entity hereafter created under Title 45 to license or otherwise regulate a profession or occupation.
(cf: P.L.2012, c.331, s.17)
23. Section 2 of P.L.1978, c.73 (C.45:1-15) is amended to read as follows:
2. The provisions of this act shall apply to the following boards and all professions or occupations regulated by, through or with the advice of those boards: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the State Board of Court Reporting, the State Board of Veterinary Medical Examiners, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, the State Board of Social Work Examiners, the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors, the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board, the State Board of Physical Therapy Examiners, the State Board of Polysomnography, the Professional Counselor Examiners Committee, the New Jersey Cemetery Board, the Orthotics and Prosthetics Board of Examiners, the Occupational Therapy Advisory Council, the Electrologists Advisory Committee, the Acupuncture Advisory Committee, the Alcohol and Drug Counselor Committee, the Athletic Training Advisory Committee, the Certified Psychoanalysts Advisory Committee, the Fire Alarm, Burglar Alarm, and Locksmith Advisory Committee, the Home Inspection Advisory Committee, the Interior Design Examination and Evaluation Committee, the Hearing Aid Dispensers Examining Committee, the Perfusionists Advisory Committee, the Physician Assistant Advisory Committee, the Audiology and Speech-Language Pathology Advisory Committee, the New Jersey Board of Massage and Bodywork Therapy, the Genetic Counseling Advisory Committee, the State Board of Used Motor Vehicle Dealers and any other entity hereafter created under Title 45 to license or otherwise regulate a profession or occupation.
(cf: P.L.2013, c.253, s.34)
24. This act shall take effect on the 360th day after the date of enactment, except that sections 4 through 7 of this act shall take effect immediately.
STATEMENT
This bill provides for the licensure of used motor vehicle dealers and establishes an eight-member State Board of Used Motor Vehicle Dealers in the Division of Consumer Affairs in the Department of Law and Public Safety to oversee their licensure. The board is to consist of three licensed used motor vehicle dealers, one licensed used motor vehicle dealer employed by a used motor vehicle dealer auction company, three public members, and a State executive department member.
The bill provides for three types of licensure: retail used motor vehicle dealer, wholesale used motor vehicle dealer, and retail-wholesale used motor vehicle dealer. To be eligible for licensure as a used motor vehicle dealer, an applicant is required to be at least 18 years old, be of good moral character, and fulfill the following requirements:
(1) hold a valid New Jersey driver's license demonstrating proof of residency or be an officer of a publicly traded or privately held company with a minimum of 500 domestic employees and hold a valid driver's license in the jurisdiction of the company's corporate headquarters;
(2) have an established place of business; and
(3) undergo a criminal history record background check.
Under the bill, an established place of business includes a trailer, if the trailer is connected to utilities and remains in the same location for at least six months of the year.
Further, under the bill, an applicant is not eligible to be licensed as a used motor vehicle dealer if the applicant has been convicted of an offense involving dishonesty, fraud, or misrepresentation, or of a crime of the first or second degree.
The bill provides that no person may engage in business as a used motor vehicle dealer in this State unless that person holds a valid license or the transaction involves an in-State purchaser, who is a used motor vehicle dealer licensed under the provisions of the bill, and a person who holds a valid used motor vehicle dealer license issued by another state.
As defined in the bill, "used motor vehicle" means every motor vehicle and motorized bicycle, except a nonconventional type motor vehicle, for which title to, or possession of, has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand" within the ordinary meaning of that term, and includes every motor vehicle and motorized bicycle other than a new motor vehicle, a nonconventional type motor vehicle, or a manufactured home subject to real property taxation.
The bill also makes changes to several statutes relating to the licensure of motor vehicle dealers by the New Jersey Motor Vehicle Commission (MVC), currently the regulatory authority that licenses used motor vehicle dealers in the State. In amending these statutes, the bill clarifies that the MVC will no longer license used motor vehicle dealers on or after the bill's date of enactment.
