A 4050

[Second Reprint]
ASSEMBLY, No. 4050
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 12, 2026
Sponsored by:
Assemblyman� WILLIAM W. SPEARMAN
District 5 (Camden and Gloucester)
Assemblyman� ERIK PETERSON
District 23 (Hunterdon, Somerset and Warren)
Senator� JOSEPH A. LAGANA
District 38 (Bergen)
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
Co-Sponsored by:
Assemblymen Sampson, McClellan, Simonsen, Angelozzi,
Assemblywomen Dunn, Carter, McCoy, Assemblyman Scharfenberger, Assemblywoman
Fantasia, Senators Tiver and Corrado
SYNOPSIS
���� Concerns facilities
used by applicants for new motor vehicle dealer licenses.
CURRENT VERSION OF TEXT
���� As reported by the Senate Budget and Appropriations
Committee on June 28, 2026, with amendments.
��
An Act concerning new motor vehicle dealer licenses and
amending R.S.39:10-2 and R.S.39:10-19.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
����� 1.�� R.S.39:10-2
is amended to read as follows:�
����� 39:10-2.�
As used in this chapter unless other meaning is clearly apparent from the
language or context, or unless inconsistent with the manifest intention of the
Legislature:
����� "Authorized
signatory" means a dealer or leasing dealer and any employee, officer,
director, partner, or other holder of an ownership interest in the licensed
business authorized to execute documents on behalf of the dealer or leasing
dealer, but shall not include any attorney-in-fact who is not an employee,
officer, director, partner, or holder of an ownership interest.
����� "New
motor vehicle" means only a newly manufactured motor vehicle, except a
nonconventional type motor vehicle, and includes all such 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.] al.),
excepting such vehicles as run only upon rails or tracks and manufactured homes
subject to real property taxation.
����� "Used
motor vehicle" means every motor vehicle and motorized bicycle, except a
nonconventional type motor vehicle, title to, or possession of, which 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.
����� "Any
motor vehicle," "every motor vehicle," or similar term, means
both new and used motor vehicles, except a "nonconventional type motor
vehicle."
����� "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, 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 said weight limitation, industrial tractors, scooters,
go-carts, gas buggies and golf carts.� The Chief Administrator of the New
Jersey Motor Vehicle Commission shall have power to make, amend, and
repeal regulations, not inconsistent with the provisions of this paragraph,
prescribing what further vehicles or types of vehicles, not specified in this
paragraph, shall be included in the category of nonconventional type motor
vehicles.
����� "Motor
vehicles which constitute inventory held for sale" means: new motor
vehicles and used motor vehicles held for the purpose of sale by new motor
vehicle dealers which can be identified by a manufacturer's [Vehicle Identification Number] vehicle identification number (VIN) and have
been invoiced to, allocated to, or reserved by a new motor vehicle dealer
licensed to do business in New Jersey, and such vehicle can be shipped by the
manufacturer or distributor within a reasonable period of time and used motor
vehicles held for the purpose of sale by new or used motor vehicle dealers
which can be identified by a manufacturer's VIN and title papers or right to
title is held by the used motor vehicle dealer.� This term shall exclude motor
vehicles held for the purpose of lease or rental by a person engaged in the
motor vehicle leasing or rental business.
����� "Manufacturer's
or importer's certificate of origin" means the original written instrument
or document required to be executed and delivered by the manufacturer to his
agent or a dealer, or a person purchasing direct from the manufacturer, certifying
the origin of the vehicle.
����� "Certificate
of ownership" means the document issued in conformance with this chapter,
certifying ownership of a motor vehicle, other than manufacturer's or
importer's certificate of origin.
����� "Assignment"
means the execution of a prescribed form transferring ownership of a motor
vehicle from the person named therein to the purchaser.
����� "Contract"
means conditional sale agreement, bailment, lease, chattel mortgage, trust
receipt, or any other form of security or possession agreement executed
prior to January 1, 1963, wherein and whereby possession of a motor vehicle is
delivered to the buyer and title therein is to vest in the buyer at a
subsequent time upon the payment of part or all of the price, or upon the
performance of any other condition or happening of any contingency, or upon the
payment of a sum substantially equivalent to the value of the motor vehicle, by
which contract it is agreed that the buyer is bound to become, or has the
option of becoming, the owner of the motor vehicle upon full compliance with
the terms of the contract.
����� "Abstract"
means the duplicate copy of the original certificate of ownership recording any
encumbrance or upon which the existence of a security interest is noted.
����� "Title
papers" means any instrument or document that is evidence of ownership of
a vehicle.
����� "Chief
Administrator" means the Chief Administrator of the New Jersey Motor
Vehicle Commission.
����� "Manufacturer"
means the person who originally manufactured the motor vehicle.
����� "Licensee"
means any person that is licensed to buy, sell or deal in, or lease motor
vehicles pursuant to R.S.39:10-19.
����� "Established
place of business" means a permanent, properly identified location within
the State where the books, records, and files necessary to buy, sell, or deal
in motor vehicles are kept and maintained, including, but not limited to, all documents
required by R.S.39:10-6, title papers, manufacturers' or importers'
certificates of origin, motor vehicle registration records, contracts, security
agreements, all payroll records, including, but not limited to, IRS Form W-2
and IRS Form W-4 records, checkbooks, ledgers for business accounts and trust
accounts, corporate authorities and licenses, dealer plates, ledgers listing
all issued and unissued dealer assignments, and dealer plates.
����� "New
motor vehicle dealer" means [the agent,
distributor, or] 1the agent, distributor, or1 an authorized dealer of [the manufacturer] 1[a motor vehicle franchisor, as defined in this
section,] the manufacturer1 of [the] 1[a] the1 new motor vehicle who has an established place of business.� A new motor
vehicle dealer shall sell a minimum of four or more new motor vehicles within a
12-month timeframe and may engage in the business of buying, selling, or
dealing in used motor vehicles in this State under the provisions of this
chapter.
����� 1[�Motor vehicle franchisor� means a person engaged in
the business of manufacturing, assembling, or distributing new motor vehicles,
or importing new motor vehicles into the United States that were manufactured
or assembled in a foreign country, who, under normal business conditions,
manufactures, assembles, distributes, or imports at least 10 new motor vehicles
during a calendar year.]1
����� "Used
motor vehicle dealer" means a person engaged in the business of selling,
buying, or dealing in four or more used motor vehicles per year at an
established place of business, but who is not a licensed new motor vehicle
dealer.� A used motor vehicle dealer shall engage only in the business of
buying, selling, or dealing in used motor vehicles in this State under the
provisions of this chapter and shall not engage in the business of buying,
selling, or dealing in new motor vehicles in this State.
����� "Person"
includes natural persons, firms or copartnerships, corporations, associations,
or other artificial bodies, receivers, trustees, common law or statutory
assignees, executors, administrators, sheriffs, constables, marshals, or other
persons in representative or official capacity, and members, officers, agents,
employees, or other representatives of those hereinbefore enumerated.
����� "Buyer"
includes purchaser, debtor, lessee, bailee, transferee, and any person buying,
attempting to buy, or receiving a motor vehicle subject to a security interest,
lease, bailment or transfer agreement, and their legal successors in interest.
����� "Seller"
means manufacturer, dealer, lessor, bailor, transferor with or without a
security interest, and any other person selling, attempting to sell, or
delivering a motor vehicle, and their legal successors in interest.
����� The
terms "sell," "sale," "buy," or
"purchase" and any form thereof include absolute or voluntary sales
and purchases, agreements to sell and purchase, bailments, leases, security
agreements whereby any motor vehicles are sold and purchased, or agreed to be
sold and purchased, involuntary, statutory and judicial sales, inheritance,
devise, or bequest, gift or any other form or manner of sale or agreement of
sale thereof, or the giving or transferring possession of a motor vehicle to a
person for a permanent use; continued possession for 60 days or more is to be
construed as permanent use.
����� "Online
sale" means buying, selling, or dealing in motor vehicles in this State
over the Internet using electronic means.
����� "Electronic"
means relating to technology having electrical, digital, magnetic, optical,
electromagnetic, or similar capabilities.
����� "Manufacturer's
number" means the original manufacturer's vehicle identification number
die stamped upon the body, or frame, or either or both of them, of a motor
vehicle or the original manufacturer's number die stamped upon the engine or
motor of a motor vehicle.
����� "Purchaser"
means a person who takes possession of a motor vehicle by transfer of
ownership, either for use or resale, except a dealer when [he] the dealer
takes possession through a certificate of origin.
����� "Debtor"
means the person who owes payment or other performance of the obligation
secured by a security interest in a motor vehicle.
����� "Security
interest" means an interest in a motor vehicle which secures payment or
other performance of an obligation.
����� "Security
agreement" means an agreement which creates or provides for a security
interest in a motor vehicle.
����� "Secured
party" means a lender, seller, or other person in whose favor there
is a security interest.
����� "Gross
vehicle weight rating" means the value specified by the manufacturer as
the loaded weight of the single or combination vehicle and, if the manufacturer
has not specified a value for a towed vehicle, means the value specified for
the towing vehicle plus the loaded weight of the towed unit.
(cf:
P.L.2021, c.462, s.1)
����� 2.�� R.S.39:10-19 is amended to read as
follows:�
����� 39:10-19.�
a.� 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.] (1)���� 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.] (2)���� 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.).
����� b.�� The
chief administrator may, upon application in such form as the chief
administrator prescribes, license any proper person as a new motor vehicle
dealer, used motor vehicle dealer, or [, a] 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 paragraph
(1) of 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] subsection, 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.
����� c.�� 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 pursuant to subsection b. of this
section.� 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.
����� d.�� Each
applicant for a new motor vehicle dealer 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] or display of motor vehicles [with such] .� For the
purpose of servicing motor vehicles, the applicant�s place of business shall
have equipment [installed] therein as shall be requisite for the servicing of
motor vehicles in such manner as to make [them] the motor
vehicles 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.� Each applicant shall have the choice to:�
����� (1) utilize
the space attached to the applicant�s place of business for the servicing of
motor vehicles;
����� (2) utilize
a separate space on the same property as the applicant�s place of business for
the servicing of motor vehicles; or
����� (3) establish
an off-site facility within the relevant market area of the applicant�s 2[exiting]2 place of business, as defined by section 1 of
P.L.1982, c.156 (C.56:10-16).� The off-site facility shall be used solely for
the servicing of motor vehicles 1, shall be located within the State,1 and shall be subject to the provisions of 1[section 1
of]1 P.L.1982,
c.156 (C.56:10-16 et. seq.).
����� 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.
����� e.�� 2[1(1)1� The
chief administrator shall issue a provisional license upon the substantial
completion of the new motor vehicle dealer license application.� 1[The chief administrator shall issue a provisional
license to an applicant that is in the process of meeting certain requirements
for the issuance of a new motor vehicle dealer license, including, but not
limited to, an applicant who is in the process of obtaining a franchise
agreement or installing a permanent sign pursuant to subsection g. of this
section, provided that the sign has been ordered.]� For the purposes of this paragraph, an
application shall be deemed substantially complete when the applicant has
submitted all required documents, except the following:�
����� (a) a
fully-executed franchise agreement;
����� (b) a
fully-executed lease agreement;
����� (c) any
required closing letters;
����� (d) the
New Jersey Motor Vehicle Commission�s inspection report; and
����� (e) any
permanent signage required pursuant to subsection g. of this section.
����� An
applicant shall submit a certification along with the application certifying
that the applicant has ordered and is in the process of obtaining all
outstanding items for a provisional license to be issued.� Evidence of site
control shall be submitted with the application, but a fully-executed lease
agreement may be submitted after closing.
����� (2)1� The provisional license issued pursuant to this
subsection shall be valid for a period of 90 days.� The chief administrator
may, at the chief administrator�s discretion, extend an applicant�s provisional
license for a one-time additional 1[90 day] 90-day1 period.� The chief administrator shall not
charge an additional fee for the issuance of a provisional license.
����� f.]2 (1) Any person who possesses a used motor
vehicle dealer license at the time of enactment of P.L.2021, c.484 shall
maintain an established place of business consisting of a minimum office space
of 72 square feet within a permanent, enclosed building located in the State of
New Jersey, in addition to complying with all other applicable regulations
prescribed by the chief administrator.
����� (2) Each
applicant for a used motor vehicle dealer license, or any licensee who
relocates its place of business on or after the effective date of P.L.2021,
c.484, shall meet the requirements for an established place of business for a
used motor vehicle dealer, which shall be established by the chief
administrator by regulation adopted pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
����� 2[g.] f.2��� An established place of business of a new motor vehicle dealer or a
used motor vehicle dealer shall display an exterior sign permanently affixed to
the land or building, which sign is consistent with local ordinances and has
letters easily readable from the major avenues of traffic.� The sign shall
include the dealer name or trade name, provided such trade name has been
previously disclosed to the chief administrator.
����� 2[h.] g.2��� 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.
����� 2[i.] h.2���� 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 to the lessee shall not be deemed to be engaged in the business of
buying, selling, or dealing in motor vehicles in this State.� [Provided however, that] However, a leasing dealer who wishes to
engage in the business of buying, selling, or dealing in motor vehicles in this
State by selling any vehicle at the end of the lease term to a consumer other
than the lessee, shall be required to obtain a used car dealer license pursuant
to this section.
(cf:�
P.L.2021, c.484, s.1)
���� 3.��� This act shall take
effect immediately and shall apply to all initial and renewal new motor vehicle
dealer license applications and to all initial and renewal new motor vehicle
dealer license applications that are currently subject to a pending
administrative proceeding pending before the chief administrator or the Office
of Administrative Law or on appeal thereof.