A 4668

ASSEMBLY, No. 4668
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 10, 2026
Sponsored by:
Assemblywoman� AURA K. DUNN
District 25 (Morris and Passaic)
SYNOPSIS
���� Permits licensed motor vehicle dealers to facilitate
issuance of titles and registrations for used motor vehicles purchased by
private sale.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act concerning the issuance of certain used motor vehicle
titles and registrations, amending R.S.39:10-11, 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.39:10-11 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, 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.
���� If the purchaser of a used
motor vehicle purchased by private sale, as that term is defined in section 2
of P.L.    , c.    (C.        )
(pending before the Legislature as this bill), applies to a licensed motor
vehicle dealer for a certificate of ownership and certificate of registration
and complies with the provisions of section 2 of P.L.    , c.    (C.        )
(pending before the Legislature as this bill) and all rules and regulations
promulgated pursuant thereto, the purchaser shall be deemed to be in compliance
with the provisions of this subsection.
���� For purposes of this
subsection, �licensed motor vehicle dealer� means a motor vehicle dealer
licensed pursuant to R.S.39:10-19 that is authorized to facilitate the issuance
of a certificate of ownership and certificate of registration pursuant to
section 2 of P.L.    , c.    (C.        )
(pending before the Legislature as this bill).
���� 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 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 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)
���� 2.� (New section)�� a.� As
used in this section:
���� �Licensed motor vehicle
dealer� means a motor vehicle dealer licensed pursuant to R.S.39:10-19.
���� �Private sale� means the
transfer of a motor vehicle from a person who sells the motor vehicle and is
not the manufacturer of the motor vehicle or a licensed motor vehicle dealer to
a person who purchases the motor vehicle and is not a licensed motor vehicle
dealer.
���� b.��� The New Jersey Motor
Vehicle Commission shall permit a licensed motor vehicle dealer to, in
accordance with rules and regulations promulgated by the commission, facilitate
the issuance of a certificate of ownership and certificate of registration for
a used motor vehicle purchased by private sale that shall be registered in this
State and that complies with all requirements for issuance of a certificate of
ownership and certificate of registration in this State.�
���� The Chief Administrator of the
New Jersey Motor Vehicle Commission may suspend the authority of a licensed
motor vehicle dealer to facilitate the issuance of a certificate of ownership
and certificate of registration upon the finding that the licensed motor
vehicle dealer has engaged in abusive practices.
���� c.� A person 17 years of age
or older who has purchased a used motor vehicle by private sale that shall be
registered in this State and complies with all requirements for issuance of a
certificate of ownership and certificate of registration in this State may
apply to a licensed motor vehicle dealer within 10 working days after its
purchase for the issuance of a certificate of ownership and a certificate of
registration, instead of applying to the commission pursuant to the provisions
of R.S.39:10-11 and R.S.39:3-4.� A licensed motor vehicle dealer may charge a
purchaser a reasonable fee for this service, as determined by the chief
administrator, in addition to the fees otherwise required for the issuance of a
certificate of ownership and certificate of registration.� A licensed motor
vehicle dealer may issue a temporary registration certificate for a used motor
vehicle purchased by private sale in accordance with the provisions of
P.L.1969, c.301 (C.39:3-4b et seq.).� A person shall apply to the commission to
renew a certificate of registration.
���� d.� Notwithstanding the
provisions of the �Administrative Procedure Act,� P.L.1968, c.410 (52:14B-1 et
seq.), within three months of the effective date of P.L.    , c.    (C.        )
(pending before the Legislature as this bill), the chief administrator
shall adopt immediately upon filing proper notice with the Office of
Administrative Law, such temporary rules and regulations necessary to
effectuate the purposes of P.L.    , c.    (C.        )
(pending before the Legislature as this bill).� The rules and regulations
so adopted shall be effective for a period not to exceed one year from the date
of the filing.� The rules and regulations shall thereafter be amended, adopted,
or readopted by the chief administrator in accordance with the requirements of
the �Administrative Procedure Act,� P.L.1968, c.410 (52:14B-1 et seq.).
���� 3.� This act shall take effect
immediately.
STATEMENT
���� This bill requires the New
Jersey Motor Vehicle Commission (commission) to permit a licensed motor vehicle
dealer to facilitate the issuance of a certificate of ownership and certificate
of registration for a used motor vehicle that is purchased by private sale if
the vehicle is to be registered in New Jersey and complies
with all requirements for issuance
of a certificate of ownership and certificate of registration.
���� The bill authorizes a person
who is 17 years of age or older and has purchased a used motor vehicle by
private sale that is to be registered in New Jersey to apply to a licensed
motor vehicle dealer within 10 working days after purchasing the motor vehicle
for the issuance of a certificate of ownership and certificate of registration,
instead of applying to the commission for those documents.� A licensed motor
vehicle dealer may charge a reasonable fee, as determined by the commission,
for this service and may issue a temporary registration certificate for the
used motor vehicle.� A person is required to apply to the commission to renew
the motor vehicle�s certificate of registration.
���� The bill requires the Chief
Administrator of the commission to adopt temporary rules and regulations within
three months of the effective date of the bill.� The temporary rules and
regulations are to be effective for a period not to exceed one year from the
date they are filed with the Office of Administrative Law.� The bill provides
that the rules and regulations are to be amended, adopted, or readopted in
accordance with the �Administrative Procedure Act.�