A 4050 — Concerns facilities used by applicants for new motor vehicle dealer licenses.*

A4050 1R2R [First[Second Reprint] ASSEMBLY, No.

SPEARMAN District 5 (Camden and Gloucester) Assemblyman  ERIK PETERSON District 23 (Hunterdon, Somerset and Warren)  Senator  Co-SponsoredJOSEPH by:A.

AssemblymenLAGANA Sampson,District McClellan,38 Simonsen,(Bergen) Angelozzi,Senator  AssemblywomenANTHONY Dunn,M. Carter, McCoy, Assemblyman Scharfenberger and Assemblywoman Fantasia         SYNOPSIS      Concerns facilities used by new motor vehicle dealer licenses;

establishesBUCCO provisionalDistrict new25 motor(Morris vehicleand dealerPassaic) licenses.  Co-Sponsored by:

 Assemblymen CURRENTSampson, VERSIONMcClellan, OFSimonsen, TEXTAngelozzi,     Assemblywomen AsDunn, reportedCarter, byMcCoy, theAssemblyman AssemblyScharfenberger, TransportationAssemblywoman Fantasia, Senators Tiver and IndependentCorrado Authorities  Committee  on  June  1,SYNOPSIS 2026,     withConcerns amendments.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.

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)     (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)     (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.).

      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) (1) utilize the space attached to the applicant’s place of business for the servicing of motor vehicles;

      (2) (2) utilize a separate space on the same property as the applicant’s place of business for the servicing of motor vehicles;

or       (3) (3) establish an off-site facility within the relevant market area of the applicant’s exiting2[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.

      e.   1(1)1 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) a fully-executed franchise agreement;

      (b) (b) a fully-executed lease agreement;

      (c) (c) any required closing letters;

and       (e) (e) any permanent signage required pursuant to subsection g.

      f.   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) (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.).

      g.  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.

      h.  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.

      i.   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.