Bill > A5122

Introduced Session

This bill prohibits a person from receiving a motor vehicle dealer license pursuant to N.J.S.A.39:10-19 or from working as a key employee of a motor vehicle dealer licensee if the person has been convicted of any first degree crime, any of the crimes enumerated in the bill, or any other offense under present New Jersey or federal law which indicates that licensure of the applicant would be inimical to the public interest and the purposes of the bill; provided, however, that the automatic disqualification provisions of the bill do not apply with regard to any conviction which did not occur within the 10-year period immediately preceding application for licensure and which the applicant demonstrates by clear and convincing evidence does not justify automatic disqualification and any conviction which has been the subject of a judicial order of expungement or sealing. Under current law, the only criminal convictions that prohibit licensure are crimes arising out of fraud or misrepresentation in the sale, leasing, or financing of a motor vehicle. The bill requires the chief administrator to implement a program to prevent the abuse of licenses which is required to include, but is not limited to, background checks in addition to the criminal history record background check performed pursuant to law and continuing oversight over the license holders. The bill authorizes the chief administrator to suspend the license of any license holder for a first violation of State law concerning dealer licenses and to revoke the license for a subsequent violation. The bill authorizes the chief administrator to immediately suspend the license of any license holder who is found to have given an unlicensed person improper access to motor vehicle dealer credentials, without certain procedural requirements for other suspensions, and to permanently revoke the license of any such license holder who is subsequently found to have given an unlicensed person improper access to motor vehicle dealer credentials. The bill also establishes a separate wholesale license for persons who do business in the wholesale dealing of used motor vehicles in the State. Wholesale licensees are required to possess a valid New Jersey driver's license, to maintain a place of business in the State, and to undergo a criminal history record background check identical to that required for motor vehicle dealer licenses under N.J.S.A.39:10-19. The annual fee for the wholesale license is $200. This bill is based upon a recommendation provided by the New Jersey State Commission of Investigation in a follow up report concerning abuses in the used car industry.

AI Summary

Committee Categories

Annette Chaparro (D)*,  Nicholas Chiaravalloti (D)*,  Raj Mukherji (D)*, 

Introduced, Referred to Assembly Consumer Affairs Committee (on 03/05/2019)