Bill

Bill > S3309


NJ S3309

Establishes "Motor Vehicle Open Recall Notice and Fair Compensation Act."


summary

Introduced
05/20/2024
In Committee
06/19/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

Establishes "Motor Vehicle Open Recall Notice and Fair Compensation Act"; revises motor vehicle franchise agreements.

AI Summary

This bill establishes the "Motor Vehicle Open Recall Notice and Fair Compensation Act" to address the power imbalance between motor vehicle franchisors (manufacturers) and franchisees (dealers). The bill introduces several key provisions: first, it requires the New Jersey Motor Vehicle Commission to include open recall notices when issuing vehicle registration documents, providing links to the National Highway Traffic Safety Administration's recall database. Second, it mandates that motor vehicle franchisors compensate franchisees at a rate of 1.5% per month if recall parts are not available within 30 days of a stop-sale or do-not-drive notice. The bill also expands franchisees' legal standing to file administrative petitions or lawsuits against franchisors and significantly revises reimbursement rules for warranty, recall, and service-related repairs. These changes aim to protect franchisees from unfair practices, ensure fair compensation for repair work, and ultimately improve consumer access to vehicle safety services by supporting independent dealerships. The legislative findings emphasize the ongoing disparity in bargaining power between manufacturers and dealers and the importance of maintaining a competitive and consumer-friendly motor vehicle marketplace.

Committee Categories

Transportation and Infrastructure

Sponsors (26)

Last Action

Reported from Senate Committee as a Substitute, 2nd Reading (on 06/19/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...