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Bill > S1423


NJ S1423

NJ S1423
Concerns facilities used by new motor vehicle dealer licenses; establishes provisional new motor vehicle dealer licenses.


summary

Introduced
01/13/2026
In Committee
02/05/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill provides that an applicant of a new motor vehicle dealer license is required to establish a place of business to be used principally for the servicing or display of motor vehicles. Under current law, applicants are required to establish a place of business to be used principally for both the servicing and display of motor vehicles. The bill permits each applicant for a new motor vehicle dealer license (applicant) to utilize space attached to the applicant's established place of business, a separate space on the same property as the established place of business, or to establish an off-site facility within the relevant market area of the applicant's established place of business for the servicing of motor vehicles. Additionally, under the bill, the Chief Administrator of the New Jersey Motor Vehicle Commission (chief administrator) is permitted to issue a provisional new motor vehicle dealer license upon the applicant's substantial completion of the application and is not to withhold the provisional license pending the receipt of a franchise agreement or the installation of a permanent sign that has been ordered, nor charge an additional fee for the provisional license. The provisional license is to be valid for a period of 90 days, which period may be extended by an additional 90 days at the discretion of the chief administrator. The bill amends current law to change the definition of "new motor vehicle dealer" to mean, in part, an authorized dealer of a motor vehicle franchisor of a new motor vehicle who has an established place of business. Under current law, the term means, in part, the agent, distributor, or authorized dealer of the manufacturer of the new motor vehicle who has an established place of business. The bill also amends current law to include a definition of "motor vehicle franchisor." Finally, the provisions of the bill are to take effect immediately and are to 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 before the chief administrator or the Office of Administrative Law or on appeal thereof.

AI Summary

This bill modifies the requirements for obtaining a new motor vehicle dealer license in New Jersey, allowing applicants to use space attached to, on the same property as, or an off-site facility within a defined market area for servicing vehicles, rather than requiring a single location for both servicing and display. It also introduces provisional new motor vehicle dealer licenses, which can be issued by the Chief Administrator of the New Jersey Motor Vehicle Commission (chief administrator) upon substantial completion of an application, even if a franchise agreement is pending or a permanent sign has been ordered, and these provisional licenses are valid for 90 days, with a possible 90-day extension, without additional fees. The bill also updates the definition of a "new motor vehicle dealer" to refer to an authorized dealer of a "motor vehicle franchisor," which is defined as a person manufacturing, assembling, distributing, or importing at least 10 new motor vehicles annually, and clarifies that these changes apply immediately to all initial and renewal license applications, including those currently under administrative review or appeal.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (3)

Last Action

Referred to Senate Budget and Appropriations Committee (on 02/05/2026)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/S1423
Analysis - Statement STR 2/5/26 https://pub.njleg.gov/Bills/2026/S1500/1423_S1.PDF
Analysis - Technical Review Of Prefiled Bill https://pub.njleg.gov/Bills/2026/S1500/1423_T1.PDF
BillText https://pub.njleg.gov/Bills/2026/S1500/1423_I1.HTM
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