Bill Text: NJ S1649 | 2018-2019 | Regular Session | Introduced
Bill Title: Concerns certain business requirements for motor vehicle dealers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-05 - Introduced in the Senate, Referred to Senate Commerce Committee [S1649 Detail]
Download: New_Jersey-2018-S1649-Introduced.html
Sponsored by:
Senator MICHAEL J. DOHERTY
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
Concerns certain business requirements for motor vehicle dealers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain business requirements for motor vehicle dealers and amending R.S.39:10-19 and R.S.39:10-22.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.39:10-19 is amended to read as follows:
39:10-19. 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. 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. 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.).
The chief administrator may, upon application in such form as the chief administrator prescribes, license any proper person as such dealer or leasing dealer. A licensed real estate broker shall be entitled to act as an agent or broker in the sale of a mobile or manufactured home as defined in subsection a. of this section without obtaining a license from the chief administrator. For the purposes of this chapter, a "licensed real estate broker" means a real estate broker licensed by the New Jersey Real Estate Commission pursuant to the provisions of chapter 15 of Title 45 of the Revised Statutes. Any sale or transfer of a mobile or manufactured home, in which a licensed real estate broker acts as a broker or agent pursuant to this section, which sale or transfer is subject to any other requirements of R.S.39:10-1 et seq., shall comply with all of those requirements.
No person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, shall be eligible to receive a license, but nothing in this section shall be construed as superseding P.L.1968, c.282 (C.2A:168A-1 et seq.). For the purposes of this section, each applicant for a license shall submit to the chief administrator the applicant's name, address, fingerprints, and written consent for a criminal history record background check to be performed. The chief administrator is hereby authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations, for purposes of facilitating determinations concerning licensure eligibility. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the chief administrator in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
Each applicant for a license to sell new and used vehicles 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 display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them 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 for a license to sell used motor vehicles shall at the time the 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 which is located in the State of New Jersey and conforms to all applicable ordinances of the municipality in which the place of business is located, as evidenced by a certificate of occupancy issued to the dealer, and includes the following: office space with a minimum of 72 square feet within a permanent, enclosed building; a desk; chairs; a secured, locking filing cabinet or locking safe for document storage; a landline telephone, for which call forwarding or answering services are prohibited; if the office space is within a facility with other used motor vehicles dealers, each office shall be separated by interior walls and include a separate entrance to each office; and a display area, identified with the licensee's name, sufficient in size to display two motor vehicles.
Nothing in this chapter shall be construed as requiring a used motor vehicle dealer to maintain an office which is separated from any other licensee or separated from any other office by exterior walls or a firewall, unless that requirement is imposed by a code adopted by the Commissioner of Community Affairs pursuant to the "Uniform Fire Safety Act," P.L.1983, c.383 (C.52:27D-192 et seq.), or the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) or an ordinance of the municipality in which the place of business is located. Nothing in this chapter shall be construed as prohibiting a motor vehicle dealer's authorized signatory from simultaneously representing more than one dealer at any given time during the business hours of any dealer so represented. Consistent with section 5 of P.L.1983, c.496 (C.52:27D-123.1), nothing in this chapter shall be construed as authorizing the New Jersey Motor Vehicle Commission to promulgate rules or regulations that regulate the structure, design, construction, maintenance and use of buildings or structures to be erected as a place of business, or that regulate the alteration, renovation, repair, maintenance and use of buildings or structures already erected as a place of business.
[However, a] A leasing dealer, who is not engaged in the business of buying, selling, or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business.
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.
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 shall not be deemed to be engaged in the business of buying, selling, or dealing in motor vehicles in this State.
(cf: P.L.2015, c.24, s.1)
2. R.S.39:10-22 is amended to read as follows:
39:10-22. a. The chief administrator may prepare and prescribe any or all forms necessary for the proper administration of this chapter. The chief administrator or [his] the chief administrator's agent may seize and take possession of any certificate of ownership or other title papers to which the chief administrator may be entitled under this chapter, for which a person is under duty to return to the chief administrator, from any person or place in this State, with all the rights, privileges and immunities conferred by law on an officer executing a writ of replevin.
b. A licensed dealer of new and used motor vehicles and a licensed dealer of used motor vehicles shall not be required to maintain any office hours.
c. A licensed dealer of new and used motor vehicles and a licensed dealer of used motor vehicles, including their authorized signatory, shall be present at the dealership on the day, date and time of a scheduled audit, inspection or investigation, which audit, inspection or investigation shall be scheduled at least five business days in advance, in writing, by the chief administrator of the chief administrator's agent. Nothing in this section shall be construed as requiring a licensed dealer of used motor vehicles, including the dealer's authorized signatory, to be present at the dealership except on the day, date and time of audit, inspection or investigation, as set forth in this subsection.
d. [A] All licensed [dealer] motor vehicle dealers shall keep and store all required forms, papers, and records as the New Jersey Motor Vehicle Commission may by regulation require under this chapter at the licensed premises, except that the required forms, papers, and records may be temporarily removed from the premises of the licensed dealer for any business purpose, including but not limited to, acquiring a motor vehicle, certificate of origin, certificate of ownership, or title papers, by the licensed dealer. In the event a licensee operates multiple licensed dealerships under common ownership or control, [such] the required forms, papers, and records may be stored at a centralized record-keeping facility.
e. In the event of an unannounced audit, unannounced inspection or unannounced investigation by the commission of the place of business of a licensed dealer of new and used motor vehicles or licensed dealer of used motor vehicles which results in the finding of a violation of subsection d. of this section, or the regulations promulgated pursuant to this section, the chief administrator or the chief administrator's agent shall permit the licensed dealer three business days, from the time that a notice of the proposed violation is received by the licensed dealer, to provide proof that the licensed dealer was in compliance with the provisions of subsection d. of this section at the time of the unannounced audit, unannounced inspection or unannounced investigation. The licensed dealer shall not be subject to the imposition of a fine, suspension of license, or revocation of license if the proof provided by the licensed dealer is determined to be sufficient by the chief administrator or the chief administrator's agent.
(cf: P.L. 2007, c.335, s.27)
3. This act shall take
effect immediately.
STATEMENT
This bill amends R.S.39:10-19 to clarify the requirements for an established place of business of a licensed used motor vehicle dealer and allows a licensed dealer of new and used motor vehicles or a licensed dealer of used motor vehicles (dealer) to temporarily remove from the dealer's premises the forms, papers, and records required by the New Jersey Motor Vehicle Commission (MVC), if the documents were removed for a business purpose, including but not limited to, acquiring a motor vehicle, certificate of origin, certificate of ownership, or title papers by the dealer.
The bill also provides that in the event of an unannounced audit, inspection or investigation by MVC of the premises of the dealer which results in the finding of a record-keeping violation, the Chief Administrator of the MVC (chief administrator) or the chief administrator's agent must permit the dealer three business days, from the time the notice of the violation is received, to provide proof that the dealer was in compliance with the law at the time of the unannounced audit, inspection or investigation. The dealer will not be subject to the imposition of a fine, suspension of license, or revocation of license if the proof provided by the dealer is determined to be sufficient by the chief administrator or the chief administrator's agent.
With respect to a used motor vehicle dealer, the bill requires, at the time the license is issued, the dealer to 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 which is located in the State of New Jersey and conforms to all applicable ordinances of the municipality in which the place of business is located, as evidenced by a certificate of occupancy issued to the dealer, and includes the following:
- office space with a minimum of 72 square feet within a permanent, enclosed building; a desk; chairs; a secured, locking filing cabinet or locking safe for document storage; a landline telephone, for which call forwarding or answering services are prohibited; if the office space is within a facility with other used motor vehicles dealers, each office shall be separated by interior walls and include a separate entrance to each office; and
- a display area, identified with the licensee's name, sufficient in size to display two motor vehicles.
The bill also clarifies that, nothing in this law shall be construed as:
- requiring a used motor vehicle dealer to maintain an office which is separated from any other licensee or separated from any other office by exterior walls or a firewall, unless that requirement is imposed by a code adopted by the Commissioner of Community Affairs pursuant to the "Uniform Fire Safety Act," P.L.1983, c.383 (C.52:27D-192 et seq.), or the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) or an ordinance of the municipality in which the place of business is located.
- prohibiting a motor vehicle dealer's authorized signatory from simultaneously representing more than one dealer at any given time during the business hours of any dealer so represented.
- consistent with section 5 of P.L.1983, c.496 (C.52:27D-123.1), authorizing the New Jersey Motor Vehicle Commission to promulgate rules or regulations that regulate the structure, design, construction, maintenance and use of buildings or structures to be erected as a place of business, or that regulate the alteration, renovation, repair, maintenance and use of buildings or structures already erected as a place of business.
The bill also clarifies that the provision in the current law that provides that no person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, shall be eligible to receive a license as a dealer. The bill clarifies that this provision shall not be construed as superseding P.L.1968, c.282 (C.2A:168A-1 et seq.). That law provides that a person shall not be disqualified or discriminated against by any licensing authority because of any conviction for a crime, unless N.J.S. 2C:51-2 is applicable or unless the conviction relates adversely to the occupation, trade, vocation, profession or business for which the license or certificate is sought.
