Bill Text: NJ S827 | 2018-2019 | Regular Session | Introduced


Bill Title: Requires certain sellers of used motor vehicles to notify MVC of sale; limits liability of certain sellers after sale of used motor vehicles.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-01-09 - Introduced in the Senate, Referred to Senate Transportation Committee [S827 Detail]

Download: New_Jersey-2018-S827-Introduced.html

SENATE, No. 827

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 


 

Sponsored by:

Senator  NICHOLAS P. SCUTARI

District 22 (Middlesex, Somerset and Union)

 

 

 

 

SYNOPSIS

     Requires certain sellers of used motor vehicles to notify MVC of sale; limits liability of certain sellers after sale of used motor vehicles.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning the sale of used motor vehicles and amending R.S.39:10-9.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    R.S.39:10-9 is amended to read as follows:

     39:10-9.  a.  When a used motor vehicle is sold in this State, the seller shall, except as  provided in [section 39:10-15 of this Title] R.S.39:10-15, execute and deliver to the purchaser, an assignment of the certificate of ownership or an assignment of the bill of sale issued prior to October 1, 1946, or, in the event the vehicle is subject to a security interest, or for some other reason the original certificate of ownership is not in the possession of the seller, and where the purchaser is a licensed New Jersey motor vehicle dealer, the seller may execute a secure power of attorney as required under the federal " Truth in Mileage Act of 1986, " Pub.L.99-579 (49 U.S.C. s.32705) or [such] other documents as the chief administrator may require, authorizing the licensed dealer to execute the original title upon obtaining possession of same.  If a security interest exists at the time of [such] the sale and will continue in effect afterwards or if, in connection with [such] the sale, a security interest is taken or retained by the seller to secure all or a part of the  purchase price of the motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable the purchaser to acquire rights in the motor vehicle, the name and the business or residence address of the secured party or his assignee shall be noted on the certificate of ownership.  If the seller is a licensed New Jersey motor vehicle dealer, the seller shall not be required to deliver an assignment or certificate of ownership at the time of sale, provided that the dealer has satisfied all liens noted on the certificate of title and has the right to title as of the time of sale, and provided that the dealer represents and attests to the same in a writing to be delivered to the purchaser at the time of sale.  Nothing in this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but [such] the interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes.

     b.    In addition to the requirements contained in subsection a. of this section, when a used motor vehicle is sold in this State, the seller shall, within five working days of the date of the sale, notify the commission of the sale.  The notification shall include the date of the sale, the name and address of the seller and the purchaser, and a description of the used motor vehicle.

     The provisions of this subsection shall not apply to a seller who is a licensed New Jersey motor vehicle dealer.

     c.     A seller who has sold and delivered possession of a used motor vehicle to a purchaser shall not be subject to criminal or civil liability arising out of the operation or use of the used motor vehicle, including parking offenses, if the seller has: (1) executed and delivered to the purchaser an assignment of a certificate of ownership pursuant to subsection a. of this section; and (2) provided notification of the sale to the commission pursuant to subsection b. of this section. 

     The provisions of this subsection shall not apply to a seller who is a licensed New Jersey motor vehicle dealer.

(cf:  P.L.2007, c.335, s.23)

 

     2.    The Chief Administrator of the New Jersey Motor Vehicle Commission shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as are necessary to implement this act.

 

     3.    This act shall take effect on the first day of the seventh month after enactment, but the chief administrator may take any administrative action in advance of the effective date as may be necessary.

 

 

STATEMENT

 

     This bill requires the seller of a used motor vehicle to notify the New Jersey Motor Vehicle Commission (MVC) of the sale of a used motor vehicle, within five working days of the sale.  The notification is required to include the date of the sale, the name and address of the seller and the purchaser, and a description of the used motor vehicle. 

     In addition, the bill provides that a seller who has sold and delivered possession of a used motor vehicle to a purchaser is not subject to criminal or civil liability arising out of the operation or use of the used motor vehicle, including parking offenses, if the seller has executed and delivered an assignment of a certificate of ownership to the purchaser and has provided notification of the sale to the MVC.

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