Bill Text: NJ A5461 | 2018-2019 | Regular Session | Introduced
Bill Title: Concerns motor vehicle subscription services.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2019-06-10 - Reported as an Assembly Committee Substitute and Referred to Assembly Appropriations Committee [A5461 Detail]
Download: New_Jersey-2018-A5461-Introduced.html
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
SYNOPSIS
Concerns motor vehicle subscription services.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning licensed motor vehicle dealers and amending R.S.39:10-19.
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] A person shall not engage in the business of buying, selling, or dealing in motor vehicles in this State, [nor] and shall [a person] not 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.). A motor vehicle dealer, licensed pursuant to the provisions of this chapter and P.L.1985, c.361 (C.56:10-26 et seq.), may offer a consumer the option to participate in a motor vehicle subscription service. The motor vehicle subscription service offered by the motor vehicle dealer may be provided to the consumer independent of any similar subscription service offered by a motor vehicle manufacturer.
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] A 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 not be eligible to
receive a license. 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 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. However, 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.
As used in this section, "motor vehicle subscription service" means an agreement between a motor vehicle dealer and a consumer that grants a consumer the right to use an agreed-upon number of motor vehicles for a specific period of time upon payment of a subscription fee.
(cf: P.L.2015, c.24, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill allows licensed motor vehicle dealers to offer motor vehicle subscription services to consumers.
A motor vehicle subscription service is an agreement between a consumer and a motor vehicle dealer that allows a consumer to subscribe to an agreed-upon number of motor vehicles that may be exchanged pursuant to the terms of the agreement. The subscription fee frequently includes the cost of insurance, registration, maintenance, and roadside assistance.
Under current law, a licensed motor vehicle dealer is not explicitly authorized to offer a motor vehicle subscription service to a consumer. This bill provides that a dealer may offer a consumer the option to participate in a motor vehicle subscription service. The bill states that the motor vehicle subscription service offered by a dealer may be offered to a consumer independent of any similar subscription service offered by a motor vehicle manufacturer. The bill defines a motor vehicle subscription service as an agreement between a motor vehicle dealer and a consumer that grants a consumer the right to use an agreed-upon number of motor vehicles for a specific period of time upon payment of a subscription fee.
