ASSEMBLY TRANSPORTATION AND INDEPENDENT AUTHORITIES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4008

with committee amendments

STATE OF NEW JERSEY

DATED:  OCTOBER 21, 2024

      The Assembly Transportation and Independent Authorities Committee reports favorably and with committee amendments Assembly Bill No. 4008. 

      As amended and reported, this bill requires an official motor vehicle inspection facility or licensed private inspection facility to provide written notice to the owner of a motor vehicle being inspected of all open recalls applicable to the motor vehicle at the time the motor vehicle is inspected.  The recall notice is required to describe each open recall and state that each open recall may be repaired by certain motor vehicle dealers at no cost to the owner, except in certain circumstances.  The bill also requires the New Jersey Motor Vehicle Commission (commission) to provide written notice to the owner of a motor vehicle, at the time a vehicle is registered or upon mailing a motor vehicle’s registration renewal notice, of all open recalls applicable to the motor vehicle.  The recall notice is required to describe each open recall and state that each open recall may be repaired by certain motor vehicle dealers at no cost to the owner, except in certain circumstances. 

      Under the bill, motor vehicle manufacturers that conduct business in the State are required to assist the commission in applying for any funding, which may include but is not limited to federal grants, that may be available to the commission to cover the cost to implement the provisions of the bill. 

      In the event the funding sources acquired by the commission do not cover the costs to implement the provisions of the bill, the bill directs the Chief Administrator of the New Jersey Motor Vehicle Commission (chief administrator) to require each motor vehicle manufacturer that conducts business in the State to pay an annual fee to the commission, except that the total collections of the fee are not to exceed the actual costs incurred by the commission to implement the provisions of the bill.  Specifically, the bill requires the chief administrator to determine the amount of the fee based on documentation of the actual costs incurred by the commission to implement the provisions of the bill, which documentation would be published annually on the commission’s Internet website and provided directly to each motor vehicle manufacturer that conducts business in the State.  The bill clarifies that the commission is not required to implement the bill’s provisions until the commission has received sufficient funding to cover the costs to implement the bill. 

      Nothing in the bill alters the liability under common law of any motor vehicle manufacturer or motor vehicle dealer approved by a manufacturer to repair an open recall.  The bill limits the liability of the chief administrator and employees of the commission, and private inspection facility owners and employees for acts or omissions related to open recall notices provided pursuant to the provisions of the bill, except in cases of gross negligence. 

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) require motor vehicle manufacturers that conduct business in the State to assist the commission in applying for funding, which may include but is not limited to federal grants, to cover the costs to implement the provisions of the bill;

      (2) if the funding sources do not cover the costs to implement the provisions of the bill, require motor vehicle manufacturers that conduct business in the State to pay an annual fee to the commission, except that the total collections of the fee are not to exceed the actual costs to implement the bill’s provisions;

      (3) require the chief administrator to determine the amount of the annual fee based on documentation of the actual costs incurred by the commission to implement the bill’s provisions, which documentation would also be published annually on the commission’s Internet website and provided directly to each motor vehicle manufacturer that conducts business in the State;

      (4) clarify that the commission is not required to implement the bill’s provisions until the commission has received sufficient funding to cover the costs to implement the provisions of the bill; and

      (5) make technical changes to the bill, which include updating the bill’s synopsis.