LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 5854
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 11, 2025
SUMMARY
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Synopsis: |
Allows certain motor vehicle franchisors to sell, lease, or assign vehicles to employees. |
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Type of Impact: |
No fiscal impact. |
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Agencies Affected: |
No impacted State agencies. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
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State Finances No fiscal impact |
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· The Office of Legislative Services (OLS) concludes that this bill will result in no fiscal impact.
· Notably, the recommended amendments remove the requirement for the New Jersey Motor Vehicle Commission to create a new motor vehicle designation for the franchisee assigned vehicles.
BILL DESCRIPTION
This bill clarifies that franchisors may lease, assign or lend vehicles for employee use or promotional purposes. Additionally, franchisors may operate up to 50 such vehicles using standard New Jersey license plates. This bill also permits franchisors headquartered in the State to perform service on these assigned vehicles without being considered retail service providers and exempts them from certain facility requirements otherwise imposed on motor vehicle servicing businesses.
FISCAL ANALYSIS
EXECUTIVE BRANCH
Received conditional veto with the Governor’s recommendations.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that this bill will result in no fiscal impact. Notably, the recommended amendments remove the requirement for the commission to create a new motor vehicle designation for the franchisee assigned vehicles.
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Section: |
Authorities, Utilities, Transportation and Communications |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).