ASSEMBLY TRANSPORTATION AND INDEPENDENT AUTHORITIES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4050

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 1, 2026

      The Assembly Transportation and Independent Authorities Committee reports favorably and with committee amendments Assembly Bill No. 4050.

      As amended and reported, this bill requires an applicant for a new motor vehicle dealer license (applicant) to establish a place of business to be used principally for either the servicing or display of motor vehicles.  Under current law, applicants are required to establish a place of business to be used principally for both the servicing and display of motor vehicles.

     Under the bill, for the servicing of motor vehicles, applicants are permitted to utilize space attached to the applicant’s established place of business, to utilize a separate space on the same property as the applicant’s established place of business, or to establish an off-site facility within the relevant market area of the applicant’s established place of business within the State.

     The bill also permits the Chief Administrator of the New Jersey Motor Vehicle Commission (chief administrator) to issue a provisional new motor vehicle dealer license upon the applicant’s substantial completion of the application.  The bill provides that an application is to be deemed substantially complete if the applicant has submitted:  all required documents, with certain exceptions outlined in the bill; a certification certifying that the applicant has ordered and is in the process of obtaining all outstanding items for a provisional license; and evidence of site control with the exception that an applicant may submit a fully-executed lease agreement after closing.

     Finally, the bill prohibits the chief administrator from charging an additional fee for the provisional license.  The provisional license is to be valid for a period of 90 days, which may be extended by an additional 90 days at the chief administrator’s discretion.

COMMITTEE AMENDMENTS:

      The committee amended the bill to: 

(1) revise the definition of “new motor vehicle dealer”;

(2) remove the definition of “motor vehicle franchisor”;

(3) clarify that an applicant’s off-site facility is required to be located in the State;

(4) clarify that an application for a provisional new motor vehicle dealer license is to be deemed substantially complete when the applicant has submitted all required documents, except for a fully-executed franchise agreement, a fully-executed lease agreement, any required closing letters, the New Jersey Motor Vehicle Commission’s inspection report, and any permanent signage.  As introduced, the chief administrator was to issue a provisional license if an applicant was in the process of meeting certain requirements, including, but not limited to, obtaining a franchise agreement or installing a permanent sign that had been ordered;

(5) clarify that an applicant is to submit a certification along with the application certifying that the applicant has ordered and is in the process of obtaining all outstanding items for the issuance of a provisional license;

(6) provide that evidence of site control is to be submitted with the application but allow for the submission of a fully-executed lease agreement after closing; and

(7) make technical changes.