ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 4050

STATE OF NEW JERSEY

DATED:  JUNE 8, 2026

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 4050 (1R).

      As 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.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that this bill will result in an indeterminate increase in annual expenditures for the New Jersey Motor Vehicle Commission associated with the revision and oversight of the provisional new motor vehicle dealer license.

      The commission will incur initial and ongoing costs to revise dealer licensing forms, review provisional license applications, and track the 90-day provisional license period and any extension if applicable.  Because the bill uses the existing new motor vehicle dealer licensing framework, the OLS anticipates that the increased costs associated with implementing the provisions of this bill may be absorbed within existing commission resources.

      The bill may also result in an indeterminate change in State revenues if the provisional license process allows more applicants to obtain full new motor vehicle dealer licenses or obtain them sooner than under current law.