SENATE TRANSPORTATION COMMITTEE

STATEMENT TO

SENATE, No. 1423

STATE OF NEW JERSEY

DATED:  FEBRUARY 5, 2026

      The Senate Transportation Committee reports favorably Senate Bill No. 1423.

As reported, this bill provides that an applicant of a new motor vehicle dealer license is required to establish a place of business to be used principally for 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.

     The bill permits each applicant for a new motor vehicle dealer license (applicant) to utilize space attached to the applicant’s established place of business or a separate space on the same property as the established place of business or to establish an off-site facility within the relevant market area of the applicant’s established place of business for the servicing of motor vehicles. 

     Additionally, under the bill, the Chief Administrator of the New Jersey Motor Vehicle Commission (chief administrator) is permitted to issue a provisional new motor vehicle dealer license upon the applicant’s substantial completion of the application and is not to withhold the provisional license pending the receipt of a franchise agreement or the installation of a permanent sign that has been ordered, nor charge an additional fee for the provisional license.  The provisional license is to be valid for a period of 90 days, which period may be extended by an additional 90 days at the discretion of the chief administrator. 

     The bill amends current law to change the definition of “new motor vehicle dealer” to mean, in part, an authorized dealer of a motor vehicle franchisor of a new motor vehicle who has an established place of business.  Under current law, the term means, in part, the agent, distributor, or authorized dealer of the manufacturer of the new motor vehicle who has an established place of business.  The bill also amends current law to include a definition of “motor vehicle franchisor.”

     Finally, the provisions of the bill are to take effect immediately and are to apply to all initial and renewal new motor vehicle dealer license applications and to all initial and renewal new motor vehicle dealer license applications that are currently subject to a pending administrative proceeding before the chief administrator or the Office of Administrative Law or on appeal thereof. 

      This bill was pre-filed for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.