New Jersey Senate Bill S1727

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

"Used Motor Vehicle Dealer Licensing Act."

Impact

The legislation aims to enhance public safety and welfare by identifying qualified individuals authorized to engage in the business of buying, selling, or dealing in used motor vehicles. The bill stipulates strict eligibility criteria for prospective dealers, including age restrictions, proof of residency, and a mandatory criminal history record background check. This move is intended to prevent dishonest or fraudulent activities within the used motor vehicle market, thereby promoting consumer confidence.

Summary

Senate Bill S1727, known as the 'Used Motor Vehicle Dealer Licensing Act,' proposes the establishment of a regulatory framework for the licensure of used motor vehicle dealers in New Jersey. This bill calls for the creation of an eight-member State Board of Used Motor Vehicle Dealers that will oversee the licensing process. The board will comprise licensed dealers and public members charged with setting standards for licensure and ensuring compliance with state regulations.

Contention

Key points of contention surrounding S1727 include the transitional process for current dealers licensed under existing laws, as the bill stipulates that the New Jersey Motor Vehicle Commission will no longer handle dealer licenses after the enactment date. Existing dealers may feel apprehensive about new stringent licensing requirements, including the criminal background checks and the need to have an established physical business location. Additionally, the legislation may spark debate regarding its potential impact on the accessibility of used car market for smaller, independent dealers.