Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that expands requirements for car dealerships to track and inform customers of recalls prior to sale in New Jersey.

Highlights:

• Requires motor vehicle franchisees or dealers to inform consumers of any open recalls on a vehicle offered for retail sale (Sec. 3).

• Prohibits motor vehicle franchisees or dealers from selling any used vehicle that is subject to a stop-sale notice, do-not-drive notice, or any similar notice to a consumer (Sec. 3).

• Requires motor vehicle franchisees or dealers to provide the Department of Motor Vehicles with a list of motor vehicles subject to open recall, and then inform all registered owners of the listed motor vehicles (Sec. 4).

• Prohibits motor vehicle franchisor from failing to compensate franchisees for costs incurred in complying with requirements imposed by the franchisor (Sec. 7).

• Specifies that reasonable costs of a motor vehicle franchisee, with respect to a new or used motor vehicle that is of the same make as the motor vehicle franchisor, will be 1.75 percent of the value of the motor vehicle per month while a part or remedy to a motor vehicle notice is unavailable (Sec. 7).

• Specifies that franchisors of a motor vehicle may compensate motor vehicle franchisees under a national recall compensation program (Sec. 7).

• Prohibits motor vehicle franchisors from penalizing franchisees who disclose information related to the safety or operability of a motor vehicle to customers (Sec. 7).

• Prohibits franchisors from reducing the compensation owed to motor vehicle franchisees arising from a franchisee's submission of a claim for reimbursement for a vehicle subject to recall (Sec. 7).

• Requires franchisors to provide adequate compensation to franchisees for repairs (Sec. 8).

Full Bill Text