S 1423 New Jersey Senate · 2026-2027 Regular Session

Concerns facilities used by applicants for new motor vehicle dealer licenses.*

This bill establishes a temporary "provisional" license for new motor vehicle dealers in New Jersey, allowing them to operate while meeting full licensing requirements. It directly affects new dealers who are setting up their businesses, giving them a short-term license before they must comply with all standard rules (like maintaining an established business location and selling a minimum of four new vehicles annually). The key mechanism creates a new license category under existing law, enabling provisional operation while dealers fulfill requirements such as having proper documentation and business infrastructure. This change streamlines entry for new dealers without altering the core standards for full licensure.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 13, 2026 Last action Jun 30, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Introduced → Reprint · 5 edits

MODERATE

The First Reprint of S1423 removes the provisional license provision entirely, eliminates the new 'motor vehicle franchisor' definition, and simplifies the 'new motor vehicle dealer' definition back to referencing only an authorized dealer of the manufacturer. A new requirement is added that off-site servicing facilities must be located within New Jersey. The bill's scope narrows from both facility requirements and provisional licensing to just facility requirements for applicants.

Scope change

The bill's scope narrows significantly. It no longer creates a provisional licensing mechanism and no longer introduces the concept of a 'motor vehicle franchisor.' The remaining focus is on facility requirements (place of business, off-site servicing options) for applicants seeking new motor vehicle dealer licenses, with the added constraint that off-site facilities must be in-state.

REQUIREMENT

The entire provisional license provision (former subsection e) is deleted. Under the introduced version, the chief administrator would issue a provisional license upon substantial completion of an application, valid for 90 days with a possible 90-day extension, at no additional fee. This mechanism is no longer part of the bill.

A new requirement is added to subsection d(3): off-site servicing facilities must be located within the State of New Jersey. The introduced version only required them to be within the relevant market area.

DEFINITION

The definition of 'motor vehicle franchisor' (a person manufacturing, assembling, distributing, or importing at least 10 new motor vehicles per calendar year) is struck in its entirety.

The definition of 'new motor vehicle dealer' is simplified. The introduced version defined it as 'the agent, distributor, or an authorized dealer of a motor vehicle franchisor, as defined in this section, of a new motor vehicle.' The reprint removes 'agent, distributor, or' and the reference to 'motor vehicle franchisor,' reverting to 'an authorized dealer of the manufacturer of a new motor vehicle who has an established place of business.'

SCOPE

The synopsis is changed from 'Concerns facilities used by new motor vehicle dealer licenses; establishes provisional new motor vehicle dealer licenses' to 'Concerns facilities used by applicants for new motor vehicle dealer licenses,' reflecting the removal of the provisional licensing component.

Technical Review Of Prefiled Bill → Introduced · 8 edits · Jan 13, 2026

MODERATE

This bill relaxes requirements for new motor vehicle dealer licenses in New Jersey by changing the place-of-business requirement from servicing AND display to servicing OR display, permitting off-site servicing facilities, streamlining provisional licensing (90-day validity, no extra fee, cannot be withheld pending a franchise agreement or permanent sign), and redefining 'new motor vehicle dealer' in terms of a franchisor rather than a manufacturer. A new definition of 'motor vehicle franchisor' is added. The changes lower barriers for dealers seeking to open or relocate facilities.

REQUIREMENT

The place-of-business requirement for new motor vehicle dealer license applicants was changed from requiring space used principally for both servicing AND display of motor vehicles to requiring space used principally for servicing OR display. This is a significant relaxation that allows dealers to operate without a dedicated display area.

Applicants are now permitted to use one of three options for vehicle servicing: space attached to the place of business, a separate space on the same property, or an off-site facility within the relevant market area. The off-site option is new and gives dealers flexibility in how they handle service operations.

The Chief Administrator of the Motor Vehicle Commission can now issue a provisional license upon substantial completion of the application. The provisional license cannot be withheld pending receipt of a franchise agreement or installation of a permanent sign that has been ordered, and no additional fee may be charged. The provisional license is valid for 90 days, extendable by an additional 90 days at the administrator's discretion.

DEFINITION

The definition of 'new motor vehicle dealer' was changed from referring to 'the agent, distributor, or authorized dealer of the manufacturer' to 'an authorized dealer of a motor vehicle franchisor.' This shifts the legal relationship from manufacturer to franchisor, which is a distinct concept in auto industry law.

A new definition of 'motor vehicle franchisor' was added to the bill, supporting the redefined 'new motor vehicle dealer' term.

SCOPE

The bill takes effect immediately and applies to all initial and renewal new motor vehicle dealer license applications, including those currently in pending administrative proceedings before the Chief Administrator or the Office of Administrative Law or on appeal thereof.

TECHNICAL

Senator Anthony M. Bucco (District 25) was removed as a sponsor, along with co-sponsors Tiver and Corrado. The bill status changed from 'As reported by the Senate Transportation Committee with technical review' to 'Introduced Pending Technical Review by Legislative Counsel.'

Multiple instances of Oxford commas were removed throughout the text (e.g., 'selling, buying, or dealing' became 'selling, buying or dealing'). Several paragraphs had line breaks adjusted without changing substance.

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 5, 2026

Committee

Referred to Senate Budget and Appropriations Committee

upper

Jan 13, 2026

Introduced

Introduced in the Senate, Referred to Senate Transportation Committee

upper

2 primary · 2 co-sponsors