Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
Co-Sponsored by:
Senators Amato, Singer, Singleton, Holzapfel, Polistina, Turner, Diegnan, Pennacchio and Ruiz
SYNOPSIS
Establishes Motor Vehicle Open Recall Notice and Fair Compensation Act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning motor vehicle open recalls and motor vehicle franchises, supplementing P.L.1971, c.356 (C.56:10-1 et seq.), and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the Motor Vehicle Open Recall Notice and Fair Compensation Act.
2. (New section) As used in sections 2 through 5 of P.L. , c. (C. ):
Chief administrator means the Chief Administrator of the New Jersey Motor Vehicle Commission.
Commission means the New Jersey Motor Vehicle Commission established pursuant to section 4 of P.L.2003, c.13 (C.39:2A-4).
Dealer means a person who is actively engaged in the retail business of buying, selling, or exchanging new or used motor vehicles.
Motor vehicle franchisee means the same as the term is defined in section 1 of P.L.1977, c.84 (C.56:10-13).
Motor vehicle franchisor means the same as the term is defined in section 1 of P.L.1977, c.84 (C.56:10-13).
New motor vehicle means a new motor vehicle, as that term is defined in section 1 of P.L.1977, c.84 (C.56:10-13), that is subject to an open recall, or has been recalled, in accordance with federal law.
Open recall means a safety or emissions recall on a specific vehicle that has not been corrected or addressed.
Retail does not include wholesale sales, sales between dealers, or sales to owners or operators of motor vehicle junk businesses or motor vehicle junk yards, as those terms are defined in R.S.39:11-2, or any other person engaged in the business of dismantling, destroying, or recycling motor vehicles.
Time of sale means the period of time when the buyer executes a retail order form for the purchase, or lease agreement for the lease, of a used motor vehicle.
Used motor vehicle means a used motor vehicle, as that term is defined in R.S.39:10-2.
3. (New section) a. A motor vehicle franchisee or dealer shall not conduct a retail sale of a used motor vehicle without first contacting, or accessing information provided through the Internet website of, the National Highway Traffic Safety Administration, or a subsequently established similar official source of information, to determine whether there are any open recalls on the motor vehicle offered for retail sale. If an open recall is discovered, the motor vehicle franchisee or dealer shall inform a prospective purchaser about the recall and provide the prospective purchaser with a printed copy of the recall information, as published on the Internet website of the National Highway Traffic Safety Administration, or a subsequently established similar official source of information.
b. A motor vehicle franchisee or dealer shall not sell or otherwise transfer to a retail customer any used motor vehicle that is subject to a stop-sale notice, do-not-drive notice, or similar notice or designation issued by the National Highway Traffic Safety Administration, or its successor.
c. There shall be an irrebuttable presumption that a motor vehicle franchisee or dealer had no knowledge of the existence of an open recall, stop-sale notice, do-not-drive notice, or similar notice or designation for a used motor vehicle if, at the time of sale:
(1) the motor vehicle franchisee or dealer accessed the Internet website of the National Highway Traffic Safety Administration on open recalls, or a subsequently established similar official source of information; and
(2) a search by the motor vehicle franchisee or dealer using the specific vehicle identification number of the motor vehicle yielded no indication of an open recall, stop-sale notice, do-not-drive notice, or similar notice or designation for the used motor vehicle.
d. Nothing in this section shall be construed to:
(1) create any legal duty or liability upon a motor vehicle franchisee or dealer related to the accuracy, errors, or omissions of the Internet website of the National Highway Traffic Safety Administration on open recalls, or a subsequently established similar official source of information; or
(2) require a motor vehicle franchisee or dealer to provide a prospective purchaser with any recall information that may be added to the Internet website of the National Highway Traffic Safety Administration on open recalls, or subsequently established similar official source of information, after the motor vehicle franchisee or dealer has provided a printed copy of the recall information as it appeared at the time it was provided to the prospective purchaser of the used motor vehicle at the time of sale.
4. (New section) a. Any motor vehicle franchisor or dealer offering motor vehicles for sale in this State shall provide a list to the Chief Administrator of the New Jersey Motor Vehicle Commission of motor vehicles registered in this State that are subject to an open recall for which the necessary repairs remain uncompleted for a period of six or more months after the initial notice of recall issued by the manufacturer pursuant federal law. In addition to any other information that the chief administrator may deem appropriate, the list shall identify each motor vehicle by year, make, model, and vehicle identification number. Any motor vehicle franchisor or dealer that is required to submit a list pursuant to this subsection shall provide an updated list to the chief administrator every 180 days after the submission of the initial list pursuant to this subsection.
b. Upon receipt of an initial or updated list pursuant to subsection a. of this section, the chief administrator shall, within 30 days, direct a motor vehicle franchisor or dealer to send out a notice on official letterhead of the commission at the motor vehicle franchisor or dealers expense, to all registered owners of the listed motor vehicles. The notice shall read as follows:
. (date)
(registered owners name)
(registered owners address)
THERE IS AN OPEN RECALL ON YOUR VEHICLE:
YOUR IMMEDIATE ACTION IS REQUIRED!
Dear (owners name):
This notification concerns a motor vehicle registered in your name in the State of New Jersey, a (year, make, model), vehicle identification number