The bill amends New Jersey's motor vehicle laws to establish a new licensing framework for motor vehicle franchisors, defined as entities involved in the manufacturing, assembling, or distributing of new vehicles, typically producing at least ten vehicles annually. It introduces a new license designated with the letter "M," which allows franchisors operating a primary business in New Jersey to sell, lease, or assign vehicles to their employees or those of affiliated entities. This license prohibits retail sales to the general public and mandates that proof of employment be retained for each transaction for a minimum of four years. Additionally, the bill clarifies that franchisors and leasing dealers not engaged in buying or selling vehicles are exempt from the requirement to maintain a physical place of business for servicing or displaying vehicles.

The legislation also modifies existing definitions and requirements related to motor vehicle dealers, including the licensing process and operational standards. It specifies that leasing dealers who only buy and sell vehicles at the end of a lease are not considered to be in the business of buying or selling vehicles unless they sell to consumers other than the lessee, in which case they must obtain a used car dealer license. Furthermore, the bill allows franchisors to use regular license plates for vehicles sold or leased to employees or for promotional purposes, with a limit of 50 vehicles eligible for such plates. Overall, the bill aims to streamline operations for motor vehicle franchisors while ensuring compliance with state regulations.