The bill amends New Jersey's motor vehicle laws to establish a new licensing framework for motor vehicle franchisors, defined as entities engaged in the manufacturing, assembling, or distributing of new vehicles, 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, provided they maintain proof of employment for each transaction. Importantly, this license does not permit retail sales to the general public and requires that records of transactions be kept for four years.

Additionally, the bill clarifies the status of leasing dealers, stating that those who only engage in leasing activities are not considered to be in the business of buying or selling vehicles unless they sell to consumers other than the lessee at the end of a lease, in which case they must obtain a used car dealer license. The legislation also allows franchisors to use standard issue license plates for vehicles sold or leased to employees or for promotional purposes, with a limit of 50 vehicles eligible for this provision. Furthermore, franchisors not involved in buying or selling vehicles are exempt from the requirement to maintain a physical place of business for servicing or displaying vehicles.