The bill amends New Jersey's motor vehicle laws to introduce a new license designated with the letter "M" for motor vehicle franchisors, allowing them to sell, lease, or assign vehicles to their employees. It defines "motor vehicle franchisor" as entities involved in manufacturing, assembling, or distributing new motor vehicles and requires proof of employment to be maintained for a minimum of four years for these transactions. Importantly, the bill clarifies that these transactions do not permit retail sales to the general public. Additionally, it specifies that franchisors and leasing dealers not engaged in buying or selling vehicles are exempt from maintaining a physical location for servicing or displaying vehicles.

The bill also outlines the licensing process, including fees and conditions for applicants, and emphasizes compliance with regulations set by the Chief Administrator of the New Jersey Motor Vehicle Commission. It further clarifies that leasing dealers 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 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 this provision.