The bill amends New Jersey's motor vehicle laws to establish a new license designated with the letter "M" for motor vehicle franchisors, allowing them to sell, lease, or assign vehicles to their employees. It introduces the definition of "motor vehicle franchisor" and specifies that these entities must maintain proof of employment for a minimum of four years for such transactions. Importantly, the bill clarifies that these transactions do not permit retail sales to the general public. Additionally, it modifies existing definitions and requirements for motor vehicle dealers, including the removal of the requirement for leasing dealers and franchisors not engaged in buying or selling vehicles to maintain a physical location for servicing or displaying vehicles.

Furthermore, the bill outlines the licensing process, including fees and conditions for license renewal or extension. It specifies that leasing dealers who wish to sell vehicles to consumers other than the lessee at the end of a lease must obtain a used car dealer license. The legislation also 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.