S1031

An Act concerning documentary service fees, amending R.S.39:10-19, and supplementing Title 56 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used in this section:

“Motor vehicle dealer” means a person who, in the ordinary course of business, is engaged in buying, selling, or exchanging motor vehicles at retail or who qualifies as a leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61), and is licensed pursuant to R.S.39:10-19.

“Documentary service fee" means any monies or other thing of value that a motor vehicle dealer accepts from a consumer in exchange for the performance of certain documentary services, which include, but are not limited to, the preparation and processing of documents in connection with the transfer of license plates, registration, or title, and the preparation and processing of other documents relating to the sale of a motor vehicle to a consumer.

2. (New section) a. The Attorney General shall maintain a database of information concerning which motor vehicle dealers in the State charge documentary service fees and the amounts of the fees charged for each dealer. The information contained in the database shall be published and updated as necessary on the Internet websites of the Department of Law and Public Safety and the Division of Consumer Affairs in the Department of Law and Public Safety.

b. A motor vehicle dealer shall provide the Attorney General with a report including whether the motor vehicle dealer charges documentary service fees and the amounts charged. Any changes to the amount charged for a documentary service fee shall be reported to the Attorney General within 30 days.

3. R.S.39:10-19 is amended to read as follows:

39:10-19. No person shall engage in the business of buying, selling or dealing in motor vehicles in this State, nor shall a person engage in activity that would qualify the person as a leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61), unless: a. the person is a licensed real estate broker acting as an agent or broker in the sale of mobile homes without their own motor power other than recreation vehicles as defined in section 3 of P.L.1990, c.103 (C.39:3-10.11), or manufactured homes as defined in section 3 of P.L.1983, c.400 (C.54:4-1.4); or b. the person is authorized to do so under the provisions of this chapter and P.L.1985, c.361 (C.56:10-26 et seq.).

The chief administrator may, upon application in such form as the chief administrator prescribes, license any proper person as such dealer or leasing dealer. A licensed real estate broker shall be entitled to act as an agent or broker in the sale of a mobile or manufactured home as defined in subsection a. of this section without obtaining a license from the chief administrator. For the purposes of this chapter, a "licensed real estate broker" means a real estate broker licensed by the New Jersey Real Estate Commission pursuant to the provisions of chapter 15 of Title 45 of the Revised Statutes. Any sale or transfer of a mobile or manufactured home, in which a licensed real estate broker acts as a broker or agent pursuant to this section, which sale or transfer is subject to any other requirements of R.S.39:10-1 et seq., shall comply with all of those requirements.

No person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, shall be eligible to receive a license. For the purposes of this section, each applicant for a license shall submit to the chief administrator the applicant's name, address, fingerprints, and written consent for a criminal history record background check to be performed. The chief administrator is hereby authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations, for purposes of facilitating determinations concerning licensure eligibility. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the chief administrator in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.

Each applicant for a license shall at the time such license is issued have established and maintained, or by that application shall agree to establish and maintain, within 90 days after the issuance thereof, a place of business consisting of a permanent building not less than 1,000 square feet in floor space located in the State of New Jersey to be used principally for the servicing and display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules and regulations made by the board governing the equipment, use, and operation of motor vehicles within the State. However, a leasing dealer, who is not engaged in the business of buying, selling, or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business.

A license fee of $200 shall be paid by an applicant upon the applicant's initial application for a license. The chief administrator may renew an applicant's license upon application for renewal on a form prescribed by the chief administrator and accompanied by a renewal fee of $200. A renewal application shall include a certification that the applicant is in compliance with the requirement set forth in sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) concerning documentary service fees. Every license shall expire 24 months from the date on which it is issued. The chief administrator may, at the chief administrator's discretion and for good cause shown, extend an applicant's license for an additional period not to exceed 12 months from the date on which it is scheduled to expire. The chief administrator may, at the chief administrator's discretion and for good cause shown, issue a license which shall expire on a date fixed by the chief administrator. The fee for licenses with an expiration date fixed by the chief administrator shall be fixed by the chief administrator in an amount proportionately less or greater than the fee established herein.

For the purposes of this section, a leasing dealer or an assignee of a leasing dealer whose leasing activities are limited to buying motor vehicles for the purpose of leasing them and selling motor vehicles at the termination of a lease shall not be deemed to be engaged in the business of buying, selling, or dealing in motor vehicles in this State.

(cf: P.L.2015, c.24, s.1)

4. This act shall take effect on the first day of the fourth month next following the date of enactment.

STATEMENT

This bill requires the Attorney General to maintain a database of information concerning documentary service fees charged by motor vehicle dealers in this State and to publish the information on certain State government websites.

Under the bill, the Attorney General would be required to maintain a database of information concerning which motor vehicle dealers in this State charge documentary service fees and the amounts of the fees charged for each dealer. The bill provides that the Attorney General would be required to publish and update the information as necessary on the Internet websites of the Department of Law and Public Safety and the Division of Consumer Affairs in the Department of Law and Public Safety.

The bill further requires motor vehicle dealers to report to the Attorney General whether they charge documentary service fees and the amounts charged. Any changes to the fee would be required to be reported to the Attorney General within 30 days. The bill provides that as part of the license renewal application process with the Motor Vehicle Commission, motor vehicle dealers would be required to include a certification of compliance with the requirements of this bill.

The bill defines a “documentary services fee” as any monies or other thing of value which a motor vehicle dealer accepts from a consumer in exchange for the performance of certain documentary services which include, but are not limited to, the preparation and processing of documents in connection with the transfer of license plates, registration, or title, and the preparation and processing of other documents relating to the sale of a motor vehicle to a consumer.