A4992

An Act concerning franchise agreements and amending and supplementing P.L.1985, c.361 (C.56:10-26 et al.).

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

1. Section 1 of P.L.1985, c.361 (C.56:10-26) is amended to read as follows:

1. As used in this act:

"All-terrain vehicle" means a motor vehicle, designed and manufactured primarily for off-road use, of a type possessing between three and six non-highway tires. For purposes of this act, a utility terrain vehicle shall be considered an all-terrain vehicle.

"Consumer" means the purchaser, other than for resale, of a motor vehicle.

"Franchise" means a written arrangement for a definite or indefinite period in which a motor vehicle franchisor grants a right or license to use a trade name, trademark, service mark or related characteristics and in which there is a community of interest in the marketing of new motor vehicles at retail, by lease, agreement or otherwise.

"Motor vehicle" means and includes all vehicles propelled otherwise than by muscular power, and motorcycles, all-terrain vehicles, off-road motorcycles, personal watercraft, recreational boats including pontoons, trailers and tractors, excepting: (1) those vehicles as run only upon rails or tracks, motorized bicycles, and buses, including school buses; and (2) those motor vehicles not designed or used primarily for the transportation of persons or property and only incidentally operated or moved over a highway, except as specified in P.L. , c. (C. ) (pending before the Legislature as this bill).

"Motor vehicle franchisee" means a person to whom a franchise is granted by a motor vehicle franchisor and who or which holds a current valid motor vehicle dealer's license issued pursuant to R.S.39:10-19 or who is engaged in the retail sale of all-terrain vehicles, utility terrain vehicles, off-road motorcycles personal watercraft, or recreational boats pursuant to a franchise agreement with a motor vehicle franchisor and has an established place of business.

"Motor vehicle franchisor" means a person engaged in the business of manufacturing, assembling or distributing new motor vehicles, or importing into the United States new motor vehicles manufactured or assembled in a foreign country, who will under normal business conditions during the year, manufacture, assemble, distribute or import at least 10 new motor vehicles.

"Motorcycle" includes motorcycles, autocycles, motor bikes, bicycles with motor attached and all motor-operated vehicles of the bicycle or tricycle type, except motorized bicycles, low-speed electric bicycles, and low-speed electric scooters, whether the motive power be a part thereof or attached thereto and having a saddle or seat with driver sitting astride or upon it or a platform on which the driver stands and including those vehicles which are not street-legal and are marketed as off-road motorcycles.

"New motor vehicle" means a newly manufactured motor vehicle.

"Person" means a natural person, corporation, partnership, trust, or other entity and, in the case of an entity, it shall include any other entity which has a majority interest in that entity or effectively controls that other entity as well as the individual officers, directors, and other persons in active control of the activities of each such entity.

"Place of business" means a fixed geographical location at which the motor vehicle franchisor's motor vehicles, personal watercraft, or recreational boats, as defined in subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), are offered for sale and sold, but shall not include an office, a warehouse, a place of storage, a residence or a vehicle.

“Utility terrain vehicle” means a multi-axle vehicle which is similar in design to an all-terrain vehicle but is operated by foot pedals and offers side-by-side seating configurations and additional commercial and recreational features.

"Zero emission vehicle" means a motor vehicle certified as a zero emission vehicle pursuant to the California Air Resources Board zero emission vehicle standards for the applicable model year, but shall not include an advanced technology partial zero emission vehicle, a partial zero emission vehicle, or a hybrid electric vehicle.

(cf: P.L.2015, c.24, s.3)

2. (New section) a. As used in this section:

“Personal watercraft” means a personal watercraft as defined by section 1 of P.L.1993, c.299 (C:12:7-62).

“Recreational boat” means a vessel that meets the definition of “power vessel” in section 1 of P.L.1993, c.299 (C.12-7-71) and “recreational vessel” in 46 U.S.C. s.2101.

b. The sale of personal watercraft and recreational boats shall be subject to the provisions of P.L1985, c.361 (C.56:10-26 et al.).

3. This act shall take effect seven months after enactment, but the Motor Vehicle Commission shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.

STATEMENT

The bill expands the Motor Vehicle Franchise Act to include retailers of recreational equipment such as all-terrain vehicles, personal watercraft (such as jet skis), and recreational boats (such as pontoons). Currently, these vehicles and watercraft are sold through independent dealers who may sell multiple brands through a sales agreement with either that manufacturer or a wholesale distributor. The bill requires formal franchise agreements relating to the retail sales of these vehicles and vessels and business practices that comply with the Motor Vehicle Franchise Act.