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A4992
ASSEMBLY, No. 4992
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 7, 2026
Sponsored by:
Assemblyman� ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
���� Requires franchise agreement for sale of all-terrain
vehicles and certain watercraft.
CURRENT VERSION OF TEXT
���� As introduced.
��
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.