N.J. Admin. Code § 13:21-15.2

Current through Register Vol. 56, No. 19, October 7, 2024

Section 13:21-15.2 - Application

(a) An application for an initial or renewal of a new motor vehicle dealer, a used motor vehicle dealer, or leasing dealer license required to be obtained pursuant to the provisions at N.J.S.A. 39:10-19 shall be verified by an oath or affirmation of the applicant and shall be on forms prescribed by the Commission and furnished to such applicants.

(b) An initial applicant, if a natural person, shall undergo a criminal background check by submitting his or her fingerprints in the manner prescribed in the application.

1. An applicant for renewal who first received a license pursuant to this subchapter prior to June 1, 2002 shall submit his or her fingerprints in the manner prescribed in the application with the first renewal application submitted after March 6, 2006.

(c) The initial applicant shall undergo a criminal background check by submitting the fingerprints in the manner prescribed in the application of each officer, director, person with a controlling interest, or partner.

1. An applicant for renewal, if a business entity that first received a license pursuant to this subchapter prior to June 1, 2002, is other than a natural person, shall submit the fingerprints of each officer, director, or person with a controlling interest or partner in the manner prescribed in the application with the first renewal application submitted after March 6, 2006.

(d) The applicant for an initial license, or at least one officer, director, or person with a controlling interest, if the applicant is other than a natural person, shall attend a prelicensure interview as scheduled by the Commission, at which time the applicant will be examined as to his or her knowledge regarding the business of buying, selling, or dealing in motor vehicles in New Jersey; in the event that the applicant cannot demonstrate adequate knowledge thereof, the Commission may require the applicant to attend a training program.

(e) At the time of initial application, the applicant shall submit a copy of the Federal notice of his or her tax identification number and his or her New Jersey sales tax certificate of authority.

(f) At the time of initial application, the applicant shall submit a list of all proposed authorized signatories to be listed on the license application and the licensee shall notify the Commission within 10 days of any change in that list on forms prescribed by the Commission; every application shall include an affidavit by each authorized signatory that he or she has neither been convicted of a crime arising out of fraud or misrepresentation nor previously held a license issued by the Chief Administrator or the Commission, which license was revoked and not reissued. Upon request from the Chief Administrator, the licensee shall produce documentation demonstrating that each authorized signatory meets the definition of authorized signatory.

(g) All applicants shall disclose whether or not they intend to trade or to do business under a name other than the name in which the application is filed. Subsequent to licensing, a dealer shall be required to report to the Commission any additional business name or changes in existing names under which the dealer intends to do business.

(h) Photographs and plans that clearly depict the exterior and interior of the proposed place of business, including proposed signage, from which location a new motor vehicle or used motor vehicle dealer intends to do business, shall be submitted with the initial application for a dealer license along with proof that the proposed place of business complies with all zoning, planning, use, and environmental laws, rules, and ordinances and that all activities permitted by the license will be permitted therein. In no event will an application for a license be approved until the proposed place of business is suitable for use as a dealership at the time of the initial compliance inspection by the Commission.

(i) The applicant shall submit a certified copy of the deed to the proposed place of business in the name of the applicant or, if the applicant does not own the proposed place of business, a certified copy of the contract for purchase of the proposed place of business enforceable by the applicant or a certified copy of a lease or an enforceable contract to lease the proposed place of business for a term of at least one year in favor of the applicant.

(j) Unless the business hours of the applicant will be no fewer than 48 hours per week between the hours of 9:00 A.M. and 5:00 P.M. Monday through Saturday, the applicant shall submit with his or her initial application a schedule of business hours, of which no fewer than 20 hours per week shall occur between the hours of 9:00 A.M. and 5:00 P.M. Monday through Saturday.

(k) The applicant shall submit current color passport-type photographs of the applicant, if an individual, or of all partners, members, officers, directors, or shareholders with controlling interests, if a partnership, limited liability company, or corporation, respectively, and of all authorized signatories whose names are submitted pursuant to (f) above.

(l) Prior to licensure, the applicant shall submit a certificate of insurance demonstrating liability insurance covering all vehicles owned or operated by the applicant, at his or her request or with his or her consent. This insurance shall be in the amount of $ 100,000 per person per incident up to $ 250,000 per incident for bodily injury or death, $ 25,000 per incident for property damage, or $ 250,000 combined bodily injury and property damage per incident. This insurance shall be renewed, as necessary, to ensure that it remains valid for the entire prospective license term.

(m) At the time of initial application, an applicant who intends to sell new motor vehicles shall submit a copy of the applicant's franchise agreement(s) with any motor vehicle franchisor, as defined in N.J.S.A. 56:10-26. This requirement shall not apply to vehicles or franchisors specifically exempt from N.J.S.A. 56:10-26 through 31.

1. An applicant for renewal shall submit a copy of the applicant's franchise agreement(s) with any motor vehicle franchisor, as defined in N.J.S.A. 56:10-26. This requirement shall not apply to vehicles or franchisors specifically exempt from N.J.S.A. 56:10-26 through 31.

(n) All licensees must notify the Commission immediately, in writing, if there is a change in any officer, director, or person with a controlling interest in or of the licensed dealer. Notification shall include the name and residence address of the new officer, director, or person with a controlling interest and the officer, director, or person with a controlling interest who has been succeeded. Notification must be on forms prescribed by the Commission and sent to the Commission at the address shown on the forms.

1. A new license application must be submitted and approved whenever there is a change in ownership of the licensed dealer by adding a partner, removing a partner, forming a new partnership, changing the corporate structure, or the sale or transfer of more than 20 percent ownership interest. Applicants, pursuant to this section, must submit an application to the Commission for approval within 30 days of any change in ownership. Failure to apply for a new dealer license upon any change of ownership shall result in the immediate suspension of the existing dealer license pursuant to N.J.A.C. 13:21-15.15 and all property of the Commission must be immediately surrendered to the Commission.

(o) Misrepresentation of any facts or failure to fulfill any of the commitments made in the license application, including, but not limited to, commitments concerning the establishment of a place of business, shall be grounds for denial, suspension, or revocation of the license.

N.J. Admin. Code § 13:21-15.2

Amended by 49 N.J.R. 1443(b), effective 6/5/2017

Amended by 56 N.J.R. 1032(a), effective 6/3/2024