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S 3309

Provides that where a senior citizen purchases real property after the taxable status date, such person shall be eligible for the enhanced STAR exemption

2025 Regular Session Introduced by Tony Palumbo

Requires MVC to notify owners about open recalls and creates a fair, time-based dealer compensation plan when recall parts aren’t available and vehicles face stop-sale notices.

REPORTED AND COMMITTED TO FINANCE
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WeVote Research Nonpartisan
Bill Summary · S 3309

Note: the materials you provided for S-3309 concern a motor vehicle “open recall” and franchise bill titled the “Motor Vehicle Open Recall Notice and Fair Compensation Act.” Your initial bill title (about senior citizens and enhanced STAR) does not match the attached documents. Below is a summary of the motor-vehicle bill in the provided documents. If you intended the STAR/exemption bill instead, tell me and I will summarize that text.

Summary — S-3309: “Motor Vehicle Open Recall Notice and Fair Compensation Act”

Main purpose

To increase consumer awareness of open safety recalls and to protect motor vehicle franchisees (dealers) by (1) requiring the Motor Vehicle Commission (MVC) to notify owners about open recalls and provide recall information links, and (2) establishing a framework for fair, time‑based compensation to dealers/franchisees when recall repair parts are unavailable and vehicles are subject to stop‑sale or do‑not‑drive notices. The bill also revises multiple franchise law provisions governing reimbursement, labor/parts compensation, and enforcement/standing.

Key provisions and changes

  • Naming: establishes the “Motor Vehicle Open Recall Notice and Fair Compensation Act.”
  • MVC owner notifications:
    • When issuing registration/renewal notices, MVC must include an “open recall” notice informing owners about the NHTSA recall database, a link to it, and a statement that dealers can repair open recalls at no cost (subject to federal law).
    • MVC may seek outside funding to implement notices; manufacturers must assist funding applications. If funding is insufficient, the MVC chief administrator may annually assess a fee on manufacturers to cover implementation costs (amount based on actual costs).
  • Dealer/franchisee compensation for unavailable recall parts:
    • If parts needed to complete a recall on a used vehicle held for retail sale are not reasonably available within 30 days after an initial recall notice and the vehicle has a stop‑sale or do‑not‑drive notice, the franchisor must compensate the franchisee at a prorated rate of at least 1.5% of the vehicle’s value per month.
    • Compensation begins 30 days after the franchisor issued the stop‑sale/do‑not‑drive notice and continues until parts become available or the franchisee sells/otherwise disposes of the vehicle.
    • “Value” is the average trade‑in value from an independent third‑party guide for the vehicle’s year/make/model.
    • Franchisors may use a national recall compensation program if it provides equal or greater compensation, or if the parties agree otherwise.
    • Franchisors may not reduce a franchisee’s compensation via chargebacks, removal from incentive programs, or incentive reductions as retaliation for filing reimbursement claims (with certain statutory limits preserved).
    • Compensation is capped so it cannot exceed the vehicle’s average trade‑in value.
  • Reimbursement and franchise-law updates:
    • Extends existing warranty reimbursement frameworks to recovery for recall repairs and similar repair services.
    • Clarifies labor reimbursements (including diagnostic work) and parts/reimbursement calculations (e.g., 30% reimbursement floor for certain major assemblies when franchisor supplies parts).
    • Limits how often franchisees may request changes to parts markup, labor time allowance, or labor rate (no more than twice per calendar year).
    • Requires franchisors to provide adequate and fair compensation to franchisees for labor at not less than retail customer rates for equivalent services; allows alternative average retail labor time allowance subject to audit rules.
  • Standing and enforcement:
    • Certain corporations/associations primarily composed of franchisees can bring actions on behalf of franchisees under specified conditions (e.g., at least one member has independent standing; claims are germane; individual members need not participate).
  • Applicability and effective date:
    • Committee substitute: effective first day of the fourth month after enactment, applying to franchise agreements in effect on/after that date; not retroactive to causes arising before effective date.
    • Floor amendments later adjusted the effective date to the first day of the seventh month following enactment in some versions.

Who is affected

  • Motor vehicle owners/registrants: will receive clearer notice and easier access to NHTSA recall information.
  • Motor vehicle franchisors (manufacturers) and franchisees (new and certain used dealers): changes to compensation, reimbursement rules, and administrative obligations; potential assessments to cover MVC implementation costs.
  • MVC: new notice duties and potential administrative/funding responsibilities.
  • Consumers: increased notification and instruction to secure free recall repairs.

Procedural/timeline highlights (from provided history)

  • Introduced: May 20, 2024.
  • Reported and committed to Finance: May 13, 2025.
  • Reported favorably by Senate committee (as substitute): June 19, 2025.
  • Passed both houses: June 30, 2025 (Senate and Assembly votes).
  • Enacted: Approved as P.L.2025, c.140 on September 11, 2025.
  • The law contains phased effective-date language; check the enacted statute text for the final effective date and implementation schedule.

If you want, I can:
- Provide a one‑page “impacts checklist” for dealers, manufacturers, MVC, and consumers.
- Summarize the companion/related bills (A-4380, A-5288) and prior-session versions.

Compiled from official sources — confirm details with the bill’s official record.

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