Bill
A 4380
Strengthens recall protections by requiring enhanced owner notices, dealer VIN checks at sale, and monthly 1.5% compensation to franchisees when recall parts are unavailable.
Note on title discrepancy
- The documents you provided describe the "Motor Vehicle Open Recall Notice and Fair Compensation Act" (franchise/recall reforms). The bill information header lists a different title ("courthouse facility dogs for witnesses") that appears to be unrelated. This summary reflects the content of the provided bill documents (A.4380 versions and committee substitutes) concerning motor vehicle recalls and franchise compensation.
Summary — A.4380 (Motor Vehicle Open Recall Notice and Fair Compensation Act)
Purpose
- To increase consumer and franchisee protections around vehicle safety recalls by (1) requiring enhanced recall notices to owners, (2) imposing dealer/franchisee duties at point-of-sale, and (3) establishing minimum compensation and reimbursement rules for motor vehicle franchisees when recall parts or repairs are unavailable.
Key provisions
- MVC recall notice with registrations: When issuing registration or renewal notices, the NJ Motor Vehicle Commission (MVC) must check the NHTSA recall database and notify registered owners of any open recalls applicable to their vehicle, include a link to the NHTSA recall site, and state that repairs are available free through manufacturer dealers (subject to federal law). MVC may apply for grants; manufacturers must assist. If funding is insufficient, MVC may assess an annual fee on manufacturers to cover implementation costs (amount set by the Chief Administrator).
Dealer/point-of-sale duties: Dealers/franchisees must check the NHTSA recall database (by VIN) before retail sale of used vehicles, provide printed recall information to prospective buyers if an open recall exists, and may not sell vehicles subject to an NHTSA stop‑sale or do‑not‑drive notice. There is an irrebuttable presumption of lack of knowledge if the dealer checked NHTSA and the VIN returned no recall.
Direct owner notices for long‑open recalls: Manufacturers/dealers must provide MVC lists of state‑registered vehicles with open recalls unremedied for 6+ months; MVC will direct manufacturers/dealers to mail a standardized notice on MVC letterhead to registered owners.
Franchisee compensation where parts unavailable: If parts needed for recall repairs on a used vehicle are not reasonably available within 30 days of the franchisor’s initial recall notice and a stop‑sale/do‑not‑drive is in effect, franchisors must pay franchisees at least 1.5% of the vehicle’s value per month (prorated) beginning 30 days after the stop‑sale until parts become available or the vehicle is sold/removed. Value is the average trade‑in value from an independent guide. A national recall compensation program may be used if it provides equal or greater compensation or by mutual agreement.
Reimbursement and labor/parts rules: The bill extends existing franchise reimbursement rules to include repair services (warranties, extended warranties, maintenance plans, recalls). Reimbursable labor includes diagnostics. For complete engine/transmission assemblies and electric propulsion batteries supplied by franchisors, franchisors must reimburse franchisees at 30% of the price the franchisee would have paid the franchisor. The bill revises procedures for calculating parts markup, retail labor time allowances, and the retail labor rate and limits franchisee requests for changes in these calculations.
Protections for franchisees: Franchisors are prohibited from reducing other compensation (e.g., via chargebacks or incentive removal) because a franchisee files a recall‑compensation claim. Claims follow the same timing/limitations as warranty reimbursement claims.
Who is affected
- Motor vehicle franchisees (dealers), motor vehicle franchisors (manufacturers), dealers selling used vehicles, the MVC, vehicle owners in New Jersey, and manufacturers doing business in the State (may face fees and administrative obligations).
Procedural/timeline notes
- Committee substitutes set the bill to take effect a set number of months after enactment (committee versions differ: e.g., first day of the fourth or seventh month following enactment) and to apply to franchise agreements in effect on or after the effective date; it does not apply retroactively to causes of action arising before the effective date.
- Legislative status (selected): introduced May 16, 2024; reported by committee(s) with amendments (Mar–Jun 2025); substituted by S3309 (SCS/1R) on June 30, 2025. Companion: S.3309 (and S.3089).
Compiled from official sources — confirm details with the bill’s official record.
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