Pub 20-2021-2022 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 1 | 2 0 2 1 24 new jersey auto retailer NJ CAR Legislative Overview BY MAGDALENA PADILLA NJ CAR tracks dozens of bills pending in the New Jersey Legislature. This article focuses on two pending bills that will allow dealerships to be more responsive to consumers’ needs. Introduced during the 2020-2021 legislative session, they are part of an effort to modernize customers’ transactional ex- periences with dealerships. On track to move to the Governor’s desk for his final action, their legislative status marks an ongo- ing trend toward the modernization of dealership operations that benefit consumer transactions. A5033 authorizes licensed new car dealerships to sell motor vehicles online and allows the buyer and the dealer to acknowl- edge all motor vehicle transaction documents by electronic sig- nature. Additionally, the legislation establishes requirements for used car dealers, including maintaining office space in the state and displaying clear signage. The bill would require that the New Jersey Motor Vehicle Commission ( NJ MVC ) accept doc- uments signed via e-signature. Introduced in November 2020, the bill had been voted out of the Assembly Transportation and Independent Authorities Committee and the full Assembly by January 12, 2021. Its Senate counterpart S3279 was introduced on December 14, 2020, and awaits review in the Senate Trans- portation Committee. Authorizing the use of e-signatures and e-transmission of docu- ments for the purchase of vehicles benefits consumers and local neighborhood dealerships in many ways. It creates a better user experience for the consumer by allowing the consumer to sign remotely. It creates a more efficient sales experience for the deal- er by minimizing paper usage and storage and expediting the transactional experience. Also, as a protective measure against COVID, allowing e-signatures and e-transmissions ref lects good public health policy when at-risk and health-conscious popula- tions seek safer ways to purchase their vehicles. The early days of the state-imposed COVID restrictions yield- ed multiple Executive and Administrative Orders intended to balance public health and safety with the need to preserve essential services. The experience demonstrated quickly why modernizing the vehicle purchase experience is important. On March 21, 2020, New Jersey Governor Phil Murphy signed Ex- ecutive Order No. 107 ( EO 107 ), identifying car dealerships as