Committee advances broad motor-vehicle recall and dealer compensation bill after lengthy debate

The Assembly Consumer Affairs Committee on March released a substitute to Assembly Bill 43-80, the Motor Vehicle Open Recall Notice and Fair Compensation Act, after extended testimony from labor unions, dealer associations, accounting firms and automakers.

The substitute supplements the New Jersey Motor Vehicle Franchise Practices Act to (1) grant standing to trade associations meeting specified criteria to bring administrative proceedings on behalf of franchisees in certain circumstances; (2) require enhanced recall-notification duties for automakers and the New Jersey Motor Vehicle Commission; (3) entitle dealers to compensation when parts required for recall repairs are unavailable or when a manufacturer issues a do-not-drive or stop-sale notice; and (4) extend the existing 100 sequential customer-paid repair order methodology so it can be used to calculate retail hourly labor rates and labor time allowances for warranty and recall work. The substitute also contains…