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Panel advances bill to allow provisional motor‑vehicle dealer licenses and flexible service‑facility locations

Senate Transportation Committee · February 5, 2026
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Summary

S1423 would let dealerships use separate on‑lot or off‑site service facilities, allow a 90‑day provisional license (with one 90‑day extension) under specified conditions and apply changes to pending appeals; industry groups urged passage as common‑sense modernization.

The Senate Transportation Committee released Senate Bill S1423, which amends motor vehicle dealer licensing to provide flexibility for service facility locations and creates a 90‑day provisional license authority for the Motor Vehicle Commission’s chief administrator.

Magdalena Padilla, senior vice president of the New Jersey Coalition of Automotive Retailers (NJ CAR), said the bill addresses difficulties dealers face in densely populated areas where sales and service facilities cannot be attached and provides two additional location options: a separate building on the same lot or an off‑site facility within a defined regional market area.

Padilla described three key provisions: modernizing the attachment requirement for service facilities, authorizing a 90‑day provisional license when an application is substantially complete with a discretionary additional 90‑day extension, and applying an immediate effective date that covers initial and renewal applications currently on appeal. She said the provisional license would be issued without an additional fee and would prevent denial solely for a missing franchise agreement or sign.

Committee members asked clarifying questions about past administrative practice and the 90/180‑day approach. Padilla and staff said prior administrations had exercised discretion, and the bill codifies that authority while requiring substantial completion before a provisional license can issue. The committee voted to release the bill.