N.J. Admin. Code § 13:21-15.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:21-15.4 - Established place of business

(a) All licensees shall maintain a permanent, properly identified place of business, at which place of business shall be kept and maintained the books, records, and files necessary to conduct the business, including, but not limited to, all documents required at N.J.S.A. 39:10-6, all payroll records, including, but not limited to, IRS Form W-4 and W-2 records, and all records required pursuant to N.J.A.C. 12:56-4, checkbooks, and ledgers for business accounts and trust accounts, all unissued temporary registrations, dealer reassignments, corporate authorities and licenses, dealer plates, and ledgers listing all issued and unissued temporary registrations, dealer assignments, and dealer plates. In the event that a dealership maintains branches or a licensee operates multiple licensed dealerships under common ownership or control (a dealership group), and the remaining requirements of this subsection are met at each dealership branch site or each individual dealership site within a dealership group, records that are not immediately necessary for the conduct of current business at a dealership branch site, or an individual dealership site within a dealership group may be maintained at the main or principal place of business of the dealership or dealership group or at a centralized recordkeeping facility. Licensees conducting online sales may keep and maintain non-physical, electronic records of online sales of motor vehicles and shall have a stable internet connection in the licensee's office. A stable internet connection shall be a high-speed internet connection provided by an internet service provider at the place of business.

(b) All new motor vehicle dealers shall establish and maintain a place of business in this State consisting of a permanent building of not less than 1,000 square feet in floor space, to be used principally for the servicing and display of at least two motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules promulgated by the Commission governing the equipment, use, and operation of motor vehicles within the State. A new motor vehicle dealer's proposed place of business will not be considered suitable for approval if there already exists one or more licenses issued for, or other business entities present in, the same building, except where there is absolute common identity of ownership or where an affiliated motor vehicle leasing company is licensed as a leasing dealer and in such cases a record of the transactions of each licensee shall be separately maintained.

(c) All used motor vehicle dealers shall maintain a permanent, properly identified place of business in this State with a minimum office space of 72 square feet within a permanent, enclosed building and where there are included or immediately contiguous, clearly identified, fixed facilities to display at least two automobiles.

(d) A proposed place of business for a used motor vehicle dealer will not be considered suitable for approval if there already exists one or more licenses issued for, or other business entities present in, the same building. A proposed place of business of a used motor vehicle dealer is deemed to occupy the same building as another business if the two entities:

1. Are not completely separated by exterior walls or a firewall as defined by and conforming to sections 202 and 706 of the 2021 International Building Code, known as the "IBC/2021," as adopted by the New Jersey Department of Community Affairs, as the building subcode of the Uniform Construction Code pursuant to N.J.A.C. 5:23-3.14. Applicants and licensees shall submit proof of compliance with the exterior wall or firewall requirement certified by a New Jersey-licensed engineer, New Jersey-licensed architect, or municipal code official, and subject to inspection and approval by the Chief Administrator, or designee.

i. For a proposed place of business located in a building housing more than one business, within which there was at least one licensed dealer and one other business prior to March 6, 2006, and where there is a fire suppression system approved by a local building code official or the New Jersey Department of Community Affairs, walls must be either exterior walls or standard walls constructed separately from any other wall. A proposed place of business meeting this criteria must also be certified to meet the requirements stated in this section by a New Jersey-licensed engineer, New Jersey-licensed architect, or municipal code official.

ii. For the purposes of this subsection, a standard wall shall be a typical wall section at least eight feet in height, consisting of 2" X 4" wood or metal studs with one layer of 5/8 inch gypsum wall board on each side.

iii. A proposed place of business located in new construction or in an addition over, or in an addition extending beyond the existing perimeter of, a building subject to this subsection shall meet the firewall requirement of this subsection.

2. Do not have separate entrances;

3. Do not have separate, fixed, clearly identified display facilities for motor vehicles;

4. Do not have separate mailboxes; and

5. Do not have separate, fixed-location (that is, not mobile or cellular) telephone systems.

(e) A used motor vehicle dealer licensed prior to March 6, 2006, may continue to maintain a place of business that does not meet the square footage and display space requirements of this section, as amended, provided that the established place of business meets and continues to meet the requirements of this section prior to March 6, 2006.

(f) A leasing dealer, who is not engaged in the business of buying, selling, or dealing in motor vehicles in this State, must have an established place of business in this State at the address submitted in the leasing dealer's application, at which place shall be kept and maintained the books, records, and files necessary to conduct the business. In the event the leasing dealer maintains branches or operates multiple licensed locations under common ownership or control, records not immediately necessary for the conduct of current business at a leasing dealership branch site or an individual leasing dealership site may be maintained at the main or principal location of the leasing dealership or at a centralized recordkeeping facility, provided the records are available to the Commission upon the Commission's request.

(g) The established place of business of new motor vehicle dealers and used motor vehicle dealers shall display an exterior sign permanently affixed to the land or building, which sign is consistent with local ordinances and has letters easily readable from the major avenues of traffic. The sign must reflect the dealer name or trade name, provided that such trade name has been previously disclosed to the Commission.

(h) The licensee or an authorized signatory shall be present at the established place of business at all times during the business hours set forth in the application for licensure, which schedule shall be conspicuously posted along with the dealer's license on the licensee's established place of business in an area readily accessible to the public.

1. If the licensee was not required to submit a schedule of business hours pursuant to N.J.A.C. 13:21-15.2(j), no schedule need be posted.

2. An authorized signatory shall not simultaneously represent more than one licensee at any given time during the business hours set forth in the licensee's application for licensure, for the purposes of this section.

(i) Any licensee who intends to change the location of the licensee's established place of business or to open a branch site must notify the Dealer Licensing Section of the Commission, in writing, at least 30 days prior to doing so.

1. In order to obtain approval of a new place of business or a branch site, the licensee's notification to the Commission shall include a description of the proposed new place of business, which description shall contain sufficient information to demonstrate that the proposed new place of business will meet all the criteria set forth in this section.

(j) No licensee may relocate an established place of business or open a branch site until after written notification that the site is approved by the Commission.

(k) All business records including, but not limited to, those set forth at (a) and (f) above, shall be maintained for three years at the established place of business and shall be made available to the Commission during normal business hours on request. Records may be kept in either paper or electronic format.

1. In the event that a licensee maintains branches or a licensee operates multiple licensed dealerships under common ownership or control (a dealership group), and that the remaining requirements of this subsection are met at each dealership branch site or each individual dealership site within a dealership group, records that are not immediately necessary for the conduct of current business at a dealership branch site or an individual dealership site within a dealership group may be maintained at the main or principal established place of business of a dealership or at a centralized recordkeeping facility.

(l) Every established place of business shall be equipped with office furniture and equipment, including, but not limited to, a desk, chairs, file storage, a fixed safe, electric lighting, functioning communications lines, and equipment and climate control, sufficient to conduct business at that location.

(m) Every established place of business shall contain a secured area accessible only to the licensee and authorized signatories for the storage of controlled Commission documents.

(n) In the event that the site of the proposed place of business is not owned by the dealer, it must be subject to a lease in favor of the dealer for a minimum term expiring no earlier than April 1 of the year for which licensure is sought.

(o) Failure to comply with all requirements of this section at a follow-up compliance inspection (to be held any time after 90 days after licensing) will result in revocation of the license.

N.J. Admin. Code § 13:21-15.4

Amended by 49 N.J.R. 1443(b), effective 6/5/2017

Amended by 56 N.J.R. 1032(a), effective 6/3/2024

Administrative Change, 56 N.J.R. 1249(a), effective 6/27/2024