SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 1006

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 2, 1996

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 1006.

      This bill, as amended, exempts from the provisions of P.L.1995, c.373 (C.56:8-67 et seq.) any passenger motor vehicle, subject to a motor vehicle lease agreement which was in effect for more than 90 days, which is sold by the lessor to the lessee, or to a family member or employee of the lessee upon the termination of the lease agreement. P.L.1995, c.373 is commonly known as the "lemon law" for used motor vehicles.

      The committee amended the bill to specify that any lessor who sells a formerly leased passenger motor vehicle to a consumer other than any of the above mentioned parties would be required to comply with the "lemon law" for used motor vehicles including the bonding requirement of that law.