2. The chief administrator may prescribe rules and regulations governing the issuance of temporary registration certificates and temporary plates by motor vehicle dealers, motorized bicycle dealers, and the New Jersey Motor Vehicle Commission and may require security in sufficient amount to guarantee payment of all fees and moneys to the State of New Jersey and, upon a finding that any abuse has been practiced by any licensed motor vehicle or motorized bicycle dealer, the chief administrator shall have the right to suspend the dealer’s privilege or franchise from issuing temporary registration certificates and plates. Temporary registration certificates for vehicles to be permanently registered in New Jersey or any other jurisdiction shall be valid for a period of 30 days. In the event permanent registration has been delayed by reason of a lost title certificate or failure of a lien holder to timely turn over a certificate of title, a second temporary registration certificate may be issued. A licensed motor vehicle or motorized bicycle dealer shall make a record in the form and manner prescribed by the chief administrator for any second temporary registration certificate issued and shall pay an enhanced fee to be determined by the chief administrator for each second temporary registration issued. Each licensed motor vehicle or motorized bicycle dealer shall annually determine the fees to be paid pursuant to this section and shall remit annually under certification the amount due to the New Jersey Motor Vehicle Commission.

No temporary registration certificate shall be issued by a licensed dealer hereunder unless the licensed dealer has confirmed that the vehicle for which the temporary registration is to be issued is covered by a policy of insurance in accordance with the requirements of the “Motor Vehicle Security-Responsibility Law,” P.L.1952, c.173 (C. 39:6-23 et seq.), whether by a policy in the name of the purchaser covering the vehicle or which would provide coverage for the purchaser while operating the vehicle or by an endorsement to a policy in the name of the licensed dealer; provided, however, no permanent registration shall be issued unless a policy in the name of the purchaser or someone in the purchaser’s household is confirmed.

A temporary registration certificate issued hereunder may be issued by any employee authorized by a licensed dealer to do so; however, the licensee shall be liable for the acts of any authorized employee in issuing temporary registrations, whether the particular unlawful acts were authorized or unauthorized.

L.1969, c.301, s.2; amended 1983, c.105, s.5; 2007, c.335, s.19; 2017, c.352, s.2.