Senate Commerce Committee Statement to Senate, No. 2740 — State of New Jersey (December 4, 2023)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2740, State of New Jersey, dated December 4, 2023, reporting the bill favorably with committee amendments. As amended, the bill requires a motor vehicle dealer taking possession of a vehicle from a consumer to offer to delete, for a reasonable fee, the consumer's personal information, such as navigation history, paired phones, and garage door codes, before resale or lease. Deletion follows the Guidelines for Media Sanitization of the National Institute of Standards and Technology and manufacturer techniques, or a factory reset. A violating dealer is subject to a civil penalty of $500 for a first offense and $1,000 for any subsequent offense. The bill is identical to Assembly Bill No. 4723 (1R).

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Full text

SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2740

with
committee amendments

STATE
OF NEW JERSEY

DATED: DECEMBER
4, 2023

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 2740.

As
amended, this bill requires motor vehicle dealers to offer to delete, for a
reasonable fee, certain personal information from a motor vehicle computer
system prior to resale.

Under
the bill, a motor vehicle dealer who takes possession of a motor vehicle from a
consumer is required to offer to delete the consumer’s personal information in
the motor vehicle by performing data clearing protocols in accordance with the
Guidelines for Media Sanitization developed by the National Institute of
Standards and Technology and using techniques specified by the vehicle
manufacturer to overwrite data or by using a menu option to reset the device to
original factory settings prior to resale or lease. The information to be deleted includes, but is not
limited to, navigation history, paired phones, and garage door codes.

A
motor vehicle dealer who violates the provisions of this bill is subject to a
civil penalty of $500 for a first offense, and $1,000 for any subsequent
offense, which may be collected and enforced by the Director of the Division of
Consumer Affairs.

As
amended and reported, Senate Bill No. 2740 is identical to Assembly Bill No.
4723 (1R).

COMMITTEE AMENDMENTS

The committee amended the bill to:

(1) require motor vehicle dealers to offer to delete
certain personal information rather than require them to delete the
information;

(2) specify that a motor vehicle dealer is to delete
a consumer’s personal information by performing a data clearing protocol in
accordance with the Guidelines for Media Sanitization developed by the National
Institute of Standards and Technology and using techniques specified by the
vehicle manufacturer to overwrite data or by using a menu option to reset the
device to original factory settings; and

(3) permit a motor vehicle dealer to charge a
reasonable fee for deleting the consumer’s personal information.

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