SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 125

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 6, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably and with committee amendments, Assembly Bill No. 125.

      This bill, as amended, would include certain violations of section 5 of P.L.1967, c.93 (C.49:3-52) under the section of the "Uniform Securities Law (1967)," P.L.1967, c.93 (C.49:3-47 et seq.), which allows for the recovery of civil damages. Any person offering or selling a security in a manner prohibited by that section would be liable to the person buying the security, who then could proceed as permitted under the law in order to recover the amount paid for the security, plus or minus certain other amounts, in addition to other damages.

      The committee amendment moves the change being proposed by the bill to current law from paragraph (1) to paragraph (2) of subsection (a) of the bill and removes the failure to deliver a prospectus as an action which would allow for the recovery of civil damages.