ASSEMBLY, No. 387
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman HECK and Assemblyman RUSSO
An Act providing additional civil penalties for certain deceptive consumer practices, and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Fund" means the Consumer Fraud Education Fund created pursuant to section 5 of this act.
"Handicapped person" means a person who has a medically determinable physical or mental impairment that substantially limits one or more major life activities such as: eating, walking, hearing, speaking, seeing, self-care, self-direction, learning, employability or capacity for independent living.
"Pecuniary injury" shall include, but not be limited to: loss or encumbrance of a primary residence, principal employment, or source of income; loss of property set aside for retirement or for personal or family care and maintenance; loss of payments received under a pension or retirement plan or a government benefits program; or assets essential to the health or welfare of the senior citizen or handicapped person.
"Senior citizen" means any resident of this State of the age of 60 years or over.
2. a. In addition to any other penalty authorized by law, a person who knowingly violates the provisions of P.L.1960, c.39 (C.56:8-1 et seq.) shall be subject to additional penalties as follows:
(1) A penalty of not more than $10,000 if the person knew or should have known that the victim of the violation is a senior citizen or handicapped person and the violation caused the victim pecuniary injury; or
(2) A penalty of not more than $30,000 if the violation was part of a scheme, plan, or course of conduct directed at senior citizens or handicapped persons in connection with sales or advertisements.
b. The civil penalties authorized and collected under subsection a. of this section shall be paid to the State Treasurer and credited to the Consumer Fraud Education Fund created pursuant to section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill).
3. Restoration of money or property ordered pursuant to section 2 of P.L.1966, c.39 (C.56:8-14) or section 3 of P.L.1971, c.247 (C.56:8-15) shall be given priority over imposition of the additional civil penalties authorized under section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill).
4. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety, in consultation with the Director of the Division on Aging in the Department of Community Affairs, the directors of the New Jersey Association of Area Agencies on Aging and the New Jersey Association of County Offices for Disabled Persons, shall develop and implement an educational program to inform senior citizens and handicapped persons about consumer protection laws and consumer rights, subject to funds made available pursuant to subsection b. of section 5 of P.L. , c. (C. )(pending before the Legislature as this bill) or any other source. Functions of the program may include:
a. The preparation of educational materials regarding consumer protection laws and consumer rights that are of particular interest to senior citizens and handicapped persons and distribution of those materials to the appropriate State and county agencies for dissemination to senior citizens, handicapped persons and the public; and
b. The underwriting of educational seminars and other forms of educational projects for the benefit of senior citizens and handicapped persons.
5. a. There is established in the General Fund a special fund to be known as the Consumer Fraud Education Fund. The State Treasurer shall credit to the fund all moneys received by the State for penalties assessed pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The fund shall be continuing and nonlapsing. The fund shall be administered by the State Treasurer, and any interest earned on moneys in the fund shall be credited to the fund.
b. The Division of Consumer Affairs may draw upon the fund to effectuate the purposes of section 4 of P.L. , c. (C. ) (now pending before the Legislature as this bill) and to pay reasonable and necessary administrative expenses incurred in implementing the provisions of this act to the extent that moneys are available.
6 . The Director of the Division of Consumer Affairs shall, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate rules and regulations necessary to effectuate the provisions of this act.
7. This act shall take effect immediately.
STATEMENT
This bill authorizes the imposition of additional civil penalties of not more than $10,000 for deceptive consumer practices knowingly perpetrated against senior citizens or handicapped persons when either of the following conditions are present: (1) there is an awareness that the conduct was directed against a senior citizen or handicapped person; or (2) the senior citizen or handicapped person suffered significant tangible loss, such as loss of residence, employment, or payments received under a pension or retirement plan which are necessary to their present or future well-being.
To insure that the imposition of this additional penalty will in no way infringe upon the probability of a senior citizen or a handicapped person recovering any money or property lost as a result of a defendant's actions, the bill specifically states that the restoration of money or property ordered under the provisions of section 2 of P.L.1966, c.39 (C.56:8-14) and section 3 of P.L.1971, c.247 (C.56:8-15) are to be given priority over the assessment of any additional penalty.
The bill establishes a special fund, the Consumer Fraud Education Fund, to receive moneys assessed as penalties. Moneys from this fund are to be used to develop and implement an educational program which will be administered by the Division of Consumer Affairs for the purpose of informing senior citizens and handicapped persons about consumer protection laws and their rights under these laws.
Provides additional civil penalties for deceptive consumer practices.