ASSEMBLY CONSUMER AFFAIRS AND REGULATED PROFESSIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 387

 

STATE OF NEW JERSEY

 

DATED: FEBRUARY 5, 1996

 

      The Assembly Consumer Affairs and Regulated Professions Committee reports favorably Assembly Bill No. 387.

      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.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.