ASSEMBLY CONSUMER AFFAIRS AND REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 426

STATE OF NEW JERSEY

DATED: FEBRUARY 22, 1996

      The Assembly Consumer Affairs and Regulated Professions Committee reports favorably Assembly Bill No. 426.

      This bill would permit sellers of fire suppression systems to provide their own alternate fire suppression system warranty security program in lieu of the warranty program established by the commissioner pursuant to section 7 of P.L.1983, c.383 (C.52:27D-198). These alternate programs would be similar to those allowed under the "New Home Warranty and Builder's Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.). These programs are required to provide the same coverage and financial security of the warranty program established by the State, and allow the sellers of fire suppression systems to lower their costs of doing business if they are able to self-insure at a lower cost. The bill requires that the Commissioner of Community Affairs approve all alternate warranty plans, keep records on the applicants, and make available those records to the public for inspection. In addition, a seller of fire suppression systems warranted under an alternate plan must disclose that fact to a purchaser and a subsequent purchaser while the system is under warranty. The purchaser of a system warranted under an alternate program will not be permitted to make a claim for defects against the plan established by the commissioner, but will be limited to making all claims against the approved alternate plan.

      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.