ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1831

STATE OF NEW JERSEY

DATED: JUNE 10, 1996

      The Assembly Housing Committee reports favorably Assembly Bill No. 1831.

      Current law under section 1 of P.L.1967, c.265 (C.46:8-19) exempts security deposits on a contract, lease or license agreement for the seasonal use or rental of real property from the requirement that security deposits be deposited or invested in a money market fund or an interest bearing account in a State or federally chartered bank, savings bank or savings and loan association.

      This bill would change the definition of the term "seasonal use or rental" in that section to mean use or rental of real property for not more than 125 consecutive days for residential purposes by a person who has a permanent place of residence elsewhere. Under current law, that term means such use for not more than 60 consecutive days.