ASSEMBLY JUDICIARY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2174

with committee amendments

STATE OF NEW JERSEY

DATED: NOVEMBER 16, 1998

      The Assembly Judiciary Committee reports favorably and with committee amendments Assembly Bill No. 2174.

      Under the current provisions of the "Check Cashers Regulatory Act of 1993" any person who cashes a check for consideration without having a license to do so is liable for a penalty of $1,000 for each violation. In its original form, this bill amended that section to make it a crime of the third degree for any person to knowingly cash a check for consideration without having a license to do so.

      The committee amendments would retain that language in the current law which imposes a $1,000 civil penalty for cashing a check for consideration without having a license. The committee amendments also change the gradation scheme for the criminal penalty for knowingly cashing a check for consideration without having a license to do so. The amendments would establish a gradation schedule for a criminal violation of the act which would depend on the face value of the check cashed. Specifically, the amendments would make it a disorderly persons offense if the face value of the check is in an amount less than $1,000 and the actor previously has not been convicted of an offense under this section; a crime of the fourth degree if the face value of the check is at least $1,000 but less than $10,000 and the actor previously has not been convicted of an offense under this section; and a crime of the third degree if the face value of the check is $10,000 or more or the actor previously has been convicted of an offense under the section. This bill would also make it a crime of the third degree if the person conducts a transaction that would be required to be reported pursuant to the laws or regulations of this State had that person obtained the license required by section 3 of P.L.1993, c.383 (C.17:15A-32).

      A disorderly persons offense is punishable by a term of imprisonment for up to six months, a fine of up to $1,000, or both. A crime of the fourth degree is punishable by a term of imprisonment for up to 18 months, a fine of up to $10,000, or both; a crime of the third degree by a term for three to five years, a fine of up to $15,000, or both.

      In addition, the committee amendments provide for a criminal fine not to exceed $30,000.00 for a violation of the act.