Bill Text: NJ S753 | 2020-2021 | Regular Session | Introduced
Bill Title: Concerns reimbursements to Superstorm Sandy-impacted homeowners subjected to contractor fraud.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2020-01-14 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S753 Detail]
Download: New_Jersey-2020-S753-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
Co-Sponsored by:
Senators Brown, Connors and O'Scanlon
SYNOPSIS
Concerns reimbursements to Superstorm Sandy-impacted homeowners subjected to contractor fraud.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning contractor fraud following Superstorm Sandy, and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The commissioner shall permit the distribution of fraud-response funding to an applicant if a government agency notifies the department, in writing, that there is reasonable cause to believe that a RREM or LMI program contractor has engaged in conduct in violation of the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), or regulations promulgated thereto, in connection with a RREM or LMI program contract to complete work on the applicant's house. The department shall distribute fraud-response funding regardless of whether an applicant presents a charging document, so long as the government agency has provided written notification pursuant to this subsection.
b. The commissioner shall consult the Division of Consumer Affairs in the Department of Law and Public Safety to develop an appropriate process for a government agency to submit written notification pursuant to subsection a. of this section.
c. An applicant shall not be entitled to a fraud-response funding award if any portion of the award would amount to a duplicative benefit or would otherwise violate the "Robert T. Stafford Disaster Relief and Emergency Assistance Act," (42 U.S.C. s.5155), or another provision of federal law.
d. As used in this section:
"Applicant" means a RREM or LMI program beneficiary who applies for fraud-response funding.
"Charging document" means a document alleging that the applicant's contractor has been charged with fraud or theft by deception in connection with a RREM or LMI program contract to complete work on the applicant's house, which shall include, but not be limited to, an arrest warrant, a criminal complaint, an accusation signed by a prosecuting attorney, or an indictment.
"Commissioner" means the Commissioner of Community Affairs.
"Department" means the Department of Community Affairs.
"Fraud-response funding" means funding allocated by the federal government, which may be allocated to reimburse an applicant, who has been defrauded by a RREM or LMI program contractor.
"Government agency" means the Division of Consumer Affairs in the Department of Law and Public Safety, the Office of the Attorney General, a county prosecutor's office, a State, county or municipal law enforcement agency, a federal law enforcement agency, or any other government law enforcement authority.
"RREM or LMI program" means the Reconstruction, Rehabilitation, Elevation, and Mitigation Program or the Low-to-Moderate Income Homeowners Rebuilding Program, established by the department for the purpose of distributing federal funding allocated towards recovery from Superstorm Sandy.
2. This act shall take effect immediately, but shall remain inoperative until the first day of the second month next following enactment.
STATEMENT
The bill requires the Department of Community Affairs (DCA) to provide fraud-response funding to certain Superstorm Sandy-impacted homeowners who experienced contractor fraud.
The DCA administers the Reconstruction, Rehabilitation, Elevation, and Mitigation Program (RREM) and the Low-to-Moderate Income Homeowners Rebuilding Program (LMI), both of which provide federal Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to help homeowners impacted by Superstorm Sandy complete home rehabilitation and reconstruction projects. The DCA also provides additional CDBG-DR funding to certain RREM and LMI beneficiaries who experienced contractor fraud. Currently, a RREM or LMI beneficiary may only qualify for fraud-response funding after providing a charging document to the Sandy Recovery Division in the DCA.
The bill requires the DCA to provide a RREM or LMI beneficiary with fraud-response funding if a government agency provided written notice to the DCA indicating that there is reasonable cause to believe that a RREM or LMI program contractor violated the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), or any regulation promulgated thereto, in connection with work conducted pursuant to either program. The DCA would be required to develop a process, in consultation with the Division of Consumer Affairs in the Department of Law and Public Safety, through which a government agency may submit the written notification. The bill also provides that a RREM or LMI beneficiary would not be entitled to fraud-response funding if any portion of the funding award would constitute a duplicative benefit, or otherwise violate federal law.
The bill defines a "government agency" as the Division of Consumer Affairs; the Office of the Attorney General; a county prosecutor's office; a State, county, or municipal law enforcement agency; a federal law enforcement agency; or other government law enforcement authority.
