S746

An Act concerning certain civil actions and supplementing Title 2C of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the “Corrupt Gains Restitution Act.”

2. a. The Attorney General, or if he declines to the bring the action the county prosecutor, shall institute a civil action against any person who holds or has held any public office, position, or employment, elective or appointive, under the government of this State or any agency or political subdivision thereof and who is convicted of any crime set forth in subsection b. of this section which involves or touches such office, position or employment.

b. Subsection a. of this section applies to a conviction of any of the following crimes:

(1) Paragraph (4) of subsection a. of N.J.S.2C:13-5, criminal coercion;

(2) N.J.S.2C:20-4, theft by deception;

(3) Subsection d. of N.J.S.2C:20-5, theft by extortion;

(4) N.J.S.2C:20-9, theft by failure to make required disposition of property received;

(5) N.J.S.2C:21-1, forgery and related offenses;

(6) N.J.S.2C:21-7, deceptive business practices;

(7) N.J.S.2C:21-9, misconduct of corporate official;

(8) N.J.S.2C:21-10, commercial bribery;

(9) N.J.S.2C:21-11, rigging publicly exhibited contest;

(10) N.J.S.2C:21-12, defrauding secured creditors;

(11) N.J.S.2C:21-13, fraud in insolvency;

(12) N.J.S.2C:21-15, misapplication of entrusted property;

(13) N.J.S.2C:21-16, securing execution of documents by deception;

(14) P.L.1994, c.121 (C.2C:21-25 et seq.), money laundering;

(15) Section 97 of P.L.1999, c.440 (C.2C:21-34), false contract payment claims;

(16) N.J.S.2C:27-2, bribery in official matters;

(17) N.J.S.2C:27-3, threats and other improper influence in official and political matters;

(18) N.J.S.2C:27-5, retaliation for past official action;

(19) Section 100 of P.L.1999, c.440 (C.2C:27-9), unlawful official business transaction where interest is involved;

(20) Section 5 of P.L.2003, c.255 (C.2C:27-10), acceptance or receipt of unlawful benefit by public servant for official behavior;

(21) Section 6 of P.L.2003, c.255 (C.2C:27-11), offer of unlawful benefit to public servant for official behavior;

(22) N.J.S.2C:28-1, perjury;

(23) N.J.S.2C:28-2, false swearing;

(24) N.J.S.2C:28-5, tampering with witnesses;

(25) N.J.S.2C:28-7, tampering with public records or information;

(26) N.J.S.2C:29-4, compounding;

(27) N.J.S.2C:30-2, official misconduct;

(28) N.J.S.2C:30-3, speculating or wagering on official action or information; or

(29) Section 3 of P.L.2003, c.31 (C.2C:30-7), pattern of official misconduct.

c. The Attorney General or county prosecutor shall recover a judgment against the person, jointly and severally, for damages in an amount equal to three times the value of all property involved in the criminal activity, together with costs incurred for resources and personnel used in the investigation and litigation of both criminal and civil proceedings. The court may also award punitive damages, in addition to any other legal or equitable relief. The standard of proof in actions brought under this section is a preponderance of the evidence, and the fact that a prosecution for any crime set forth in subsection b. of this section is not instituted or, where instituted, terminates without a conviction shall not preclude an action pursuant to this subsection.

d. A final judgment rendered in favor of the State in any criminal proceedings shall estop the defendant from denying the same conduct in any civil action brought pursuant to this subsection.

e. The cause of action authorized by this section shall be in addition to and not in lieu of any forfeiture proceeding brought pursuant to N.J.S.2C:64-1 or any other action, injunctive relief or any other remedy available at law.

f. Notwithstanding any other provision of law, all monies collected pursuant to any judgment recovered or order issued pursuant to this section shall first be allocated to the payment of any State tax, penalty and interest due and owing to the State as a result of the conduct which is the basis for the action. After the payment of any State tax, penalty and interest due an owing to the State has been made, then any other monies shall be distributed to the municipality or municipalities where the basis for the criminal action originated in order for the municipality to recoup any expenses incurred which have not been otherwise satisfied.

3. This act shall take effect immediately.

STATEMENT

This bill establishes the “Corrupt Gains Restitution Act.”

Under the provisions of the act, the Attorney General, or if he declines to bring the action the county prosecutor, shall bring a civil action against any person who holds or has held any public office, position, or employment, elective or appointive, under the government of this State or any agency or political subdivision thereof and who is convicted of any the enumerated crimes, which crime or offense involves or touches such office, position or employment. Some of the enumerated crimes are: criminal coercion, theft, forgery, deceptive business practices, misconduct of corporate official, commercial bribery, money laundering, bribery, official misconduct, perjury and witness tampering.

The bill provides that the Attorney General or county prosecutor may recover a judgment against the person, jointly and severally, for damages in an amount equal to three times the value of the property involved in the criminal activity, together with costs incurred for resources and personnel used in the investigation and litigation of both criminal and civil proceedings. The court may award punitive damages, in addition to any other legal or equitable relief.

The standard of proof in such actions would be preponderance of the evidence. The fact that a prosecution for any of the enumerated crimes is not instituted or, where instituted, terminates without a conviction would not preclude an action pursuant to bill. A final judgment rendered in favor of the State in any criminal proceeding would estop the defendant from denying the same conduct in any civil action brought pursuant to the bill.

The cause of action authorized under the bill would be in addition to and not in lieu of any forfeiture proceeding brought pursuant to N.J.S.2C:64-1 or any other action, injunctive relief or any other remedy available at law.

In addition, the bill provides that all monies collected pursuant to any judgment recovered or order issued pursuant to the bill shall first be allocated to the payment of any State tax, penalty and interest due and owing to the State as a result of the conduct which is the basis for the action. After the payment of any State tax, penalty and interest due an owing to the State has been made, then any other monies shall be distributed to the municipality or municipalities where the basis for the criminal action originated in order for the municipality to recoup any expenses incurred which have not been otherwise satisfied.