Sponsored by:
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Prohibits financial institutions from penalizing individuals for exercise of free speech.
CURRENT VERSION OF TEXT
As introduced.
An Act prohibiting financial institutions organized or doing business under the laws of this State from penalizing individuals for exercise of free speech and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A financial institution organized or doing business under the laws of this State, including any bank, savings bank, savings and loan association, building and loan association, credit union, or money transmitter, shall not penalize, fine, or confiscate the funds of any consumer for the consumer’s:
(1) expression of constitutionally protected speech, or
(2) use of the financial institution’s services to express constitutionally protected speech.
b. A financial institution shall not include a clause prohibited pursuant to this section in any private contract with or general policy governing consumers that is issued or renewed on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. Any financial institution that the Commissioner of Banking and Insurance determines has violated this section shall be subject to a civil penalty of up to $10,000 for each violation or up to $50,000 for each willful violation, which shall be collected by the commissioner in a summary proceeding before a court of competent jurisdiction pursuant to the provisions of the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill prohibits financial institutions organized or doing business under the laws of this State from penalizing individuals for expression of constitutionally protected speech.
Many people living in New Jersey depend upon financial institutions, including banks, savings banks, savings and loan associations, building and loan associations, credit unions, or money transmitters, for critical aspects of business and personal affairs. Private financial institutions could presently include restrictions on consumers’ exercise of free speech through user policies penalizing certain expressions of constitutionally protected speech.
This bill protects constituents of this State from these policies by prohibiting them and by providing the Commissioner of Banking and Insurance with a means of enforcement. A financial institution determined by the Commissioner of Banking and Insurance to have violated the provisions of this bill will be subject to a civil penalty of up to $10,000 for each violation or up to $50,000 for each willful violation.