S1506

An Act concerning municipal housing code violations and amending R.S.40:49-5 and P.L.1950, c.210.

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

1. R.S.40:49-5 is amended to read as follows:

40:49-5. The governing body may prescribe penalties for the violation of ordinances it may have authority to pass, by one or more of the following: imprisonment in the county jail or in any place provided by the municipality for the detention of prisoners, for any term not exceeding 90 days; or by a fine not exceeding $2,000; or by a period of community service not exceeding 90 days.

The governing body may prescribe that for the violation of any particular ordinance at least a minimum penalty shall be imposed which shall consist of a fine which may be fixed at an amount not exceeding $100.

The governing body may prescribe that for the violation of an ordinance pertaining to unlawful solid waste disposal at least a minimum penalty shall be imposed which shall consist of a fine which may be fixed at an amount not exceeding $2,500 or a maximum penalty by a fine not exceeding $10,000.

The court before which any person is convicted of violating any ordinance of a municipality shall have power to impose any fine, term of imprisonment, or period of community service not less than the minimum and not exceeding the maximum fixed in such ordinance. The court may impose upon a corporation a fine of up to three times the maximum fixed for violation of a housing code ordinance.

When a corporation is convicted of a violation of a housing code ordinance or a high managerial agent of a corporation is convicted of a violation of a housing code ordinance committed in conducting the affairs of the corporation, the court may request the Attorney General to institute appropriate proceedings to dissolve the corporation, forfeit its charter, revoke any franchises held by it, or to revoke the certificate authorizing the corporation to conduct business in this State. For the purposes of this section, "high managerial agent" means an officer of a corporation or any other agent of a corporation having duties of such responsibility that the agent's conduct may fairly be assumed to represent the policy of the corporation.

Any person who is convicted of violating an ordinance within one year of the date of a previous violation of the same ordinance and who was fined for the previous violation, shall be sentenced by a court to an additional fine as a repeat offender. The additional fine imposed by the court upon a person for a repeated offense shall not be less than the minimum or exceed the maximum fine fixed for a violation of the ordinance, but shall be calculated separately from the fine imposed for the violation of the ordinance.

Any municipality which chooses not to impose an additional fine upon a person for a repeated violation of any municipal ordinance may waive the additional fine by ordinance or resolution.

Any person convicted of the violation of any ordinance may, in the discretion of the court by which he was convicted, and in default of the payment of any fine imposed therefore, be imprisoned in the county jail or place of detention provided by the municipality, for any term not exceeding 90 days, or be required to perform community service for a period not exceeding 90 days.

Any municipality that chooses to impose a fine in an amount greater than $1,250 upon an owner for violations of housing or zoning codes shall provide a 30-day period in which the owner shall be afforded the opportunity to cure or abate the condition and shall also be afforded an opportunity for a hearing before a court of competent jurisdiction for an independent determination concerning the violation. Subsequent to the expiration of the 30-day period, a fine greater than $1,250 may be imposed if a court has not determined otherwise or, upon reinspection of the property, it is determined that the abatement has not been substantially completed.

(cf: P.L.2005, c.269, s.1)

2. Section 2-4 of P.L.1950, c.210 (C.40:69A-29) is amended to read as follows:

2-4. Each municipality governed by an optional form of government pursuant to this act shall, subject to the provisions of this act or other general laws, have full power to:

(a) Organize and regulate its internal affairs, and to establish, alter, and abolish offices, positions and employments and to define the functions, powers and duties thereof and fix their terms, tenure and compensation;

(b) Adopt and enforce local police ordinances of all kinds and impose one or more of the following penalties: fines not exceeding $2,000 or imprisonment for any term not exceeding 90 days, or a period of community service not exceeding 90 days for the violation thereof; prescribe that for the violation of particular ordinances at least a minimum penalty shall be imposed which shall consist of a fine which may be fixed at an amount not exceeding $100; prescribe that for the violation of an ordinance pertaining to unlawful solid waste disposal at least a minimum penalty shall be imposed which shall consist of a fine which may be fixed at an amount not exceeding $2,500 or a maximum penalty by a fine not exceeding $10,000; to construct, acquire, operate or maintain any and all public improvements, projects or enterprises for any public purpose, subject to referendum requirements otherwise imposed by law, and to exercise all powers of local government in such manner as its governing body may determine;

(c) Sue and be sued, to have a corporate seal, to contract and be contracted with, to buy, sell, lease, hold and dispose of real and personal property, to appropriate and expend moneys, and to adopt, amend and repeal such ordinances and resolutions as may be required for the good government thereof;

(d) Exercise powers of condemnation, borrowing and taxation in the manner provided by general law.

Any municipality which chooses not to impose an additional fine upon a person for a repeated violation of any municipal ordinance may waive the additional fine by ordinance or resolution.

fine greater than $1,250 may be imposed if a court has not determined otherwise or, upon reinspection of the property, it is determined that the abatement has not been substantially completed.

(cf: P.L.2005, c.269, s.2)

3. This act shall take effect immediately.

STATEMENT

This bill would empower a court that convicts a corporation of violating a municipal housing code ordinance to impose upon the corporation a fine of up to three times the maximum fixed for violation of the ordinance.

The bill also provides that when a corporation or its high managerial agent is convicted of violating a housing code ordinance, the court may request the Attorney General to institute proceedings to dissolve the corporation, forfeit its charter, revoke any franchises held by it, or to revoke the certificate authorizing the corporation to conduct business in this State. The bill defines "high managerial agent" as an officer of a corporation or any other agent of a corporation having duties of such responsibility that the agent's conduct may fairly be assumed to represent the policy of the corporation.

Under current law a municipal governing body may provide the following penalties for the violation of its ordinances: imprisonment for any term not exceeding 90 days; a fine not exceeding $2,000; or a period of community service not exceeding 90 days. While the threat of imprisonment may serve as a sufficient inducement for an individual to comply with provisions of a municipal housing code, this penalty may not be imposed upon a corporation. Allowing a court to impose enhanced penalties upon a corporation will serve as an inducement for compliance with a municipality's housing code. Similarly, allowing a court to seek dissolution of a corporation will serve as an additional inducement for corporations to comply with municipal housing codes.

These initiatives are modeled after N.J.S.2C:43-4 which authorizes courts to impose similar penalties when corporations are convicted of offenses under the criminal code.