Bill Text: NJ A817 | 2020-2021 | Regular Session | Introduced
Bill Title: Prohibits State-chartered financial institutions from investing in private correctional facilities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly Law and Public Safety Committee [A817 Detail]
Download: New_Jersey-2020-A817-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
SYNOPSIS
Prohibits State-chartered financial institutions from investing in private correctional facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain financial institutions and private correctional facilities 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. As used in this act:
"Financial institution" means any bank, savings bank, savings and loan association, building and loan association, or credit union organized or doing business under the laws of this State and supervised by the Commissioner of Banking and Insurance.
"Private correctional facility" means any for-profit private facility that detains inmates pursuant to an intergovernmental service agreement or other contract with a federal, State, or county agency.
b. A financial institution operating in this State shall not invest in the stocks, securities, or other obligations of, or provide financing to, any institution, company, or subsidiary thereof that operates a private correctional facility.
c. A financial institution which violates this act shall be subject to a $5,000 fine for each violation. The fine shall be collected by the Commissioner of Banking and Insurance in a summary manner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
d. The Commissioner of Banking and Insurance may adopt rules and regulations to implement the provisions of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
e. Failure to fulfill any obligation pursuant to this section shall not be considered to be the exercise of a power, right, benefit, or privilege under the parity provisions of section 1 of P.L.1981, c.163 (C.17:9A-24b1), section 48 of P.L.1963, c.144 (C.17:12B-48), or section 12 of P.L.1984, c.171 (C.17:13-90), and it shall not be a defense to a violation of this act that the failure to fulfill any provision of this section is an exercise of such power, right, benefit, or privilege.
f. The provisions of this section shall not apply to non-profit residential community release programs contracted by the Department of Corrections to provide for the care, custody, subsistence, treatment, education, training, or welfare of inmates pursuant to P.L.1999, c.243 (C.30:4-91.9 et seq.).
2. This act shall take effect
on the first day of the seventh month following the date of enactment.
STATEMENT
This bill prohibits State-chartered financial institutions from providing financing for or investing in any institution, company, or subsidiary thereof that operates a for-profit private correctional facility.
A financial institution that violates the bill's provisions would be subject to a $5,000 fine. The bill allows the Commissioner of Banking and Insurance to adopt rules and regulations to implement the bill's provisions.
The bill provides that failure to fulfill the obligations established in the bill would not be considered an exercise of a power, right, benefit, or privilege under the parity provisions of various State banking laws.
The bill would not apply to non-profit residential community release programs that contract with the Department of Corrections to provide for the care, custody, subsistence, treatment, education, training, or welfare of inmates.
