SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 276
with committee amendments
STATE OF NEW JERSEY
DATED: FEBRUARY 15, 2024
The Senate Community and Urban Affairs Committee reports favorably and with committee amendments Senate Bill No. 276.
As amended, this bill would require a limited liability company or foreign limited liability company that is the grantee of a deed for residential real property containing one to two dwelling units, or that is a multiple dwelling, to disclose each beneficial owner of the company when it files a deed for recording. The bill defines “beneficial owner” as the term is defined under the federal “Corporate Transparency Act,” 31 U.S.C. s.5336(a)(3).
The bill requires the company to submit for recording, together with the deed, an affidavit containing the following information of each beneficial owner for service of process of the limited liability company: (1) full legal name; (2) date of birth; (3) current business street address; and (4) a unique identifying number from an acceptable identification document.
The bill would also permit a municipality to direct, by ordinance, that charges issued to certain limited liability companies or foreign limited liability companies pursuant to a housing code, building code, or health code will become a lien on the property if the charge remains unpaid on the first day of the 13th month next following the date when the charge becomes due and owing.
This bill was pre-filed for introduction in the 2024-2025 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
§ require the identification of each beneficial owner, instead of the registered agent of an LLC, when it files a deed for recording;
§ require additional identifying information from beneficial owners;
§ expand a temporary exemption from a notice requirement to an additional class of LLCs; and
§ make certain technical changes.