S4874

An Act establishing the “Task Force on Scams and Fraud.”

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

1. a. There is established in the Department of Law and Public Safety the “Task Force on Scams and Fraud.” The purpose of the task force shall be to:

(1) study the prevalence, types, and methods of scams and fraudulent activities affecting New Jersey residents, with special attention to those targeting senior residents and vulnerable populations;

(2) review current efforts concerning consumer education and fraud prevention initiatives within this State;

(3) develop recommendations to enhance coordination between government organizations, law enforcement, and the private sector;

(4) advise appropriate State agencies on ways to provide the public with information concerning scams and fraudulent activities and the methods by which individuals can report scams and fraudulent activities;

(5) identify potential funding sources, including federal grants or public-private partnerships, to support consumer education and fraud prevention initiatives; and

(6) recommend additional legislative or regulatory actions to improve fraud prevention, increase enforcement of applicable laws, and strengthen victim support.

b. The task force shall consist of 15 members as follows:

(1) the Attorney General, or the Attorney General’s designee;

(2) the Commissioner of Human Services, or the commissioner’s designee;

(3) the Director of the Division of Consumer Affairs, or the director’s designee;

(4) two members of the Senate, who shall not be of the same political party, to be appointed by the President of the Senate;

(5) two members of the General Assembly, who shall not be of the same political party, to be appointed by the Speaker of the General Assembly;

(6) two representatives from law enforcement agencies, appointed by the Attorney General;

(7) two representatives of the business community, appointed by the Governor, one of whom shall represent a financial institution;

(8) two representatives of senior advocacy organizations, appointed by the Governor; and

(9) two members of the public qualified by experience, education, or training in consumer protection, appointed by the Governor.

c. Appointments to the task force shall be made no later than 45 days following the effective date of this act. Vacancies shall be filled in the same manner as the original appointments. The members of the task force shall serve without compensation, but shall be eligible for reimbursement for necessary and reasonable expenses incurred in the performance of their official duties within the limits of funds appropriated or otherwise made available to the task force for its purposes.

d. The task force shall organize within 60 days after the appointment of a majority of its members and shall select a chairperson and vice-chairperson from among its members. The task force may meet and hold hearings at the place or places the task force designates. The Department of Law and Public Safety shall provide staff and administrative support as necessary for the task force to perform its duties. The task force shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county, or municipal department, board, bureau, commission, or agency as the task force may require and as may be available to the task force for its purposes.

e. No later than one year after its organization, the task force shall submit a written report of its findings and recommendations to the Governor and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The task force shall expire 30 days after submitting its written report.

2. This act shall take effect immediately.

STATEMENT

This bill establishes the “Task Force on Scams and Fraud.”

The purpose of the task force is to study the prevalence, types, and methods of scams and fraudulent activities affecting New Jersey residents, with special attention to those targeting senior residents and vulnerable populations. Additionally, the task force is to review current efforts concerning consumer education and fraud prevention initiatives within this State; develop recommendations to improve coordination among government, law enforcement, and the private sector; advise appropriate State agencies on ways to provide the public with information concerning scams and fraudulent activities and the methods by which individuals can report scams and fraudulent activities; identify potential funding sources; and recommend additional legislative or regulatory actions to improve fraud prevention, increase enforcement of application laws, and strengthen victim support.

Additionally, the bill provides that the task force consist of 15 members as follows: the Attorney General, the Commissioner of Human Services, and the Director of the Division of Consumer Affairs, or their designees; two members of the Senate, who are not to be of the same political party, to be appointed by the President of the Senate; two members of the General Assembly, who are not to be of the same political party, to be appointed by the Speaker of the General Assembly; two representatives from law enforcement agencies, appointed by the Attorney General; two representatives of the business community, appointed by the Governor, one of is to represents a financial institution; two representatives of senior advocacy organizations, appointed by the Governor; and two members of the public qualified by experience, education, or training in consumer protection, appointed by the Governor.

All appointments to the task force are to be made within 45 days of the bill’s effective date and the task force is to organize within 60 days after the appointment of a majority of its members. No later than one year after its organization, the bill requires the task force to submit a written report of its findings and recommendations to the Governor and the Legislature. The task force will expire 30 days after the submission of its report.

Scams and fraudulent schemes targeting New Jersey residents, particularly senior residents, have increased significantly in recent years, causing substantial financial losses and emotional distress. It is the sponsor’s intent that this task force provide guidance and recommendations to better safeguard New Jersey residents from deceptive and fraudulent practices.