3 Big NJ Laws Take Effect Now

NEW JERSEY – Three big New Jersey bills took effect on Friday – and one deals with an industry at the heart of a health epidemic in New Jersey that's become deadly.

One law imposes a 10 percent tax on materials used in vaping products – a tax that could force the e-cigarette user to pay more to use them.

Another new law is supposed to help keep New Jersey homeowners out of foreclosure, while another punishes employers who fail to pay back wages.

The "Tobacco and Vapor Products Tax Act" comes as horrifying details have emerged in individual cases in the deadly New Jersey vaping sickness outbreak.

The number of possible cases has risen by 33 percent since the state announced the first New Jersey death associated with the national vaping outbreak on Oct. 1. Read more: Horrifying Details Emerge As Deadly NJ Vaping Outbreak Grows

Here is what each bill does:

Tobacco and Vapor Products Tax Act

This law, known as the “Tobacco and Vapor Products Tax Act,” imposes licensing requirements on vape businesses and imposes a 10 percent tax on the sale of container e-liquid.

It's unclear if this law was passed to address the vaping illness epidemic, but it was approved before a surge in illnesses were reported over the last two months.

The vaping cases have been primarily in North and Central Jersey. The death, involving a woman from northern New Jersey, was reported to the department in August. The incident was also reported when Gov. Phil Murphy announced the creation of the Electronic Smoking Device Task Force on Sept. 12.

"The New Jersey Department of Health is saddened to announce a death associated with this outbreak. This death underscores the potential dangers associated with vaping," said Acting Commissioner Judith Persichilli, who chairs the Governor's Electronic Smoking Device Task Force.

The tragedy comes as the number of possible cases in New Jersey has risen past 40, according to the CDC and the state Department of Health.

To date, there have been no reports of serious lung illness associated with products sold in dispensaries permitted by the New Jersey Medical Marijuana Program.

Effective on Friday, the "Tobacco and Vapor Products Tax" requires to must collect tax on liquid used in e-cigarettes. The seller is personally liable for the tax revenue that's collected.

Under the new law, sellers are still required to collect a 30 percent tax on the wholesale price of tobacco products, excluding "moist snuff;" 75 cents per ounce on moist snuff; and 10 cents per fluid milliliter on liquid nicotine in a pre-filled cartridge or other container where the cartridge or container is marketed, sold or intended for use as part of an electronic smoking device.

Addressing "Alarming" Increase In Residential Foreclosures

A measure that codifies the state’s Foreclosure Mediation Program was signed into law and takes effect on Friday. Assemblywoman Mila Jasey, Assemblyman Jamel Holley and Assemblyman Vince Mazzeo are sponsors of the law.

The lawmakers say the law will work to reduce the "staggering" number of foreclosures in New Jersey and help homeowners keep their homes.

For the last several years, New Jersey has had the highest rate of foreclosures in the country, the lawmakers say. The Foreclosure Mediation Program was established in 2009 by the New Jersey Judiciary system in response to an alarming increase in residential foreclosures.

“Foreclosures not only affect homeowners, but neighborhoods and the state as a whole,” said Jasey, D-Essex, Morris. “For far too long, we have led the country in foreclosures. The mediation services provided by this program can help homeowners avoid foreclosure and reinvigorate our housing market by reducing our dismal foreclosure rates. It is essential that we keep these services going.”

The law (A-664) requires that, at the time the homeowner receives a notice of intention to foreclose, a homeowner must receive written notice of the option to participate in the Foreclosure Mediation Program.

Upon the filing of a mortgage foreclosure complaint against an eligible property, the homeowner must again receive written notice of the option to participate in the Foreclosure Mediation Program. The written notice must be available in both English and Spanish.

The law also authorizes eligible homeowners to submit a mediation request in accordance with court rules, which will then initiate the process of scheduling a mediation session with their lender.

“No homeowner wants to lose their home,” said Holley, D-Union. “Making this program a permanent fixture will ensure that homeowners facing foreclosure will always have an alternative. It will also help chip away at the foreclosure crisis that has loomed over the state for too long.”

“Foreclosed properties can sit vacant for extended periods of time, which can affect property values of nearby homes,” said Mazzeo, D-Atlantic. “We should give homeowners who are struggling the opportunity to keep their homes and avoid the ripple effects of foreclosures on neighborhoods.”

The law also creates a dedicated, non-lapsing account to be known as the “Foreclosure Mediation Fund.” The fund will be comprised of $60 out of each $155 payment added to every foreclosure complaint filing fee, along with all fines imposed on lenders for noncompliance with obligations of the mediation program.

Tough NJ Wage Payment Law Takes Effect

The law increases the penalties for employers who fail to pay wages owed under state law. The law makes New Jersey one of the most aggressive states in the nation for wage payment and work-hour enforcement, lawmakers and attorneys say.

Among other things, the new law establishes a “pattern of wage non-payment” as a third-degree crime, which is ordinarily punishable by three to five years of imprisonment, a fine of up to $15,000, or both, according to the Peckar & Abramson law firm.

Employers are considered to have engaged in a pattern of wage nonpayment if they are found to have knowingly failed to pay wages as required by law, according to attorneys and lawmakers.

Effective on Friday, employers who have been convicted of violating the law on two or more occasions are guilty of the crime of a “pattern of wage nonpayment” which is a third-degree offense.

"It’s a whole new era in New Jersey for employers," according to the Peckar & Abramson law firm. "Employers must be ready for an increase in wage and hour claims, and be cautious whenever disciplining employees to be sure those employees have not made any recent complaints of wage and hour violations.

"Employers would be well advised to carefully audit and review their compensation, timekeeping, and wage and hour classification policies and procedures to ensure compliance with the myriad laws and regulations that can trip up even the most cautious employer."