ASSEMBLY COMMITTEE APPROVES COHEN/PRIETO BILL INCREASING PENALTIES FOR GAS GOUGING

(TRENTON) - Legislation Assemblymen Neil M. Cohen and Vincent Prieto sponsored to increase the penalties associated with falsifying prices and other unscrupulous gas-gouging business practices by unscrupulous service station operators was released today by the Assembly Transportation and Public Works Committee.

"New Jersey has strict laws governing the pricing and sale of gasoline, but the penalties for breaking those laws are weak," said Cohen (D-Union).  "As the price of gas continues to climb, we need to ensure that greedy and opportunistic individuals don't take it upon themselves to make a costly situation even worse."

Currently, a violation of the law regulating the retail sale of motor fuels carries with it a penalty of up to $200 for each offense.  The Cohen/Prieto measure (A-2523) would increase the penalties to up to $1,500 for a first offense and up to $3,000 for second and subsequent offenses.

The measure would affect the following violations:

• The display and maintenance of a properly posted sign on each pump;
• Selling of motor fuel at a price equal to or greater than its net cost to the retail dealer, plus all selling expenses;
• The requirement to sell only at the posted price;
• The prohibition of giving rebates, allowances, concessions, or benefits either directly or indirectly so as to permit any person to obtain motor fuels from a retail dealer below the posted price;
• The prohibition of the use of lotteries, wheels of fortune, punch boards, or other games of chance in connection with the sale of motor fuels;
• The prohibition of changing the selling price more than once in any 24-hour period; and
• The proper branding of dispensing and storage equipment.

"Increasing the penalties associated with bilking motorists at the pump will compel gas stations to tighten their internal policing to avoid making a costly mistake," said Prieto (D-Hudson), a member of the Assembly Transportation and Public Works Committee.  "With the average gas price rapidly approaching the $3 mark, we need to ensure New Jersey motorists are not being exploited at the pump."

The measure was unanimously released from committee.  It now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.

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