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A3997
ASSEMBLY, No. 3997
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman� KATIE BRENNAN
District 32 (Hudson)
Assemblywoman� YVONNE LOPEZ
District 19 (Middlesex)
Assemblyman� STERLEY S. STANLEY
District 18 (Middlesex)
Co-Sponsored by:
Assemblywoman Reynolds-Jackson
SYNOPSIS
���� Prohibits class action waivers in residential rental
agreements for claims arising from violations of rent control laws.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
prohibiting class action waivers in residential rental
agreements for claims arising from violations of rent control laws and
supplementing Title 56 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Any provision in a
residential rental agreement that purports to waive, limit, or restrict a
tenant�s right to participate as a class representative or class member in any
class action suit arising from violations of any rent control law shall be
deemed void and unenforceable.� This prohibition shall apply regardless of when
the class action waiver was executed, and regardless of whether it appears in
an initial lease, or a subsequent addendum.� In addition to the penalty
established pursuant to subsection b. of section 3 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill), the inclusion of
such class action waiver in a rental agreement shall be prima facie evidence of
a violation of the
New Jersey consumer fraud act, P.L.1960,
c.39 (C.56:8-1 et seq.)
.
���� 2.��� A tenant may not waive
the rights established by P.L.���� , c.��� (pending before the Legislature as
this bill).� Any purported waiver of rights established pursuant to P.L.���� ,
c.��� (pending before the Legislature as this bill) shall be void and unenforceable.
���� 3.��� a.�������� A tenant who
is subjected to a class action waiver, as prohibited by P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill), is entitled to
remedies as the prevailing party, including, but not limited to, a declaratory
judgment finding the waiver void and unenforceable; an injunction prohibiting
enforcement of the waiver; actual damages; and a reasonable attorney�s fees.�
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
shall not be construed to limit any other remedies available under State or
federal law, including, but not limited to, P.L.1970, c.210 (C.2A:42-10.10 et
seq.), commonly referred to as the Reprisal Law.
���� b.��� A landlord who violates
a provision of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) shall be liable to a penalty of $1,000 per affected dwelling unit.
���� 4.��� This act shall take
effect immediately and shall be applicable to any residential rental agreement
in effect on or after the effective date of this act, including a claim arising
from a rent control violation that occurred before this effective date.
STATEMENT
���� This bill prohibits class
action waivers in residential rental agreements for claims arising from
violations of rent control laws.
���� Rent control ordinances serve
a vital public purpose by preserving affordable housing, preventing
displacement, and ensuring fair treatment of tenants.� The efficient
enforcement of rent control laws requires access to collective legal remedies
as individual claims for rent overcharges are often financially impractical for
an individual tenant.
���� The bill deems any provision
in a residential rental agreement that waives, limits, or restricts a tenant�s
right to participate as a class representative or class member in a class
action suit arising from violations of rental control laws as void and
unenforceable.� Any purported waiver of rights established by this bill is to
be deemed void and unenforceable.� This bill establishes that the inclusion of
a class action waiver within a rental agreement as prima facie evidence of a
violation of the New Jersey consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1
et seq.).�
���� A tenant that is subjected to
a class action waiver, as prohibited by this bill, is entitled to several
remedies, including, but not limited to, a declaratory judgment that the waiver
be void and unenforceable, an injunction prohibiting enforcement of the waiver;
actual damages; and reasonable attorney�s fees and costs.� In addition to a
potential CFA violation for certain violations, a landlord found to be in
violation of this bill is to be liable to a penalty of $1,000 per affected
dwelling unit.� These remedies are cumulative and in addition to other remedies
available under State and federal law.
���� This bill should not be
construed to invalidate class action waivers in contexts unrelated to rent
control enforcement, in recognition of the New Jersey Supreme Court�s decision
in
Pace v. Hamilton Cove
,
255 N.J. 283 (2024).�
���� This bill would take effect
immediately but would apply retroactively to all rental agreements in effect on
or after the effective date of this bill, including violations arising from
violations that occurred before the effective date.