S 399 — Requires limited liability company to disclose ownership information when submitting deed for recording and establishes penalty.*

S399 1R [First Reprint] SENATE, No.

Senators Cruz-Perez, O'Scanlon, Cryan, Greenstein and Scutari         SYNOPSIS           Requires limited liability company to disclose ownership information when submitting deed for recording.recording and establishes penalty.

  CURRENT VERSION OF TEXT      IntroducedAs Pendingreported Technicalby Reviewthe bySenate LegislativeCommunity Counsel.and Urban Affairs Committee on February 5, 2026, with amendments.

P.L.2004, c.66, s.2)             2.   2.   (New section)  a.  When a limited liability company is the grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling, together with the deed, the company shall submit for recording an affidavit disclosing the:

          (1)  name and business address of the registered agent for service of process of the limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14).  If the registered agent is not a member of the company, the affidavit pursuant to this subsection shall identify the name and address of at least one member of the company;

and           (2)  the following information for the beneficial owner of the company for service of process of the limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14):

           (a)  full legal name;

           (b)  date of birth;

           (c)  current business street address;

and            (d)  a unique identifying number from an acceptable identification document defined in 31 U.S.C.

s.5336(a)(1).            b.  For the purposes of this section:

          “Beneficial owner” means, with respect to an entity:

          (1)  an individual:

or           (2)  for an entity in which no individual owns greater than 25 percent of the ownership interests of the entity, an individual who, directly or indirectly, holds the greatest ownership interest in the entity.

           1c.  3.   A (New section)  a.  When a foreign limited liability company isin theviolation grantee of athis deedsection forshall residentialbe realsubject propertyto intended for rental purposes containing one or two dwelling units or a multiplepenalty dwelling,pursuant togetherto withsubsection thec. deed, the company shall submit for recording, an affidavit disclosing the:

    of (1) section name4 andof businessP.L.    c.    (C.          ) (pending addressbefore of the registeredLegislature agentas forthis servicebill).1 of  process      of3.   the(New section)  a.  When a foreign limited liability company designatedis pursuantthe tograntee section 14 of P.L.2012,a c.50deed (C.42:2C-14). for Ifresidential thereal registeredproperty agentintended isfor notrental apurposes membercontaining ofone theor company,two thedwelling affidavitunits pursuantor toa thismultiple subsectiondwelling, shalltogether identifywith the namedeed, andthe addresscompany ofshall atsubmit leastfor onerecording, memberan ofaffidavit thedisclosing company;the:

and          (1)  (2) name theand followingbusiness informationaddress for the beneficial owner of the companyregistered agent for service of process of the foreign limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14):(C.42:2C-14).  If the registered agent is not a member of the company, the affidavit pursuant to this subsection shall identify the name and address of at least one member of the company;

    and  (a)      full(2)  legalthe name;following information for the beneficial owner of the company for service of process of the foreign limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14):

           (b)  (a) datefull oflegal birth;name;

           (c)  (b)  currentdate businessof streetbirth; address;

and           (c)   (d) current abusiness uniquestreet identifyingaddress; number from an acceptable identification document defined in 31 U.S.C.

s.5336(a)(1). and           b.  (d)  Fora theunique purposesidentifying ofnumber thisfrom section:an acceptable identification document defined in 31 U.S.C.

    s.5336(a)(1).  “Beneficial      owner”b.  means,For withthe respectpurposes toof anthis entity:section:

          (1) “Beneficial owner” means, with respect to an individual:entity:

      (1)  an individual:

or           (2)  for an entity in which no individual owns greater than 25 percent of the ownership interests of the entity, an individual who, directly or indirectly, holds the greatest ownership interest in the entity.entity.                1c.  A limited liability company in violation of this section shall be subject to a penalty pursuant to subsection c.

 of      section 4. 4 (Newof section) P.L.    c.    (C.          ) (pending a. before A municipality may direct by ordinance of the governingLegislature bodyas thatthis anybill).1 charge  issued      to4.  a(New limitedsection)  liabilitya.  company1 orAs foreignused limitedin liabilitythis companysection, that“charge” ismeans aany granteefee, offine, apenalty, deed for residential real property intended for rental purposes containing one or twoother dwellingcharge unitsissued or a multiple dwelling pursuant to a housinglandlord, code, building code, or health code, concerning residential property leased by the limitedlandlord, liability company or foreign limited liability company, shall become a lien on the property, enforceable in the manner provided for real property tax liens in chapter 5 of Title 54 of the Revised Statutes, if the charge remains unpaid on the first day of the thirteenth month next following the date when the charge becomes due and owing.  At least 90 days prior to filing an unpaid charge as a municipal lien against the property pursuant to this section, the municipality shall serve written notice to the property owner, and the other parties in interest, indicating that if the charge remains unpaid it shall be converted into a municipalhousing, lien,building, and shall provide the owner the opportunity to pay the fine or requesthealth acode.  hearing“Charge” before a court of competent jurisdiction.  If the limited liability company or foreign limited liability company is not registered, in violation of section 2 of P.L.1974, c.50 (C.46:8-28) or section 12 of P.L.1967, c.76 (C.55:13A-12), then this additional notice requirement concerning the landlord shall notalso applyinclude prior to conversion into a municipalpenalty lien. incurred In a municipality that has adopted an ordinance pursuant to thissubsection subsection,c. at the time when the charge becomes a lien, the municipal officer responsible for housing code enforcement shall file a copy of the lien and certification with the municipal tax collector.  This lien shall be added to and become and form part of the taxes next to be assessed and levied upon such dwelling or lands, the same to bear interest at the same rate as taxes, and shall be collected and enforced by the same officers and in the same manner as taxes.

    of b.    As used in this section,section. “charge” means any fee, fine, penalty, or other charge issued to a landlord, concerning residential property leased by the landlord, pursuant to a housing, building, or health code.

           b.1  5. A municipality may direct by ordinance of the governing body that any charge issued to a limited liability company or foreign limited liability company that is a grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling pursuant to a housing code, building code, or health code, concerning residential property leased by the limited liability company or foreign limited liability company, shall become a lien on the property, enforceable in the manner provided for real property tax liens in chapter 5 of Title 54 of the Revised Statutes, if the charge remains unpaid on the first day of the thirteenth month next following the date when the charge becomes due and owing.  At least 90 days prior to filing an unpaid charge as a municipal lien against the property pursuant to this section, the municipality shall serve written notice to the property owner, and the other parties in interest, indicating that if the charge remains unpaid it shall be converted into a municipal lien, and shall provide the owner the opportunity to pay the fine or request a hearing before a court of competent jurisdiction.  If the limited liability company or foreign limited liability company is not registered, in violation of section 2 of P.L.1974, c.50 (C.46:8-28) or section 12 of P.L.1967, c.76 (C.55:13A-12), then this additional notice requirement concerning the landlord shall not apply prior to conversion into a municipal lien.  In a municipality that has adopted an ordinance pursuant to this subsection, at the time when the charge becomes a lien, the municipal officer responsible for housing code enforcement shall file a copy of the lien and certification with the municipal tax collector.  This actlien shall takebe effectadded immediately.to and become and form part of the taxes next to be assessed and levied upon such dwelling or lands, the same to bear interest at the same rate as taxes, and shall be collected and enforced by the same officers and in the same manner as taxes.

        1[b.            STATEMENTAs  used     in Thisthis billsection, would“charge” requiremeans any fee, fine, penalty, or other charge issued to a limitedlandlord, liabilityconcerning companyresidential property leased by the landlord, pursuant to a housing, building, or foreignhealth code.]       c.  A limited liability company that is the grantee of a deed for residential real property intended for rental purposes containing one toor two dwelling units,units or a multiple dwelling that isviolates the provisions of section 2 or 3 of P.L.    , c.    (C.          or C.          ) (pending before the Legislature as this bill) shall be subject to a multiplefine dwelling,of $5,000 per violation assessed and to disclosebe collected by the registeredmunicipality agentin andwhich the beneficialproperty owneris oflocated.  Each month that the companyviolation whenpersists itshall filesconstitute a deedseparate forviolation.1 recording.       5.  This act shall take effect immediately.

     The bill requires the company to submit for recording, together with the deed, an affidavit containing the name and business address of the registered agent and 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.