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Borough of Paulsboro, NJ
Gloucester County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of Paulsboro 11-18-2002 by Ord. No. 21.02.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 47, Peddlers, Hawkers and Solicitors, adopted 3-20-1962 by Ord. No. 432, as amended.
It shall be unlawful for any peddler, hawker, vendor, seasonal sales vendor, canvasser or solicitor, as hereinafter defined, to engage in such activity within the Borough of Paulsboro without first obtaining a license required by and in accordance with the provisions of this chapter.
When used in this chapter, the following terms shall have the following meanings:
GOODS
Shall include any goods, warehouse merchandise or other property capable of being the object of a sale regulated hereunder.
[Added 1-18-2011 by Ord. No. 02.11]
ITINERANT MERCHANTS, TRANSIENT VENDORS and SALESMEN
Deemed to be in the category of peddler, hawker, vendor, solicitor or canvasser, as set forth below.
MERCHANDISE (PEDDLER, HAWKER, VENDOR, SOLICITOR or CANVASSER)
Includes all goods, wares, foods, fruits, vegetables, farm products, books, magazines, periodicals, arts, crafts and all kinds of articles of personal property for domestic use.
MERCHANDISE (SEASONAL SALES)
Only includes Christmas trees, Christmas wreaths, Christmas grave blankets, Christmas arts and crafts, Easter flowers, Easter baskets, Mother's Day flowers, Mother's Day baskets, Valentine's Day flowers and other articles of arts and crafts related to the seasonal sales activity.
NONPROFIT ORGANIZATION
Any nonprofit religious, charitable, educational, civic or veterans organization, society, association, service club or volunteer first aid organization or fire company which is located within and services the Borough of Paulsboro and sells goods, merchandise or services at a specific location either owned by the nonprofit organization or at a location not owned by the nonprofit organization, having the written consent of the owners of the property to conduct seasonal sales activities with the Borough of Paulsboro.
ONE-DAY PEDDLER, HAWKER, VENDOR, SOLICITOR OR CANVASSER LICENSE
A license issued for a single day to cover municipally sponsored or authorized concerts, parades, or holiday celebrations. Borough Council may authorize by resolution such license to cover a series of related events or to exclude events.
[Added 11-4-2009 by Ord. No. 04.09]
PEDDLER, HAWKER and VENDOR
Includes any person, whether a resident of the Borough of Paulsboro or not, traveling either by foot, vehicle or any other type of conveyance, who goes from house to house, from place to place or from street to street, conveying or transporting goods, wares or merchandise and offering or exposing the same for sale or making sales and delivering articles to purchasers.
PERSON
Includes any partnership, partner, corporation or corporations or persons, except as defined in § 47-12 hereinafter.
SEASONAL SALES VENDOR
A person who sells goods and/or merchandise for a specified, limited purpose and period of time at a fixed location owned by and/or leased by the applicant.
SOLICITOR or CANVASSER
Includes any person, whether a resident of the Borough of Paulsboro or not, who goes from house to house, from place to place or from street to street, soliciting or taking or attempting to take orders for the sale of services to be performed in the future, whether or not such individual has, carries or exposes for sale a sample of the subject for such order and whether or not he is collecting advance payments on such orders.
SEASONAL SALES TIME PERIOD
A specific time period to sell goods and/or merchandise as follows:
A. 
Christmas: a time period not to exceed 30 days, including Christmas Day and the 29 days immediately preceding Christmas Day.
B. 
Easter: a time period not to exceed five days including Easter, and the four days immediately preceding Easter.
C. 
Mother's Day: a time period not to exceed five days, including Mother's Day, and the four days immediately preceding Mother's Day.
D. 
Valentine's Day: a time period not to exceed five days, including Valentine's Day, and the four days immediately preceding Valentine's Day.
YARD SALE
Shall include all sales entitled "garage sale," "lawn sale," "attic sale," "rummage sale," "craft sale," "yard sale" or "flea market sale" or any similar casual sale of tangible personal property which is advertised by any means whereby the public at large is or can be made aware of such sale.
[Added 1-18-2011 by Ord. No. 02.11]
A. 
Application for a hawker's, peddler's, vendor's, solicitor's or canvasser's license.
(1) 
An applicant for a hawker's, peddler's, vendor's, solicitor's or canvasser's license under this chapter shall file with the Borough Clerk a sworn application, in writing, on a form to be furnished by the Borough Clerk, which shall give the following information:
(a) 
The name, address and telephone number of the organization and or business applying for a license under the provisions of this section.
(b) 
The name, address, telephone number and description of those individuals to be employed by and engaged in peddling, hawking, vending, soliciting or canvassing.
(c) 
The place or places of residence of the organization and/or business applying for a license, as well as of those individuals engaged by the organization and/or business in conducting peddling, hawking, vending, soliciting and canvassing activities.
(d) 
Social security numbers and driver's license numbers of individuals of the organization and/or business engaged in the activities of peddling, hawking, vending, soliciting and canvassing.
(e) 
Social security numbers and driver's license numbers of those individuals engaged in peddling, hawking, vending, soliciting and canvassing for the organization and/or business applying for a license to conduct said activities.
(f) 
A brief description of the nature of the business, the goods to be sold and the names and addresses of the principal office of their manufacturer as well as the name and address of the agent designated to receive service of process in the State of New Jersey of said organization and/or business applying for a license under this chapter.
(g) 
The length of time for which the right to do business is desired by the organization and/or business applying for the license.
(h) 
A photograph of each individual who will be engaged in the peddling, hawking, vending, soliciting or canvassing and who is employed by the organization and/or the business applying for a license, taken within 60 days immediately prior to the filing of the application. The individuals employed by the organization and/or business applying for a license shall be fingerprinted at the request of the Chief of Police.
(i) 
A statement regarding each individual employed by the organization and/or business applying for the license as to whether such individual has been convicted of any crime, disorderly persons offense or violation of any municipal ordinance, as well as describing the nature of the events and the punishment or penalty assessed therein.
(j) 
A statement indicating whether or not orders are to be solicited and taken for future delivery of goods or performance of services by the organization and/or business applying for the license.
(2) 
The applicant, being the organization and/or business applying for a license, shall list previous licenses issued by the Borough of Paulsboro as well as other municipalities wherein licenses have been applied for and issued by those municipalities.
(3) 
The applicant shall list all previous licenses issued by this or any other municipality which have been revoked, who revoked the license, the date of revocation and the reason given thereof.
B. 
Seasonal sales vendors.
(1) 
An applicant for a license as a seasonal sales vendor under this chapter shall file a sworn application with the Borough Clerk on a form to be provided. A complete application for a seasonal sales license must be submitted to the Borough Clerk 30 days prior to the actual specified time period for conducting the seasonal sales activity. An application determined to be incomplete upon review by the Borough Clerk shall be returned to the applicant. The following information shall be provided by the seasonal sales vendor in its application:
(a) 
The name, address and telephone number of the organization and/or business applying for a license under the provisions of this section.
(b) 
The name, address, telephone number and description of those individuals to be employed by and engaged in the seasonal sales activity.
(c) 
The block and lot location of the property to be utilized in conducting the seasonal sales activity.
(d) 
Social security numbers and driver's license numbers of individuals of the organization and/or business, engaged in the seasonal sales activity.
(e) 
Social security numbers and driver's license numbers of individuals engaged in seasonal sales for the organization and/or business applying for a license to conduct said activities.
(f) 
The length of time for which the right to do business is desired by the organization and/or business applying for the license as per § 47-2 of this chapter, which defines said seasonal sales period.
(g) 
A photograph of the individuals who will be engaged in the seasonal sales vending and who is employed by the organization and/or the business applying for a license, taken within 60 days immediately prior to the filing of the application.
(h) 
The individuals employed by the organization and/or business applying for a license shall be fingerprinted at the request of the Chief of Police.
(i) 
A statement as to whether or not the individuals employed by the organization and/or business applying for a license have been convicted of any crime, disorderly persons offense or violation of any municipal ordinance, as well as a description of the nature of the events and the punishment or penalty assessed therein.
(j) 
A list of previous licenses issued by the Borough of Paulsboro as well as other municipalities wherein licenses have been applied for and issued or denied by those municipalities.
(k) 
A property survey of the lot(s) to be prepared by a New Jersey licensed professional engineer or surveyor. A hand-drawn sketch plat may be substituted in lieu of a survey plat as determined by the Borough Clerk. The purpose of the survey plat and/or sketch plat is to determine if the proposed use of the property location is sufficient for the intended purpose of conducting seasonal sales. The plan must conform with the zoning regulations applicable to any development within the zone in which the seasonal sales is proposed to take place, unless grounds can be established satisfactory to the Borough Council such that a variance (using the standards of the Land Use Code) can be granted as to a particular deviation. The following information must be set forth on the survey and/or sketch plat submitted:
[1] 
Location of and quantities of merchandise to be stored and displayed on the lot(s).
[2] 
Location of on-site parking, as well as off-site parking associated with the site location.
[3] 
Location of curb cut access to indicate proper ingress and egress to the site to evaluate and prevent traffic hazards, congestion or excessive interference with normal traffic movements on adjacent public streets.
[4] 
Location of temporary signs in accordance with regulations set forth in the Land Development and Use Code of the Borough of Paulsboro and this chapter.
(l) 
A statement as to how the site shall be maintained during the designated time period, as well as a statement indicating how trash, refuse and other materials will be disposed of other than through normal solid waste collection services provided by the Borough of Paulsboro. All debris, materials, trash, etc., must be removed from the site within 48 hours following the expiration of the seasonal sales license issued by the Borough of Paulsboro.
(m) 
A certification from the Borough of Paulsboro Tax Collector that all taxes have been paid on the subject lot and are current.
(2) 
Operating standards for seasonal sales vendors.
(a) 
No temporary signs advertising the seasonal sales activity shall be placed on any tree, telegraph, electric light or public utility pole or upon rocks or other natural features located within the public right-of-way. All temporary signs shall be located on site.
(b) 
No more than four temporary signs shall be erected. Temporary signs shall not exceed six square feet in area nor exceed four feet in height.
(c) 
Temporary signs may not be erected prior to 48 hours before the designated beginning of the seasonal sales activity and must be removed immediately after the time period stated and licensed for conducting of the seasonal sales activity.
(d) 
No sign shall be erected that is of such character, form, shape or color that it imitates or resembles any official traffic sign, signal or device or that has any characteristics which are likely to confuse or dangerously distract the attention of the operator of a motor vehicle on a public street.
(e) 
Temporary signs shall be kept in a proper state of repair, in accordance with the requirements of the Borough's Building Code, Property Maintenance Code and other pertinent regulations. Signs which fall into such a state of disrepair as to become unsightly or to pose a threat to public safety may be removed by the Borough at the owner's expense upon proper notification by the Borough.
(f) 
No temporary sign shall be erected within or project over the right-of-way of any public street or sidewalk. No temporary signs placed on the site shall be located in such a fashion which would affect the sight visibility of the motoring public as determined by the Chief of Police or his designee.
(3) 
Any person conducting activities involving the sales of merchandise as defined under "merchandise (seasonal sales)" in this chapter shall be required to obtain a seasonal sales license notwithstanding the issuance of a vendor's license prior to the adoption of this chapter.
(4) 
Seasonal sales activities as defined in this chapter shall be restricted to all nonresidential zones as designated by the Land Use Map as adopted by the Borough of Paulsboro. It shall be unlawful for seasonal sales vendors to operate in locations directly opposite from or on a diagonal from another seasonal sales vendor or from any retail or wholesale commercial enterprise which is engaged in selling the same goods as those offered for sale by the seasonal sales vendor. To this end, it shall be unlawful for more than one seasonal sales vendor to operate at a traffic intersection.
C. 
Hours of operation.
(1) 
The time for soliciting, peddling, hawking, vending and canvassing shall be between the hours of 12:00 noon and 8:00 p.m.
(2) 
The time of seasonal sales shall be between the hours of 9:00 a.m. and 9:00 p.m.
(3) 
All yard sales shall be conducted between the hours of 8:00 a.m. and 4:00 p.m.
[Added 1-18-2011 by Ord. No. 02.11]
(4) 
A maximum of two single-day or two weekend (Saturday and Sunday) yard sales or similar event may be held in any calendar year at any dwelling unit, as defined in § 22-2.
[Added 1-18-2011 by Ord. No. 02.11]
D. 
Yard sales.
[Added 1-18-2011 by Ord. No. 02.11]
(1) 
Advertising.
(a) 
Signs posted on handbills advertising a garage sale as herein defined shall be of a size not larger than 12 inches by 12 inches and must contain, in addition to the definition of the type of sale being advertised, the name and address of the person conducting the sale.
(b) 
No yard sale sign shall be posted earlier than seven days prior to the day of the yard sale.
(c) 
A newspaper advertisement of such sale shall contain the address of the person conducting the sale.
(d) 
All such signs shall be removed within 24 hours after the completion of the sale.
(e) 
Signs advertising permitted yard sales shall not be posted on telephone poles, other public utility structures or within any required sight triangle.
(2) 
Exceptions. The provisions of this subsection shall not apply to or affect the following persons or sales:
(a) 
Persons selling goods pursuant to an order or process of a court of competent jurisdiction.
(b) 
Persons acting in accordance with their powers and duties as public officials.
(c) 
Any person selling or advertising for sale an item or items of personal property which are specifically named or described in the advertisement and which separate items do not exceed five in number.
(d) 
Any publisher of a newspaper, magazine or other publication or other communication media who publishes or broadcasts in good faith without knowledge of its false, deceptive or misleading character or without knowledge that the provisions of this subsection have not been complied with.
(e) 
Any sale regulated under any other provisions of this Code.
(f) 
Any sale conducted by any merchant or mercantile or other business establishment from or at a place of business wherein such sale would be permitted by the zoning regulations of the Borough or under the protection of the nonconforming use section thereof any other sale conducted by a manufacturer, dealer or vendor and which sale would be conducted from properly zoned premises and not otherwise prohibited in this Code.
(g) 
Any bona fide charitable, eleemosynary, educational, cultural or governmental institution or organization, provided that the burden of establishing the exemption under this section shall be on the organization or institution claiming such exemption.
A. 
Upon receipt of such application by the Borough Clerk, the original shall be referred to the Chief of Police, who shall cause to be made such investigation of the applicant and its agents and employees as the Chief deems necessary to determine if the requirements of this chapter have been met and as may be needed for the protection of the public welfare.
B. 
The Chief of Police shall deny the application if he determines that any of the reasons for denial set forth in § 47-4D below have occurred. The Chief shall indicate his denial on the application, setting forth his reasons, and return the application with his decision to the Borough Clerk. The Clerk shall then notify the applicant that the application is denied.
C. 
If the Chief of Police determines from his investigation that no reason or reasons exist for denial, then he shall endorse his or her approval on the application, returning the application to the Borough Clerk. The Clerk shall, upon payment of the prescribed license fee, execute and deliver the license to the applicant. The Clerk shall keep a record of all licenses issued and of all complaints received, if any, concerning each license. The license must have a photo identification for the individual to whom the license was issued.
D. 
Grounds for denial of a peddler's, hawker's, vendor's, solicitor's, canvasser's and seasonal sales vendor's license.
(1) 
The applicant has failed to comply with the application procedures and requirements as set forth in § 47-3 of this chapter.
(2) 
The applicant has failed to complete the application in full and to supply all of the information required.
(3) 
The applicant has had its peddlers or other similar license revoked and/or denied for good cause by this or any other municipality.
(4) 
Any of the grounds set forth in § 47-9 of this chapter for revocation exist.
(5) 
As to seasonal sales, the site plan does not conform with the applicable zoning and development requirements under the Borough of Paulsboro Zoning Ordinance, § 80-1 et seq.; provided, however, that the Borough Council may grant a variance for any deviation using the standards applicable to N.J.S.A. 40:55D-70c.
A. 
Application fee. Any applicant for a peddler's, hawker's, vendor's, solicitor's, canvasser's and/or seasonal sales vendor's license shall be required to pay a fee of $25 to the Borough Clerk for each individual to be registered and employed by the organization and/or business, except that applicants for a one-day peddler, hawker, vendor, solicitor or canvasser license shall be required to pay an application fee of $15 to the Borough Clerk for each individual to be registered and employed by the organization and/or business.
[Amended 11-4-2009 by Ord. No. 04.09]
B. 
License fee. If a license is granted, then the applicant must pay the following license fee before the license is issued:
(1) 
Peddler's, hawker's, vendor's, solicitor's and canvasser's license: $100; peddler's, hawker's, vendor's, solicitor's or canvasser's one-day license: $20. A separate license fee must be paid for each person acting as a peddler, hawker, vendor, solicitor or canvasser for the applicant. The fee for Borough residents shall be reduced by 50%.
[Amended 11-4-2009 by Ord. No. 04.09]
(2) 
Seasonal sales vendor's license: $300 for each seasonal sales activity as defined in § 47-2 herein. The fee for Borough residents shall be reduced by 50%.
C. 
All nonprofit organizations must demonstrate that they have been a nonprofit organization for a period of at least two continuous years as a condition of being exempt from payment of registration and licensing fees.
A separate license must be obtained by each person acting as a peddler, hawker, vendor, solicitor or canvasser. Licenses issued must be worn by each such person in such a manner as to be readily visible to the public when engaged in the activities regulated herein.
No peddler, hawker, canvasser, solicitor or vendor shall sell or offer for sale to the general public any goods or merchandise, beverages or food products from a fixed location within 50 feet from or on public or quasipublic streets and sidewalks within the Borough of Paulsboro. In addition, the sale of merchandise by a peddler, hawker, canvasser, solicitor or vendor from a fixed or stationary location is prohibited with the exception of seasonal sales vendors licensed under this chapter.
A. 
Duration of license for peddlers, hawkers, vendors, solicitors and canvassers. All peddler's, hawker's, vendor's, solicitor's and canvasser's licenses issued in accordance with this chapter, with the exception of one-day licenses, shall expire at the end of the calendar year in which they are issued. One-day peddler, hawker, vendor, solicitor or canvasser licenses shall expire at the end of the event on the day for which such license is issued. Licenses shall not be transferrable and must be surrendered after expiration before any renewal license can be issued, subject to § 47-9 below.
[Amended 11-4-2009 by Ord. No. 04.09]
B. 
Duration of license for seasonal sales vendors. A seasonal sales license issued shall be for the seasonal sales time period set forth in § 47-2, entitled "Definitions," of this chapter. A separate license must be obtained for each seasonal sales activity. Licenses shall not be transferable and must be surrendered after expiration of the applicable time period before a new license and/or registration can be issued for each seasonal sales activity.
A. 
Licenses issued under this chapter may be revoked by the Chief of Police or his designee after reasonable notice and hearing for any of the following causes, and one-day licenses may be revoked by the Chief of Police or his designee immediately, on the day for which the license is issued, without the requirement of prior notice or a prior hearing, for any of the following causes:
[Amended 11-4-2009 by Ord. No. 04.09]
(1) 
A misrepresentation or false statement contained in the application for the license and registration of individuals engaged by the organization (profit or nonprofit) and/or business.
(2) 
A misrepresentation or false statement made in the course of carrying on the activities regulated herein.
(3) 
A conviction of any crime or disorderly persons offense.
(4) 
Conducting the business of soliciting, canvassing, vending, hawking or seasonal sales activities in an unlawful manner and in violation of any provision of this chapter or in such a manner as to constitute a breach of the peace or to constitute a menace to health, safety or general welfare of the public.
B. 
Any violation of the provisions of this chapter shall be cause for immediate revocation of a license issued by the Borough of Paulsboro, and the revocation of a license shall be grounds for nonissuance of a license for a period not to exceed two years.
C. 
Notice of hearing for revocation of a license shall be given in writing, setting forth the grounds of complaint and the time and place of hearing. Such notice shall be served personally upon the licensee by means of a summons or by mail, postage prepaid, to the licensee at the address given by the licensee in making the application, with such notice to be given at least five days prior to the date set for the hearing in accordance with the provisions of § 47-9.
Any person aggrieved by the action of the Chief of Police or the Borough Clerk in the denial of an application for a permit or license as provided in this chapter or in the decision with reference to the revocation of a license as provided in § 47-9 of this chapter shall have the right of appeal to the Borough Council of the Borough of Paulsboro. Such appeal shall be taken by filing with the Borough Council, within 14 days after notice of the action complained of has been mailed to such person's last known address, a written statement fully setting forth the grounds for the appeal. The Borough Council shall set a time and place for hearing such appeal, and notice of such hearing shall be given to the appellant in the same manner as provided in § 47-9C of this chapter for notice of hearing on revocation. The decision and order of the Borough Council on such appeal shall be final and conclusive.
A. 
The equipment used or employed by peddlers, hawkers and vendors of ice cream, foods, beverages, confections and other related commodities shall be maintained in a clean and sanitary manner and be subject to inspection by the Board of Health and shall fully comply with the laws of the State of New Jersey, the rules and regulations of the State Department of Health, the ordinances of the Borough of Paulsboro and the rules and regulations of the Board of Health.
B. 
It shall be the duty of any police officer of the Borough of Paulsboro to enforce the provisions of this chapter and to require any persons seen peddling, hawking, soliciting, canvassing or conducting seasonal sales, who are not known by such officer to be duly licensed, to produce his/her or its license as required by this chapter.
This chapter shall not be construed to include, regulate, prohibit or require the licensure of any of the following:
A. 
Persons selling requested items:
(1) 
The selling of any article at wholesale to retail dealers of such articles or the delivery of milk, eggs, bread, newspapers or other such necessary and perishable articles of food or merchandise of a type commonly delivered on a house-to-house basis at intervals of less than one week.
(2) 
Persons or entities invited or requested by the resident of a home or agent of a commercial enterprise for purposes relating to the sale of merchandise or insurance or the provision of services, it being the intent of this chapter that it apply only to attempted sales which were originally unsolicited by said resident or agent.
B. 
Any veteran who holds a license identifying him or her as such, issued under the laws of the State of New Jersey, shall be exempt from securing a license or paying the fee as provided herein but shall be required to comply with all other applicable sections of this chapter and shall be required to register with the Borough Clerk and obtain a permit, which will be issued by the Clerk upon proper identification and exhibition of such state license.
C. 
Certain organizations:
(1) 
Any nonprofit organization, including but not limited to a religious, charitable, educational, civic or veterans organization, society, association or service club or volunteer first-aid or fire company, located within the borders of the Borough of Paulsboro, desiring to solicit or have solicited in its name money, donations of money or property or financial assistance of any kind or desiring to sell or distribute any item of literature or merchandise for which a fee is charged or solicited from persons other than members of such organization, at any place or places within the Borough of Paulsboro, for a charitable, religious, patriotic or philanthropic purpose. Such nonprofit organization shall be exempt from the provisions of §§ 47-3 and 47-4 of this chapter, provided that there is filed with the Borough Clerk a sworn application in writing, which shall give the following information:
(a) 
Name and purpose of the cause for which the permit is sought.
(b) 
Name and address of organization.
(c) 
Period during which solicitation is to be performed.
(d) 
Name and address of each agent or representative who will conduct solicitations and the length of time that said agent or representative has been employed or affiliated with such organization, society, association or corporation.
(2) 
Upon being satisfied that such person, organization, society, association, etc. is a bona fide nonprofit religious, charitable, educational, patriotic or philanthropic organization and that the agents or representatives who shall conduct the solicitations are of good moral character and reputation, the Borough Clerk shall issue a permit without charge to such organization, association or corporation to solicit in the borough. Such organization, association, society, corporation, etc., shall furnish to all its members, agents or representatives conducting solicitation credentials in writing, stating the name of the organization, name of the agent, the duration and purpose of solicitation.
D. 
The seasonal sales of agricultural products or dairy products sold on the premises of the grower or cultivator shall be exempted, provided that such agricultural products or dairy products are grown or cultivated on the land from which the sales are made. Any structure or stand used in such on-site sales shall be temporary in nature and shall comply with all applicable construction and sewage requirements as contained in § 47-3B. This exception shall only apply to and shall be restricted to agricultural or dairy products grown or cultivated on site and shall not allow such growers or cultivators to sell products not brought to maturity on site.
E. 
On Paulsboro Day only, peddlers, hawkers, vendors, solicitors, or canvassers who have entered a written registration agreement with the Paulsboro Day Committee.
[Added 11-4-2009 by Ord. No. 04.09]
A. 
Any person, entity or corporation who or which violates any provision of this chapter shall, upon conviction thereof, be punishable by one or more of the following: a fine of up to but not exceeding $1,000 and/or imprisonment in the county jail or any place provided by the municipality for the detention of prisoners for a term up to but not exceeding 90 days or community service up to but no greater than 90 days, or any combination of the above.
B. 
Each day that a violation exists, occurs or continues shall constitute a separate offense for the purpose of imposing the penalties referred to above.