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  • NJ A599
  • Allows modernization for the form of disbursement for certain State government and local unit payments to individuals and business entities.
Introduced
(1/27/2016)
In Committee
(5/1/2017)
Crossed Over
(3/23/2017)
PassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill modernizes the methods of disbursing State governmental payments to increase efficiency through standardization and provide a more accessible form of payment receipt for recipients lacking access to banking institutions. The bill also simplifies the procedures for the use of standard electronic funds transfer technologies by local units of government. Under the provisions of the bill, State payments to individuals or business entities are required to be disbursed in a standardized prepaid debit card format, except for gross income tax refund payments and service compensation payments to State officers, employees, and agents. Implementation is subject to a determination of financial feasibility by the State Treasurer. The Treasurer is required to make an annual disclosure, via the Department of the Treasury's website, concerning the status, scope, and future plans for implementation, including an explanation as to any determinations of financial infeasibility. The Treasurer is also required to consider staging implementation into two stages. During the first stage, covering State fiscal years 2016 and 2017, recipients may opt for a number of alternatives to the prepaid debit card format, including a conventional check or direct deposit. During the second stage, covering State fiscal years 2018 and thereafter, recipients may opt to receive a payment in either the form of a prepaid debit card or direct deposit. Though scheduled to apply to payments authorized on or after July 1, 2015, the scope and timing of implementation of prepaid debit card payment standardization is conditioned on an ongoing determination of financial feasibility by the Treasurer. The capacity of the Treasurer to shape implementation does not extend to the annual public disclosure requirement or the bill's minimum requirements for prepaid debit cards. The bill does not authorize or preclude the provision of prepaid debit cards to officer, employees, and agents as compensation for services. Prepaid debit cards, issued pursuant to the bill, are required to have the following minimum characteristics: · Open Loop: The prepaid debit card must be redeemable at a variety of merchants and financial institutions as opposed to a closed loop of related merchants. · Redeemable for Products, Services or Cash: o The prepaid debit card must be redeemable: (1) for products or services with merchants; and (2) for cash at automated and manual teller terminals of State Treasurer approved financial institutions. · Reloadable or Nonreloadable: The prepaid debt card may be reloadable or nonreloadable. With regard to local government units, the bill permits local units to adopt policies that permit the use of electronic funds transfer technologies (EFT), such as wire transfers, automated clearing houses, and debit cards, for the disbursement of payments to individuals or business entities. The chief financial officer of the local unit will be responsible for the oversight and administration of the EFT system. The class of local units established under this bill consists of a contracting unit as defined by the "Local Public Contracts Law" P.L.1971, c.198 (C.40A:11-1), a board of education as defined by the "Public School Contracts Law" (N.J.S.18A:18A-1 et seq.), and a county college as defined by the "County College Contracts Law," P.L.1982, c.189 (C.18A:54A-25.1 et seq.).
2nd Reading in the Assembly, Passed Assembly, State Government, Wagering, Tourism & Historic Preservation
Received in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee  (on 5/1/2017)
 
 

Date Chamber Action Description
5/1/2017 S Received in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
3/23/2017 A Passed by the Assembly (74-0-0)
6/20/2016 Assembly Appropriations Hearing (10:00 6/20/2016 Committee Room 11, 4th Floor)
6/20/2016 A Reported out of Assembly Committee, 2nd Reading
6/20/2016 Assembly Appropriations Hearing (13:00 6/20/2016 Committee Room 11, 4th Floor)
1/27/2016 A Introduced, Referred to Assembly Appropriations Committee
Date Motion Yea Nay Other
Detail 3/23/2017 Assembly Floor: Third Reading - Final Passage 74 0 6
Detail 6/20/2016 Assembly Appropriations Committee: Reported Favorably 10 0 1