Bill > A957

Introduced Session

This bill would require all third-party disbursement service organizations that contract with local government units and boards of education to make payments and execute financial transactions for those purposes to post a bond, in an amount and with sureties approved by the Local Finance Board, with the local government unit or board of education. The bond would be forfeited in the event that the third-party disbursement service organization fails to make payments or execute financial transactions, including federal or State tax deposits, on behalf of the local government unit or board of education. This bill responds to concerns raised in the case of Ameripay, a third-party disbursement service organization used by municipalities as well as other public entities in New Jersey. Ameripay is currently under investigation for fraud by the Securities and Exchange Commission and the Federal Bureau of Investigation. It is alleged that the principals of Ameripay failed to meet payroll obligations of Ameripay clients and also failed to make in excess of $8 million in federal and State tax deposits on behalf of clients.

AI Summary

Committee Categories

John DiMaio (R)*,  Thomas Giblin (D)*,  Kevin Rooney (R)*,  Ralph Caputo (D),  Joseph Egan (D),  John McKeon (D),  Nancy Muñoz (R),  Erik Peterson (R),  Parker Space (R),  Harold Wirths (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 01/11/2022)

Official Document