Bill > A3416

Introduced Session

This bill directs the State Treasurer to establish State Government Electronic Payment Security Standards. The purpose of this bill is to enhance the financial security of consumer transactions between the State and its residents. Identity theft and other forms of financial fraud are significant threats to consumers. New Jersey in particular, has a high incidence of those crimes relative to other states, ranked in the top ten for fraud and top fourth for identity theft. This bill recognizes that heightened threat and directs the State Treasurer to establish State Government Electronic Payment Security Standards for State-involved point-of-sale terminal transactions involving a credit, debit, or charge card, including, but not limited to, contracts the State enters into with providers of electronic access to public benefits and payment terminals accepting electronic payments on behalf of the State. The new standards are due for issuance sixth months after enactment with technological implementation scheduled for 18 months after enactment. Until the new standards are issued, the bill requires EMV smart chip technology as the minimum acceptable security standard for electronic payments. The bill directs Department heads to ensure compliance with the new standards, but does not preclude the adaptation of additional or more effective technological standards. The bill further directs the State Treasurer to review and re-issue electronic payment security standards to address technological advances and emerging consumer fraud threats on at least a biennial basis. The bill also grants the State Treasurer rulemaking authority for implementation.

AI Summary

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Erik Peterson (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 03/07/2022)

Official Document