Requires financial institutions to cash payroll checks under certain circumstances.

A1105

ASSEMBLY, No. 1105

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOE DANIELSEN

District 17 (Middlesex and Somerset)

SYNOPSIS

���� Requires financial institutions to cash payroll
checks under certain circumstances.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning financial institutions and check
cashing practices and supplementing Title 17 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Financial institution� means
a State or federally chartered bank, savings bank, savings and loan association
or credit union doing business in the State.

���� �Minor� means an individual
who is under 18 years of age.

���� �Payroll check� means a check
issued by an employer to its employee in payment of salary or wages for
services rendered by the employee.

���� 2.��� Notwithstanding any
other law to the contrary, a financial institution shall, upon the request of any
person, including a minor, who presents a payroll check and who provides photographic
identification indicating that he or she is the payee on that payroll check,
cash the check without charging any fee for that service, as long as the person
has an account with that financial institution or the check is drawn on that
institution.

���� 3.��� A financial institution
which violates a provision of this act shall:

���� a.���� be subject to a fine of
not more than $500 for each violation, which shall be collected by the
Commissioner of Banking and Insurance in a summary manner pursuant to the
�Penalty Enforcement Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.); and

���� b.��� reimburse the �person
for any attorney�s fees incurred by the� person with respect to any legal
services necessary to enforce the� person�s rights under this act or to bring a
civil action to recover damages caused by the financial institution�s failure
to comply with the provisions of this act.

���� 4.��� This act shall take
effect on the 90
th
day next following enactment.

STATEMENT

���� This bill provides that,
notwithstanding any other law to the contrary, a financial institution shall,
upon the request of a person, including a minor, who presents a payroll check
and who provides photographic identification indicating that he or she is the
payee on that payroll check, cash the check without charging any fee for that
service, as long as the person has an account with that financial institution
or the check is drawn on that institution.

���� A financial institution that
violates a provision of this bill shall: (1) be subject to a fine of not more
than $500 for each violation which shall be collected by the Commissioner of
Banking and Insurance in a summary manner pursuant to the �Penalty Enforcement
Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.); and (2) reimburse the
person for any attorney�s fees incurred by the person with respect to any legal
services necessary to enforce the person�s rights under the bill or to bring a
civil action to recover damages caused by the financial institution�s failure
to comply with the provisions of the bill.