Authorizes local governments to impose convenience fees for accepting electronic payments.

A4829

ASSEMBLY, No. 4829

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

SYNOPSIS

���� Authorizes local governments to impose convenience
fees for accepting electronic payments.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

authorizing convenience fees for electronic
payments to local governments and amending P.L.1995, c.325.

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

���� 1.��� Section 2 of P.L.1995,
c.325 (C.40A:5-44) is amended to read as follows:

���� 2.��� As used in this act:

���� "Association" means
an organization whose members are issuers.

���� "Cardholder" means
the person or organization named on the face of a credit card or debit card to
whom or for whose benefit the credit card or debit card is issued by an issuer.

���� "Card based payment"
means a monetary obligation tendered by the user of a credit card or debit
card.

���� "Card payment
system" means a technical procedure by which obligations owed a local unit
or court may be paid by credit card or debit card.

����
"Convenience fee"
means a fee charged by a local unit in excess of the total obligation and any
service charge owed by a person or organization to offset the costs of
administering a card payment system or an electronic funds transfer system.

���� "Credit card" means
any instrument or device linked to an established line of credit, whether known
as a credit card, charge card, credit plate, or by any other name, issued with
or without fee by an issuer for the use of the cardholder in satisfying
outstanding financial obligations, obtaining money, goods, services or anything
else of value on credit.

���� "Debit card" means
any instrument or device, whether known as a debit card, automated teller
machine card, or by any other name, issued with or without fee by an issuer for
the use of the cardholder in obtaining money, goods, services or anything else
of value through the electronic authorization of a financial institution to
debit the cardholder's account.

���� "Director" means the
Director of the Division of Local Government Services in the Department of
Community Affairs.

���� "Electronic funds
transfer" means any transfer of funds, other than a transaction originated
by check, draft, or similar paper instrument, that is initiated through an
electronic terminal, telephone, or computer or magnetic tape for the purpose of
ordering, instructing or authorizing a financial institution to debit or credit
an account, and includes an in-person funds transfer and an online funds
transfer.

���� "Electronic funds
transfer system" means a technical procedure by which obligations owed to
or collected by the Supreme Court, the Superior Court, Tax Court or a local
unit may be paid by an electronic transaction between the financial institution
of the person or organization owing the obligation and the financial
institution of the governmental entity.

���� "In-person funds
transfer" means any transfer of funds through a service that accepts a
payment made in-person, by any method, and then transmits those funds to a
payee by electronic funds transfer, but shall not include a service that
requires a local unit to maintain, and funds to be transmitted to, an account
that is not a designated depository of the local unit pursuant to N.J.S.A.40A:5-14.

���� "Issuer" means the
business organization or financial institution which issues a credit card or
debit card, or its duly authorized agent.

���� "Local unit" means
any unit of government subject to the provisions of chapter 5 or 5A of Title
40A of the New Jersey Statutes, and the constituent parts of those units,
including but not limited to independent local authorities, public libraries,
municipal courts and joint municipal courts.

���� "Online funds
transfer" means any Internet-based transfer of funds through an
Internet-based payment system, but shall not include a service that requires a
local unit to maintain, and funds to be transmitted to, an account that is not
a designated depository of the local unit pursuant to N.J.S.A.40A:5-14.

���� "Service charge"
means a fee charged by the Supreme Court, the Superior Court, Tax Court or
local unit in excess of the total obligation owed by a person or organization
to offset processing charges or discount fees for the use of a card payment
system or an electronic funds transfer system.

(cf: P.L.2020, c.34, s.9)

���� 2.��� Section 4 of P.L.1995,
c.325 (C.40A:5-46) is amended to read as follows:

���� 4.�
a.
� Notwithstanding
the provisions of any other law to the contrary and if not legally prohibited
by an association or by an issuer, local units are authorized to assess and
collect service charges related to obligations owed to or collected by the
local unit when credit cards, debit cards
,
or electronic funds transfer
systems are utilized.

����
b.��� Notwithstanding the
provisions of any other law to the contrary and in addition to a service charge
assessed and collected pursuant to subsection a. of this section, a local unit
is authorized to assess and collect a convenience fee in an amount not to exceed
$3 for each obligation owed to or collected by the local unit when credit
cards, debit cards, or electronic funds transfer systems are utilized.

����
c.� A local unit that
collects payment electronically pursuant to the "Government Electronic
Payment Acceptance Act," P.L.1995, c.325 (C.40A:5-43 et al.) shall also
provide the option to make such payments by traditional or non-electronic
means, such as cash, check, or money order.�

(cf: P.L.1995, c.325, s.4)

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill would authorize
local government units to assess and collect a convenience fee of up to $3 for
accepting an electronic payment,
and clarifies that
local units are also required to provide traditional payment options
for
those who prefer making payments via non-electronic means. The Supreme Court of
New Jersey recently affirmed an Appellate Division decision ruling that the
"Government Electronic Payment Acceptance Act" does not authorize the
imposition of a convenience fee for accepting electronic payments, which
several counties had been imposing. This bill would amend that law to authorize
such fees in order to offset the administrative expenses borne by local
government units in accepting electronic payments.