Requires residential landlord to accept rent payment by certain means; increases penalty for violating certain rent acceptance requirements.

S2970 1R

[First Reprint]

SENATE, No. 2970

STATE OF NEW JERSEY

222nd LEGISLATURE

�

Sponsored by:

Senator RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Requires residential landlord to accept rent payment
by certain means; increases penalty for violating certain rent acceptance
requirements.

CURRENT VERSION OF TEXT

���� As reported by the Senate Community and Urban Affairs
Committee on June 1, 2026, with amendments.

��

An Act
concerning means of acceptable rent payment by a
residential tenant and amending P.L.2019. c.300.

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

���� 1.� Section 2 of P.L.2019,
c.300 (C.46:8-49.1) is amended to read as follows:

���� 2.�
a.
� No landlord
shall require a tenant or prospective tenant to remit any amount due to the
landlord pursuant to a residential lease, renewal, or extension agreement by
means of electronic funds transfer, including but not limited to an electronic
funds transfer system that automatically transfers funds on a regular,
periodic, and recurring basis.�

����
b.
�
1
(1)
1
�
In
addition to any other payment method provided by a landlord, including any
electronic payment method,

1
[
and except
as provided pursuant to paragraph (3) of subsection c. of this section, if a
]

the
landlord shall accept
1

payment by a tenant or prospective tenant pursuant to a residential lease,
renewal, or extension agreement

1
[
, is made
on time, or at any time before the three business day period established by
subsection a. of section 1 of P.L.2019, c.316 (C.2A:42-10.16a), the landlord
shall accept the payment,
]

made during the three business day period after a warrant for removal is
posted or lockout is executed established pursuant to section 2 of P.L.2019,
c.316 (C.46:8-49.3), during the grace period established pursuant to section 1
of P.L.1976, c.100 (C.2A:42-6.1), or any other grace period established by a
different provision of the law,
1

regardless of whether the payment was made by cash, certified check,

1
or
1

money
order,

1
through
a friend, family member, or other third party,
1

or

1
[
personal
check, or
]
1

through any federal, State, or local rental assistance program or bona fide
charitable organization on behalf of the tenant.
�
1
For
the purposes of this section, a tenant shall be permitted to make a rent
payment through any combination of permitted sources or methods, or in
compliance with section 2 of P.L.2019, c.316 (C.46:8-49.3), section 1 of
P.L.1976, c.100 (C.2A:42-6.1), or any other grace period established by a
different provision of the law, or a lease provision.

����
(2)� If a federal, State,
or local rental assistance program or charitable organization provides a
commitment to provide a rent payment, or a portion thereof, on behalf of a
tenant, then the commitment to provide a rent payment, or portion thereof that
falls under the responsibility of that program or organization, shall be
considered as payment pursuant to this section.� The landlord shall provide the
federal, State, or local rental assistance program or charitable organization
with the documentation necessary for the federal, State, or local rental
assistance program or charitable organization to remit payment.
1

����
c.� (1)
� A landlord who
violates this section shall be subject to
[
the
penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47)
]

a penalty
of $2,000 for each offense.� Such penalty shall be collected and enforced by
summary proceedings pursuant to "The Penalty Enforcement Law of
1999," P.L.1999, c.274 (C.2A:58-10 et seq.).� The Superior Court, Law
Division, Special Civil Part in the county in which the rental premises are
located shall have jurisdiction over such proceedings.� Process shall be in the
nature of a summons or warrant, and shall issue upon the complaint of the
commissioner or the Attorney General
.�

����
(2)� In addition to the
penalty set forth pursuant to paragraph (1) of this subsection, a landlord who
violates this section shall, at the discretion of the tenant, be subject to a
separate cause of action by the tenant in the Superior Court, Law Division,
Special Civil Part in the county in which the rental unit is located.� A tenant
may recover $2,000 from the landlord for each offense, in addition to
reasonable attorney�s fees and expenses, court costs, expenses for expert
witnesses, and other expenses incurred in providing a violation of this section
.�

1
A
tenant experiencing an eviction action may raise the violation of this section
as a defense in any eviction action and apply the penalty to offset any rental
arrears determined to be lawfully due and owing.
1

����
1
[
(3)� If a
personal check used to make a payment pursuant to subsection b. of this section
is returned for insufficient funds, the tenant shall be responsible for the
payment of the fees and penalties associated with the returned check.�
Following this event, the landlord shall be permitted to prohibit future
payments pursuant to a residential lease, renewal, or extension agreement from
being made by personal check by the same tenant.
]
1

(cf: P.L.2019, c.300, s.2)

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