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S4181
SENATE, No. 4181
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 11, 2026
Sponsored by:
Senator� BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
���� Prohibits administrative fees on accounts and
allowances of persons released from incarceration.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning monies of persons released from
incarceration, and amending various parts of statutory law.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1. Section 7 of P.L.2009,
c.329 (C.30:4-91.16) is amended to read as follows:
���� 7. a. The commissioner shall,
at least 30 days prior to an inmate�s release from confinement, assist the
inmate in establishing a consumer checking account pursuant to the provisions
of P.L.1991, c.210 (C.17:16N-1 et seq.).� The inmate may be issued a basic
debit card by the
[
bank
]
financial
institution
.�
No administrative, processing, account maintenance,
minimum balance, transaction, cash withdrawal, or other fee may be charged for
the opening, maintenance, or use of a consumer checking account or debit card
established pursuant to this section.
�
���� For the purposes of this
section
[
,
]
:
����
[
�debit card�
]
�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
]
a financial institution
for the use of the debit card holder in
obtaining money, goods, services or anything else of value through the
electronic authorization of a financial institution to debit the debit card
holder�s account.�
���� �Debit card holder� means a
consumer named on the face of a debit card to whom or for whose benefit the
debit card is issued by
[
an
issuer
]
a financial institution
.
���� b.���
(1)
Upon an
inmate�s release, the balance remaining in the inmate account administered by
the correctional facility, following all payments and withdrawals pursuant to
section 4 of P.L.1969, c.22 (C.30:4-91.4), shall be transferred into the
consumer checking account established pursuant to this section.
����
(2) Upon the release of an
inmate who chooses not to establish a consumer checking account pursuant to
this section, the balance remaining in the inmate�s account administered by the
correctional facility, following all payments and withdrawals pursuant to
section 4 of P.L.1969, c.22 (C.30:4-91.4), shall be disbursed to the inmate in
the form of a debit card containing such balance, subject to the prohibition on
fees set forth in subsection a. of this section.
���� c.���� Nothing in this section
shall be construed to require an inmate to establish a consumer checking
account.� The commissioner shall not be required to establish a consumer
checking account if the inmate chooses not to establish such an account
pursuant to this section.� Any consumer checking account or debit card provided
under this section shall be established or issued in a manner that is
consistent with State and federal law and regulation.
���� d.��� The commissioner, in
consultation with the Commissioner of Banking and Insurance, and pursuant to
the provisions of the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), shall promulgate rules and regulations necessary to
implement and effectuate the purposes of P.L.2009, c.329 (C.30:1B-6.1 et al.).�
The Department of Corrections may enter into agreements with financial
institutions in this State to provide banking services at no cost to the
inmate, or to subsidize any costs charged by the financial institution, in
furtherance of the purposes of this section.
(cf: P.L.2009, c.329, s.7)
���� 2. R.S.30:4-114 is amended to
read as follows:
����
30:4-114.
The State
Board, subject to appropriations made for such purpose, shall have power to
prescribe with reference to each institution within its jurisdiction the sum of
money in each case, which shall be paid by the chief executive officer to each
person upon parole or discharge
, in accordance with section 7 of P.L.2009,
c.329 (C.30:4-91.16),
and the clothing, if any, which shall be provided for
such paroled or discharged person.� In addition thereto, there shall be
returned to each paroled or discharged person the personal property which was
taken from him at the time of admission to the institution.
(P.L.1968, c.373, s.1)
���� 3. Section 2 of P.L.1973, c.24
(C.30:8-55) is amended to read as follows:
����
2.
Said funds shall be
expended in such manner as shall be fixed, and in accordance with such rules
and regulations as shall be adopted, by resolution of the board, by such
officers as the board shall by resolution determine; provided any cash
allowance to a prisoner shall be made only after individual study of the needs
and merits of each case, and, provided, further, that no cash allowance to a
discharged jail prisoner shall exceed $25.00, to be paid on the day of
discharge.�
If said allowances are disbursed in any form other than cash
money, the board shall make disbursements substantially in accordance with the
provisions of section 7 of P.L.2009, c.329 (C.30:4-91.16).
� The board may
contract with an incorporated welfare or charitable group organized for the
rehabilitation of indigent discharged jail prisoners.
(cf: P.L.1973, c.24, s.2)
���� 4. This act shall take effect
on the first day of the second month next following enactment, except that the Commissioner
of Corrections and the State Parole Board may take such anticipatory action as
may be necessary for the timely implementation of this act.
STATEMENT
���� This bill prohibits the
charging of bank �junk fees� on checking accounts established for incarcerated
persons at the time of release.
���� Under current law, within 30
days of an incarcerated person�s release, the Department of Corrections (DOC)
is required to assist the person in opening a personal checking account and
obtaining a debit card, if the person so chooses.� Upon release, any monetary
balance remaining in the person�s prison account is transferred by the DOC to
the person�s checking account.� However, current law allows banks to issue
debit cards in this manner �with or without fee.�� Also under current law, a
person being released from a county jail, who is deemed to be indigent, may be
given an allowance of up to $25 upon release.� Similarly, current DOC
regulations are intended to ensure that a person being released from State
prison has at least $25 in their prison account, which is disbursed upon
release.
���� Under the bill, no
administrative, processing, account maintenance, minimum balance, transaction,
or other fee may be charged on checking accounts opened on behalf of an
incarcerated person nearing release, or debit cards issued thereto.� The bill
provides that if an incarcerated person chooses not to open a checking account,
the funds to be disbursed upon release must be in the form of cash money.