Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Authorizes certain local government entities to adopt policies for payment of certain claims through use of standard electronic funds transfer technologies.
CURRENT VERSION OF TEXT
As amended by the Senate on June 23, 2016.
An Act authorizing certain local 1[units] government entities1 to adopt policies for the payment of certain claims through the use of standard electronic funds transfer technologies, 1and1 supplementing 1chapter 5 of1 Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any laws, rules, or regulations to the contrary, the governing body of a local unit 1, board of education, or county college1 may adopt policies, by ordinance or resolution, as appropriate, for the payment of claims pursuant to N.J.S.40A:5-17, N.J.S.18A:19-2, or other applicable law, through the use of one or more standard electronic funds transfer technologies in lieu of payment through the use of signed checks or warrants.
b. (1) Any policy adopted pursuant to subsection a. of this section shall explicitly list the forms of standard electronic funds transfer technologies that may be used by that local unit 1, board of education, or county college1.
(2) A policy adopted pursuant to subsection a. of this section shall designate the chief financial officer of the local unit 1, board of education, or county college1 as being responsible for the oversight and administration of the disbursement policy and associated systems. The chief financial officer shall document and implement internal controls sufficient to ensure safe and proper use of the system and mitigate the potential for fraud and abuse.
c. As used in this section:
"Chief financial officer" means the official designated by the governing body to be responsible for the proper administration of the finances of the local unit 1, board of education, or county college1 under any statutes and such rules and regulations promulgated by any State agency as may pertain to the financial administration of the local unit 1, board of education, or county college1.
"Governing body" means the board, body, or administrator, by whatever name it may be known, having charge of the finances of the local unit 1, board of education, or county college1.
1"Internal controls" mean fiscal and operational controls that ensure safe and proper use of a standard electronic funds transfer system and mitigate the potential for fraud and abuse.1
"Local unit" means a 1[contracting] local1 unit as defined 1[by the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), a board of education as defined by the "Public School Contracts Law," N.J.S.18A:18A-1 et seq., and a county college as defined by the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.)] in N.J.S.40A:5-21.
"Standard electronic funds transfer technologies" 1[include, but are not limited to, wire transfers, automated clearing house transactions, and debit cards] mean technologies that facilitate the transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, initiated by means such as, but not limited to, 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 incorporate, at a minimum, internal controls set forth in regulations promulgated by the Local Finance Board1.
d. 1[(1)]1 The Local Finance Board, in consultation with the Commissioner of Education 1and the Secretary of Higher Education1, may adopt rules and regulations 1, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),1 for the purpose of 1[clarifying the implementation and use of standard electronic funds transfer technologies.
(2) For the purposes of this section, a county college shall be subject to the rules and regulations of the Secretary of Higher Education] implementing the provisions of this act1 .
2. This act shall take effect 1[immediately] on the first day of the eighth month following the date of enactment, except that the Local Finance Board, Commissioner of Education, and Secretary of Higher Education may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act1.