Sponsored by:
Senator NILSA CRUZ-PEREZ
District 5 (Camden and Gloucester)
SYNOPSIS
Requires financial institutions to cash payroll checks under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
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 90th 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. The fine 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.