ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 314

STATE OF NEW JERSEY

DATED:  MARCH 5, 2020

     The Assembly Financial Institutions and Insurance Committee reports favorably Assembly Bill No. 314.

      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.

      This bill was pre-filed for introduction in the 2020-2021 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.