ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1728

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 2, 2021

      The Assembly Financial Institutions and Insurance Committee reports favorably and with committee amendments Assembly Bill No. 1728.

      As amended, this bill provides that a State bank, savings bank, savings and loan association or credit union shall mail periodic account statements in paper form to any account holder that is an elder adult without charge, unless the elder adult notifies the depository institution that the elder adult chooses to opt out of receiving the periodic statement in paper form.

      Under the bill, a "periodic account statement" means a written statement provided on a regular basis at the end of each periodic cycle by a depository institution to an account holder that reflects all debits and credits to an account held by the account holder during a periodic cycle.  A "periodic cycle" means a period of time which is equal to or shorter than a calendar quarter and, if shorter than a calendar quarter, divides a calendar quarter into approximately equal units of time.

      The bill provides that the Commissioner of Banking and Insurance may order a depository institution that violates the provisions of the bill  to cease any violation and subject the institution to a fine of not more than $500 for each violation.

      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.

COMMITTEE AMENDMENTS:

      The committee amended the bill to provide that the Commissioner of Banking and Insurance may both order a depository institution that violates the provisions of the bill to cease any violation and subject the institution to a fine of not more than $500 for each violation.