Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Senator TROY SINGLETON
District 7 (Burlington)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblywoman ANNETTE CHAPARRO
District 33 (Hudson)
Assemblywoman BRITNEE N. TIMBERLAKE
District 34 (Essex and Passaic)
Co-Sponsored by:
Senators Lagana, Ruiz, Assemblywoman Reynolds-Jackson, Assemblyman Mukherji, Assemblywomen Swain, McKnight and Assemblyman Tully
SYNOPSIS
Prohibits landlords from requiring residential tenants to pay rent and other related charges through electronic funds transfer; requires landlords to provide receipts for cash payments.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on March 25, 2019, with amendments.
An Act prohibiting landlords from requiring residential tenants to remit rent and certain other payments through electronic funds transfer, requiring landlords to provide receipts for cash payments, and amending and supplementing P.L.1975, c.310.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1975, c.310 (C.46:8-44) is amended to read as follows:
2. As used in this act:
a. "Landlord" means any person who rents or leases or offers to rent or lease, for a term of at least [1] one month, dwelling units, except dwelling units in rental premises containing not more than two such units, or in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests.
b. "Department" means the Department of Community Affairs.
c. "Commissioner" means the Commissioner [of the Department] of Community Affairs.
d. “Electronic funds transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account, including, but not limited to, through the use of an automated clearinghouse (ACH) system.
(cf: P.L.1975, c.310, s.2)
2. (New section) No landlord shall require a tenant or prospective tenant to remit any amount due to the landlord pursuant to a residential lease, renewal, or extension agreement by means of electronic funds transfer, including but not limited to an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis. A landlord who violates this section shall be subject to the penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47).
3. (New section) a. A landlord shall provide a 1[written]1 receipt 1, either printed or emailed,1 to a tenant for each cash payment made to the landlord for any amount due to the landlord pursuant to a residential lease, renewal, or extension agreement. The receipt shall 1[include the following:
(1) the name and address of the landlord;
(2) the name and title of the agent of the landlord, if the cash payment is made to an agent;
(3) the name and address of the tenant;
(4) the date and amount of the cash payment;
(5) a description of what the cash payment covers; and
(6) the signature of the landlord or the agent of the landlord, as applicable] accurately indicate the amount of the payment, the purpose of the payment, when the payment was received, the printed or typed names of both the landlord and tenant, and who accepted the payment1 .
b. A landlord who violates this section shall be subject to the penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47), except that the penalty shall be $100 more for a second violation by a landlord within a five-year period, and the penalty shall be $200 more for each subsequent violation by a landlord within a five-year period.
c. It shall be a valid defense in any action or proceeding against a tenant to recover possession of real property for the nonpayment of rent that the landlord violated this section with respect to the months in which the violation or violations occurred.
4. This act shall take effect immediately, and sections 2 and 3 shall be applicable to a lease, renewal, or extension agreement executed on or after the date of enactment of this act.