[Second Reprint]

ASSEMBLY, No. 3062

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 20, 2020

 

 

Sponsored by:

Assemblywoman  ELIANA PINTOR MARIN

District 29 (Essex)

Assemblyman  WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblywoman  VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Senator  NELLIE POU

District 35 (Bergen and Passaic)

Senator  NILSA I. CRUZ-PEREZ

District 5 (Camden and Gloucester)

 

Co-Sponsored by:

Assemblywoman Murphy, Assemblymen Moriarty, Stanley, Assemblywoman Timberlake, Assemblymen Calabrese, Coughlin, Senator Ruiz, Assemblywomen McKnight, Lopez, Downey and Assemblyman Wimberly

 

 

 

 

SYNOPSIS

     Establishes three year Financial Empowerment Pilot Program.

 

CURRENT VERSION OF TEXT

     As amended on December 2, 2021 by the General Assembly pursuant to the Governor's recommendations.

  


An Act establishing the Financial Empowerment Pilot Program 2and making an appropriation2.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   a.  There is established in the Department of Community Affairs a Financial Empowerment Pilot Program.  The purpose of the pilot program shall be to address financial literacy and empowerment issues for economically vulnerable individuals in the State through 2[municipal] the disbursement of grants to eligible entities to implement2 financial empowerment 2[centers.  The municipalities of Camden, 1New Brunswick,1 Newark, 1[and]1 Paterson 1, and Trenton1 shall participate in the pilot program with the department.] forums, programs, or initiatives.2 

      b.   The 2[pilot program, in consultation with the participating municipality,] department2 shall 2[contract with a non-profit provider to establish a] award grants to eligible entities through a competitive grant solicitation to fund the establishment of2 financial empowerment 2[center in each of the participating municipalities in a location that is easily accessible to the residents of that municipality.  The financial empowerment centers shall facilitate appropriate]2 forums, programs, or initiatives designed to educate the public regarding financial literacy and empowerment and provide personal financial coaching to economically vulnerable individuals.

      c.   The pilot program shall run for a period of three years following 2[establishment of the financial empowerment centers pursuant to this section] the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill)2.

      2d. For purposes of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), “eligible entities” shall include non-profit providers, municipalities, and institutions of higher education, excluding proprietary institutions authorized to offer licensed degree programs.2

 

      2.   a.   2[The pilot program shall] An eligible entity seeking to participate in the Financial Empowerment Pilot Program shall submit an application for a grant to the Department of Community Affairs in a form determined by the department. The application shall include information that the department determines is necessary to administer the program and award grants.

      b.  The department shall establish criteria for the award of grants to eligible entities, which shall include, but need not be limited, to the following:

      (1)  whether the eligible entity’s forums, programs, or initiatives are designed to reach and are likely to reach economically vulnerable individuals;

      (2)  whether the eligible entity maintains or plans to establish a financial empowerment center at a physical location that facilitates direct contact with economically vulnerable individuals;

      (3)  whether the eligible entity has established or plans to2 establish metrics and standards to track counseling efforts and results for economically vulnerable individuals, and 2[shall provide] has developed or plans to develop2 methods for implementing those standards 2[at the financial empowerment centers,] as part of its forums, programs, or initiatives;

      (4)  whether the eligible entity’s forums, programs, or initiatives are designed to promote education and improve outcomes among economically vulnerable individuals2 in the following areas:

      2[(1)] (a)2 the opening of or transitioning to a safe and affordable bank account;

      2[(2)] (b)2     the establishment of a credit score, or the increase in an existing credit score;

      2[(3)] (c)2     the decrease of non-mortgage debt; and

      2[(4)] (d)2     the increase in rate of savings2[.

      b.   The pilot program shall provide the centers with support services, including] ;

      (5)  whether the eligible entity has access to, has developed, or has plans to develop2 materials on financial literacy and empowerment for publication and dissemination to the public 2[and shall coordinate the activities of the pilot program with other entities that focus on financial literacy and empowerment, including other State agencies.] ;

      (6)  whether the eligible entity intends to offer its forums, programs, or initiatives in languages other than English; and

      (7)  any other criteria the department determines are necessary to evaluate whether the eligible entity’s proposed forums, programs, or initiatives will achieve the goals of educating the public regarding financial literacy and empowerment and providing personal financial coaching to economically vulnerable individuals.

      c.   If the eligible entity is an institution of higher education, the department shall also determine whether the eligible entity’s forums, programs, or initiatives are designed to reach and likely to reach economically vulnerable members of the public beyond the institution’s student body.2

 

      3.   a.   The program shall submit a report to the Commissioner of Community Affairs no later than two months after the conclusion of the pilot program.  The report shall include, at a minimum, information on the 2[counseling efforts and results established and tracked pursuant to subsection a. of section 2 of this act, for each financial empowerment center.] outcomes of grantees’ forums, programs, or initiatives.2

      b.   2[After receiving the report, the] The2 commissioner shall submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the implementation and effectiveness of the pilot program no later than two months after the pilot program issues its report to the commissioner.  The report shall include the commissioner’s recommendation on the advisability of the pilot program’s continuation and expansion 2[to additional municipalities in] throughout2 the State.

 

      4.   2[All monies received by the State from the settlement of the complaint of the Federal Trade Commission against Equifax, Inc., after accounting for any costs incurred by the Attorney General in participating in the complaint, shall be transferred] There is appropriated from the General Fund2 to the Department of Community Affairs 2$6,360,0002 for the purposes of effectuating the provisions of this act.  2[The moneys] Up to 3.5 percent of the amounts appropriated2 may 2[also]2 be expended for appropriate and reasonable administrative expenses incurred in the administration of the pilot program by the department.

 

      5.   This act shall take 2effect2 immediately and shall expire upon submission of the final report required to be prepared under section 3 of this act.