Bill Text: NJ A3561 | 2012-2013 | Regular Session | Amended
Bill Title: Makes direct deposit the default distribution method for gross income tax refunds and allows gross income tax refunds via prepaid debit cards.*
Spectrum: Moderate Partisan Bill (Democrat 10-2)
Status: (Engrossed - Dead) 2013-04-15 - Received in the Senate, Referred to Senate Budget and Appropriations Committee [A3561 Detail]
Download: New_Jersey-2012-A3561-Amended.html
ASSEMBLY, No. 3561
STATE OF NEW JERSEY
215th LEGISLATURE
INTRODUCED DECEMBER 6, 2012
Sponsored by:
Assemblyman RUBEN J. RAMOS, JR.
District 33 (Hudson)
Assemblyman DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Assemblywoman CONNIE WAGNER
District 38 (Bergen and Passaic)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblywoman ANGELICA M. JIMENEZ
District 32 (Bergen and Hudson)
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
Co-Sponsored by:
Assemblymen Milam, Mainor, Assemblywoman Mosquera, Assemblymen Chiusano and Eustace
SYNOPSIS
Makes direct deposit the default distribution method for gross income tax refunds and allows gross income tax refunds via prepaid debit cards.
CURRENT VERSION OF TEXT
As reported by the Assembly Appropriations Committee on February 7, 2013, with amendments.
An Act 1[providing for] modernizing1 the distribution of gross income tax refunds 1[via prepaid debit cards]1, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For gross income tax refunds due for taxable years beginning on or after January 1, 2013, the Director of the Division of Taxation shall establish 1[a] the default1 system for distributing gross income tax refunds 1[in the form of prepaid debit cards] as electronic fund transfer for direct deposit into the recipient's account held by a financial institution1.
b. The 1implementation of a default1 distribution 1[of a] system for1 gross income tax 1[refund] refunds1 in the form of 1[a prepaid debit card] electronic fund transfer1 shall be 1[the default gross income tax refund receipt option,]1 subject to the following schedule:
(1) For taxable years beginning on or after January 1, 2013, but before January 1, 2015, the director shall allow a gross income tax refund recipient the opportunity to elect for alternative gross income tax refund receipt methods, which methods shall include, but not be limited to, a 1[conventional check or electronic fund transfer for direct deposit into the recipient's account held by a financial institution to the extent those options were available for taxable years beginning on or after January 1, 2012, but before January 1, 2013] prepaid debit card or conventional check1; and
(2) For taxable years beginning on or after January 1, 2015, the director shall allow a gross income tax refund recipient the opportunity to elect to receive a refund in the form of a prepaid debit card 1[or electronic fund transfer for direct deposit into the recipient's account held by a financial institution]1.
c. 1To the extent the Division of Taxation is capable of implementation, gross income tax refunds that have yet to be issued on or after the date of enactment of this section for taxable years beginning before January 1, 2013 shall be issued in accordance with the schedule provided in subsection b. using the date of refund issuance as a reference point relative to the Division of Taxation's regular taxable year refund issuances.
d.1 As used in this section:
"Automated teller machine" means an electronic information processing device that is operated by a financial institution which accepts or dispenses cash in connection with credit or deposit accounts.
"Prepaid debit card" means an open loop card, which may be reloadable or nonreloadable, that enables the cardholder to: (i) transfer funds assigned to the card to a merchant through a point-of-sale terminal in exchange for products, services or a combination thereof; and (ii) withdraw cash against the balance assigned to the card via a qualified financial institution's automated teller machine or a qualified financial institution's manual teller terminal.
"Qualified financial institution" means a State or federally chartered bank, savings bank, savings and loan association, credit union, or other entity approved by the director, which owns or operates automated teller machines or manual teller terminals in the State.
2. This act shall take effect immediately.
