Bill Text: NJ A4651 | 2018-2019 | Regular Session | Amended
Bill Title: Prohibits State-chartered financial institutions from charging certain fees to small businesses.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2018-12-03 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A4651 Detail]
Download: New_Jersey-2018-A4651-Amended.html
ASSEMBLY, No. 4651
STATE OF NEW JERSEY
218th LEGISLATURE
INTRODUCED OCTOBER 22, 2018
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Co-Sponsored by:
Assemblymen Armato, Tully, Assemblywomen Swain, Murphy and Assemblyman Schaer
SYNOPSIS
Prohibits State-chartered financial institutions from charging certain fees to small businesses.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on December 3, 2018, with amendments.
An Act concerning fees charged by certain financial institutions to small businesses and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Check" means any check as defined in N.J.S.12A:3-104, share draft, negotiable order of withdrawal, or similar means of making payment or transfers to third parties or others which is drawn on an account in a financial institution and is payable on demand.
"Financial institution" or "institution" means any bank, savings bank, savings and loan association, building and loan association or credit union organized or doing business under the laws of this State and supervised by the Commissioner of Banking and Insurance.
"Overdraft protection fee" or "fee" means any fee or charge imposed in connection with any account on which checks are paid by the institution in which the account is held even though there are insufficient funds in the account to cover checks.
"Small business" means any business located in this State and which employs less than 50 full-time employees in this State.
2. A financial institution shall not charge a small business an overdraft protection fee for an overdraft of a checking account if the small business has sufficient funds in a savings account at that institution to pay the amount overdrawn on the checking account, provided the small business has agreed in writing with the financial institution to allow the financial institution to access the savings account to cover overdrawn checks.
3. A financial institution shall not charge a fee to a small business for services provided to the small business for making cash deposits.
4. A financial institution which violates this act shall be subject to a fine of not more than $5,000 for 1[each] an initial1 violation 1and not more than $1,000 for each subsequent violation1. 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.).
5. The Commissioner of Banking and Insurance may adopt rules and regulations to implement the provisions of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
6. Failure to fulfill any obligation under this act shall not be considered to be the exercise of a power, right, benefit, or privilege under the parity provisions of P.L.1981, c.163 (C.17:9A-24b1), section 48 of P.L.1963, c.144 (C.17:12B-48), or section 12 of P.L.1984, c.171 (C.17:13-90), and it shall not be a defense to a violation of this act that the failure to fulfill any provision of the act is an exercise of such power, right, benefit, or privilege.
7. This act shall take effect on the 90th day next following enactment.
