Bill Text: NJ A720 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires direct deposit for all State employee compensation on and after July 1, 2014; allows county, county college, municipality,and local school district to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014.***
Spectrum: Moderate Partisan Bill (Democrat 14-2)
Status: (Passed) 2013-03-12 - Approved P.L.2013, c.28. [A720 Detail]
Download: New_Jersey-2012-A720-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman RUBEN J. RAMOS, JR.
District 33 (Hudson)
Assemblyman MATTHEW W. MILAM
District 1 (Atlantic, Cape May and Cumberland)
Assemblywoman CONNIE WAGNER
District 38 (Bergen and Passaic)
Co-Sponsored by:
Assemblymen Egan, Caputo, Coutinho and Giblin
SYNOPSIS
Requires direct deposit for all State employee compensation on and after July 1, 2014.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the use of direct deposit for all State employee compensation and amending P.L.1981, c.385.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1981, c.385 (C.52:14-15a) is amended to read as follows:
1. a. Whenever any person holding public office, position or employment, whose compensation is paid by this State or by any board, body, agency, authority or commission thereof, hereinafter referred to as "employee", shall indicate in writing to the proper disbursing officer his desire to have his net pay deposited in a specific banking institution in a designated checking account, savings account, or share account for such employee, the State Treasurer shall make the deposit in the respective banking institution on behalf of the employee.
With respect to compensation paid on and after July 1, 2014, all such persons shall have net pay directly deposited as described in this section. The State Treasurer is authorized to grant an exemption from the requirements of this section on such terms and conditions as the State Treasurer may deem necessary.
b. Commencing on the first day of the fourth month following the enactment of P.L. , c. (pending before the Legislature as this bill), the State Treasurer shall make available for employees who have net pay directly deposited as described in this section any information concerning net pay, any accompanying information approved for distribution with net pay, and W-2 forms, only on the Internet with restricted access and policies and procedures to protect the integrity and confidentiality of the information.
c. The requirements of this section shall also be applicable to all State entities that do not utilize the State centralized payroll system, including public institutions of higher education.
(cf: P.L.1981, c.385, s.1)
2. Section 4 of P.L.1981, c.385 (C.52:14-15d) is amended to read as follows:
4. Any written designation may be withdrawn by an employee at any time by filing the notice of withdrawal with his respective disbursing officer. The filing of notice of withdrawal shall be effective to halt deposits as of the thirtieth day next succeeding the date on which it is filed.
With respect to compensation paid on and after July 1, 2014, withdrawal of written designation shall be prohibited, unless the State Treasurer or appropriate officer grants an exemption to this prohibition as deemed necessary.
(cf: P.L.1981, c.385, s.4)
3. This act shall take effect immediately.
STATEMENT
Currently, State employees have the option to designate in writing a specific banking institution and a checking account, savings account, or share account for receipt of direct deposit of the employee's net pay. The bill will make direct deposit mandatory for all State employees for compensation paid on and after July 1, 2014, unless an exemption is granted by the State Treasurer if deemed necessary.
Additionally, the bill provides that commencing on the first day of the fourth month following enactment, the State Treasurer will make available for all employees who have net pay directly deposited any information concerning net pay, accompanying information, and W-2 forms, only on the Internet. The requirements in this bill with regard to direct deposit and accompanying information will also apply to all State entities that do not use the State centralized payroll system, including public institutions of higher education.
