Bill Text: NJ S4181 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits administrative fees on accounts and allowances of persons released from incarceration.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-11 - Introduced in the Senate, Referred to Senate Law and Public Safety Committee [S4181 Detail]
Download: New_Jersey-2026-S4181-Introduced.html
Sponsored by:
Senator BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Prohibits administrative fees on accounts and allowances of persons released from incarceration.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning monies of persons released from incarceration, and amending various parts of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.2009, c.329 (C.30:4-91.16) is amended to read as follows:
7. a. The commissioner shall, at least 30 days prior to an inmate's release from confinement, assist the inmate in establishing a consumer checking account pursuant to the provisions of P.L.1991, c.210 (C.17:16N-1 et seq.). The inmate may be issued a basic debit card by the [bank] financial institution. No administrative, processing, account maintenance, minimum balance, transaction, cash withdrawal, or other fee may be charged for the opening, maintenance, or use of a consumer checking account or debit card established pursuant to this section.
For the purposes of this section[,]:
["debit card"] "Debit card" means any instrument or device, whether known as a debit card, automated teller machine card, or by any other name, issued [with or without fee] by [an issuer] a financial institution for the use of the debit card holder in obtaining money, goods, services or anything else of value through the electronic authorization of a financial institution to debit the debit card holder's account.
"Debit card holder" means a consumer named on the face of a debit card to whom or for whose benefit the debit card is issued by [an issuer] a financial institution.
b. (1) Upon an inmate's release, the balance remaining in the inmate account administered by the correctional facility, following all payments and withdrawals pursuant to section 4 of P.L.1969, c.22 (C.30:4-91.4), shall be transferred into the consumer checking account established pursuant to this section.
(2) Upon the release of an inmate who chooses not to establish a consumer checking account pursuant to this section, the balance remaining in the inmate's account administered by the correctional facility, following all payments and withdrawals pursuant to section 4 of P.L.1969, c.22 (C.30:4-91.4), shall be disbursed to the inmate in the form of a debit card containing such balance, subject to the prohibition on fees set forth in subsection a. of this section.
c. Nothing in this section shall be construed to require an inmate to establish a consumer checking account. The commissioner shall not be required to establish a consumer checking account if the inmate chooses not to establish such an account pursuant to this section. Any consumer checking account or debit card provided under this section shall be established or issued in a manner that is consistent with State and federal law and regulation.
d. The commissioner, in consultation with the Commissioner of Banking and Insurance, and pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations necessary to implement and effectuate the purposes of P.L.2009, c.329 (C.30:1B-6.1 et al.). The Department of Corrections may enter into agreements with financial institutions in this State to provide banking services at no cost to the inmate, or to subsidize any costs charged by the financial institution, in furtherance of the purposes of this section.
(cf: P.L.2009, c.329, s.7)
2. R.S.30:4-114 is amended to read as follows:
30:4-114. The State Board, subject to appropriations made for such purpose, shall have power to prescribe with reference to each institution within its jurisdiction the sum of money in each case, which shall be paid by the chief executive officer to each person upon parole or discharge, in accordance with section 7 of P.L.2009, c.329 (C.30:4-91.16), and the clothing, if any, which shall be provided for such paroled or discharged person. In addition thereto, there shall be returned to each paroled or discharged person the personal property which was taken from him at the time of admission to the institution.
(P.L.1968, c.373, s.1)
3. Section 2 of P.L.1973, c.24 (C.30:8-55) is amended to read as follows:
2. Said funds shall be expended in such manner as shall be fixed, and in accordance with such rules and regulations as shall be adopted, by resolution of the board, by such officers as the board shall by resolution determine; provided any cash allowance to a prisoner shall be made only after individual study of the needs and merits of each case, and, provided, further, that no cash allowance to a discharged jail prisoner shall exceed $25.00, to be paid on the day of discharge. If said allowances are disbursed in any form other than cash money, the board shall make disbursements substantially in accordance with the provisions of section 7 of P.L.2009, c.329 (C.30:4-91.16). The board may contract with an incorporated welfare or charitable group organized for the rehabilitation of indigent discharged jail prisoners.
(cf: P.L.1973, c.24, s.2)
4. This act shall take effect on the first day of the second month next following enactment, except that the Commissioner of Corrections and the State Parole Board may take such anticipatory action as may be necessary for the timely implementation of this act.
STATEMENT
This bill prohibits the charging of bank "junk fees" on checking accounts established for incarcerated persons at the time of release.
Under current law, within 30 days of an incarcerated person's release, the Department of Corrections (DOC) is required to assist the person in opening a personal checking account and obtaining a debit card, if the person so chooses. Upon release, any monetary balance remaining in the person's prison account is transferred by the DOC to the person's checking account. However, current law allows banks to issue debit cards in this manner "with or without fee." Also under current law, a person being released from a county jail, who is deemed to be indigent, may be given an allowance of up to $25 upon release. Similarly, current DOC regulations are intended to ensure that a person being released from State prison has at least $25 in their prison account, which is disbursed upon release.
Under the bill, no administrative, processing, account maintenance, minimum balance, transaction, or other fee may be charged on checking accounts opened on behalf of an incarcerated person nearing release, or debit cards issued thereto. The bill provides that if an incarcerated person chooses not to open a checking account, the funds to be disbursed upon release must be in the form of cash money.
