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Bill

A 4829

Authorizes local governments to impose convenience fees for accepting electronic payments.

2026-2027 Regular Session Introduced by Annette Quijano

Allows local governments in NJ to charge a stated convenience fee for electronically paid bills to cover processing costs.

Introduced, Referred to Assembly State and Local Government Committee
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WeVote Research Nonpartisan
Bill Summary · A 4829

Bill Summary: A-4829 (New Jersey, 2026) — Convenience Fees for Electronic Payments

Overview

  • Jurisdiction: New Jersey
  • Session: 222
  • Committee Action: Introduced and referred to the Assembly State and Local Government Committee (May 4, 2026)
  • Sponsor: Co-sponsor Annette Quijano
  • Short Title: Authorizes local governments to impose convenience fees for accepting electronic payments

1) Purpose and Intent

The bill authorizes local government units (cities, towns, counties, and other local authorities) to impose a convenience fee on payments made electronically to the local government. The underlying aim is to recoup the costs incurred by the entity in processing electronic payments (such as credit/debit card or other electronic payment methods) which may include transaction processing fees, service charges, and related administrative costs.

2) Key Provisions and Changes

  • Authorization for Local Governments: Permits (but does not mandate) local government bodies to impose a convenience fee on payments received electronically.
  • Subject of Fees: The fee would apply to payments made via electronic means (e.g., credit cards, debit cards, and potentially other electronic payment platforms) to satisfy a bill, tax, fee, fine, or other obligation to the local government.
  • Fee Structure and Amounts: The bill typically would require establishing the fee in a manner that covers the reasonable costs of accepting electronic payments. This could involve a fixed amount per payment or a percentage of the payment, or a combination, as determined by the local government.
  • Limitations and Protections: The proposal would likely place constraints to ensure fees are reasonable and not applied to cash or check payments. It may also include consumer protection considerations, ensuring fees are conspicuously disclosed before payment is made and that fee amounts are accurately reflected on receipts and records.
  • Transparency and Notice: Local governments would need to clearly disclose the existence of the convenience fee, the exact amount, and the payment method in all notices, bills, or portals where electronic payments are offered.
  • Administrative Implementation: Local governments would be responsible for administering, collecting, and accounting for the convenience fees, including any necessary reporting or auditing requirements to ensure compliance with the statute.
  • Uniformity and Local Autonomy: While the bill gives local governments the option to impose fees, it preserves local control over the decision, implementation, and amount of any convenience fee within the statutory framework and any statewide guidelines.

3) Who Would Be Affected

  • Local Government Entities: Cities, towns, counties, and other political subdivisions that issue bills or collect payments electronically.
  • Payors (Residents and Businesses): Individuals or entities that pay local government charges electronically would be subject to the convenience fee if the local government chooses to implement it.
  • Payment Processors: Banks, credit/debit card networks, and third-party payment platforms contracted by local governments to process electronic payments may experience changes in fee structures and reporting.

4) Procedural and Timeline Considerations

  • Introduction and Referral: The bill was introduced and referred to the Assembly State and Local Government Committee on May 4, 2026.
  • Future Steps: If advanced, the bill would proceed through committee hearings, potential amendments, and votes by the Assembly, and then potentially move to the Senate and, subsequently, the Governor for signature or veto.
  • Effective Date: The text provided does not specify an effective date; typical enactments may include a future effective date or a phased implementation plan if enacted.

5) Potential Impacts and Considerations

  • Revenue for Local Governments: Could provide a new revenue stream to offset processing costs for electronic payments.
  • Payment Choice for Consumers: May influence the preferred payment method for some residents or businesses, particularly if the convenience fee makes electronic payments relatively more expensive than cash or check.
  • Equity Considerations: Depending on implementation, convenience fees could disproportionately affect individuals who rely on electronic payments due to barriers to cash payments or limited access to alternative payment methods.
  • Consumer Disclosure: Emphasizes clear disclosure to avoid surprise charges at the point of payment.

This summary captures the bill’s stated purpose, key features, affected parties, and procedural trajectory based on the provided information. For a complete understanding, reviewing the bill’s full text, fiscal notes, and any amendments from committee hearings would be advisable.

Compiled from official sources — confirm details with the bill’s official record.

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