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Bill

Bill

A 2918

Requires State to provide recipients of State tax refunds, unemployment insurance benefits and State employee compensation certain payment options.

2024-2025 Regular Session Introduced by Gary Schaer

NJ must offer paper checks as a payment option for state employee net pay, unemployment benefits, and tax refunds, preserving a tangible option alongside electronic methods.

Reported and Referred to Assembly State and Local Government Committee
#incometax #unemplcomp
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WeVote Research Nonpartisan
Bill Summary · A 2918

Summary of Assembly Bill A-2918

Overview

A-2918 would require the State of New Jersey and its related entities to offer paper checks as a payment option for three categories: state employee net pay, unemployment insurance (UI) benefits, and state tax refunds. The bill adds alternatives to the existing debit card and direct deposit options, and establishes requirements for notice, designation, and the ability to change payment methods. The act would take effect immediately.

Purpose and Intent

  • Ensure accessibility and flexibility in the State’s payment methods by maintaining a paper check option alongside electronic methods (direct deposit and prepaid debit cards).
  • Provide recipients (state employees, UI claimants, and taxpayers receiving refunds) with a choice in how they receive payments.
  • Preserve traditional payment options for individuals who may not rely on or prefer paper checks.

Key Provisions

1) State Employee Net Pay

  • The State Treasurer must disburse an employee’s net pay in the form the employee writes to designate (paper check if requested).
  • Applies to all state entities that do not use the centralized payroll system, including public institutions of higher education.

2) Unemployment Insurance (UI) Benefits

  • The Division of Unemployment and Temporary Disability Insurance must provide UI claimants with written notice of payment options upon filing for benefits. Options include prepaid debit card, direct deposit, and paper check.
  • The written notice requires the claimant’s signature to designate a payment method.
  • Claimants must be allowed to change their payment option at any time, using the same form/notices with signatures to update designation.
  • If a claim is awaiting determination or currently receiving benefits, the claimant must receive notice within 30 days and may change payment options accordingly.

3) State Tax Refunds

  • Regardless of other laws or regulations, the Director of the Division of Taxation must offer taxpayers receiving a State tax refund the option to receive the refund as a paper check.

4) Effective Date

  • The act takes effect immediately upon enactment.

Affected Parties

  • State employees and any person whose compensation is paid by the State (including entities outside the centralized payroll system and public higher education).
  • UI benefit claimants.
  • State taxpayers awaiting tax refunds.

Timeline and Legislative Status

  • Introduced: January 9, 2024.
  • Status: Reported and Referred to Assembly State and Local Government Committee; originally to Assembly Labor Committee.
  • Legislative actions: Assembly Labor Committee issued a favorable report (June 16, 2025) and the bill was referred to the Assembly State and Local Government Committee.
  • Related bill: S 2791 (companion).

Background Context

  • The accompanying committee statement notes that the Department of Labor and Workforce Development has partnered with Bank of America to provide debit card accounts to UI claimants since 2010, with automatic conversion from paper checks to debit cards. This bill would restore or preserve the option for paper checks as an alternative.

Potential Impacts and Considerations

  • Access and Equity: Paper checks may be preferred by individuals without bank accounts or with limited access to electronic payment infrastructure.
  • Administrative Implications: Agencies must maintain systems to accommodate multiple payment methods and process paper checks efficiently.
  • Financial Considerations: Paper checks may involve different processing costs and reconciliation requirements compared with electronic methods.
  • Accessibility: Requires clear notice and documentation (signatures) to designate payment methods, ensuring confirmable opt-in.

This summary captures the bill’s core provisions, affected audiences, and procedural trajectory to date.

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

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