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Bill

Bill

S 3158

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

2026-2027 Regular Session Introduced by Kristin Corrado and 1 co-sponsor

The bill lets state payroll, unemployment benefits, and tax refunds be paid by paper check on request, adding more payment method options.

Received in the Assembly, Referred to Assembly Labor Committee
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Bill Summary · S 3158

Summary of Bill S.3158 (NJ, 222nd Legislature)

Purpose and intent

This bill requires the State of New Jersey to offer additional, non-cendential payment options for certain payments made by State government. Specifically, it creates the right for individuals receiving State tax refunds, unemployment insurance benefits, or State employee compensation to choose among different payment methods, rather than being limited to a single method or default option.

Key provisions

1) State employee compensation payments
- If an individual holding public office, position, or employment whose pay is funded by the State (or by any state-related board, agency, authority, or commission) indicates in writing a preference to receive net pay via a paper check, the State Treasurer must disburse that net pay in the form requested.
- The requirement applies to all State entities that do not use the State’s centralized payroll system, including public institutions of higher education.

2) Unemployment insurance benefit payments
- The Division of Unemployment and Temporary Disability Insurance (within the Department of Labor and Workforce Development) must provide claimants with written notice of payment options at claim filing. Options include prepaid debit card, direct deposit, and paper check.
- The notice must require the claimant’s signature and be kept on record to designate the preferred payment method.
- Claimants must be allowed to change their payment option at any time. The same written notice serves as the form to change the option, and it must require a claimant’s signature (to be kept on file).
- For claimants who have already filed or are awaiting determination as of the section’s effective date, the division must provide notice within 30 days and allow option changes under the same process.

3) State tax refunds
- The Director of the Division of Taxation must, notwithstanding any other law or regulation, provide taxpayers due a State tax refund the option to receive the refund in the form of a paper check.

4) Effective date
- The act is stated to take effect immediately upon enactment.

Who is affected

  • State employees and public officials (and employees of State entities not on the centralized payroll system, including public colleges and universities) who wish to receive net pay via a paper check.
  • Unemployment insurance claimants statewide, who will receive explicit notice of payment options and may choose or change their payment method.
  • Taxpayers awaiting State tax refunds, who will be offered a paper check option in addition to other payment methods.

Procedural and timeline aspects

  • For payroll: Eligible employees must indicate in writing their preference for paper checks, triggering the requirement for the State Treasurer to disburse accordingly.
  • For unemployment benefits: Written notice of options with signature must be provided at claim filing; claimants may switch options at any time; the notice/change form must be retained on file.
  • For tax refunds: The Division of Taxation must offer a paper check option, overriding conflicting rules to the extent necessary.
  • Immediate effectiveness: The act is to take effect immediately after enactment.

Potential impacts

  • Administrative: State agencies and higher education institutions that administer payroll outside the centralized system will need to implement processes to honor paper check requests and maintain records of employees’ chosen payment methods.
  • Beneficiary experience: Recipients of unemployment benefits and tax refunds gain additional flexibility in selecting how they receive payments, which could improve access or align with personal banking practices.
  • Financial considerations: The availability of paper checks alongside direct deposit and prepaid options may impact processing, costs, and reconciliation for State financial operations.

If you’d like, I can provide a plain-language FAQ that explains how individuals can exercise these choices and what records they or the State would maintain.

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

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