S2970

An Act concerning means of acceptable rent payment by a residential tenant and amending P.L.2019. c.300.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2019, c.300 (C.46:8-49.1) is amended to read as follows:

2. a. No landlord shall require a tenant or prospective tenant to remit any amount due to the landlord pursuant to a residential lease, renewal, or extension agreement by means of electronic funds transfer, including but not limited to an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis.

b. In addition to any other payment method provided by a landlord, including any electronic payment method, and except as provided pursuant to paragraph (3) of subsection c. of this section, if a payment by a tenant or prospective tenant pursuant to a residential lease, renewal, or extension agreement, is made on time, or at any time before the three business day period established by subsection a. of section 1 of P.L.2019, c.316 (C.2A:42-10.16a), the landlord shall accept the payment, regardless of whether the payment was made by cash, certified check, money order, or personal check, or through any federal, State, or local rental assistance program or bona fide charitable organization on behalf of the tenant.

c. (1) A landlord who violates this section shall be subject to [the penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47)] a penalty of $2,000 for each offense. Such penalty shall be collected and enforced by summary proceedings pursuant to "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division, Special Civil Part in the county in which the rental premises are located shall have jurisdiction over such proceedings. Process shall be in the nature of a summons or warrant, and shall issue upon the complaint of the commissioner or the Attorney General.

(2) In addition to the penalty set forth pursuant to paragraph (1) of this subsection, a landlord who violates this section shall, at the discretion of the tenant, be subject to a separate cause of action by the tenant in the Superior Court, Law Division, Special Civil Part in the county in which the rental unit is located. A tenant may recover $2,000 from the landlord for each offense, in addition to reasonable attorney’s fees and expenses, court costs, expenses for expert witnesses, and other expenses incurred in providing a violation of this section.

(3) If a personal check used to make a payment pursuant to subsection b. of this section is returned for insufficient funds, the tenant shall be responsible for the payment of the fees and penalties associated with the returned check. Following this event, the landlord shall be permitted to prohibit future payments pursuant to a residential lease, renewal, or extension agreement from being made by personal check by the same tenant.

(cf: P.L.2019, c.300, s.2)

2. This act shall take effect immediately.

STATEMENT

This bill requires a residential landlord to accept a rent payment if made by a tenant or prospective tenant by cash, certified check, money order, or personal check, or through any federal, State, or local rental assistance program or bona fide charitable organization on behalf of the tenant (enumerated payment methods).

Specifically, in addition to any other payment method provided by a landlord, including an electronic payment method, if a rent payment, including a renewal or an extension agreement payment, is made by a tenant on time, or up until the date when a warrant for removal is posted to the residential dwelling unit or a lockout is executed following the entry of a judgment of possession due to nonpayment of rent, the landlord is required to accept the rent payment if made by one of the enumerated payment methods.

The bill establishes a penalty of $2,000 for a violation of the provisions of the bill, and permits the enforcement process to be initiated by the Commissioner of Community Affairs or the Attorney General. Additionally, a landlord who violates the bill would be subject, at the discretion of the tenant, to a separate cause of action by the tenant, who would be permitted to recover $2,000 from the landlord for each offense, in addition to reasonable attorney’s fees and expenses, court costs, expenses for expert witnesses, and other expenses incurred in providing a violation of the bill.

If a personal check used to make a residential rent payment is returned for insufficient funds, the bill requires the tenant to be responsible for associated fees and penalties. Following this event, the bill permits the landlord to prohibit the tenant’s future rent payments from being made by personal check.