S4743

An Act requiring housing authority to offer online payment option, supplementing P.L.1992, c.79 (C.40A:12A-1 et seq.), and amending P.L.1975, c.310 and P.L.2019, c.300.

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

1. (New section) In addition to any other rent payment method offered, a housing authority shall, in compliance with subsection b. of section 2 of P.L.2019, c.300 (C.46:8-49.1), offer a tenant or prospective tenant, pursuant to a residential lease, renewal, or extension agreement, the option to pay by means of an online electronic funds transfer, as defined in subsection e. of section 2 of P.L.1975, c.310 (C.46:8-44).

2. Section 2 of P.L.1975, c.310 (C.46:8-44) is amended to read as follows:

1. As used in this act:

a. "Landlord" means any person who rents or leases or offers to rent or lease, for a term of at least one month, dwelling units, except dwelling units in rental premises containing not more than two such units, or in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests.

b. "Department" means the Department of Community Affairs.

c. "Commissioner" means the Commissioner of Community Affairs.

d. "Electronic funds transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account, including, but not limited to, through the use of an automated clearinghouse (ACH) system.

e. "Online electronic funds transfer" means an electronic funds transfer that is conducted over the Internet.

(cf: P.L.2019, c.300, s.1)

3. 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. If the landlord is a housing authority created or continued pursuant to the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.), then, in addition to any other rent payment method offered, the landlord shall offer the tenant or prospective tenant, pursuant to a residential lease, renewal, or extension agreement, the option to pay by means of an online electronic funds transfer.

c. 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).

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

4. This act shall take effect on the first day of the third month next following enactment.

STATEMENT

This bill requires a housing authority to offer a tenant, or prospective tenant, an option to pay rent through an online electronic funds transfer, as defined in the bill. The bill applies to payments made by tenants pursuant to a residential lease, renewal, or extension agreement.

The bill takes effect on the first day of the third month following enactment.