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New Jersey Regulatory Announcements

New Jersey S.B. 1448

2/16/16: A state bill was filed on February 16, 2016 and introduced to the Senate Commerce Committee. This measure is a refile of S.B.1037 from the 2014-15 Legislative Session which failed to advance beyond its committee of referral. Companion legislation has not yet been filed in the Assembly. The sponsor is Assembly member Anthony Bucco (R).

The bill requires ATM locations to contain a dedicated voice telephone line operable by a single switch that establishes an immediate connection to 9-1-1 or E-9-1-1 emergency service, where that service is available, and requires that the switch be activated through the use of an automated teller machine access device.

Refer to the bill for further provisions. SENATE, No. 1448 STATE OF NEW JERSEY 217th LEGISLATURE

TransNational ATM Team


Update: New Jersey A.B. 1376 is a refile of A.B. 2300 from the 2014-15 Legislative Session which failed to advance beyond its committee of referral.

1/12/16: Update

NJ A.B. 1376 was filed on 1/12/16, introduced and referred to the Assembly Financial Institution and Insurance Committee on 1/27/16. The bill awaits further consideration. The sponsor, Assembly member Grace Spencer (D) does sit on the committee of referral. No companion legislation has yet been filed in the Senate.

Summary: Requires any independent service organization that operates an ATM to install, maintain and preserve video which at least views and records all persons who effect a transaction at the ATM.

http://www.njleg.state.nj.us/2016/Bills/A1500/1376_I1.PDF

Update from December 14, 2015

This measure passed the Financial Institutions and Insurance Committee by a 9-0 vote with three members absent on 12/10/15. The measure now awaits further consideration by the full Assembly.


Update on A.B. filing in NJ ­ A.B. 119

1/12/16: Update

NJ A.B. 119 was filed on January 12, 2016. The bill directs the commission to work with the NJ Office of Information Technology and representatives of ATM suppliers to create and implement a program or method to prevent ­ access to cash benefits through the electronic benefit distribution system at ATMs located on the premises of a casino, adult entertainment venue, adult bookstore or liquor store and the use of a benefit card to make a POS purchase those premises or to pay for a cruise at a travel agency or other venue.

http://www.njleg.state.nj.us/2016/Bills/A0500/119_I1.PDF

On January 27, 2016, the bill was referred to the Assembly Human Services Committee. A.B. 119 is a refile of A.B. 3440 from the 2014-15 Legislative Session which failed to advance beyond its committee of referral. No companion legislation has yet been filed in the Senate.

TransNational ATM Team


Update on State of New Jersey A.B. 2300 ‐ ATM User Security

12/14/15: Update

Status: A hearing was held and passed Committee on 12/10/15.

This measure was favorably reported by the Assembly Financial Institutions and Insurance Committee. The committee vote has yet to be released. This measure now awaits further consideration by the full Assembly.

http://www.njleg.state.nj.us/2014/Bills/A2500/2300_I1.PDF

If passed, the effective date is 90 days after passage.

TransNational ATM Team


State of New Jersey A.B. 2300 ‐ ATM User Security

12/8/15: The State of New Jersey, Assembly Financial Institutions and Insurance Committee, will hold a hearing on December 10, 2015 which is open to the public. Presented testimony is at the discretion of the Chair, Assembly member Craig Coughlin (D). No other information regarding the location of the hearing was provided. Summary: Requires any ISO that operates an ATM to install, maintain and preserve video which at least views and records all persons who effect a transaction at the ATM.

http://www.njleg.state.nj.us/2014/Bills/A2500/2300_I1.PDF

A similar measure was introduced by the same sponsor, Assembly member Grace Spencer (D), in the last session as A.B. 2025 but it was not taken up in this Committee before the end of the 2013 session. There are no supporting cosponsors at this point.

TransNational ATM Team


Hearing New Jersey A.B. 1575 Availability of Funds

6/11/15: New Jersey A.B. 1575 Availability of Funds

Sponsor: Assembly member Grace Spencer (D)

Summary: Provides that an independent sales organization shall not operate an automated teller machine in the State of New Jersey unless the automated teller machine provides consumers with options to withdraw in a single transaction:

  1. an amount of $20; and
  2. increments of $20 up to $200, in addition to any other withdrawal amounts that may be offered as options.

Current version: http://www.njleg.state.nj.us/2014/Bills/A2000/1575_I1.HTM

A hearing is scheduled for June 15, 2015. The hearing will be open to the public and testimony will be at the discretion of the chair.

Effective Date: 90th day following enactment

Meta note: Network regulations already require every deployed terminal be able to dispense at least $200 in a single financial transaction. The $20 withdrawal in a single transaction would affect terminals having a single cassette dispensing in increments other than $20.

Update: New Jersey A.B. 1346 is a refile of A.B. 1575 from the 2014-15 Legislative Session, which failed to advance beyond its committee of referral.

1/12/16: NJ A.B. 1346 was filed on 1/12/16, and introduced and referred to the Assembly Financial Institutions and Insurance Committee on 1/27/16. The bill awaits further consideration. The sponsor, Assembly member Grace Spencer (D) does sit on the committee of referral. No companion legislation has yet been filed in the Senate.

Summary: Provides that an ISO shall not operate an ATM in the state of NJ unless the ATM provides consumers with options to withdraw in a single transaction: a. an amount of $20; and b. increments of $20 up to $200, in addition to any other withdrawal amounts that may be offered as options.

http://www.njleg.state.nj.us/2016/Bills/A1500/1346_I1.PDF

- Meta ATM Team


NJ A.B. 1240 passed Assembly Financial Institutions and Insurance Committee 1/12/15

1/13/15: The following Stateside Alert was published on Tuesday, January 13, 2015 regarding NJ A.B.1240. This measure passed during the January 12 hearing and may next be heard on the floor. The companion bill is 2014 S.B. 1097.
**NEW JERSEY A.B. 1240 – ATM User Security

Sponsor: Assemblymember Vincent Prieto (D)
Summary: Requires automated teller machine locations to contain a dedicated voice telephone line operable by a single switch that establishes an immediate connection to 9-1-1 or E-9-1-1 emergency service, where that service is available. Requires that the switch be activated through the use of an automated teller machine access device.

Provides that each automated teller machine must have displayed, in a conspicuous place, a warning notice that any person who knowingly makes a false alarm or places a call through the 9-1-1 or E-9-1-1 emergency telephone system will be subject to prosecution for a criminal offense.

http://www.njleg.state.nj.us/2014/Bills/A1500/1240_I1.PDF

Status: Introduced; referred to Assembly Financial Institutions and Insurance Committee 1/16/14. Hearing held; passed committee 1/12/15.

The sponsor is a member of the majority party. The measure has garnered the support of one cosponsor. A similar measure was introduced by the sponsor during the previous session as A.B. 1743 which was neglected to be taken up in the Assembly Financial Institutions and Insurance Committee before the end of the 2013 session. Committees are not required to hear all bills referred to them. The onus of scheduling bills for consideration is on the majority chair; therefore, the sponsor will have to work with the chair in order to have this bill heard. The Democratic Party controls both chambers of the Legislature while the Governor is a member of the Republican Party.

Effective Date: One year after enactment

Meta ATM Team

NJ Statuses with Potential Negative Impact on White Label ATMs

12/19/14: This is an update provided by Stateside on 12/19/14 on NJ A.B. 1252 – Surcharges.

The measure passed the Assembly by a vote of 74-0 on 12/15/14 and was transferred to the Senate where it awaits consideration after the holidays.

Update Summary: Prohibits the operator of an ATM from charging a fee to a consumer for using the ATM to inquire the consumer’s account balance unless a notice is prominently displayed on the ATM screen, disclosing to the user that a fee will be charged them for the service and the consumer chooses to continue the balance inquiry.

Requires the on-screen notice to list the amount of the fee and an option to decline the fee and exit without charge.

Creates a civil penalty of up to $1,000 per day the operator is in violation of the measure.

Give the Department of Banking and Insurance the authority to enforce the measure.

Current version (12/15/2014):  http://www.njleg.state.nj.us/2014/Bills/A1500/1252_R2.PDF

The following Stateside Alert was published on Friday, November 14, 2014 regarding NJ A.B.2925. The restrictions of disbursement of cash on prepaid debit cards at “financial institution” or “manual teller terminal” appears to exclude white label ATMs. Those who have terminals deployed in New Jersey will want to do further research and educate your legislators on true payment disbursement methods in the 21st century.
**NEW JERSEY A.B. 2925 - Special Request 

Sponsor: Representative Joseph Lagana (D) 

Summary: Current version (11/13/2014): Provides for use of prepaid debit cards as standardized form of disbursement for state and local government payments to individuals and business entities. Requires all state payments to individuals or business entities be disbursed in a standardized prepaid debit card format, except for gross income tax refund payments and service compensation payments to state officers, employees, and agents. Authorizes the governing body of a local government entity to choose to adopt a resolution to provide for the standardization of payments in the form of prepaid debit cards. 

Provides that recipients may opt to receive a payment in either the form of a prepaid debit card or direct deposit. Provides that the implementer must make an annual disclosure, via the implementer's website, concerning the status, scope and future plans for implementation. Requires prepaid debit cards, issued pursuant to the bill, must be redeemable at a variety of merchants and financial institutions as opposed to a closed loop of related merchants and be redeemable for products, services or cash. Provides that the prepaid debit card must be redeemable for products or services with merchants for cash at automated and manual teller terminals of State Treasurer approved financial institutions. Provides that the prepaid debit card may be reloadable or non-reloadable. 

Permits local units to adopt policies that permit the use of electronic funds transfer technologies, such as wire transfers, automated clearing houses, and debit cards, for the disbursement of payments to individuals or business entities. 

Defines local unit as a contracting unit as defined by the “Local Public Contracts Law”, a board of education as defined by the “Public School Contracts Law” and a county college as defined by the “County College Contracts Law,” 

Defines "prepaid debit card" as means an open loop card, which may be reloadable or nonreloadable, that enables the cardholder to: 1) transfer funds assigned to the card to a merchant through a point-of-sale terminal in exchange for products, services or a combination thereof, 2) withdraw cash against the balance assigned to the card via a qualified financial institutions automated teller machine or a qualified financial institutions manual teller terminaland 3) complete, for each standardizeable State payment made to an individual or business entity, not fewer than two transactions involving the domestic withdrawal of cash against the balance assigned to the card via an automated teller machine or a manual teller terminal that is operated by, or on behalf of, the entity responsible for the issuance of the card prior to incurring a charge, surcharge, or other convenience fee for the completion of the transaction. 

Defines "financial institution" as a State or federally chartered bank, savings bank, savings and loan association, credit union or other entity approved by the State Treasurer. 


Defines "manual teller terminal" as a terminal or other station staffed by a teller or other individual who accepts or dispenses cash in connection with credit or deposit accounts. 

Current version (11/13/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R3.PDF 

Amended version (10/16/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R2.HTM 

Amended version (10/2/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R1.HTM 

Introduced version: http://www.njleg.state.nj.us/2014/Bills/A3000/2925_I1.HTM 

Status: Filed 3/13/2014. Introduced; referred to Assembly Appropriations Committee 3/20/2014. Committee meeting held; passed 10/2/2014. Amended 10/16/2014. Amended on floor 11/13/2014. 

Outlook: The measure was amended on the floor of the Assembly. The amendment adds that the holder of a prepaid card must be allowed to make at least two withdrawals before incurring a fee. 

According to the sponsor "it's time to bring the state's payment disbursement methods into the 21st century. Prepaid cards would provide easier and faster access to refunds and payments". 

The sponsor is a member of the majority party. This measure has no cosponsors. Companion legislation was introduced as S.B. 1033 by Senator Loretta Weinberg (D). Democrats control both chambers of the Legislature, and the Governor is a Republican. 

Companion Bill: 2014 S.B. 1033 

Effective Date: Immediately
TransNational ATM Team


Meta Advises of NJ Statutes with Potential Negative Impact on White Label ATMs

11/17/14: NJ House Bill A.B. 2925 and Senate Bill 1033 may negatively impact white label ATMs

The following Stateside Alert was published on Friday, November 14, 2014 regarding NJ A.B.2925. The restrictions of disbursement of cash on prepaid debit cards at “financial institution” or “manual teller terminal” appears to exclude white label ATMs. Those who have terminals deployed in New Jersey will want to do further research and educate your legislators on true payment disbursement methods in the 21st century.
**NEW JERSEY A.B. 2925 - Special Request

Sponsor: Representative Joseph Lagana (D)

Summary: Current version (11/13/2014): Provides for use of prepaid debit cards as standardized form of disbursement for state and local government payments to individuals and business entities. Requires all state payments to individuals or business entities be disbursed in a standardized prepaid debit card format, except for gross income tax refund payments and service compensation payments to state officers, employees, and agents. Authorizes the governing body of a local government entity to choose to adopt a resolution to provide for the standardization of payments in the form of prepaid debit cards.

Provides that recipients may opt to receive a payment in either the form of a prepaid debit card or direct deposit. Provides that the implementer must make an annual disclosure, via the implementer's website, concerning the status, scope and future plans for implementation. Requires prepaid debit cards, issued pursuant to the bill, must be redeemable at a variety of merchants and financial institutions as opposed to a closed loop of related merchants and be redeemable for products, services or cash. Provides that the prepaid debit card must be redeemable for products or services with merchants for cash at automated and manual teller terminals of State Treasurer approved financial institutions. Provides that the prepaid debit card may be reloadable or non-reloadable.

Permits local units to adopt policies that permit the use of electronic funds transfer technologies, such as wire transfers, automated clearing houses, and debit cards, for the disbursement of payments to individuals or business entities.

Defines local unit as a contracting unit as defined by the “Local Public Contracts Law”, a board of education as defined by the “Public School Contracts Law” and a county college as defined by the “County College Contracts Law,”

Defines "prepaid debit card" as means an open loop card, which may be reloadable or nonreloadable, that enables the cardholder to: 1) transfer funds assigned to the card to a merchant through a point-of-sale terminal in exchange for products, services or a combination thereof, 2) withdraw cash against the balance assigned to the card via a qualified financial institutions automated teller machine or a qualified financial institutions manual teller terminal and 3) complete, for each standardizeable State payment made to an individual or business entity, not fewer than two transactions involving the domestic withdrawal of cash against the balance assigned to the card via an automated teller machine or a manual teller terminal that is operated by, or on behalf of, the entity responsible for the issuance of the card prior to incurring a charge, surcharge, or other convenience fee for the completion of the transaction.

Defines "financial institution" as a State or federally chartered bank, savings bank, savings and loan association, credit union or other entity approved by the State Treasurer.


Defines "manual teller terminal" as a terminal or other station staffed by a teller or other individual who accepts or dispenses cash in connection with credit or deposit accounts.

Current version (11/13/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R3.PDF

Amended version (10/16/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R2.HTM

Amended version (10/2/2014): http://www.njleg.state.nj.us/2014/Bills/A3000/2925_R1.HTM

Introduced version: http://www.njleg.state.nj.us/2014/Bills/A3000/2925_I1.HTM

Status: Filed 3/13/2014. Introduced; referred to Assembly Appropriations Committee 3/20/2014. Committee meeting held; passed 10/2/2014. Amended 10/16/2014. Amended on floor 11/13/2014.

Outlook: The measure was amended on the floor of the Assembly. The amendment adds that the holder of a prepaid card must be allowed to make at least two withdrawals before incurring a fee.

According to the sponsor "it's time to bring the state's payment disbursement methods into the 21st century. Prepaid cards would provide easier and faster access to refunds and payments".

The sponsor is a member of the majority party. This measure has no cosponsors. Companion legislation was introduced as S.B. 1033 by Senator Loretta Weinberg (D). Democrats control both chambers of the Legislature, and the Governor is a Republican.

Companion Bill: 2014 S.B. 1033

Effective Date: Immediately

Meta ATM Team

Meta Shares Stateside Alert Regarding NJ Introduced Bill Affecting ATMs

10/3/14: Update from hearing: During the October 2 hearing the Committee reported the measure favorably with amendments. No text of the amendments or the new version of the bill has been made available at this time. The measure is now eligible for consideration on the Assembly floor.

Summary: Prohibits the operator of an ATM from charging a fee to a consumer for using the ATM to inquire the consumer¹s account balance unless a notice is prominently displayed on the ATM screen, disclosing to the user that a fee will be charged them for the service and the consumer chooses to continue the balance inquiry.

Requires the on-screen notice to list the amount of the fee and an option to decline the fee and exit without change.

Creates a civil penalty of up to $1,000 per day the operator is in violation of the measure.

Give the Department of Banking and Insurance the authority to enforce the measure.


New Jersey A.B. 1252 - Requires ATM Operators to Disclose Balance Inquiry Fees

10.1.14: A bill was introduced and referred to the Assembly Financial Institutions and Insurance Committee on 1/16/14. There is now a hearing scheduled on 10/2/14 regarding this bill.
http://www.njleg.state.nj.us/2014/Bills/A1500/1252_I1.PDF

This hearing is open to the public and testimony will be heard at the discretion of the Chair.

Stateside provided this background: The sponsor is a member of the majority party and does not sit on the committee of referral. The measure has not garnered support of cosponsors. A similar measure was introduced by the sponsor during the 2013 session (A.B. 2247) but was not addressed by the Assembly Financial Institutions and Insurance Committee before the session end. Committees are not required to hear all bills referred to them. The Democratic Party controls both chambers of the Legislature while the Governor is a member of the Republican Party.

For those ATM ISOs having terminals deployed in New Jersey, Meta encourages you to read the bill and consider attending the hearing or communicating with your representative. What is interesting in the proposed bill is that the sponsor is not aware of existing network regulations pertaining to balance inquiries. Balance inquiries are considered non-financial transactions and, per network regulations, cannot be surcharged.

Meta ATM Team