Bill Text: NJ S2090 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires direct deposit for all State employee compensation on and after July 1, 2014; allows county, county college, municipality,and local school district to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014.*
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-12-20 - Substituted by A720 (3R) [S2090 Detail]
Download: New_Jersey-2012-S2090-Introduced.html
Sponsored by:
Senator ROBERT M. GORDON
District 38 (Bergen and Passaic)
SYNOPSIS
Requires direct deposit for all State employee compensation on and after July 1, 2014; allows county to opt for mandatory direct deposit for all county employee compensation on or after July 1, 2014.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of direct deposit for State and county employee compensation and amending P.L.1981, c.385 and P.L.1987, c.38.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1981, c.385 (C.52:14-15a) is amended to read as follows:
1. a. Whenever any person holding public office, position or employment, whose compensation is paid by this State or by any board, body, agency, authority or commission thereof, hereinafter referred to as "employee", shall indicate in writing to the proper disbursing officer his desire to have his net pay deposited in a specific banking institution in a designated checking account, savings account, or share account for such employee, the State Treasurer shall make the deposit in the respective banking institution on behalf of the employee.
With respect to compensation paid on and after July 1, 2014, all such persons shall have net pay directly deposited as described in this section. The State Treasurer is authorized to grant an exemption from the requirements of this section on such terms and conditions as the State Treasurer may deem necessary.
b. Commencing on the first day of the fourth month following the enactment of P.L. , c. (pending before the Legislature as this bill), the State Treasurer shall make available for employees who have net pay directly deposited as described in this section any information concerning net pay, any accompanying information approved for distribution with net pay, and W-2 forms, only on the Internet with restricted access and policies and procedures to protect the integrity and confidentiality of the information.
c. The requirements of this section shall also be applicable to all State entities that do not utilize the State centralized payroll system, including public institutions of higher education.
(cf: P.L.1981, c.385, s.1)
2. Section 4 of P.L.1981, c.385 (C.52:14-15d) is amended to read as follows:
4. Any written designation may be withdrawn by an employee at any time by filing the notice of withdrawal with his respective disbursing officer. The filing of notice of withdrawal shall be effective to halt deposits as of the thirtieth day next succeeding the date on which it is filed.
With respect to compensation paid on and after July 1, 2014, withdrawal of written designation shall be prohibited, unless the State Treasurer or appropriate officer grants an exemption to this prohibition as deemed necessary.
(cf: P.L.1981, c.385, s.4)
3. Section 2 of P.L.1987, c.38 (C.52:14-15f) is amended to read as follows:
2. a. Upon the adoption of an ordinance or resolution, as appropriate, the governing body of a county or municipality may provide for the deposit of the net pay of any employee of the county or municipality, or of a board, commission, bureau, department, or other public agency thereof, in a specific banking institution in a designated checking account, savings account, or share account. When the employee shall indicate in writing to the proper disbursing officer his or her desire to have his or her net pay deposited, the disbursing officer shall make the deposit in the respective banking institution on behalf of the employee. As used in P.L. 1981, c. 385 (C.52:14-15a et seq.), "employee" shall also mean any person holding public office, position, or employment whose compensation is paid by a county or municipality or any board, commission, bureau, department, or other public agency thereof.
b. On or after July 1, 2014, the governing body of a county may determine by the adoption of an ordinance or resolution, as appropriate, to provide for the mandatory deposit of net pay for all employees of the county, or of a board, commission, bureau, department or other public agency thereof, in a specific banking institution based on information provided by the employee. If the governing body provides for such direct deposit, compliance by an employee shall be mandatory. No ordinance or resolution shall be adopted under subsection a. of this section on or after July 1, 2014. The governing body is authorized to grant an exemption from the requirements adopted pursuant to this subsection on such terms and conditions as the governing body may deem necessary.
c. The governing body may make available for such employees who have net pay directly deposited as described in subsection a. of this section, and shall make available for such employees who have net pay directly deposited as described in subsection b. of this section, any information concerning net pay, any accompanying information approved for distribution with net pay, and W-2 forms only on the Internet with restricted access and policies and procedures to protect the integrity and confidentiality of the information.
(cf: P.L.1987, c.38, s.2)
4. This act shall take effect immediately.
STATEMENT
Currently, State employees, as well as employees of a county, have the option to designate in writing a specific banking institution and a checking account, savings account, or share account for receipt of direct deposit of the employee's net pay. This bill makes direct deposit mandatory, unless an exemption is granted, for all State employees for compensation paid on and after July 1, 2014, and allows the governing body of a county to provide for mandatory deposit of its employees' net pay by an ordinance or resolution adopted on or after that date.
Additionally, the bill provides that the State Treasurer or the county governing body, as appropriate, will make available for all employees who have net pay directly deposited any information concerning net pay, accompanying information, and W-2 forms, only on the Internet. The requirements in this bill with regard to direct deposit and accompanying information will also apply to all State entities that do not use the State centralized payroll system, including public institutions of higher education.
