LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4436

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: SEPTEMBER 30, 2024

 

 

SUMMARY

 

Synopsis:

Requires local unit to accept electronic payment of construction code fees.

Type of Impact:

Potential annual cost and revenue increases for certain local units.

Agencies Affected:

Municipalities.

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

Potential Local Expenditure Increase

Indeterminate

 

Potential Local Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill could result in an annual cost increase to certain municipalities.  Municipalities are currently authorized, but not required, to accept payments by way of a card payment system or electronic funds transfer system.  Those municipalities that do not currently have such systems in place may incur indeterminate one-time costs to establish these systems for the collection of enforcing agency fees imposed under the State Uniform Construction Code.

·         These municipalities could also incur an indeterminate amount of annual transaction processing costs by accepting electronic payments.

·         Under current law, local units are authorized to assess and collect service charges related to obligations owed to the local unit when credit cards, debit cards, or electronic funds transfer systems are utilized.  Municipalities may therefore collect indeterminate annual revenues from service charges levied when the electronic payment systems are utilized.

 

 

BILL DESCRIPTION

 

      This bill requires local units to establish a card payment system and an electronic funds transfer system that allow contractors to pay enforcing agency fees imposed under the State Uniform Construction Code.  A local unit may also establish these systems for other purposes.  A local unit is required to establish a card payment system or electronic funds transfer system by passage of a resolution of the governing body.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill could result in an annual cost increase for certain municipalities.  Municipalities are currently authorized, but not required, to accept payments by way of a card payment system or electronic funds transfer system.  Those municipalities that do not currently have such systems in place may incur indeterminate one-time costs to establish these systems for the collection of enforcing agency fees imposed under the State Uniform Construction Code.  The OLS is unable to determine the number of municipalities that have not yet established a card payment system or electronic funds transfer system and would therefore be affected by the requirements of the bill. 

      These municipalities could also incur an indeterminate amount of annual transaction processing costs by accepting electronic payments.  The federal Consumer Financial Protection Bureau has found that payment processing costs are around 1.53 percent of a total transaction for credit, debit, or prepaid cards, while Automated Clearing House fees are between $0.26 and $0.50 per transaction.

      Under current law, local units are authorized to assess and collect service charges related to obligations owed to the local unit when credit cards, debit cards, or electronic funds transfer systems are utilized.   Municipalities may therefore collect indeterminate annual revenues from service charges levied when the electronic payment systems are utilized.

 

Section:

Local Government

Analyst:

Abigail Stoyer

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).