Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
Co-Sponsored by:
Senator McKnight
SYNOPSIS
Requires boards of education to offer no-fee option to parents for making school lunch and other payments; requires payment processing platforms used by school districts to provide users with information on user fees.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the fees of payment processing platforms used by school districts and supplementing chapter 6 of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that:
a. School food authorities participating in the National School Lunch Program administered by the United States Department of Agriculture (USDA) are required to provide fee-free avenues to pay for school lunch and inform families about all available payment methods, including associated fees.
b. However, these fee-free options are not always well advertised or accessible. Despite requirements from the USDA, families may be paying more in fees than they would choose to if they had access to comparably convenient payment options with lower or no fees.
c. School districts are able to negotiate fees while contracting with payment platforms.
2. As used in this act, “payment processing platform” means a payment system that enables parents or guardians of students to make electronic payments for school meals, field trips, activity fees, or other goods or services provided by or distributed through the school district, or any school, group, or club thereof.
3. Any contract entered into on or after the effective date of this act by a board of education with a third party vendor for the development or use of a payment processing platform shall require the payment processing platform to provide users with clear information on:
a. all fees charged for use of the platform;
b. the average annual fees incurred by a user of the platform; and
c. the availability of an alternative no-fee means to make direct payments through the board of education.
4. a. A board of education shall offer students, parents, and guardians a no-fee option for making direct payments for school meals, field trips, activity fees, or other goods or services provided by or distributed through the school district, or any school, group, or club thereof. The option shall be provided at a time and place that is convenient for student, parent, and guardian use.
b. Any communication from the board, or any school, group, or club thereof, requesting payment for school meals, field trips, activity fees, or other goods or services shall include information on:
(1) the direct payment option required pursuant to subsection a. of this section; and
(2) the fees associated with use of any payment processing platform that may be used to make the payment.
5. The provisions of this act shall apply to the board of trustees of a charter school that is established pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.).
6. This act shall take effect immediately.
STATEMENT
This bill requires boards of education to offer a no-fee option to parents and guardians for making school lunch and other types of payments. The bill also requires any payment processing platform used by a school district to provide users with certain information on user fees.
Under the bill, any contract entered into on or after the bill’s effective date by a board of education with a third party vendor for the development or use of a payment processing platform is to require the payment processing platform to provide users with clear information on:
· all fees charged for use of the platform;
· the average annual fees incurred by a user of the platform; and
· the availability of an alternative no-fee means to make direct payments through the board of education.
The bill requires a board of education to offer students, parents, and guardians a no-fee option for making direct payments for school meals, field trips, activity fees, or other goods or services provided by or distributed through the school district, or any school, group, or club thereof. The option is to be provided at a time and place that is convenient for student, parent, and guardian use.
Finally, the bill requires that any communication from the board, or any school, group, or club thereof, requesting payment for school meals, field trips, activity fees, or other goods or services is to include information on:
· the direct payment option required pursuant to the bill’s provisions; and
· the fees associated with use of any payment processing platform that may be used to make the payment.
The bill clarifies that its provisions apply to the boards of trustees of charter schools.