S3961 2R

Sponsored by:

Senator M. TERESA RUIZ

District 29 (Essex and Hudson)

Senator NICHOLAS P. SCUTARI

District 22 (Somerset and Union)

Assemblywoman SHAMA A. HAIDER

District 37 (Bergen)

Assemblywoman CARMEN THERESA MORALES

District 34 (Essex)

Assemblyman ROBERT J. KARABINCHAK

District 18 (Middlesex)

Co-Sponsored by:

Senators McKnight, Wimberly, Burgess and Assemblywoman Reynolds-Jackson

SYNOPSIS

Requires public and certain nonpublic schools to offer no-fee option to parents for making school lunch and other payments; requires payment processing platforms used by certain schools to provide users with information on user fees.

CURRENT VERSION OF TEXT

As reported by the Assembly Education Committee on May 8, 2025, with amendments.

An Act concerning the fees of payment processing platforms used by ¹[school districts] schools¹ 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 ¹[,] :¹

“¹[payment] Payment¹ 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 ¹public or nonpublic¹ school ¹[district]¹, or any school, group, or club thereof.

¹“Public school” means a school located in New Jersey, under collegiate grade, which is operated by a school district, a charter school established pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.), or a renaissance school project established pursuant to P.L.2011, c.176 (C.18A:36C-1 et seq.).¹

3. Any contract entered into on or after the effective date of this act by a board of education ¹, a board of trustees, or the lead administrator of a nonpublic school¹ 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 education¹, board of trustees, or nonpublic school¹.

4. a. A ¹[board of education] public ²[or nonpublic]² school¹ 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 ¹[school district] public ²[or nonpublic]² school¹, 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 ¹of education ²[,] or² board of trustees, ²[or lead administrator of a nonpublic school¹,]² 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.

¹[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.).]¹

²5. a. A nonpublic school participating in a federally assisted meal program that provides low-cost or free meals to students shall offer students, parents, and guardians a no-fee option for making direct payments for school meals. The option shall be provided at a time and place that is convenient for student, parent, and guardian use.

b. Any communication from the lead administrator of a nonpublic school requesting payment for school meals 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.²

²6. Nothing in this act shall be construed to prohibit the payment of tuition and tuition-related fees to a nonpublic school.²

¹[6.] ²[5.¹] 7.² This act shall take effect immediately ¹and shall first apply to the first full school year following the date of enactment¹.