Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
SYNOPSIS
Requires residential landlord to accept rent payment by certain means; increases penalty for violating certain rent acceptance requirements.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on June 1, 2026, with amendments.
An Act concerning means of acceptable rent payment by a residential tenant and amending P.L.2019. c.300.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2019, c.300 (C.46:8-49.1) is amended to read as follows:
2. a. No landlord shall require a tenant or prospective tenant to remit any amount due to the landlord pursuant to a residential lease, renewal, or extension agreement by means of electronic funds transfer, including but not limited to an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis.
b. 1(1)1 In addition to any other payment method provided by a landlord, including any electronic payment method, 1[and except as provided pursuant to paragraph (3) of subsection c. of this section, if a] the landlord shall accept1 payment by a tenant or prospective tenant pursuant to a residential lease, renewal, or extension agreement 1[, is made on time, or at any time before the three business day period established by subsection a. of section 1 of P.L.2019, c.316 (C.2A:42-10.16a), the landlord shall accept the payment,] made during the three business day period after a warrant for removal is posted or lockout is executed established pursuant to section 2 of P.L.2019, c.316 (C.46:8-49.3), during the grace period established pursuant to section 1 of P.L.1976, c.100 (C.2A:42-6.1), or any other grace period established by a different provision of the law,1 regardless of whether the payment was made by cash, certified check, 1or1 money order, 1through a friend, family member, or other third party,1 or 1[personal check, or]1 through any federal, State, or local rental assistance program or bona fide charitable organization on behalf of the tenant. 1For the purposes of this section, a tenant shall be permitted to make a rent payment through any combination of permitted sources or methods, or in compliance with section 2 of P.L.2019, c.316 (C.46:8-49.3), section 1 of P.L.1976, c.100 (C.2A:42-6.1), or any other grace period established by a different provision of the law, or a lease provision.
(2) If a federal, State, or local rental assistance program or charitable organization provides a commitment to provide a rent payment, or a portion thereof, on behalf of a tenant, then the commitment to provide a rent payment, or portion thereof that falls under the responsibility of that program or organization, shall be considered as payment pursuant to this section. The landlord shall provide the federal, State, or local rental assistance program or charitable organization with the documentation necessary for the federal, State, or local rental assistance program or charitable organization to remit payment.1
c. (1) A landlord who violates this section shall be subject to [the penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47)] a penalty of $2,000 for each offense. Such penalty shall be collected and enforced by summary proceedings pursuant to "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division, Special Civil Part in the county in which the rental premises are located shall have jurisdiction over such proceedings. Process shall be in the nature of a summons or warrant, and shall issue upon the complaint of the commissioner or the Attorney General.
(2) In addition to the penalty set forth pursuant to paragraph (1) of this subsection, a landlord who violates this section shall, at the discretion of the tenant, be subject to a separate cause of action by the tenant in the Superior Court, Law Division, Special Civil Part in the county in which the rental unit is located. A tenant may recover $2,000 from the landlord for each offense, in addition to reasonable attorney’s fees and expenses, court costs, expenses for expert witnesses, and other expenses incurred in providing a violation of this section. 1A tenant experiencing an eviction action may raise the violation of this section as a defense in any eviction action and apply the penalty to offset any rental arrears determined to be lawfully due and owing.1
1[(3) If a personal check used to make a payment pursuant to subsection b. of this section is returned for insufficient funds, the tenant shall be responsible for the payment of the fees and penalties associated with the returned check. Following this event, the landlord shall be permitted to prohibit future payments pursuant to a residential lease, renewal, or extension agreement from being made by personal check by the same tenant.]1
(cf: P.L.2019, c.300, s.2)
2. This act shall take effect immediately.