Pair of Prepaid Card Bills Moves Forward in N.J. Assembly (Feb. 11, 2013)
Feb. 11, 2013
Two prepaid card-related bills being considered by the New Jersey State Assembly took steps forward last week, earning approval by the Assembly’s Appropriations Committee. The first bill, A-3561, permits New Jersey’s Treasury Department to issue state income tax refunds onto prepaid cards, while the second, A-3562, enables state and local governments to make payments to businesses and individuals via prepaid cards. Both bills require any card issued for such purposes to include open-loop functionality and the ability to withdraw cash at ATMs.
“Whether refunding income tax payments to residents, remitting monies owed to businesses for services provided or disbursing funds to individuals, it makes sense to utilize the efficiencies provided by a prepaid debit card,” said Assembly Budget Officer Declan O’Scanlon (R-Monmouth), who sponsored the two bills. O’Scanlon was also a backer of legislation requiring New Jersey’s state and local government employees to be paid via direct deposit. That bill passed the Assembly by a vote of 74-0 earlier this month.
The two bills just okayed by the Appropriations committee, which were sponsored by a bi-partisan group of Republicans and Democrats, will now go to the Assembly Speaker, Sheila Oliver (D-Essex/Passaic), who will decide when to hold floor votes on the bills.
