This bill mandates that recipients of State tax refunds, unemployment insurance benefits, and State employee compensation be given the option to receive their payments in the form of a paper check. Specifically, it requires the State Treasurer to disburse net pay as indicated in writing by State employees, including those from public institutions of higher education, and ensures that the Division of Unemployment and Temporary Disability Insurance provides claimants with written notice of their payment options—prepaid debit card, direct deposit, or paper check—upon filing a claim. Claimants will also have the opportunity to change their payment method at any time, with the necessary documentation kept on record.
Additionally, the bill stipulates that the Director of the Division of Taxation must offer taxpayers due a refund the choice of receiving their refund as a paper check. This legislation aims to restore the option of paper checks for various State payments, countering previous practices that favored electronic payments, such as automatic conversion to prepaid debit cards for unemployment benefits. The bill is set to take effect immediately upon passage.