LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4436
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: SEPTEMBER 30, 2024
SUMMARY
Synopsis: Requires local unit to accept electronic payment of construction code
fees.
Type of Impact: Potential annual cost and revenue increases for certain local units.
Agencies Affected: Municipalities.
Office of Legislative Services Estimate
Annual Fiscal Impact
Potential Local Expenditure Increase Indeterminate
Potential Local Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill could result in an annual cost
increase to certain municipalities. Municipalities are currently authorized, but not required, to
accept payments by way of a card payment system or electronic funds transfer system. Those
municipalities that do not currently have such systems in place may incur indeterminate one-
time costs to establish these systems for the collection of enforcing agency fees imposed under
the State Uniform Construction Code.
 These municipalities could also incur an indeterminate amount of annual transaction
processing costs by accepting electronic payments.
 Under current law, local units are authorized to assess and collect service charges related to
obligations owed to the local unit when credit cards, debit cards, or electronic funds transfer
systems are utilized. Municipalities may therefore collect indeterminate annual revenues from
service charges levied when the electronic payment systems are utilized.
BILL DESCRIPTION
This bill requires local units to establish a card payment system and an electronic funds transfer
system that allow contractors to pay enforcing agency fees imposed under the State Uniform
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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Construction Code. A local unit may also establish these systems for other purposes. A local unit
is required to establish a card payment system or electronic funds transfer system by passage of a
resolution of the governing body.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill could result in an annual cost increase for certain
municipalities. Municipalities are currently authorized, but not required, to accept payments by
way of a card payment system or electronic funds transfer system. Those municipalities that do
not currently have such systems in place may incur indeterminate one-time costs to establish these
systems for the collection of enforcing agency fees imposed under the State Uniform Construction
Code. The OLS is unable to determine the number of municipalities that have not yet established
a card payment system or electronic funds transfer system and would therefore be affected by the
requirements of the bill.
These municipalities could also incur an indeterminate amount of annual transaction
processing costs by accepting electronic payments. The federal Consumer Financial Protection
Bureau has found that payment processing costs are around 1.53 percent of a total transaction for
credit, debit, or prepaid cards, while Automated Clearing House fees are between $0.26 and $0.50
per transaction.
Under current law, local units are authorized to assess and collect service charges related to
obligations owed to the local unit when credit cards, debit cards, or electronic funds transfer
systems are utilized. Municipalities may therefore collect indeterminate annual revenues from
service charges levied when the electronic payment systems are utilized.
Section: Local Government
Analyst: Abigail Stoyer
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 40A:5-45