Governor Christie has signed Senator Steven Oroho’s (R-Sussex, Warren, Morris) bill to allow local governments, county colleges and school districts to pay their bills by using electronic transfer fund technologies.

Sen. Steven Oroho’s bill, now law, allows local governments, county colleges and school districts to pay their bills by using electronic transfer fund technologies.

“Allowing schools and local government entities to use electronic transfers instead of paper checks will generate cost savings at the local and county level,” Senator Oroho said. “By passing this law, we are taking a strong step forward in our ongoing effort to make government operate more efficiently and better serve the needs of every New Jersey taxpayer.”

Allowing schools & govts to use electronic transfers instead of paper checks generates savings at local & cty level https://t.co/yNyEVplokX

— Senator Steven Oroho (@stevenoroho) August 19, 2016

Senator Oroho’s S-2033 authorizes counties, municipalities, school districts, county colleges, and other local government units to adopt policies to utilize electronic funds transfer technologies, such as “direct deposit,” to pay certain claims; in lieu of using signed paper checks or warrants.

Under the bill, the Chief Financial Officer of the local unit would be responsible for the oversight and administration of the system, including ensuring the system is used properly and safely to prevent fraud or abuse.

The legislation received the support of the New Jersey League of Municipalities, New Jersey Association of Counties, and the New Jersey School Boards Association.

“Using electronic transfers will simplify the process of paying claims, easing the burden on the municipal and county government offices that carry out this task every day,” Senator Oroho added. “I am grateful to the advocates and my colleagues in the legislature for their hard work on this bill, and to Governor Christie for signing it into law.”