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Committee advances bill requiring schools to offer no-fee payment option for lunches and disclose processing fees

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Summary

The Assembly Education Committee voted to release A5263 (and companion S39611), which requires boards of education to offer a no-fee option for school lunch and payment platforms to disclose user fees. Amendments clarified applicability to charter and Renaissance schools and timing of implementation.

The Assembly Education Committee voted to amend and release Assembly Bill A5263 and its companion Senate bill S39611, which would require boards of education to offer a no-fee payment option to parents making school lunch and other school-related payments and require payment platforms used by schools to disclose fees to users.

Committee amendments clarified that the bill’s provisions apply to Renaissance school projects, charter schools and school districts and that nonpublic schools participating in federally assisted meal programs must offer a no-fee payment option. The amendments also set the bill to take effect in the full school year following enactment.

Sponsors and supporters told the committee the bill aims to protect families from hidden fees charged by third-party payment processors. Several groups, including the New Jersey School Boards Association and New Jersey Principals and Supervisors Association, submitted slips in favor.

During committee discussion, members raised operational questions. One member said some districts are concerned about handling cash because staff are no longer accustomed to receiving it, and asked that districts be allowed to work out local solutions. Another member asked that the bill make clear that a “no-fee” option should not force districts to absorb processing costs; that detail was identified as needing clarification in the bill’s language.

The committee approved the motion to amend and release both the Assembly and Senate versions by roll call. Committee members present voted in favor of release following the amendments.

If enacted, the bill would require payment-processing platforms used by public and nonpublic schools to present users with information on user fees and ensure parents and guardians can make direct payments for school meals without fees at a convenient time and place. The law would not be construed to prohibit payment of tuition to nonpublic schools, a clarification included in the amendments.

The committee’s action advances the bills to the full legislature for further consideration.