Pennington plans to move on prohibiting all cash payments to borough.
A short ordinance has been worked on by Borough Attorney Walter Bliss for the borough which would make all payments to the borough government have to be by no cash means.
The ordinance, which will be ready by the borough council’s Oct. 5 meeting, would have two exceptions available with this new measure.
“One (exception), unless ordered to the contrary by council for reasons of hardship or some extraordinary reason. The second exception would be the courts generally,” Bliss said.
“By ordinance we cannot impose our preferences on the courts and may involve due process considerations. So, the ordinance would expressly exclude from the no cash policy payments to the courts in the forms of fines, penalties, costs and whatever the court may impose.”
Borough Administrator Gian-Paolo Caminiti noted in the Pennington Council’s work session on Sept. 28 how municipalities are increasingly being challenged by the presence of counterfeit currency, which means they have to scan and screen for it.
“The logistics of it are just becoming more onerous just to manage it as well as security considerations and the like. It is just easier not to do it,” he added.
Additionally, Bliss added that the borough’s integrity of their cash management is also affected by the presence of cash.
“I think generally public entities and public employees should generally for appearance purposes if non other not be handling cash.”
Bliss thought this change for the borough should be through an ordinance not a resolution.
“An ordinance is sturdier and has a much preferable airing process publicly. There is a state statute that prohibits retail business from refusing to accept cash in business transactions which I think is part of the Consumer Fraud Act and reflects a state policy that this kind of thing, a no cash policy, is potentially discriminatory,” he said.
“Precisely for that reason we should give it a public airing.”
The same statute referenced does not apply to governmental entities only to private retail entities, according to Bliss.
“Given that if you are ready to go in that direction, we would essentially prohibit all payments to the borough in cash. That all payments to the borough must be by no cash means,” Bliss said.
