Committee clarifies NSF-fee language to include returned electronic payments

During proceedings on S.326, the committee reviewed an amendment (section 7) that would expand the definition of insufficient funds to cover returned electronic fund transfers as well as returned checks.

Deputy Commissioner Matt Russo told lawmakers the change is intended to reflect modern payment methods and clarified there would be no additional penalty beyond the existing flat insufficient-funds fee (identified in testimony as $28). DMV staff explained that once a bank notifies the agency a payment did not clear, DMV sends a letter and gives the payer 30 days from the date of that mailed notice to pay the amount in full before suspension measures proceed; if a registrant has an online 'my DMV' account the notice may also post there.

Rep. Burke asked several timing and notification questions; DMV said the statute already includes suspension-notice timing in other sections and that the proposed text does not change fees but only recognizes electronic-return events. Committee members noted concerns about mailed notices reaching seasonal residents ('snowbirds'); DMV said it is moving toward online notifications and improved forwarding but still mails notices when appropriate.

No formal vote was taken on the section during the hearing; members moved on to other bill sections after clarifying the administrative procedure and notification timelines.