LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 1524
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 18, 2024
SUMMARY
|
Synopsis: |
Requires text messages soliciting home owners to provide notice when individuals sending solicitations are not licensed by New Jersey Real Estate Commission. |
|
Type of Impact: |
One-Time State Expenditure Increase; Potential Annual State Revenue Increase. |
|
Agencies Affected: |
Department of Law and Public Safety. |
|
Office of Legislative Services Estimate |
||
|
Fiscal Impact |
|
|
|
One-Time State Cost Increase |
Up to $500,000 |
|
|
Potential Annual State Revenue Increase |
Indeterminate |
|
|
|
|
|
· The Office of Legislative Services (OLS) finds that the bill would result in a one-time State expenditure increase of up to $500,000 to the Division of Consumer Affairs in the Department of Law and Public Safety to complete the required public awareness and marketing campaign.
· The OLS further notes that the bill will potentially increase annual State revenue collections from fines and penalties by indeterminate amounts.
BILL DESCRIPTION
This bill requires any individual who is not a licensee of the New Jersey Real Estate Commission, a division of the Department of Banking and Insurance, who uses text messaging to solicit a home owner regarding the sale of a home to send, prior to a solicitation, a separate text message to the home owner that states the individual is not a licensee of the commission, the name of the employer with whom the individual is employed, and the text is a solicitation. An individual will incur a penalty of not more than $5,000 for a first violation of the bill, and of not more than $10,000 for any subsequent violation of the bill.
The Division of Consumer Affairs in the Department of Law and Public Safety is to develop and undertake a public education program and marketing campaign designed to inform licensees of the commission and home owners of the provisions of the bill. If the division deems it necessary, the public education program and marketing campaign shall include information concerning issues and fraudulent activity related to text message real estate solicitations by individuals not licensed by the commission, and the assistance available to understand if a real estate broker, broker-salesperson, or salesperson, or purported real estate broker, broker-salesperson, or salesperson, is licensed by the commission. The public education program and marketing campaign may include a notice of the provisions posted clearly and conspicuously on the website of the division and commission and any other action taken by the division or commission to raise public awareness.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill would result in a one-time State expenditure increase of up to $500,000 to the Division of Consumer Affairs in the Department of Law and Public Safety to undertake the required public information and marketing campaign. This estimate is within the range of other such campaigns undertaken by State departments.
The OLS further notes that the bill will potentially increase annual State revenue collections from fines and penalties by indeterminate amounts, but there is no information upon which to base an estimate of how many violations of the bill’s provisions may occur in a given fiscal year.
|
Section: |
|
|
Analyst: |
Lead 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.).