LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 2437

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JANUARY 9, 2025

 

 

SUMMARY

 

Synopsis:

Requires ingredients of menstrual products to be listed on package.

Type of Impact:

Annual State expenditure increases; potential annual State revenue increases.

Agencies Affected:

Department of Law and Public Safety.

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

Annual State Cost Increase

Indeterminate

 

Potential Annual State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) anticipates that the bill will result in an indeterminate annual State cost increase to the Division of Consumer Affairs to enforce the new menstrual product labeling requirements.  The magnitude of the cost increase will depend on operational decisions to be made by the division, including whether to hire additional enforcement personnel or to utilize existing employees to carry out these new responsibilities.

·         Annual revenue increases may accrue to the State from the civil penalties established in the bill.  The civil penalty will be equal to one percent of the manufacturer’s total annual in-State sales of menstrual products for each noncompliant package, not to exceed $1,000 per noncompliant package.  The OLS cannot forecast how widespread any noncompliance will be to arrive at a revenue estimate.

 

BILL DESCRIPTION

 

      This bill requires every package of menstrual products that is sold or offered for sale in the State to include a label listing all of the ingredients contained in the menstrual product, with the ingredients listed in descending order of predominance, no later than 18 months after the effective date of the bill.  The information is to be displayed in a manner that is conspicuous and easily understood by consumers.  This information is also to be posted on the manufacturer’s website.

      The bill establishes a civil penalty for menstrual product manufacturers for noncompliance equal to one percent of the manufacturer’s total annual in-State sales of menstrual products for each noncompliant package, not to exceed $1,000 per noncompliant package.  The civil penalty will be collected by the Division of Consumer Affairs in the Department of Law and Public Safety in summary proceedings before a court of competent jurisdiction.  The bill specifies that the civil penalty may not be assessed for a noncompliant package containing menstrual products that was manufactured prior to 18 months after the effective date of the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS anticipates that the bill will result in an indeterminate annual State cost increase to the Division of Consumer Affairs to enforce the new menstrual product labeling requirements.  The magnitude of the cost increase will depend on operational decisions to be made by the division, including whether to hire additional enforcement personnel or to utilize existing employees to carry out these new responsibilities.

      Annual revenue increases may accrue to the State from the civil penalties established in the bill.  The civil penalty will be equal to one percent of the manufacturer’s total annual in-State sales of menstrual products for each noncompliant package, not to exceed $1,000 per noncompliant package.  The OLS cannot forecast how widespread any noncompliance will be to arrive at a revenue estimate.

 

      Background:   In 2019, New York became the first state in the nation to require manufacturers of menstrual products to disclose ingredients.  Shortly after, California and Nevada joined in the requirement.  From November 2021 to February 2022, the non-profit organization Women’s Voices for the Earth conducted a field study examining ingredient disclosures on period product labels both in New York and across the United States.  The May 2022 report issued by the organization examined the findings of that field study, notably indicating that the compliance with the law to disclose ingredients had not been perfect.  A few products evaluated in the field study did not disclose ingredients at all, or more frequently, only provided vague descriptions of ingredients disclosed without the actual chemical names of ingredients being included.

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

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.).