SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 2437

STATE OF NEW JERSEY

DATED:  FEBRUARY 3, 2025

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 2437 (1R).

      This bill requires every package or box of menstrual products that is sold or offered for sale in the State, no later than 18 months after the effective date of the bill, to:  (1) include a label on every package or box of menstrual products that is sold or offered for sale in the State listing all of the ingredients contained in the menstrual product, with the ingredients listed in descending order of predominance within the menstrual product; and (2) post on its Internet website, in an electronically readable format, the label information required under the bill to be included on every package or box containing menstrual products.  The information is to be displayed in a manner that is conspicuous and easily understandable to consumers.

      The bill clarifies that these provisions are not to be construed to require a manufacturer of menstrual products to disclose confidential business information on a package or box containing menstrual products, or on its internet website.  A manufacturer may include confidential business information by its common name with the label information required under the bill in order to protect a substance’s confidential identity.  The bill requires a manufacturer of menstrual products to change the label listing any change in ingredients within 18 months of such a change.

      The bill establishes a civil penalty for menstrual product manufacturers that distribute to, or otherwise offer for sale in New Jersey menstrual products in packaging that does not meet the labeling requirements established under 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 or box, not to exceed $1,000 per noncompliant package or box.  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 pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The bill specifies that the civil penalty may not be assessed for a noncompliant package or box containing menstrual products that was manufactured prior to 18 months after the effective date of the bill.

      Under the bill, “menstrual product” is defined as a product used for the purpose of catching menstruation and vaginal discharge, including but not limited to a tampon, sanitary pad, disc, menstrual cup, and underwear. The term includes both disposable and reusable products. “Package or box containing menstrual products” is defined to mean menstrual products packaged for individual retail sale, and does not include packaging used exclusively for shipping purposes.

      As reported by the committee, Assembly Bill No. 2437 (1R) is identical to Senate Bill No. 3643 (1R), which was also reported by the committee on this date.

FISCAL IMPACT:

      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.