LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 3894

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 19, 2024

 

 

SUMMARY

 

Synopsis:

Amends certain fire safety statutes to update licensure and equipment requirements and liability, fee, and penalty provisions; expands membership of Fire Protection Equipment Advisory Committee.

Type of Impact:

One-time State cost increase; annual State and local net revenue impacts.

Agencies Affected:

Department of Community Affairs; local governments.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

One-Time State Cost Increase

Indeterminate

 

Annual State Revenue Net Impact

Indeterminate

 

Annual Local Revenue Net Impact

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill will increase administrative costs to the Department of Community Affairs by an indeterminate amount during the first year in which the bill takes effect associated with updating regulations to effectuate the purposes of the bill. 

·         The bill will also result in an indeterminate net impact on annual State and local revenue collections.  On one hand, the local enforcing agencies will no longer collect some penalty revenues due to the removal of a requirement for certain dwellings to be equipped with a portable fire extinguisher.  On the other hand, local enforcing agencies, including the Division of Fire Safety in the department, may experience increased revenue due to the ability to issue requests for unpaid fees and penalties to a new owner or operator of a property, compared to the amount of fees and penalties that would have otherwise remained unpaid by a previous owner or operator.

BILL DESCRIPTION

 

      The bill provides that smoke-sensitive alarm devices are to meet requirements established by the Department of Community Affairs and eliminates the requirement for portable fire extinguishers in certain structures. 

      The bill also provides that if an owner or operator has been given notice to abate a violation of the Uniform Fire Safety Act, any continuing liability for unabated violations of record and unpaid fees or penalties following a change of ownership or tenancy are to be determined in accordance with the provisions of the bill.  A new owner who purchases a property without having obtained a certificate stating that there are no unabated violations of record and no unpaid fees or penalties is to be deemed to have notice of all existing violations of record and is to be liable for the payment of all unpaid fees or penalties.  The department is to issue requests for payment of unpaid fees or penalties within five years of the purchase date.

      Except as provided in the bill, a new operator taking control of an existing tenant business is to assume liability for the payment of all existing unpaid fees and penalties assessed for that business.  The department is to issue requests for payment of unpaid fees or penalties within a period of five years from the date of the change in operator; provided, however, a new operator who was a principal in, or agent of, the business previously occupying the property or who is related to a principal in, or agent of, that business by blood, adoption, or marriage is to assume existing liability for the payment of all unpaid fees and penalties indefinitely.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill will increase administrative costs to the Department of Community Affairs by an indeterminate amount during the first year in which the bill takes effect associated with updating regulations as necessary to effectuate the purposes of the bill, including regulations for smoke sensitive alarms in one- and two-dwelling housing units. 

      The bill is also expected to result in an indeterminate net impact on annual State and local revenue collections.  The bill provides that local enforcing agencies, including the Division of Fire Safety in the department that enforces the State Uniform Fire Code in 89 municipalities, will no longer collect some penalty revenues due to the removal of a requirement for certain dwellings to be equipped with a portable fire extinguisher.  Under current law, local enforcing agencies collect a $100 fine for each violation related to a portable fire extinguisher in a one- or two-unit residential dwelling.  It is unclear how many violations of this nature have historically been identified on a yearly basis and how many fines are currently collected per year and so an estimate of the potential size of the revenue loss cannot be made. 

      However, local enforcing agencies, including the division, may also experience increased revenue due to the ability to issue requests for unpaid fees and penalties to a new owner or operator of a property, compared to the amount of fees and penalties that would have otherwise remained unpaid by a previous owner or operator.  The OLS is unable estimate the amount of unpaid fees and penalties in any given year that would be collected by a local enforcing agency from a new owner or operator of a property and is, therefore, unable to predict the exact fiscal impact of this provision. 

 

Section:

Local Government

Analyst:

Abigail Stoyer

Associate 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.).