LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 3992

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 9, 2025

 

 

SUMMARY

 

Synopsis:

Revises penalties for certain prohibited sales of tobacco and vapor products and smoking in indoor places.

Type of Impact:

Annual State expenditure and revenue increases.

Annual local revenue increases and decreases.

Agencies Affected:

Department of Health; certain municipalities.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

State Revenue Increase

Indeterminate

 

Net Local Revenue Increase

Indeterminate

 

 

 

·       The Office of Legislative Services (OLS) determines that State revenues will increase by an indeterminate amount due to a provision in the bill that allocates five percent of penalties recovered for retailer violations of the tobacco age of sale statute to the Department of Health.  Under current law, all penalties recovered are paid into the treasury of the municipality in which the violation occurred. 

·       Absent information from the department, the OLS lacks the informational basis to project the magnitude of State revenue increases and corresponding local revenue decreases attributable to this provision. The OLS notes that the bill requires the department to use the allocated funds for educational programs and outreach to the public and retailers concerning the dangers of illegal sales and use of vapor products.

·       Municipalities will realize an indeterminate increase in revenues, in the form of increased penalties paid for violations of the statutory prohibitions on the sale of tobacco products to individuals under the age of 21.

·       The department will incur additional costs, in an indeterminate amount, to establish a process by which retailers will report to the Office of Tobacco Control and Prevention in the department on efforts to comply with the prohibition on tobacco product sales to individuals under the age of 21, and for the office to establish a mechanism by which an individual can anonymously report retailers who sell tobacco products to underage individuals.

 

BILL DESCRIPTION

 

      The bill revises existing prohibitions on the sale of tobacco to persons under the age of 21 to specify that retailers are prohibited from selling any tobacco product, as defined under the bill, to an individual under 21 years of age.    

      The bill increases fines for violators of this prohibition from not less than $250 to $750 for the first violation, from not less than $500 to $1,500 for the second violation, and from $1,000 to $3,000 for the third and each subsequent violation.  Five percent of penalties recovered will be transferred to the Department of Health to fund educational programs and outreach to inform the public, retailers, and minors of the dangers of vapor products and the consequences of selling or using vapor products illegally.  Penalties for certain violations of the laws concerning the sale and public use of tobacco and vapor products will be paid to the entity responsible for enforcement for the municipality in which the violation occurs.

      The bill provides that the Office of Tobacco Control and Prevention in the department will establish a process by which a retailer reports to the office concerning the retailer’s efforts to comply with the statute prohibiting the sale of tobacco products to underage individuals.  The office will also establish a mechanism by which an individual may anonymously report to the office a violation of this prohibition.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that State revenues will increase by an indeterminate amount due to the provision in the bill that allocates to the Department of Health five percent of penalties recovered for violations of the statutory prohibition on the sale of tobacco products to individuals under the age of 21.  Under current law, 100 percent of penalties recovered are paid into the treasury of the municipality in which the violation occurred for the municipality’s general use.  Given that information on the annual amount of penalties collected for violations of the tobacco age-of-sale statute and the number of retailers assessed such penalties are not publicly available, the OLS lacks the informational basis to project the magnitude of State revenue increases and corresponding local revenue decreases attributable to this provision in the bill.  The OLS notes that the bill requires the department to use the allocated funds for educational programs and outreach to the public and retailers concerning the dangers of illegal sales and use of vapor products.

      Municipalities will realize an indeterminate increase in revenues, in the form of the increased penalties paid for violations of the tobacco products age-of-sale statute. Current law stipulates that penalties collected for violations of this statute are deposited into the treasury of the municipality in which the violation occurs, for the general use of the municipality.  By contrast, the bill specifies that the increased penalties will be paid to the entity responsible for enforcement for the municipality in which the violation occurs; presumably, the relevant entity will be either the local law enforcement agency or the local board of health.  Absent information from the department concerning the number of retailers that pay penalties annually or on the annual amount of penalties collected for violations of the tobacco age-of-sale statute, the OLS lacks the informational basis to determine the amount of increased municipal revenues under the bill.

      The department also will incur additional costs, in an indeterminate amount, to establish a process by which retail dealers will report to the Office of Tobacco Control and Prevention on their efforts to comply with the prohibition on tobacco product sales to individuals under the age of 21, and to establish a mechanism by which an individual can anonymously report retailers who sell tobacco products to underage individuals. 

 

 

Section:

Human Services

Analyst:

Anne Cappabianca

Senior 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.).