LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5086

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JANUARY 30, 2025

 

 

SUMMARY

 

Synopsis:

Revises penalty for underage gambling to be civil penalty; provides for all associated fines to be used for gambling addiction treatment.

Type of Impact:

Annual State revenue and expenditure increases.  

Annual local revenue and expenditure decreases.

Agencies Affected:

Department of Human Services; Casino Control Commission; certain local government units.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual

 

 

State Revenue Increase

 

Indeterminate

 

 

State Expenditure Increase

 

Indeterminate

 

 

Local Revenue Decrease

 

Indeterminate

 

 

Local Expenditure Decrease

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that changing the penalty for underage gambling from a disorderly persons offense to a civil penalty would result in indeterminate State revenue and expenditure increases and local revenue and expenditure decreases.

·         The OLS determines that fewer disorderly persons offenses would result in local expenditure and revenue decreases, as there would be a reduction in municipal court costs and fine collections.

·         The OLS finds that the revised civil fine would be collected by the State and also notes that State expenditures would increase related to enforcement of the bill’s provisions.

 

 

BILL DESCRIPTION

 

      This bill revises the penalty for underage gambling to be a civil penalty and provides for all associated fines to be used for gambling addiction treatment.

      Under current law, anyone who gambles at a casino or simulcasting facility while under the legal age of 21, a person who allows someone under the age of 21 to gamble while they are in the person’s legal care or custody, and the licensee or employee of a casino that allows someone under the age of 21 to gamble, is guilty of a disorderly persons offense.  The guilty party may be fined an amount between $500 and $1,000 per offense.  The bill changes the penalties for each of these actions from a disorderly persons offense to a civil fine.  The civil fine is up to $500 for the first offense, up to $1,000 for the second offense, and up to $2,000 for any offense thereafter.  The fines are to be collected by the Casino Control Commission.

      Under current practice, all fines collected under a disorderly persons offense are granted to the county or municipality where the offender was charged.  The bill requires that all fines collected are paid into the General Fund to be appropriated to the Department of Human Services for prevention, education, and treatment programs for compulsive gambling, such as those provided by the Council on Compulsive Gambling of New Jersey.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that changing the penalty for underage gambling from a disorderly persons offense to a civil penalty would result in State revenue and expenditure increases and local revenue and expenditure decreases.  The OLS does not have access to specific data concerning the annual number of disorderly persons offenses issued as a result of underage gambling, nor how many of these disorderly persons offenses are issued to repeat offenders.  As such, the revenue and expenditure changes resulting from the bill are indeterminate.

      The OLS determines that fewer disorderly persons offenses would result in local expenditure and revenue decreases, as there would be a reduction in municipal court costs and fine collections.  Disorderly persons offenses are adjudicated by municipal courts, in most circumstances.

      The OLS finds that the revised civil fine would be collected by the State and also notes that State expenditures would increase related to enforcement of the bill’s provisions.

 

Section:

State Government

Analyst:

Camryn Mathews

Assistant 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.).