LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5129
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 8, 2026
SUMMARY
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Synopsis: |
“CJ’s Law”; Criminalizes manufacture and distribution of substances containing kratom under certain circumstances. |
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Type of Impact: |
Annual State expenditure and revenue increases; annual local expenditure increases. |
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Agencies Affected: |
Department of Law and Public Safety; County Prosecutors; the Judiciary; Office of the Public Defender; Department of Corrections; State Parole Board. |
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Office of Legislative Services Estimate |
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Annual Fiscal Impact |
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State Expenditure Increase |
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Indeterminate |
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State Revenue Increase |
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Indeterminate |
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Local Expenditure Increase |
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Indeterminate |
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· The Office of Legislative Services (OLS) finds that this bill will result in annual indeterminate State and local expenditure increases. The following State and local agencies would incur caseload and expenditure increases: i) the Department of Law and Public Safety would prosecute cases or provide guidance and other information to the county prosecutors; ii) county prosecutors would have to prosecute additional cases due to the criminalization of kratom; iii) the Judiciary may have to adjudicate additional cases; iv) the Office of the Public Defender may have to represent additional low-income criminal defendants; and v) the Department of Corrections may have to house and care for more inmates and the State Parole Board would have to supervise their return to society.
· The OLS does not have sufficient information on the potential increase in the number of convictions and terms of imprisonment resulting from the bill’s provisions and therefore is unable to estimate the costs to the State. The OLS finds that to the extent that the bill will result in additional incarcerations, based on information provided by the Department of Corrections, the FY 2024 average annual cost for housing, ensuring security, and providing services to an incarcerated individual was $75,254, whereas the average daily cost was $11.39.
· The OLS notes the State may receive indeterminate revenue from fines imposed on individuals convicted of crimes under this bill. However, the State’s ability to collect criminal fines and penalties has historically been limited.
BILL DESCRIPTION
This bill, designated as “CJ’s Law,” would criminalize the manufacture, possession and sale of products containing kratom.
Kratom is a botanical substance that grows naturally in Southeast Asia. The federal Food and Drug Administration (FDA) advises that kratom poses a threat to public health and has the potential for abuse.
This bill amends existing law to include kratom as a controlled dangerous substance and sets out gradations for crimes involving the substance. The bill would make it a crime of the second degree to manufacture, distribute or dispense, or possess or have under one’s control with intent to manufacture, distribute, or dispense, a substance containing kratom in an amount of one ounce or more, including adulterants and dilutants. A crime of the second degree is punishable by a term of imprisonment of five to 10 years, a fine of up to $150,000, or both. It would be a crime of the third degree to manufacture, distribute or dispense, or possess or have under one’s control with intent to manufacture, distribute, or dispense a substance containing kratom in an amount of less than one ounce, including adulterants and dilutants. A crime of the third degree is punishable by a term of imprisonment of three to five years, a fine of up to $15,000, or both.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS does not have sufficient information on the potential increase in the number of convictions and terms of imprisonment resulting from the bill’s provisions and therefore is unable to estimate the costs to the State. The OLS finds that to the extent that the bill will result in additional incarcerations, based on information provided by the Department of Corrections, the FY 2024 average annual cost for housing, ensuring security, and providing services to an incarcerated individual was $75,254, whereas the average daily cost was $11.39. According to the Department of Corrections’ 2025 Population Characteristics Report, there are 756 incarcerated individuals serving sentences for drug violations which include distribution, manufacture, possession, and use of drugs. The OLS does not have any further information on how the criminalization of kratom would add to the population of drug offenders in State prisons.
The OLS notes the State may receive indeterminate revenue from fines imposed on individuals convicted of the upgraded crime under this bill. However, the State’s ability to collect criminal fines and penalties has historically been limited.
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Section: |
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Analyst: |
Senior Fiscal Analyst |
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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.).