LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5265

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 24, 2025

 

 

SUMMARY

 

Synopsis:

Authorizes enforcement of landscape irrigation law by local enforcing agency and increases penalties.

Type of Impact:

Annual State expenditure decrease; net impact on State revenues; local revenue and expenditure increases.

Agencies Affected:

Department of Community Affairs; certain local governments.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual 

 

State Expenditure Decrease

Indeterminate

 

State Revenue Net Impact

Indeterminate

 

Local Expenditure Increase

Indeterminate

 

Local Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that authorizing local enforcing agencies to enforce landscape irrigation law would result in an annual State expenditure decrease and local expenditure increases.  The OLS cannot determine the number of cases which would be enforced by a local enforcing agency instead of the State, or the precise cost of enforcement per case.  

 

·         The OLS determines that the bill would have an indeterminate net impact on State revenues due to the: (1) increase in State revenue as a result of the increase in the penalties for violation of the landscape irrigation law; and (2) decrease in State revenue as a result of the retention of 70 percent of the revenue from penalties levied by a local enforcing agency. 

 

 

BILL DESCRIPTION

 

      This bill would authorize local enforcing agencies to enforce landscape irrigation law, increase the penalties for violation thereof, and establish the Landscape Irrigation Penalty Enforcement Fund in the Department of Community Affairs.

      Specifically, the bill adds local enforcement agencies among existing entities which may: (1) institute a civil action against a person who violates the landscape irrigation law; (2) initiate an investigation into suspected violation of the landscape irrigation law; (3) issue a letter of warning, reprimand, or censure with regard to an act, conduct, or practice which it does not deem warranting formal action; (4) impose certain penalties for violation of the landscape irrigation law, or rules and regulations promulgated pursuant to the landscape irrigation law; and (5) take certain action concerning hearings related to enforcement of the landscape irrigation law.

      The bill increases the maximum penalty for violation of the landscape irrigation law, or any code, rule, regulation, or order adopted or issued pursuant thereto, from $2,500 to $5,000 for a first offense, from $5,000 to $10,000 for a second offense and sets a separate maximum penalty of $15,000 for a subsequent offense.

      The bill additionally establishes the Landscape Irrigation Penalty Enforcement Fund, to which 30 percent of the revenue derived from the civil administrative penalties described in the bill would be deposited.  Seventy percent of the revenue would be retained by the local unit in which the violation occurred.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that authorizing local enforcing agencies to enforce landscape irrigation law would result in an annual State expenditure decrease and local expenditure increases.  The cost of enforcement varies by case, and the number of cases which will be enforced by local units instead of the State are unknown. 

      Under current law, the State’s Landscape Irrigation Contractors Examining Board is responsible for enforcing the landscape irrigation law and the State retains the revenue from penalties.  The bill would permit a local enforcement agency to enforce the landscape irrigation law and retain 70 percent of the penalty revenue, resulting in a decrease in State revenue, if the State were to otherwise enforce the violation, and an increase in local revenue.  The OLS cannot determine the number of penalties that will be levied by the State and by the local enforcing agencies, relative to enforcement activities under the bill from the current baseline, or whether the State revenue increase from the increased penalties will be greater than the State revenue reduction from 70 percent of locally enforced penalties being retained by the local enforcing agency.  Therefore, the State revenue net impact and local revenue increases are indeterminate. 

 

Section:

Local Government

Analyst:

Grace Ahlin

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.).