LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5559

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JULY 1, 2025

 

 

SUMMARY

 

Synopsis:

“Political Donation Transparency Act;" prohibits automatic enrollment in recurring political contributions and establishes penalties for violators.

Type of Impact:

Annual State expenditure and revenue increase.

Agencies Affected:

Department of Law and Public Safety; the Judiciary; Office of the Public Defender; Department of Corrections; State Parole Board

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual 

 

 

State Expenditure Increase

 

Indeterminate

 

 

State Revenue Increase

 

Indeterminate

 

 

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that this bill will result in an indeterminate annual increase in State expenditures and revenues.  The OLS lacks sufficient information to quantify the fiscal impact, as it is not possible to estimate the number of crimes likely to be prosecuted under the provisions of this bill.

·         If the number of prosecutions were to increase, the following agencies would experience a caseload increase: i) the Department of Law and Public Safety would provide guidance and other information related to the prosecution of the cases; ii) the Judiciary would have to adjudicate additional complaints and monitor additional probationers; iii) the Office of the Public Defender would have to represent additional low-income criminal defendants; iv) the Department of Corrections would have to house and care for additional offenders; and v) the State Parole Board would have to supervise the return to society of additional offenders.  The OLS notes that a presumption of non-incarceration generally applies to first time offenders of crimes of the fourth degree.

·         The OLS notes that the State may receive indeterminate revenues from fines imposed on individuals convicted of these crimes; however, the State’s ability to collect fines has been historically limited.

BILL DESCRIPTION

 

      This bill prohibits any candidate, political committee, continuing political committee, candidate committee, joint candidates committee, legislative leadership committee, independent expenditure committee, or political party committee, or any person or entity acting on behalf of such candidate or committee, from using automatic or recurring political contributions in solicitations for political contributions, unless certain standards are met.  These standards will include that:

      (1)  a contribution must not be made automatic or recurring by default;

      (2)  a contribution must only be made automatic or recurring upon the affirmative consent of the person making the contribution; and

      (3)  a clear and conspicuous description of the nature, frequency, and amount of the automatic or recurring contribution must be provided alongside the option to make a contribution automatic or recurring.

      The bill also empowers the Election Law Enforcement Commission to establish such rules as may be necessary to enforce its provisions, and makes it a crime of the fourth degree to violate any of the provisions of the bill or associated rules.  A crime of the fourth degree is punishable by imprisonment for up to 18 months, a fine of up to $10,000, or both.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

        None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that this bill will result in an indeterminate annual increase in State expenditures and revenues.  The OLS lacks sufficient information to quantify the fiscal impact, as it is not possible to estimate the number of crimes likely to be prosecuted under the provisions of this bill.

      The following State and local agencies would incur caseload and expenditure increases: i) the Department of Law and Public Safety would provide guidance and other information related to the prosecution of the cases; ii) the Judiciary would have to adjudicate additional complaints and monitor additional probationers; iii) the Office of the Public Defender would have to represent additional low-income criminal defendants; iv) the Department of Corrections would have to house and care for more individuals who are sentenced to prison terms; and v) the State Parole Board would have to supervise the return to society of additional convicts.

      A crime of the fourth degree is punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both. Generally, a presumption of non-incarceration applies to first time offenders of crimes of the fourth degree. The OLS finds that to the extent the bill results in additional incarcerations, based on information provided by the Department of Corrections, the FY2024 average annual cost for housing, ensuring security, and providing services to an incarcerated individual was $75,254, with an average marginal cost of housing one additional incarcerated person, accounting for food, clothing and wages, of $11.39 per day.

      According to the State Parole Board, the annual average marginal cost to supervising one additional parolee is estimated at $3,886 for FY2025. The average cost per parolee, with all overhead costs included, is estimated at $6,609 for FY2025.

      The OLS also notes the State may receive indeterminate revenue from fines imposed on individuals convicted of this crime; however, the State’s ability to collect fines has historically been limited.

 

 

Section:

Judiciary

Analyst:

Anuja Pande Joshi

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.).