ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5559

STATE OF NEW JERSEY

DATED:  JUNE 26, 2025

      The Assembly Budget Committee reports favorably Assembly Bill No. 5559.

      As reported, this bill is designated as the “Political Donation Transparency Act.”

      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 IMPACT:

      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.