SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5592

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 5592.

      As reported, this bill would require source plasma donation centers to apply annually for a license from the Department of Health (department) in order to operate within the State.

     The Commissioner of Health (commissioner) would establish a process by which persons operating a source plasma donation center would apply for licensure.  The commissioner would establish the initial licensure fee, as well as the fee for renewal, except that the initial licensure fee for a person who has been operating a source plasma donation center prior to the effective date of this bill would be set at $25.  The income received from the licensure and renewal fees would be appropriated to the department.

     To promote the safety and best practices among source plasma donation centers, the commissioner would promulgate rules and regulations governing the donations of source plasma.  The commissioner would also have enforcement powers, including the power to enter and inspect any source plasma donation center to investigate the premises and the books and records.

     The commissioner would also have the power to suspend, revoke, and refuse to grant a license.  Before any such action can be taken, the commissioner must provide notice and an opportunity to be heard to the applicant or licensee, at a time and place as specified in the notice.  However, if the commissioner believes that a violation has occurred that is dangerous to the public health, the commissioner may suspend the donation center’s license without notice until the correction is completed.  If the licensee denies the existence or occurrence of the condition, the licensee would be able to request a hearing and a decision would be rendered within 48 hours of the receipt for the request for a hearing.  If the commissioner rules against the licensee, the licensee could then apply for injunctive relief against the commissioner’s order.  Jurisdiction for the injunctive relief would be in the Superior Court of New Jersey.

     Any person who violates the provisions of this act or an order of the commissioner issued pursuant to this bill would be liable to a penalty of not less than $100 but not more than $1,000 for the first offense.  For the second and each succeeding offense, a penalty of not less than $500 but not more than $5,000, to be established by the commissioner.  The penalties are to be enforced pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

      As reported by the committee, Assembly Bill No. 5592 is identical to Senate Bill No. 4338, which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that Department of Health costs will increase by an indeterminate amount annually to establish and enforce a separate licensure and regulatory system for source plasma donation centers, which are currently regulated by the department as blood banks. 

      Based on an analysis conducted by the California Legislature of AB 725 (2025), the OLS concludes that the department will face indeterminate up-front costs to hire additional staff and develop or purchase an information technology platform for the source plasma donation licensing program.  These costs will be incurred prior to the point at which the department will begin collecting applicants’ licensing fees. 

      Given that the OLS cannot anticipate either the amount of the initial or renewal licensing fees that the department will charge, or the number of license applicants, the magnitude of the bill’s revenue impact is indeterminate.

      State revenues will further increase, albeit by an indeterminate amount, attributable to penalties paid by licensed source plasma donation centers that are found to be in violation of the bill’s provisions.