LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5848

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JULY 2, 2025

 

 

SUMMARY

 

Synopsis:

Modifies child endangerment statute to include AI technology; establishes criminal penalties.

Type of Impact:

Annual State expenditure and revenue increases.  Annual local expenditure increase.

Agencies Affected:

Department of Law and Public Safety; County Prosecutors; 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

 

Local Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that this bill will result in an indeterminate annual increase in State and local expenditures and State revenues.  The OLS lack sufficient information to quantify the fiscal impact, as it 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) county prosecutors would have to prosecute additional cases; iii) the Judiciary would have to adjudicate additional complaints and monitor additional probationers; iv) the Office of the Public Defender would have to represent additional low-income criminal defendants; v) the Department of Corrections would have to house and care for additional offenders; and vi) 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 amends the child endangerment statute to create a crime of the fourth degree of knowingly or recklessly causing or allowing a child to be subjected to sexual conduct through the use of automated interactive computer technology.

      Under current law, endangering the welfare of a child occurs when a person engages in sexual conduct that would impair or debauch the morals of the child.  Endangering is a crime of the second degree when committed by a person with a legal duty to care for the child, and is a crime of the third degree when committed by other persons.  Although the statute does not specify what types of acts constitute sexual conduct which would impair or debauch the morals of the child, it has been well-settled by the courts of this State that the conduct can occur online or over the telephone without actual physical contact and can include conversations with children that describe sexual activity.

      Under the bill, any person who knowingly or recklessly causes, or allows, a child to be subjected to sexual conduct which would impair or debauch the morals of the child, through the person’s creation, control, possession, manipulation, use, dissemination, sale, or promotion of any automated interactive computer technology that is capable of performing or simulating sexual conduct, is guilty of a crime of the fourth degree. 

      The bill provides an exception for artificial intelligence technology that has safety features designed to stop an automated chatbot from simulating sexual conduct when it detects that a user is a child.

      A crime of the fourth degree is punishable by up to 18 months imprisonment, 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 and local expenditures and State 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 agencies could 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) county prosecutors would have to prosecute additional cases; iii) the Judiciary would have to adjudicate additional complaints and monitor additional probationers; iv) the Office of the Public Defender would have to represent additional low-income criminal defendants; v) the Department of Corrections would have to house and care for additional offenders; and vi) the State Parole Board would have to supervise the return to society of additional offenders.

      Under the bill, knowingly or recklessly causing or allowing a child to be subjected to sexual conduct through the use of automated interactive computer technology is a crime of the fourth degree, which is punishable by up to 18 months imprisonment, 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 FY 2024 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 FY 2025. The average cost per parolee, with all overhead costs included, is estimated at $6,609 for FY 2025.

      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.).