SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 788

with committee amendments

STATE OF NEW JERSEY

DATED:  NOVEMBER 13, 2025

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 788.

      As amended, this bill exempts from coverage under the temporary disability benefits law and family temporary disability leave benefits any services provided by a volunteer first responder who receives expenses, reasonable benefits, a nominal fee, for the volunteer’s services if those expenses less than the amount that would be regarded as compensation subject to “Fair Labor Standards Act of 1938.”  The exempted first responder would not be subject to contributions to the temporary disability and family temporary disability benefits funds, and it would exclude the first responder from being eligible to receive those benefits for the volunteer first responder services.  Additionally, as amended, the bill provides that these volunteer services are not exempt from contribution requirements to the State unemployment compensation fund.

      Under the bill, “volunteer first responder” means a volunteer firefighter, volunteer member of a duly incorporated first aid, emergency, ambulance, or rescue squad association, or any other individual who, in the course of volunteer services, is dispatched to the scene of a motor vehicle accident or other emergency situation for the purpose of providing medical care or other assistance.

      Additionally, the bill excludes from gross income the amounts received through stipends, including any clothing allowance, provided by a municipality for services performed by a volunteer first responder.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) provide that volunteer first responder services will be exempt from employment with respect to contributions owed for the "Temporary Disability Benefits Law," and family temporary disability leave benefits; and

      (2) provide that the volunteer services will not be exempt for purposes of unemployment compensation fund contributions.

FISCAL IMPACT:

      The Office of Legislative Services notes that the bill will cause an indeterminate annual revenue loss to the State’s Property Tax Relief Fund by excluding any stipends, including clothing allowances, given by a municipality to volunteer first responders from gross income taxation.

      The bill also excludes these volunteer stipends from temporary disability and family leave insurance taxes, which will cause an indeterminate annual revenue loss to the State Disability Benefits Fund.

      The bill could result in an annual indeterminate expenditure decrease to the State Disability Benefits Fund by exempting volunteer first responders from receiving unemployment insurance benefits, temporary disability benefits, and family leave insurance benefits for which they might otherwise qualify.