LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 3135

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: OCTOBER 8, 2024

 

 

SUMMARY

 

Synopsis:

Requires producers of plastic packaging and certain other plastic products to reduce quantity of plastic sold; restricts additional substances under "Toxic Packaging Reduction Act."

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

Department of Environmental Protection; Judiciary.

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

State Expenditure Increase

At least $600,000

 

State Revenue Increase

Indeterminate

 

 

 

 

·       The Office of Legislative Services (OLS) estimates that this bill would result in annual State expenditure increases of at least $600,000.  These increased costs would stem from the Department of Environmental Protection having to investigate and inspect certain producers of plastic and cardboard products to ensure compliance with the bill’s weight reduction targets and recycled cardboard requirements, respectively, which would take effect in FY 2027.  Additional indeterminate costs would accrue annually to the department from the establishment of the new Toxic Packaging Task Force and to the Judiciary for any civil actions brought by the department for violations of the bill’s provisions. 

·       The State would collect an indeterminate amount of annual revenue from civil penalties and civil administrative penalties, as well as any relief ordered by the Superior Court, from violators of the bill’s plastic weight reduction targets and recycled cardboard requirements.  Additional revenues may also accrue from penalties collected from persons found selling or distributing packaging using any of the newly prohibited substances under the Toxic Packaging Reduction Act.  The OLS is unable to predict the extent of non-compliance with the bill’s provisions to estimate the amount of these annual revenues.

 

BILL DESCRIPTION

 

      The bill would require the producers of plastic packaging and certain other plastic products manufactured or distributed in the State to reduce the amount, by weight, of their packaging or products sold annually, and restrict additional substances in packaging under the Toxic Packaging Reduction Act.  The bill would also prohibit the sale of cardboard packaging materials unless the cardboard contains at least 75 percent postconsumer recycled content and is recycled at a rate of at least 75 percent.  The bill establishes a five-person Toxic Packaging Task Force that would recommend additional chemicals to regulate under the Toxic Packaging Reduction Act.

      Persons who violate the provisions of the Toxic Packaging Reduction Act are liable for civil penalties and civil administrative penalties of up to $7,500 per day of noncompliance, for a first offense.  Those in violation of the weight reduction targets or recycled cardboard requirements would be subject to civil penalties of up to $10,000 per day or civil administrative penalties of not less than $5,000 nor more than $10,000 per day of noncompliance.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill would result in annual State expenditure increases of at least $600,000.  These increased costs would stem from the Department of Environmental Protection having to investigate and inspect certain producers of plastic and cardboard products to ensure compliance with the bill’s weight reduction targets and recycled cardboard requirements, respectively, which would take effect in FY 2027.  The OLS believes that up to four full-time equivalent employees would be needed with a total annual salary and benefit cost of approximately $600,000.  The need for any additional employees to ensure compliance with the bill’s expanded list of prohibited substances under the Toxic Packaging Reduction Act would make this cost estimate higher.  Additional indeterminate costs would accrue annually to the department from the establishment of the new Toxic Packaging Task Force and for various new administrative responsibilities the department would have under the bill.  The Judiciary would also incur additional annual costs.  Under the bill, the department is authorized to bring a civil action in Superior Court for relief for any violations by manufacturers and distributors of the bill’s weight reduction targets and recycled cardboard requirements, which would generate additional court costs.

      The State would collect an indeterminate amount of annual revenue from civil penalties and civil administrative penalties, as well as any relief ordered by the Superior Court, from violators of the bill’s plastic weight reduction targets and recycled cardboard requirements.  Additional revenues may also accrue from penalties collected from persons found selling or distributing packaging using any of the newly prohibited substances under the Toxic Packaging Reduction Act.  The OLS is unable to predict the extent of non-compliance with the bill’s provisions to estimate the amount of these annual revenues.

Section:

Environment, Agriculture, Energy, and Natural Resources

Analyst:

Anna Heckler

Assistant 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.).