LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3195
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 28, 2025
SUMMARY
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Synopsis: |
Prohibits food service businesses from providing single-use utensils and condiments to customers, except upon request, and requires certain food service businesses to provide reusable, washable utensils to customers eating on site. |
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Type of Impact: |
Annual State and local expenditure increases and savings. Annual State and local revenue increases. |
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Agencies Affected: |
Department of Environmental Protection; State Departments and Agencies; County and Municipal Governments; School Districts.
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Office of Legislative Services Estimate
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Fiscal Impact |
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Annual |
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Net State Expenditure Impact |
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Indeterminate |
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State Revenue Increase |
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Indeterminate |
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Net Local Expenditure Impact |
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Indeterminate |
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Local Revenue Increase |
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Indeterminate |
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· The Office of Legislative Services (OLS) determines that the bill would result in an indeterminate impact on State and local expenditures and an indeterminate increase in State and local revenues.
· The OLS finds that a reduction in the use of single-use utensils would likely impact State and local expenditures. There may be increases, particularly in the short term if more costly alternatives to single-use utensils are purchased, and there may also be savings, particularly in the long term if there is a sustained reduction in usage.
· The OLS also finds that State and local expenditures would increase due to additional administrative and enforcement responsibilities under the bill.
· The OLS estimates there will be State and local revenue increases from penalties collected for violations of the bill’s provisions, but cannot predict the frequency of violations nor the ensuing enforcement actions and penalty collections.
BILL DESCRIPTION
This bill would prohibit food service businesses in the State from providing customers with single-use utensils or condiments, except upon request.
Specifically, the bill would provide that, commencing on the first day of the seventh month after the bill's enactment: (1) food service business operating in the State would be prohibited from providing single-use utensils or condiments to any customer, except upon, and in accordance with, the express request of that customer; and (2) a food service business that has on-site seating capacity for 50 or more customers would be required to provide its on-site customers with easy access to reusable, washable utensils, which are to be returned to the food service business, upon completion of the on-site meal, for cleaning and reuse.
Any food service business that elects to supply customers with single-use utensils or condiments, upon customer request, as authorized by the bill, would be required to provide each customer with only those types and amounts of single-use utensils and condiments that have been expressly requested by the customer. A food service business would also be prohibited from creating, acquiring, or providing customers with bundled utensil or condiment packages that contain more than one type of single-use utensil or condiment.
The bill exempts certain organizations, such as schools for the first five years after the bill’s effective date; health care facilities during a time of infectious outbreak, during outdoor recreational activities, or during family picnics; and food service businesses located in food courts for the first two years after the bill’s effective date.
Any food service business that violates the bill's provisions would be subject to a warning for the first offense, a civil penalty of $2,500 for the second offense, and a civil penalty of $5,000 for the third and each subsequent offense, to be collected through a summary proceeding, and each day on which a violation occurs would constitute a separate and distinct offense. Any moneys collected from penalties imposed pursuant to the bill would be deposited into the Clean Communities Program Fund for use in financing litter pickup, removal, education, and enforcement programs at the State and local levels, except that municipalities and county environmental enforcement agencies would be permitted to retain 30 percent of the moneys.
Finally, the bill would amend P.L.2020, c.117, the law that prohibits the distribution of plastic bags and polystyrene food serviceware, to provide that entities certified pursuant to the County Environmental Health Act, P.L.1977, c.443, would have primary enforcement responsibility for that law.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received on this bill. However, in response to FY 2026 OLS Discussion Points, the Department of Environmental Protection indicated that it “has reviewed the proposed single-use plastic utensil and condiments prohibition found in Senate Bill No. 3195 (1R). This bill would only permit the provision of single-use plastic utensils and condiments upon request of the customer and also prohibits the provision of bundled plastic utensils to customers. The Department anticipates that, if enacted, implementation of this bill has the potential to reduce costs for small businesses. Moreover, as currently drafted, the bill does not require provision of an alternative when a customer requests single-use plastic utensils and condiments. Some alternatives to single-use plastic utensils could be more costly depending on multiple factors. Nonetheless, with no alternative required, the Department does not expect an adverse financial impact on small businesses. Moreover, the online ordering element of the bill restricts the provision of single-use plastic utensils and condiments by requiring the default selection to be set to ‘no utensils or condiments.’ In short, the bill in and of itself should reduce costs for food service businesses.”
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the bill would result in an indeterminate impact on State and local expenditures and an indeterminate increase in State and local revenues.
The OLS finds that a reduction in the use of single-use utensils would likely impact State and local expenditures. There may be increases, particularly in the short term. As noted by the Department of Environmental Protection in its response above, some alternatives to single-use utensils may be more costly. The OLS cannot predict how the bill will impact the purchases of food service businesses, including those operated by or on behalf of the State or local governments, such as cafeterias in public schools or a public hospital.
The OLS notes there may also be savings, particularly in the long term if there is a sustained reduction in usage. Municipalities in the State such as Maplewood and Red Bank have passed ordinances with similar prohibitions. In 2020, Maplewood prohibited food providers from offering single-use food and beverage accessories, except upon a customer’s request. In 2024, Red Bank prohibited the provision of plastic utensils, condiment packets, napkins, and extra containers to take-out or delivery customers, unless requested by the customer. In 2021, similar statewide prohibitions were enacted by the states of Washington and California, respectively. Based on OLS research, however, it appears there is little empirical evidence available on the fiscal effects of these recently enacted local ordinances and state laws.
Solely for purposes of illustration, the OLS provides the following information on reported savings from pertinent nonprofit initiatives in New Jersey. Skip the Stuff, a Clean Water Action program, organizes a Rethink Disposable campaign to support elimination of plastic trash in the State. Rethink Disposable publishes case study findings on local businesses and organizations that participate in efforts to curb voluntary distribution of disposable plastic items. According to these case studies, Interfaith Neighbors in Monmouth County saved approximately $72,000 by reducing plastic and other packaging in its Meals on Wheels program. The same organization saved $27,000 by reducing single-use plastic cutlery at its six Senior Centers. Franciscan Charities of Newark partnered with Rethink Disposable to reduce disposable foodware in its hot lunch program, eliminating 10,750 pounds of trash and saving $48,000 annually.
The OLS finds that State and local expenditures would increase due to additional administrative and enforcement responsibilities under the bill and estimates there will be State and local revenue increases from penalties collected for violations of the bill’s provisions. Food service businesses that violate the bill's provisions would be subject to a warning for the first offense, a civil penalty of $2,500 for the second offense, and a civil penalty of $5,000 for subsequent offenses, to be collected through a summary proceeding, and each day on which a violation occurs would constitute a separate and distinct offense. Any moneys collected from penalties imposed pursuant to the bill would be deposited into the Clean Communities Program Fund for use in financing litter pickup, removal, education, and enforcement programs at the State and local levels, except that municipalities and county environmental enforcement agencies would be permitted to retain 30 percent of these moneys. The OLS cannot predict the frequency of violations nor the ensuing enforcement actions and penalty collections. As such, the OLS cannot estimate the magnitude of the workload increases for the Department of Environmental Protection and local governments, including whether additional staff will need to be hired to implement and enforce the bill’s provisions.
Finally, the OLS notes that the bill would amend the 2020 State law that prohibits the distribution of plastic bags and polystyrene food serviceware, to provide that entities certified pursuant to the County Environmental Health Act would have primary enforcement responsibility for that law. This change may have the effect of increasing county expenditures and reducing State expenditures.
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Section: |
Environment, Agriculture, Energy, and Natural Resources |
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Analyst: |
Anna Heckler Assistant Fiscal Analyst |
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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.).