LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 2406

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 11, 2026

 

 

SUMMARY

 

Synopsis:

Requires DEP to regulate scrap metal facilities as recycling facilities.

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

Department of Environmental Protection, Judiciary, Department of Law and Public Safety, Office of the Public Defender, county prosecutors.

 

 

Fiscal Impact

 

State Expenditure Increase

Indeterminate

State Revenue Increase

Approximately $350,000

 

·         The Office of Legislative Services (OLS) finds that this bill would result in annual State expenditure and revenue increases as the department regulates scrap metal facilities throughout the State.  The OLS estimates that the department may require one to two additional full-time equivalent employees, with a full salary, including benefits, within a range of $100,000 to $140,000 annually.

 

·         The OLS estimates that the registration requirements imposed by the bill will provide approximately $350,000 to the department annually, which may increase over time as additional companies register with the department.  The department would also collect revenue from civil administrative penalties assessed for those not in compliance with the bill’s provisions, the volume of which the OLS lacks the information to predict.

 

·         A person who knowingly makes any false or misleading statement to the department on any registration or other application would be guilty of a crime of the fourth degree in addition to the civil administrative penalties mentioned above.  This could result in increased costs to the Judiciary, Department of Law and Public Safety, the Office of the Public Defender, and county prosecutors.  A crime of the fourth degree is ordinarily punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.  The OLS notes, however, that a presumption of non-incarceration generally applies to first time offenders of a crime of the fourth degree.

BILL DESCRIPTION

 

      This bill would require scrap metal facilities to register with the Department of Environmental Protection and comply with certain regulatory requirements established under the bill.  The bill would amend existing law to remove the exemption to regulation of scrap processing facilities as recycling centers. 

      The bill would require, no later than one year after the bill’s effective date, the owner or operator of each scrap metal facility in the State to register with the department and pay an annual registration fee of $700, unless an extension is granted by the department.  In addition, the bill would establish minimum operational and safety requirements for scrap metal facilities that operate shredders, in addition to other requirements pertaining to recycling centers. 

      No later than 18 months after the bill’s effective date, the department would be required to establish a program to regulate each scrap metal facility in the State as a recycling center.  The bill directs the department to hire new staff to implement the bill’s provisions.  The department would be required to include, in its annual budget request to the Governor, funding to implement the bill’s provisions.

      A violation of the bill’s provisions would be considered a violation of the Solid Waste Management Act.  Any person who knowingly makes any false or misleading statement to the department on any registration or other application, record, or other document required to be filed or maintained by this bill, would be guilty of a crime of the fourth degree and be subject to a civil administrative penalty of up to $10,000.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that this bill may result in annual State expenditure and revenue increases as the Department of Environmental Protection regulates scrap metal facilities throughout the State.

      The department would be responsible for monitoring scrap metal facilities under the existing regulatory structure for recycling facilities.  The department already identifies the presence of these scrap metal facilities.  Under current law, municipalities are authorized to establish operational and environmental controls of these facilities.

      The bill requires the department to establish a program to consistently regulate each scrap metal facility in the State as a recycling center.  The department would be directed to hire new staff, subject to the availability of sufficient funds appropriated by the Legislature, to implement the bill’s provisions.  The OLS estimates that the department may require one to two additional full-time equivalent employees, with a full salary, including benefits, within a range of $100,000 to $140,000 annually per additional employee.

      The department currently identifies 440 scrap metal facilities in New Jersey.  Each of these facilities would be responsible for an annual registration payment of $700 under the bill, resulting in an expected revenue increase to the department of approximately $350,000 in the first year of implementation.  This amount would change with the number of scrap metal facilities operating in the State.  The department would also accrue additional revenue with civil administrative penalties assessed through this bill for those not in compliance with the bill’s provisions, the volume of which the OLS lacks the information to predict.

      Additionally, any person who knowingly makes any false or misleading statement to the department on any registration or other application would be guilty of a crime of the fourth degree, in addition to the civil administrative penalties mentioned above.  This could result in increased costs to the Judiciary, Department of Law and Public Safety, the Office of the Public Defender, and county prosecutors.  A crime of the fourth degree is ordinarily punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.  The OLS notes, however, that a presumption of non-incarceration generally applies to first time offenders of a crime of the fourth degree.

 

 

Section:

Environment, Energy, Agriculture, and Natural Resources

Analyst:

Anna Heckler

Associate 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.).