LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4733

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: AUGUST 6, 2026

 

 

SUMMARY

 

Synopsis:

Prohibits advertising generative artificial intelligence as able to practice regulated profession or occupation.

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

 

 

State Expenditure Increases

Indeterminate

 

State Revenue Increases

Indeterminate

 

 

·         The Office of Legislative Services (OLS) anticipates that the Department of Law and Public Safety’s expenditures would increase annually for investigations, enforcement actions, and potential litigation undertaken by the Office of the Attorney General to enforce the prohibitions in this bill. The magnitude of these costs, as well as any associated court costs, is indeterminate and would depend on the extent to which there are violations of the bill’s provisions.

·         The OLS concludes there may be an indeterminate annual State revenue increase from monetary penalties and damages collected from violators of the bill’s provisions.

 

 

BILL DESCRIPTION

 

      This bill prohibits a person or entity who develops or deploys generative artificial intelligence in the State from advertising or representing to the public that the generative artificial intelligence is able to practice a certain regulated profession or occupation.

      A violation of the bill’s provisions would be an unlawful practice under the consumer fraud act and would be punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, a violation of the consumer fraud act can result in cease and desist orders issued by the Office of the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured.

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS anticipates that the Department of Law and Public Safety’s expenditures would increase annually for investigations, enforcement actions, and potential litigation undertaken by the Office of the Attorney General to enforce the prohibitions in this bill. Additionally, the State may collect an indeterminate amount of revenues from penalty assessments and payments for violations of the bill’s provisions.

 

      State Expenditure Increase: The bill prohibits individuals from advertising that generative artificial intelligence can practice certain regulated professions or occupations. The OLS anticipates that the Department of Law and Public Safety expenditures would increase annually for investigations, enforcement actions, and potential litigation undertaken by the Office of the Attorney General to enforce the prohibitions in this bill. The magnitude of these costs, as well as any associated court costs, is indeterminate and would depend on the extent to which there are violations of the bill’s provisions.

 

      State Revenue Increase: The bill establishes that violations of the bill’s provisions are an unlawful practice and violation of the consumer fraud act, punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the office of the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

      The OLS, however, has no information on which to base an estimate of the number and magnitude of future penalty assessments and payments and thus cannot project the amount the State will collect.

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Lead 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.).