FISCAL NOTE
[First Reprint]
ASSEMBLY, No. 5328
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 20, 2026
SUMMARY
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Synopsis: |
Regulates data brokers, data collectors, and collection and dissemination of certain sensitive information. |
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Type of Impact: |
Annual State expenditure and revenue increases. |
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Agencies Affected: |
Department of Law and Public Safety.
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Executive Estimate |
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Fiscal Impact |
FY 2027 |
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State Revenue Increase |
$40 million |
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Annual Fiscal Impact |
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State Revenue Increase |
Indeterminate |
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State Expenditure Increase |
Indeterminate |
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· The Executive estimates that the bill regulating data brokers and data collectors will generate $40 million in new State revenues in FY 2027. The Office of Legislative Services (OLS) lacks the informational basis to confirm or refute this estimate, but notes that the bill will generate an annual revenue gain in subsequent fiscal years as well.
· The OLS finds that the bill will increase annual State costs for the Division of Consumer Affairs in the Department of Law and Public Safety related to the new registration, reporting, and enforcement requirements established in the bill for data brokers and data collectors.
BILL DESCRIPTION
This bill prohibits a data broker or data collector from selling or licensing sensitive personal data, as enumerated in the legislation.
The bill also requires the Division of Consumer Affairs in the Department of Law and Public Safety to establish and maintain a public registry of data brokers and data collectors selling or licensing personal data of New Jersey consumers. The division is required to review and update information in the database at least annually.
In addition, each data broker and data collector engaged in selling or licensing personal data of New Jersey consumers must annually register with the division and pay a registration fee as shown below. Collected registration fees will be used as necessary to implement the provisions of the bill.
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Number of Consumers in the State |
Fee Amount |
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100,000 consumers or fewer |
$5,000 |
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More than 100,000 and up to 500,000 consumers |
$10,000 |
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More than 500,000 and up to 1.0 million consumers |
$100,000 |
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More than 1.0 million and up to 1.5 million consumers |
$500,000 |
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More than 1.5 million and up to 2.5 million consumers |
$750,000 |
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More than 2.5 million and up to 4.5 million consumers |
$1,000,000 |
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More than 4.5 million consumers |
$1,500,000 |
Data brokers and data collectors that fail to submit and update the required information, or that fail to register and pay the registration fee, will be liable for a civil penalty of $2,500 for each day of noncompliance and payment of evaded registration fees.
A data broker or data collector that sells, offers for sale, or licenses sensitive data in violation of P.L.2023, c.266 or the bill’s provisions will also be liable for a civil penalty of $50,000 for each record sold, offered for sale, or licensed.
FISCAL ANALYSIS
EXECUTIVE BRANCH
According to the Governor’s revenue certification, the Executive projects the bill to raise $40 million in FY 2027.
OFFICE OF LEGISLATIVE SERVICES
The OLS lacks the informational basis to confirm or refute the Executive estimate that the bill will generate $40 million in new State revenues in FY 2027. The OLS notes, however, that the revenue gain will be annual.
The OLS also finds that the State may collect an indeterminate amount of annual revenue from civil penalties from data brokers and data collectors that do not comply with the bill’s provisions. The OLS cannot anticipate how widespread any noncompliance would be to estimate the annual revenue increase.
The bill will increase the annual costs of the Division of Consumer Affairs in the Department of Law and Public Safety related to the new registration, reporting, and enforcement requirements established in the bill for data brokers and data collectors.
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Section: |
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Analyst: |
Lead Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).