LEGISLATIVE FISCAL ESTIMATE

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 312

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: MAY 29, 2026

 

 

SUMMARY

 

Synopsis:

Establishes measures to improve safety of scrap metal businesses.

Type of Impact:

Annual State revenue and expenditure increases; annual local

expenditure increase.

Agencies Affected:

Department of Community Affairs; local governments.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

State Revenue Increase

Indeterminate

 

State Expenditure Increase

Indeterminate

 

Local Expenditure Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) finds that the bill would result in an indeterminate increase in annual State revenue from the Department of Community Affairs’ portion of the fee charged for the annual certification of certain scrap metal businesses.  The amount of the fee is to be determined by the department and cannot be predicted, as is the number of scrap metal businesses that would be subject to the fee, so the size of the annual revenue increase cannot be estimated.

 

·         The OLS concludes that the bill would also result in an increase in State expenditures due to the cost to the department’s Division of Fire Safety of administering the annual certification. The number of certifications that would be required each year and the workload increase resulting from each certification are unknown; therefore, the amount of the annual State expenditure increase is indeterminate.

 

·         The OLS further finds that the bill would result in an increase in the administrative workload for fire departments, fire marshals, and county enforcing agencies as a result of the new responsibilities assigned to them.  The administrative cost to each of developing a fire safety plan and the administrative cost to a county enforcing agency of reviewing and approving a scrap metal business’ conformity to the provisions of the bill are indeterminate.

BILL DESCRIPTION

 

      This bill would supplement the Uniform Fire Safety Act to establish measures to improve fire safety for scrap metal businesses.  Specifically, the bill would require each scrap metal business to: (1) install and maintain certain heat detection equipment; (2) develop a fire safety plan in coordination with the local fire department official or fire marshal; (3) make certain records available to a fire code official conducting an investigation as a result of a fire; and (4) confirm that the pile height of certain materials does not exceed 55 feet.

      Additionally, the bill would require a scrap metal business to install a fire suppression system under certain circumstances.  The bill would require that the fire suppression system, when necessitated pursuant to the bill, be certified annually by a fire safety engineer, the National Fire Protection Agency, and the Division of Fire Safety in the Department of Community Affairs that the system meets the required standards.  The annual certification would be subject to a nominal fee as determined by the department.  The bill would require a county enforcing agency to review and approve a scrap metal business’ compliance with the applicable provisions of the bill.  The bill authorizes the department to promulgate rules and regulations to implement the bill and has a staggered deadline for compliance with the bill dependent on the tonnage of a scrap metal business’ stockpile.

 

 

FISCAL ANALYSIS

 

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill would result in an indeterminate increase in annual State revenue from the Department of Community Affairs’ portion of the fee charged for the annual certification required for certain scrap metal businesses.  The amount of the fee is to be determined by the department and cannot be predicted, as is the number of scrap metal businesses that would be subject to the fee, so the size of the annual revenue increase cannot be estimated.

      The OLS concludes that the bill would also result in an increase in State expenditures due to the cost to the Division of Fire Safety of administering the annual certification.  The number of certifications that would be required each year and the cost of each certification are unknown; therefore, the amount of the annual State expenditure increase is indeterminate. 

      The OLS further finds that the bill would result in an increase in the administrative workload for fire departments, fire marshals, and county enforcing agencies as a result of responsibilities assigned to them pursuant to the bill.  The administrative cost to a fire department or fire marshal of developing a fire safety plan and the administrative cost to a county enforcing agency of reviewing and approving a scrap metal business’ conformity to the provisions of the bill are indeterminate.

Section:

Local Government

Analyst:

Abigail Stoyer

Senior 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.).