LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

SENATE, No. 1788

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: OCTOBER 30, 2026

 

 

SUMMARY

 

Synopsis:

Concerns processing of applications for permits, licenses, or certifications in NJ; requires State entities refund application fee in certain circumstances; requires Governor establish target application processing times and permitting and licensing performance dashboard.

 

Type of Impact:

Annual State expenditure increase; net State revenue decrease.

Agencies Affected:

Certain State departments, agencies, boards, commissions, corporations, and authorities.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual

 

 

State Expenditure Increase

 

Indeterminate

 

 

Net State Revenue Decrease

 

Indeterminate

 

 

 

·       The Office of Legislative Services (OLS) estimates that requiring a State entity that issues permits, licenses, or certifications to individuals and businesses to compile a catalog of the types of permits, licenses, or certifications it issues; develop a completeness checklist for each type of permit, license, or certification; and review the catalog once every four years will result in indeterminate annual State expenditure increases for State agencies if overtime or additional personnel are needed to comply with the bill’s provisions. 

·       In addition, the OLS estimates that requiring the Governor’s Office to establish target application processing times and uniform procedures concerning application processing, create a publicly accessible online permitting and licensing performance dashboard, and provide a biennial report to the Legislature concerning application processing will result in indeterminate State expenditure increases for dashboard creation and maintenance and potential staffing needs. 

·       The OLS estimates that requiring a State entity to refund an application fee if the entity fails to process a completed application within 15 days following the target application processing time will result in an indeterminate reduction in annual net State revenue collections.

 

BILL DESCRIPTION

 

      This bill requires State entities to refund application fees for permits, licenses, or certifications in certain circumstances and requires the Governor to establish target application processing times for permits, licenses, or certifications and a permitting and licensing performance dashboard.

      Under the bill, a State entity that issue permits, licenses, or certifications to individuals and businesses will be required to compile a catalog of the types of permits, licenses, or certifications it issues and submit that catalog to the Governor.  The bill also requires a State entity to review the catalog at least once every four years and send the review to the Governor and to establish an application completeness checklist for each type of permit, license, or certification.

      The bill requires the Governor’s Office to, using uniform standards, establish target application processing times for the various types of permits, licenses, and certifications no later than one year after the effective date of the bill.  Under the bill, the Governor’s Office will amend, establish, or reestablish the target application processing times and uniform procedures at least once every four years upon receipt of the review required pursuant to this bill.  The bill requires the Governor, or the Governor’s designee, to designate a lead State entity to oversee the review of an application for a permit, license, or certification, or any combination thereof, if that application requires the review of multiple State entities. 

      In addition, the bill requires a State entity to refund an application fee, unless otherwise prohibited by State or federal law, if the entity fails to process a completed application within 15 days following the target application processing time, notwithstanding certain exceptions provided under the bill’s provisions.

      The bill also requires the Governor’s Office, or an appropriate State entity designated by the Governor, to establish an online permitting and licensing performance dashboard that is accessible to the public no later than two years after the effective date of the bill and establishes information to be displayed by the dashboard.  The dashboard will display the information in a manner consistent with all applicable federal and State statutory and regulatory requirements and will be updated on at least a quarterly basis.

      The bill further requires the Governor, or the Governor’s designee, to submit to the Legislature, beginning two years after the effective date of the bill, a biennial report analyzing the performance of State entities in processing applications for permits, licenses, and certifications.  The report will include certain statistics for each State entity that issues permits, licenses, or certifications to individuals or businesses and will be made publicly available.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.


 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that requiring a State entity that issues permits, licenses, or certifications to individuals and businesses to compile a catalog of the types of permits, licenses, or certifications it issues; develop a completeness checklist for each type of permit, license, or certification; and review the catalog once every four years will result in indeterminate annual State expenditure increases for State agencies if overtime or additional personnel are needed to comply with the bill’s provisions. 

      In addition, the OLS estimates that requiring the Governor’s Office to establish target application processing times and uniform procedures concerning application processing, create a publicly accessible online permitting and licensing performance dashboard, and provide a biennial report to the Legislature concerning application processing will result in indeterminate State expenditure increases for dashboard creation and maintenance and potential staffing needs. 

      The OLS estimates that requiring a State entity to refund an application fee if the entity fails to process a completed application within 15 days following the target application processing time will result in an indeterminate reduction in annual net State revenue collections.

 

 

Section:

State Government

Analyst:

Anna Harris

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.).