LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 142
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: NOVEMBER 10, 2022
SUMMARY
Synopsis: Modernizes business filing statutes to include entity conversion and
domestication.
Type of Impact: Annual State revenue and expenditure increases.
Agencies Affected: Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) estimates that this bill will result in an indeterminate
annual State revenue increase due to the collection of the $75 filing fee for a certificate of
conversion. The OLS does not have sufficient information to accurately forecast the number
of corporations that would be domesticated.
 The OLS notes that this bill may result in a potential, likely insignificant, increase in annual
State expenditures tied to the requirement for the Department of the Treasury to issue foreign
corporations a certificate of authority to transact business in New Jersey.
BILL DESCRIPTION
This bill modifies applicable business filing statutes contained in the New Jersey Business
Corporation Act by adding domestication and conversion provisions across all business entity
types. Conversion is the process of converting from one type of business entity to another
type. Domestication is the process of an out-of-state business entity converting to a domestic
corporation. New Jersey law currently does not permit these actions.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will result in an indeterminate annual State revenue increase
due to the collection of the $75 filing fee for a certificate of conversion. The OLS does not have
enough information to accurately forecast the number of corporations that would be domesticated.
The OLS notes that the bill may result in a potential, likely insignificant, increase in annual
State expenditures tied to the requirement for the Department of the Treasury to issue foreign
corporations a certificate of authority to transact business in New Jersey.
Section: Revenue, Finance and Appropriations
Analyst: Juan C. Rodriguez
Revenue and Economic Policy 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.).