LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3036
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: AUGUST 18, 2023
SUMMARY
Synopsis: Prohibits sale of crayon and chalk products containing lead.
Type of Impact: Annual State expenditure and revenue increases.
Agencies Affected: Department of Law and Public Safety; the Judiciary; Department of
Corrections; State Parole Board.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Cost Increase Indeterminate
State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) projects that this bill will result in annual State
expenditure and revenue increases. The bill prohibits the sale, distribution, and manufacture of
crayon and chalk products containing lead, which would be punishable as an unlawful practice
or a crime of the second, third, or fourth degree.
 The following State agencies would incur caseload and expenditure increases: i) the
Department of Law and Public Safety would have to prosecute additional cases; ii) the
Judiciary would have to adjudicate additional cases; and iii) the Department of Corrections
may have to house additional inmates and the State Parole Board would have to supervise their
return to society.
 The OLS does not have sufficient information on the increase, if any, in the number of
convictions and terms of imprisonment resulting from the bill’s provisions and therefore is
unable to estimate the costs to the State.
 In the event the bill’s prohibitions would lead to any incarceration, the OLS notes that the
Department of Corrections estimates the average annual cost of housing an inmate in a State
correctional facility in FY 2023 was $75,574.
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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 The OLS also notes the State may receive indeterminate revenue from fines and fees imposed
on individuals guilty of crimes under the bill. However, the State’s ability to collect criminal
fines and penalties has historically been limited.
BILL DESCRIPTION
This bill prohibits the sale, distribution, and manufacture of chalk and crayon products made
with or containing lead.
Under the bill, knowingly selling, offering for sale, distributing, or manufacturing a chalk
product or crayon product made with or containing lead would constitute an unlawful practice
under the State’s consumer fraud act. A retailer’s failure to remove a recalled product from
retail display or return the product to the manufacturer or distributor as required under the bill
would also constitute an unlawful practice under the State’s consumer fraud act. A
manufacturer or distributor’s failure to issue a recall or to destroy and dispose of a recalled
product as required under the bill would constitute a crime of the fourth degree in the case of
a first offense, a crime of the third degree for a second offense, and a crime of the second
degree for a third or subsequent offense.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS projects the bill’s prohibition of the sale, distribution, and manufacture of crayon and
chalk products containing lead will result in annual State expenditure and revenue increases.
Violations would be punishable as an unlawful practice or a crime of the second, third, or fourth
degree. The following State agencies would incur caseload and expenditure increases: i) the
Department of Law and Public Safety would have to prosecute additional cases; ii) the Judiciary
would have to adjudicate additional cases; and iii) the Department of Corrections may have to
house additional inmates and the State Parole Board would have to supervise their return to society.
An unlawful practice under the consumer fraud act is punishable by a monetary penalty of
up to $10,000 for a first offense and up to $20,000 for any subsequent offense. In addition,
the Attorney General may issue cease and desist orders, and a violation may be subject to an
assessment of punitive damages, treble damages, or costs to the injured party. The Department
of Law and Public Safety may experience an increase in workload due to the new unlaw ful
practice under the bill. However, under the current statute, P.L.2007, c.124, it is an unlawful
practice to sell or resell or otherwise place in the stream of commerce a children’s product that
is deemed unsafe in that it is subject to a federal recall or safety warning. Since crayon and
chalk products containing lead may be covered by the current statute in certain instances, it is
unclear whether the unlawful practice under the bill would increase the caseload of the
Department of Law and Public Safety.
A crime of the fourth degree is punishable by imprisonment for up to 18 months, a fine of
up to $10,000, or both. A crime of the third degree is punishable by imprisonment for three to
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five years, a fine of up to $15,000, or both. Generally, a presumption of non-incarceration
applies for first-time offenders of the crime of the third and fourth degree. A crime of the
second degree is punishable by imprisonment for five to 10 years, a fine of up to $150,000, or
both.
The OLS does not have sufficient information on the increase, if any, in the number of
convictions and terms of imprisonment resulting from the bill’s provisions and therefore is unable
to estimate the costs to the State. Any increase in incarceration will result in increased costs to the
Department of Corrections for housing inmates. In an informal estimate provided by the
department, the average annual cost of housing an inmate in a State correctional facility was
$75,574 with a daily cost of $207. The cost was based on FY 2023 actual expenditures and is an
average of all facilities, not including the Special Treatment Unit at the Adult Diagnostic and
Treatment Center that houses civilly committed residents. Any increase in incarceration under the
bill also would result in increased costs to the State Parole Board to supervise the return to society
of additional convicted persons.
The OLS notes the State may receive indeterminate revenue from fines and fees imposed on
individuals guilty of crimes under the bill. However, the State’s ability to collect criminal fines
and penalties has historically been limited.
Section: Judiciary
Analyst: Anuja Pande Joshi
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.).