LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3325
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 22, 2023
SUMMARY
Synopsis: Enhances penalties for distribution and manufacture of certain
amounts of fentanyl.
Type of Impact: Annual State expenditure and revenue increases.
Agencies Affected: Department of Corrections; State Parole Board; The Judiciary;
Department of Law and Public Safety; The Office of the Public
Defender.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Cost Increase Indeterminate
State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) finds that this bill will result in annual State
expenditure and revenue increases. The following State agencies would incur caseload and
expenditure increases: i) the Department of Corrections would have to house more inmates for
longer terms of imprisonment and the State Parole Board would have to supervise their return
to society; ii) the Department of Law and Public Safety would have to prosecute additional
cases; iii) the Judiciary would have to adjudicate additional cases; and iv) the Office of the
Public Defender would have to represent additional low-income criminal defendants.
 To the extent the bill results in additional incarcerations or longer incarcerations, the
Department of Corrections would incur higher costs. The OLS does not have sufficient
information on the potential increases in number of convictions and terms of imprisonment
resulting from the bill’s provisions and therefore is unable to estimate the exact costs to the
State.
 The OLS notes that the State may receive indeterminate revenue from fines imposed on
individuals convicted of the crimes under this bill. However, the State’s ability to collect
criminal fines and penalties has historically been limited.
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
 FE to S3325 [1R]
2
BILL DESCRIPTION
This bill would: (1) create new amount thresholds to establish new first-degree crimes for
manufacturing, distributing, dispensing, or possessing with the intent to manufacture, distribute or
disperse fentanyl or its analog; and (2) reduce the current amount thresholds for second- and third-
degree manufacturing, distributing, or dispensing fentanyl or its analog, or possessing such with
intent to do so, thus upgrading the penalties for acts committed involving smaller amounts.
Currently, under State law, it is a crime of the second degree to manufacture, distribute, or
dispense, or possess with intent to manufacture, distribute, or dispense, fentanyl, a Schedule II
narcotic drug, or its analog, in a quantity of one ounce or more including any adulterants or
dilutants. At present, this is the highest degree of crime for fentanyl set forth in State law, and is
punishable by a term of imprisonment of five to 10 years, a fine of up to $150,000, or both. It is a
crime of the third degree if the quantity of fentanyl or its analog involved is less than one ounce
including any adulterants or dilutants. This is the lowest grading of the crime, punishable by a
term of imprisonment of three to five years, a fine of up to $15,000, or both.
This bill would reduce the amount threshold for a crime of the second degree to five grams or
more as well as establish a new maximum amount of less than 10 grams for which the
aforementioned penalties may be imposed.
In addition to establishing a “ceiling” on the quantity of fentanyl for a second-degree crime
under State law, the bill establishes that an act committed with an amount of fentanyl above 10
grams would be a new first-degree crime. A crime of the first degree is ordinarily punishable by
a term of imprisonment of 10 to 20 years, a fine of up to $200,000, or both. In addition, under this
bill, an enhanced fine of up to $500,000 may be imposed.
The bill would reduce the amount threshold for a third degree violation to less than five grams.
Under this bill, an enhanced fine of up to $75,000 may be imposed.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill will result in annual State expenditure and revenue increases. The
following State agencies would incur caseload and expenditure increases: i) the Department of
Corrections would have to house more inmates for longer terms of imprisonment and the State
Parole Board would have to supervise their return to society; ii) the Department of Law and Public
Safety would have to prosecute additional cases; iii) the Judiciary would have to adjudicate
additional cases; and iv) the Office of the Public Defender would have to represent additional low-
income criminal defendants.
According to data made available on the Department of Corrections website, as of January
2023, a total of 916 people were incarcerated in State prisons for drug violations, which include
distribution, manufacture, possession, and use of drugs. However, the department notes that
virtually all drug offenses are for sale and distribution rather than for mere possession. The OLS
does not have data available by the type or degree of the drug offense to indicate how many of
these inmates are incarcerated in State prisons for fentanyl-related violations. The OLS notes that
 FE to S3325 [1R]
3
to the extent the bill results in additional incarcerations or longer incarcerations, the department
would incur higher costs. Based on information provided by the department, the FY 2021 average
annual cost for housing an inmate was $55,389, whereas the average daily cost was $151.75.
The OLS is unable to quantify the exact fiscal impact of this bill, but finds that it will result in
increased expenditures and revenues to the State due to the following provisions:
1. The bill creates a new first degree crime of manufacturing, distributing, dispensing or
possessing with the intent to distribute 10 grams or more of fentanyl. A crime of the first degree is
punishable by a term of imprisonment of 10 to 20 years, ordinarily a fine of up to $200,000, or
both. This bill establishes an enhanced fine of up to $500,000. Currently, the highest degree of
crime for fentanyl violations is a crime of the second degree. A crime of the second degree is
punishable by a term of imprisonment of five to 10 years, a fine of up to $150,000, or both. The
State expenditures are likely to increase for housing offenders for a longer term under the bill. The
enhanced fines will potentially increase State revenues.
2. The bill reduces the current amount threshold for second degree crimes of manufacturing,
distributing, dispensing or possessing with the intent to distribute. Under the bill, a violation
involving five to less than 10 grams of fentanyl is a crime of the second degree. As mentioned
above, a crime of the second degree is punishable by a term of imprisonment of five to 10 years, a
fine of up to $150,000, or both. This provision is likely to result in increased expenditures for the
Department of Corrections due to longer terms of incarceration. The number of individuals
incarcerated may also increase as a second degree crime does not carry a presumption of non-
incarceration for first time offenders.
3. The bill reduces the current amount threshold, from less than 28 grams (one ounce) to less
than five grams, for a third degree manufacturing, distributing, or dispensing fentanyl. A crime of
the third degree is punishable by a term of imprisonment of three to five years, ordinarily a fine of
up to $15,000, or both. The bill establishes an enhanced fine of up to $75,000. Generally, crimes
of the third degree carry a presumption of non-incarceration for first time offenders. This bill will
result in increased State costs for housing more inmates in prison facilities in cases where repeat
offenders are convicted. These costs could potentially be offset to some extent by revenues from
the enhanced fines.
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.).