LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 2580
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: NOVEMBER 4, 2024
SUMMARY
Synopsis: Amends certain fire safety statutes to update licensure and equipment
requirements and liability, fee, and penalty provisions; expands
membership of Fire Protection Equipment Advisory Committee.
Type of Impact: One-time State cost increase; annual State and local net revenue
impacts.
Agencies Affected: Department of Community Affairs; local governments.
Office of Legislative Services Estimate
Fiscal Impact
One-Time State Cost Increase Indeterminate
Annual State Revenue Net Impact Indeterminate
Annual Local Revenue Net Impact Indeterminate
The Office of Legislative Services (OLS) concludes that the bill will increase administrative
costs to the Department of Community Affairs by an indeterminate amount during the first
year in which the bill takes effect associated with updating regulations to effectuate the
purposes of the bill.
The bill will also result in an indeterminate net impact on annual State and local revenue
collections. On one hand, the local enforcing agencies will no longer collect some penalty
revenues due to the removal of a requirement for certain dwellings to be equipped with a
portable fire extinguisher. On the other hand, local enforcing agencies, including the Division
of Fire Safety in the department, may experience increased revenue due to the ability to issue
requests for unpaid fees and penalties to a new owner or operator of a property, compared to
the amount of fees and penalties that would have otherwise remained unpaid by a previous
owner or operator.
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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BILL DESCRIPTION
The bill provides that smoke-sensitive alarm devices are to meet requirements established by
the Department of Community Affairs and eliminates the requirement for portable fire
extinguishers in certain structures.
The bill also provides that if an owner or operator has been given notice to abate a violation of
the Uniform Fire Safety Act, any continuing liability for unabated violations of record and unpaid
fees or penalties following a change of ownership or tenancy are to be determined in accordance
with the provisions of the bill. A new owner who purchases a property without having obtained a
certificate stating that there are no unabated violations of record and no unpaid fees or penalties is
to be deemed to have notice of all existing violations of record and is to be liable for the payment
of all unpaid fees or penalties. The department is to issue requests for payment of unpaid fees or
penalties within five years of the purchase date.
Except as provided in the bill, a new operator taking control of an existing tenant business is
to assume liability for the payment of all existing unpaid fees and penalties assessed for that
business. The department is to issue requests for payment of unpaid fees or penalties within a
period of five years from the date of the change in operator; provided, however, a new operator
who was a principal in, or agent of, the business previously occupying the property or who is
related to a principal in, or agent of, that business by blood, adoption, or marriage is to assume
existing liability for the payment of all unpaid fees and penalties indefinitely.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will increase administrative costs to the Department of
Community Affairs by an indeterminate amount during the first year in which the bill takes effect
associated with updating regulations as necessary to effectuate the purposes of the bill, including
regulations for smoke sensitive alarms in one- and two-dwelling housing units.
The bill is also expected to result in an indeterminate net impact on annual State and local
revenue collections. The bill provides that local enforcing agencies, including the Division of Fire
Safety in the department that enforces the State Uniform Fire Code in 89 municipalities, will no
longer collect some penalty revenues due to the removal of a requirement for certain dwellings to
be equipped with a portable fire extinguisher. Under current law, local enforcing agencies collect
a $100 fine for each violation related to a portable fire extinguisher in a one- or two-unit residential
dwelling. It is unclear how many violations of this nature have historically been identified on a
yearly basis and how many fines are currently collected per year and so an estimate of the potential
size of the revenue loss cannot be made.
However, local enforcing agencies, including the division, may also experience increased
revenue due to the ability to issue requests for unpaid fees and penalties to a new owner or operator
of a property, compared to the amount of fees and penalties that would have otherwise remained
unpaid by a previous owner or operator. The OLS is unable estimate the amount of unpaid fees
and penalties in any given year that would be collected by a local enforcing agency from a new
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owner or operator of a property and is, therefore, unable to predict the exact fiscal impact of this
provision.
Section: Local Government
Analyst: Abigail Stoyer
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.).
Statutes affected: Introduced: 52:27D-198.1, 52:27D-198.2, 52:27D-198.3, 52:27D-203, 52:27D-210, 52:27D-211