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A2406 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2406
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 11, 2026
SUMMARY
Synopsis:
Requires DEP to regulate scrap metal facilities as
recycling facilities.
Type of Impact:
Annual State expenditure and revenue increases.
Agencies Affected:
Department of Environmental Protection, Judiciary,
Department of Law and Public Safety, Office of the Public Defender, county
prosecutors.
Fiscal Impact
�
State Expenditure Increase
Indeterminate
State Revenue Increase
Approximately
$350,000
�
The Office of Legislative Services (OLS) finds that this bill
would result in annual State expenditure and revenue increases as the
department regulates scrap metal facilities throughout the State.� The OLS
estimates that the department may require one to two additional full-time
equivalent employees, with a full salary, including benefits, within a range of
$100,000 to $140,000 annually.
�
The OLS estimates that the registration requirements imposed by
the bill will provide approximately $350,000 to the department annually, which
may increase over time as additional companies register with the department.�
The department would also collect revenue from civil administrative penalties
assessed for those not in compliance with the bill�s provisions, the volume of
which the OLS lacks the information to predict.
�
A person who knowingly makes any false or misleading statement to
the department on any registration or other application would be guilty of a
crime of the fourth degree in addition to the civil administrative penalties
mentioned above.� This could result in increased costs to the Judiciary,
Department of Law and Public Safety, the Office of the Public Defender, and
county prosecutors.� A crime of the fourth degree is ordinarily punishable by a
term of imprisonment of up to 18 months, a fine of up to $10,000, or both.�
The OLS notes, however, that a presumption of
non-incarceration generally applies to first time offenders of a crime of the
fourth degree.
BILL DESCRIPTION
����� This bill would require scrap metal facilities to
register with the Department of Environmental Protection and comply with
certain regulatory requirements established under the bill.� The bill would
amend existing law to remove the exemption to regulation of scrap processing
facilities as recycling centers.�
����� The bill would require, no later than one year after
the bill�s effective date, the owner or operator of each scrap metal facility
in the State to register with the department and pay an annual registration fee
of $700, unless an extension is granted by the department.� In addition, the
bill would establish minimum operational and safety requirements for scrap
metal facilities that operate shredders, in addition to other requirements
pertaining to recycling centers.�
����� No later than 18 months after the bill�s effective
date, the department would be required to establish a program to regulate each
scrap metal facility in the State as a recycling center.� The bill directs the
department to hire new staff to implement the bill�s provisions.� The
department would be required to include, in its annual budget request to the
Governor, funding to implement the bill�s provisions.
����� A violation of the bill�s provisions would be
considered a violation of the Solid Waste Management Act.� Any person who
knowingly makes any false or misleading statement to the department on any
registration or other application, record, or other document required to be
filed or maintained by this bill, would be guilty of a crime of the fourth
degree and be subject to a civil administrative penalty of up to $10,000.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that this bill may result in annual
State expenditure and revenue increases as the Department of Environmental
Protection regulates scrap metal facilities throughout the State.
����� The department would be responsible for monitoring
scrap metal facilities under the existing regulatory structure for recycling
facilities.� The department already identifies the presence of these scrap
metal facilities.� Under current law, municipalities are authorized to
establish operational and environmental controls of these facilities.
����� The bill requires the department to establish a
program to consistently regulate each scrap metal facility in the State as a
recycling center.� The department would be directed to hire new staff, subject
to the availability of sufficient funds appropriated by the Legislature, to
implement the bill�s provisions.� The OLS estimates that the department may
require one to two additional full-time equivalent employees, with a full
salary, including benefits, within a range of $100,000 to $140,000 annually per
additional employee.
����� The department currently identifies 440 scrap metal
facilities in New Jersey.� Each of these facilities would be responsible for an
annual registration payment of $700 under the bill, resulting in an expected
revenue increase to the department of approximately $350,000 in the first year
of implementation.� This amount would change with the number of scrap metal
facilities operating in the State.� The department would also accrue additional
revenue with civil administrative penalties assessed through this bill for
those not in compliance with the bill�s provisions, the volume of which the OLS
lacks the information to predict.
����� Additionally, any person who knowingly makes any false
or misleading statement to the department on any registration or other
application would be guilty of a crime of the fourth degree, in addition to the
civil administrative penalties mentioned above.� This could result in increased
costs to the Judiciary, Department of Law and Public Safety, the Office of the
Public Defender, and county prosecutors.� A crime of the fourth degree is ordinarily
punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000,
or both. �The OLS notes, however, that a presumption of non-incarceration
generally applies to first time offenders of a crime of the fourth degree.
Section:
Environment, Energy, Agriculture, and Natural
Resources
Analyst:
Anna Heckler
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.).