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A5328 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5328
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 2, 2026
SUMMARY
Synopsis:
Regulates data brokers, data collectors, and collection
and dissemination of certain sensitive information.
Type of Impact:
Annual State expenditure and revenue increases.
Agencies Affected:
Department of Law and Public Safety.
Office
of Legislative Services Estimate
Annual Fiscal Impact
State Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
�
The
Office of Legislative Services (OLS) finds that the bill will increase State
expenditures for the costs of the Division of Consumer Affairs in the
Department of Law and Public Safety related to the new registration, reporting,
and enforcement requirements established in the bill for data brokers and data
collectors.
�
The
bill requires each data broker and data collector to register annually and pay
a registration fee to the division to support its costs to implement the bill.�
The OLS lacks the empirical basis to quantify the State revenue increases under
the bill, but notes that these revenues could be significant and total in the millions
or tens of millions of dollars annually.
�
The
State also may collect an indeterminate amount of annual revenue from civil
penalties from data brokers and data collectors that do not comply with the
bill�s provisions.
BILL DESCRIPTION
����� This bill prohibits a controller of a commercial
website or online services from selling sensitive data, which prohibition will
apply to all individuals or legal entities regardless of the number of
consumers whose data the individual or entity controls or processes.
����� Specifically, the bill requires the division to
establish and maintain a public registry of data brokers and data collectors
doing business in New Jersey. The registry is to include: the data broker�s or
data collector�s name and physical address; a general email address that may be
used to request information about the data broker�s or data collector�s privacy
policies and data collection practices; a general website address for the data
broker or data collector; a �website address specific to the data broker�s or
data collector�s privacy policies; and any relevant opt-out information. The
division is required to review and update this information at least annually.
���� The bill requires each
data broker
and data collector
engaged
in processing personal data of New Jersey consumers to annually register with
the division and pay a registration fee
according to the schedule
provided in the bill. Collected registration fees will be used as necessary to
implement the provisions of the bill.� The fee schedule is:
Number of
Consumers in the State
Fee Amount
100,000 Consumers or Fewer
$5,000
More than 100,000 and Fewer than 500,000 Consumers
$10,000
More than 500,000 and Fewer than One Million Consumers
$100,000
More than One Million and Fewer than 1.5 Million Consumers
$500,000
More than 1.5 Million and Fewer than 2.5 Million Consumers
$750,000
More than 2.5 Million and Fewer than 4.5 Million Consumers
$1,000,000
More than 4.5 Million Consumers
$1,500,000
����� The bill establishes that data brokers and data
collectors that fail to submit and update information as required under the
bill, or that fail to register and pay the registration fee required under the
bill, will be liable for a civil penalty of $2,500 for each day the data broker
or data collector is not in compliance in addition to repaying registration
fees for each year that the data broker or data collector failed to register
with the division.
����� A data broker or data collector, including a
controller, that sells, offers for sale, or licenses sensitive data in
violation of P.L.2023, c.266 or the bill�s provisions will be liable to a civil
penalty of $50,000 for each record sold, offered for sale or licensed.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the bill will increase State
expenditures for the costs of the Division of Consumer Affairs in the
Department of Law and Public Safety related to the new registration, reporting,
and enforcement requirements established in the bill for data brokers and data
collectors.
����� The bill requires each data broker and data collector
to register annually and pay a registration fee to the division to support its
costs to implement the bill.� The OLS lacks the empirical basis to quantify the
State revenue increases under the bill, but notes that these revenues could be
significant and total in the millions or tens of millions of dollars annually.
����� The State may collect an indeterminate amount of
annual revenue from civil penalties from data brokers and data collectors that
do not comply with the bill�s provisions.� The OLS cannot anticipate how
widespread any noncompliance would be to estimate the annual revenue increase.
�
Section:
Law and Public Safety
Analyst:
Kristin Brunner Santos
Lead 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.).