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S312 SCS [2R] FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, No. 312
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 11, 2026
SUMMARY
Synopsis:
Establishes measures to improve safety of scrap metal
businesses.
Type of Impact:
Annual State and local revenue and expenditure increases.
Agencies Affected:
Department of Community Affairs; local governments.
Office of
Legislative Services Estimate
Fiscal Impact
�
Local Revenue Increase
Indeterminate
Local Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
State Expenditure Increase
Indeterminate
�
The Office of Legislative Services (OLS) finds that the bill
would result in an indeterminate increase in annual local revenue from the fee
charged for the annual certification by the local enforcing agency, or by the
Division of Fire Safety in the Department of Community Affairs in certain
municipalities, required for certain scrap metal businesses.� The amount of the
fee is to be determined by the department and cannot be predicted, as is the
number of scrap metal businesses that would be subject to the fee, so the size
of the annual revenue increase cannot be estimated.
�
The OLS concludes that the bill would result in an increase in
the administrative workload for fire departments, fire marshals, and local
enforcing agencies as a result of the new responsibilities assigned to them.�
In a municipality where the Division of Fire Safety is the enforcing agency,
the increase in expenditures related to reviewing scrap metal business�
conformity to the bill�s requirements would be incurred by the State.� The
administrative cost of developing a fire safety plan and the administrative
cost to a local enforcing agency or the Division of Fire Safety for reviewing
and approving a scrap metal business� conformity to the provisions of the bill
are indeterminate.
BILL DESCRIPTION
����� This bill would supplement the Uniform Fire Safety Act
to establish measures to improve fire safety for scrap metal businesses.�
Specifically, the bill would require each scrap metal business to: (1) install
and maintain certain heat detection equipment, for certain properties; (2)
develop a fire safety plan in coordination with a fire official or fire
marshal; (3) make certain records available to a fire code official conducting
an investigation as a result of a fire; and (4) confirm that the pile height of
certain materials does not exceed 20 feet.
����� Additionally, the bill would require a scrap metal
business to install a fire suppression system under certain circumstances.� The
bill would require that the fire suppression system, when necessitated pursuant
to the bill, be: (1) designed by a fire protection engineer; (2) remotely
operated; and (3) certified annually by the local enforcing agency that the
system meets certain standards.� The annual certification would be subject to a
nominal fee as determined by the Department of Community Affairs.� The bill
would require a local enforcing agency to review, and confirm in writing, a
scrap metal business� compliance with the applicable provisions of the bill.�
The bill authorizes the department to promulgate rules and regulations to
implement the bill and has a staggered deadline for compliance with the bill
dependent on the tonnage of a scrap metal business� stockpile.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the bill would result in an
indeterminate increase in annual local revenue from the fee charged for the
annual certification by the local enforcing agency, or by the Division of Fire
Safety in certain municipalities, required for certain scrap metal businesses.�
The amount of the fee is to be determined by the department and cannot be
predicted, as is the number of scrap metal businesses that would be subject to
the fee, so the size of the annual revenue increase cannot be estimated.
����� The OLS concludes that the bill would also result in
an increase in local expenditures due to the cost to the local enforcing agency
of administering the annual certification.� To the extent that the Division of
Fire Safety is the enforcing agency for a municipality, the costs for
administering the annual certification would be incurred by the State.� The
number of certifications that would be required each year and the cost of each
certification are unknown; therefore, the amount of the annual local and State
expenditure increase is indeterminate.
����� The OLS further finds that the bill would result in an
increase in the administrative workload for fire departments, fire marshals,
and local enforcing agencies as a result of responsibilities assigned to them
pursuant to the bill.� The administrative cost to a fire department or fire
marshal of developing a fire safety plan and the administrative cost to a local
enforcing agency of reviewing and approving a scrap metal business� conformity
to the provisions of the bill are indeterminate.
����� The OLS anticipates that the department will use
currently available resources to administer rules and regulations as authorized
by the bill.
Section:
Local Government
Analyst:
Grace Ahlin
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.).