Read the full stored bill text
S3413 1R SCS FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, No. 3413
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 2, 2026
SUMMARY
Synopsis:
�New Jersey Kids Code Act�; adopts New Jersey
Age-Appropriate Design Code and requires certain online service providers to
implement certain measures concerning minors� use of online service.
Type of Impact:
Annual State expenditure and revenue increases.
Agencies Affected:
Department of Law and Public Safety. Department of Health.
Office of
Legislative Services Estimate
Annual Fiscal Impact
State Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
�
The
Office of Legislative Services (OLS) estimates the bill may increase annual
State costs for the Department of Law and Public Safety to provide guidelines
and enforce the bill�s provisions and for the Department of Health to provide
certain guidelines. There may also be indeterminate annual State revenue
increases from monetary penalties and damages collected from violators of the
bill�s provisions.
�
The OLS concludes there may be an indeterminate annual State
revenue increase from monetary penalties and damages collected from violators
of the bill�s provisions. The OLS, however, has no information on which to
estimate the number and magnitude of future penalty assessments and payments,
and thus cannot project the amount the State will collect.
BILL DESCRIPTION
����� The bill, designated as the New Jersey Kids Code Act
and to be cited as the New Jersey Age-Appropriate Design Code, requires a
covered online service provider to implement certain measures to protect
minors� online privacy.
����� Under the bill, a covered online service provider is
required to provide a covered child or covered minor with certain prescribed
safeguards to ensure their safety. The Office of the Attorney General in the
Department of Law and Public Safety may adopt rules and regulations to
implement the bill�s provisions, and the Department of Health may adopt additional
criteria for what constitutes �compulsive use.�
����� A violation of the bill�s provisions or any rules
adopted thereunder will constitute an unlawful practice and violation of the
New Jersey consumer fraud act, P.L.1960, c.39. A violation of the consumer fraud
act is punishable by a monetary penalty of not more than $10,000 for a first
offense and not more than $20,000 for any subsequent offense.
����� In addition, the Office of the Attorney General has
the authority to conduct civil investigations, bring civil actions, and enter
into assurances of discontinuance. The bill provides that a covered child or
covered minor that is injured by a violation of the provisions of the bill may
bring a civil action against a covered online service provider and that the
Office of the Attorney General or the parent of a covered child or covered
minor that is injured by a violation of the provisions of the bill may bring a
civil action on behalf of the covered child or covered minor and against the
covered online service provider.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS estimates the bill may increase annual State
costs for the Department of Law and Public Safety to provide guidelines and enforce
the bill�s provisions and for the Department of Health to provide certain
guidelines, and may create indeterminate annual State revenue increases from
monetary penalties and damages collected from violators of the bill�s
provisions.
�����
State Expenditure Increase
: The OLS
finds that the Office of the Attorney General in the Department of Law and
Public Safety and the Department of Health would each incur a one-time
expenditure increase to promulgate the guidance regarding the bill�s
provisions.
����� Further, the OLS finds that annual expenditures by the
Office of the Attorney General in the Department of Law and Public Safety would
increase for civil investigations, civil enforcement actions, and potential
litigation. The magnitude of these costs, as well as any associated court
costs, is indeterminate and would depend on the extent to which there are
violations of the bill�s provisions.
�����
State Revenue Increase
: The bill�s
provisions establish an unlawful practice and under the consumer fraud act,
which is punishable by a monetary penalty of not more than $10,000 for a first
offense and not more than $20,000 for any subsequent offense.
����� Further, the bill provides that the Office of the
Attorney General has the authority as provided under the consumer fraud act to
bring civil actions and enter into assurances of discontinuance. For any
negligent or greater violation, a court may award a prevailing plaintiff, as
appropriate: (1) $5,000 per violation or treble damages, whichever is greater;
(2) punitive damages for reckless or knowing violations; (3) injunctive relief;
(4) declaratory relief; and (5) attorney�s fees and litigation costs.
����� The OLS, however, has no information on which to
estimate the number and magnitude of future penalty assessments and payments,
and thus cannot project the amount the State will collect.
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.).