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S3553
SENATE, No. 3553
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 26, 2026
Sponsored by:
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
���� Authorizes State Auditor to conduct cost-benefit
analyses of certain programs and initiatives.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
authorizing the State Auditor to conduct cost-benefit
analyses of certain programs and initiatives, supplementing Title 52 of the
Revised Statutes.�
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� In addition to the
duties and responsibilities prescribed by the Constitution, section 10 of
P.L.1979, c.8 (C.52:11-63), and R.S.52:24-4, the State Auditor is authorized to
conduct a cost-benefit analysis of any existing or proposed program or initiative
of an accounting agency or an independent authority that is funded or is to be
funded by State appropriation or that is established or is to be established
for the purpose of awarding tax credits to businesses to stimulate economic
development in New Jersey, pursuant to the provisions of this section.
���� b.��� The State Auditor shall
conduct a cost-benefit analysis authorized pursuant to this section at the
direction of the Legislative Services Commission or the presiding officer of
either House of the Legislature or at the State Auditor�s own initiative; provided,
however, that for each five-year period following enactment of this act the
State Auditor shall conduct a cost-benefit analysis of at least one existing or
proposed program or initiative of each accounting agency and each independent
authority that is funded or is to be funded by State appropriation of
$1,000,000 or more on an average annual basis or that is established or is to
be established for the purpose of awarding tax credits in the aggregate
principal sum of $1,000,000 or more on an average annual basis.�
���� c.���� The State Auditor shall
determine the scope, define the objectives, and develop the methodology
employed in conducting a cost-benefit analysis authorized pursuant to this
section; provided, however, that each cost benefit analysis shall include:�
���� (1)�� an analysis of the
direct and indirect costs and the tangible and intangible benefits of the
existing or proposed program or initiative;
���� (2)�� information identifying
any other programs or initiatives that to the satisfaction of the State Auditor
are feasible of accomplishing the goals and objectives of the existing or
proposed program or initiative or are capable of being used to create a baseline
measurement against which the existing or proposed program or initiative can be
compared for purposes of analysis;
���� (3)�� an analysis of the
direct and indirect costs and the tangible and intangible benefits of the other
programs or initiatives that are identified as feasible alternatives or capable
of being used for baseline measurements;
���� (4)�� a description of the key
assumptions used to determine the direct and indirect costs and the tangible
and intangible benefits of the existing or proposed program or initiative and the
other programs or initiatives that are identified as feasible alternatives or
capable of being used for baseline measurements;
���� (5)�� a sensitivity analysis
to test how the direct and indirect costs and the tangible and intangible
benefits of the existing or proposed program or initiative would differ if the
key assumptions used to determine the direct and indirect costs and the
tangible and intangible benefits were modified; and
���� (6)�� any other information
the State Auditor determines to be necessary and appropriate.�
���� d.��� The officers and
employees of each accounting agency and each independent authority shall assist
the State Auditor, when and as required by the State Auditor, and provide the
State Auditor with access to all records and information the State Auditor
determines to be necessary and appropriate to perform the duties and
responsibilities prescribed by this section, notwithstanding any statutory or
regulatory requirements of confidentiality with regard to the records or
information to the contrary.� The State Auditor shall report the failure of any
officer or employee of an accounting agency or an independent authority to
provide access to any record or information to the presiding officer of each House
of the Legislature.� The State Auditor shall not disclose a confidential record
or confidential information provided by an officer or employee of an accounting
agency or an independent authority, except as may be necessary for the State
Auditor to fulfill the duties and responsibilities prescribed by this section. �Working
papers prepared by the State Auditor in performing the duties and
responsibilities prescribed by this section shall be confidential and shall not
be considered a public or government record under P.L.1963, c.73 (C.47:1A-1 et
seq.) and P.L.2001, c.404 (C.47:1A-5 et al.).
���� e.���� The State Auditor shall
submit a written report regarding each cost-benefit analysis conducted pursuant
to this section to the Governor and to the Legislature in accordance with section
2 of P.L.1991, c.164 (C.52:14-19.1).� Upon submission of the written report to
the Governor and the Legislature, an electronic copy of the report shall be
made available to the public through a link prominently displayed on the State
Auditor�s Internet website.�
���� f.���� Notwithstanding any provisions
of this section to the contrary, cost-benefit analyses authorized pursuant to
this section shall be conducted within the limits of resources and personnel
available to the State Auditor.� If resources and personnel are insufficient to
conduct all such required cost-benefit analyses, the State Auditor may
prioritize certain analyses and forgo certain others upon notice to the
presiding officer of each House of the Legislature.
���� 2.��� This act shall take
effect on the first day of the seventh month next following the date of
enactment.
STATEMENT
���� This bill authorizes the State
Auditor to conduct cost benefit analyses of certain programs and initiatives as
a means to provide State policymakers with data and information to make better
informed policy and budget decisions.�
���� Under the bill, the State
Auditor is authorized to conduct a cost-benefit analysis of any existing or
proposed program or initiative of an accounting agency or an independent
authority that is funded or is to be funded by State appropriation or that is
established or is to be established for the purpose of awarding tax credits to
businesses to stimulate economic development in New Jersey.� The bill provides
for the State Auditor to conduct a cost-benefit analysis at the direction of
the Legislative Services Commission or the presiding officer of either House of
the Legislature or at the State Auditor�s own initiative, but specifies that
for each five-year period following enactment of the bill the State Auditor is
to conduct a cost-benefit analysis of at least one existing or proposed program
or initiative of each accounting agency and each independent authority that is
funded or is to be funded by State appropriation of $1,000,000 or more on an
average annual basis or that is established or is to be established for the purpose
of awarding tax credits in the aggregate principal sum of $1,000,000 or more on
an average annual basis.
���� The bill gives the State
Auditor the discretion to determine the scope, define the objectives, and
develop the methodology employed in conducting cost-benefit analyses authorized
by the bill, but requires each cost benefit analysis to include:�
���� -- an analysis of the direct
and indirect costs and the tangible and intangible benefits of the existing or
proposed program or initiative;
���� -- information identifying any
other programs or initiatives that are feasible of accomplishing the goals and
objectives of the existing or proposed program or initiative or are capable of
being used to create a baseline measurement against which the existing or
proposed program or initiative can be compared;
���� -- an analysis of the direct
and indirect costs and the tangible and intangible benefits of the other
programs or initiatives that are identified as feasible alternatives or capable
of being used for baseline measurements;
���� -- a description of the key
assumptions used to determine the direct and indirect costs and the tangible
and intangible benefits of the existing or proposed program or initiative and
the other programs or initiatives that are identified as feasible alternatives
or capable of being used for baseline measurements;
���� -- a sensitivity analysis to
test how the direct and indirect costs and the tangible and intangible benefits
of the existing or proposed program or initiative would differ if the key
assumptions were modified; and
���� -- any other information the
State Auditor determines to be necessary and appropriate.�
���� The bill requires the State
Auditor to submit a written report regarding each cost-benefit analysis
conducted pursuant to the bill to the Governor and to the Legislature, and to
make an electronic copy of the report available to the public through a link
prominently displayed on the State Auditor�s Internet website.�
���� The bill is scheduled to take
effect on the first day of the seventh month next following the date of
enactment.