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S3977 1R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3977
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 17, 2026
SUMMARY
Synopsis:
Allows rounding for cash transactions.
Type of Impact:
Annual State expenditure and revenue increases.
Agencies Affected:
The Judiciary, Department of Law and Public Safety.
Office of
Legislative Services Estimate
Fiscal Impact
�
Annual�
State Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
�
The Office of Legislative Services (OLS) finds that the bill�s
creation of a new civil offense would lead to an increase in annual Judiciary
expenditures as additional resources will likely have to be allocated for any
increase in civil caseload.� The OLS anticipates collections from court fees to
grow in tandem with the caseload.
�
The OLS notes that the State may receive indeterminate revenues
from civil penalties imposed, ranging from $1,000 for the first offense, $2,500
for the second offense, and $5,000 for the third and each subsequent offense. Under
the bill, each day on which a violation occurs constitutes a separate and
distinct offense, which could result in potentially larger amounts to be collected
in civil penalties.
BILL DESCRIPTION
����� This bill establishes the rounding requirements, for
businesses that choose to follow them, for cash transactions in response to the
end of the production of pennies by the federal government in November of
2025.� While pennies will still circulate, the bill intends to assist
businesses in preparation for a phaseout in the use of the penny for cash
transactions.� As noted by the National Conference of State Legislatures,
guidance issued by states on this issue will provide critical clarity and
fairness for businesses and, subsequently, consumers.� Penalties are also
established in the bill for businesses who adopt the rounding requirements but
violate their provisions.� Any business that violates the provisions of this
bill would be subject to a civil penalty of $1,000 for the first offense,
$2,500 for the second offense, and $5,000 for the third and each subsequent
offense. �Each day on which a violation occurs shall constitute a separate and
distinct offense.
����� Nothing in the bill will be construed to prohibit a
program that rounds a purchase or transaction up as a donation; provided that
the program is voluntary, and the consumer has the right to opt in to and opt
out of the donation.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� � None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the bill�s creation of a new civil
offense would lead to an increase in annual Judiciary expenditures as
additional resources will likely have to be allocated for any increase in civil
caseload.� The OLS anticipates collections from court fees to grow in tandem
with the caseload.
����� Under the bill, any business that violates the
provisions of this bill will be subject to a civil penalty of $1,000 for the
first offense, $2,500 for the second offense, and $5,000 for the third and each
subsequent offense. Each day on which a violation occurs constitutes a separate
and distinct offense. The OLS finds that State may collect indeterminate
amounts in civil penalties; however, the OLS does not have sufficient
information to gauge the estimated number of civil cases likely to be filed or
the amount in penalties likely to be collected under the bill.�
Section:
Judiciary
Analyst:
Anuja Pande Joshi
Senior 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.).