Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
SENATE, No. 1006
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: DECEMBER 21, 2022
SUMMARY
Synopsis: Requires DEP, DOH, owners or operators of certain public water
systems, and owners or operators of certain buildings to take certain
actions to prevent and control cases of Legionnaires' disease.
Type of Impact: Annual State and local expenditure and revenue increases.
Agencies Affected: Department of Health, Department of Environmental Protection,
certain local government units and school districts.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
Local Expenditure Increase Indeterminate
State Revenue Increase Indeterminate
Local Revenue Increase Indeterminate
The Office of Legislative Services (OLS) determines that this bill would result in an
indeterminate annual expenditure increase by the State, local government units, and school
districts that own or operate certain buildings to utilize water management programs, conduct
water monitoring and testing, and to investigate cases of reported Legionnaires’ disease.
According to information from the Department of Health (DOH), annual departmental
expenditures under the bill could be approximately $6 million annually to investigate cases of
Legionnaires’ disease. Depending on how certain investigative responsibilities are delegated,
some of these costs could be borne by the affected local government entity rather than the
State.
For local governments and school districts, the OLS understands that a water management
program that meets the standards required by the bill could cost in the range of $2,000 to
$10,000 or more, depending on the size and complexity of the building. In addition, each
program could cost several thousand dollars or more annually for water monitoring and testing. FE to S1006 [2R]
2
The State and municipalities may accrue an indeterminate amount of annual revenue from
penalties and court costs paid by building owners or operators that violate the provisions of the
bill.
BILL DESCRIPTION
This bill would require the Department of Environmental Protection (DEP), the DOH, owners
or operators of certain public water systems, and the owners or operators of certain types of
buildings to take specified actions to help inform citizens of the State about, and prevent and
control cases of, Legionnaires’ disease.
The bill would require the owner or operator of a public water system with 100 or more service
connections to (1) maintain a minimum detectable disinfectant residual of free chlorine of at least
0.3 milligrams per liter in all active parts of the public water system at all times for systems
utilizing chlorine as a disinfectant, or maintain a minimum detectable disinfectant residual of at
least 1.0 milligrams per liter of monochloramine in all active parts of the public water system at
all times for systems utilizing chloramine as a disinfectant, and (2) conduct disinfectant residual
testing at frequent and regular intervals to determine the amount and type of detectable disinfectant
residual existing at different points in the public water system. The DEP would be authorized to
adopt rules and regulations to require additional disinfectant requirements or testing requirements
of public water systems, or to increase the minimum detectable disinfectant residual, in order to
minimize the growth and transmission of Legionella bacteria, or to require nitrification action
plans.
The bill would also require the owner or operator of such a public water system to provide
written notice to its residential, commercial, and institutional customers and to residents located in
an affected area of disruptions in the water distribution system that could result in increased levels
of Legionella bacteria being present in the public water system. The bill would require the DEP to
establish on its website a publicly accessible database of the records of a disruption in the water
distribution system submitted to the DEP.
The bill would require the DOH to conduct an investigation into every reported diagnosis of
Legionnaires’ disease and require the DOH to advise an individual diagnosed with Legionnaires’
disease about the availability of testing by the DOH of the fixtures and water-using equipment in
the individual’s residence, locations frequently visited, and places of employment in the 45 days
immediately prior to the individual’s diagnosis. The bill would require the DOH to develop
procedures and guidelines regarding investigations of reported cases of Legionnaires’ disease. The
bill would authorize the DOH to delegate certain responsibilities and duties for administering the
testing and investigatory provisions of the bill to a local health officer having jurisdiction over the
locality in which a patient diagnosed with Legionnaires’ disease lives, frequently visits, or is
employed. The bill would also require the DOH to establish on its website a registry accessible to
the public of data related to each case of Legionnaires’ disease reported to the DOH.
The bill would also require the owner or operator of certain types of buildings to implement a
water management program to minimize the growth and transmission of Legionella bacteria in the
building's water system. The bill also establishes penalties for the owner or operator of a facility
or building who fails to implement a water management program or fails to demonstrate
compliance with a water management program.
The bill would require the DOH, in conjunction with the DEP and the Department of
Community Affairs, to prepare an annual report including information on reported cases of
Legionnaires’ disease reported in each of the previous 10 years, test results indicating the presence FE to S1006 [2R]
3
of Legionella bacteria, and recommendations for such legislative action as may be necessary to
further control Legionella bacteria in the public water supply and affected buildings.
The bill also would requires the DOH to develop a public awareness campaign and targeted
consumer education program to educate consumers, especially vulnerable populations, on the
environmental sources of Legionella bacteria, the movement of Legionella bacteria through water
distribution systems, the notification requirements required by the bill and how the requirements
impact consumers, and on methods to control Legionella bacteria in a person’s home.
FISCAL ANALYSIS
EXECUTIVE BRANCH
The OLS has not received a fiscal note from the Executive for this bill. However, the DOH
provided informal information to the OLS that the bill would increase departmental spending by
approximately $5.8 million per year to perform investigations of reported cases of Legionnaires'
disease, including repeat visits by DOH employees and water sampling and testing.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that this bill would result in an indeterminate annual expenditure increase
by the State, local government units, and school districts that own or operate buildings required to
utilize water management programs. The OLS cannot quantify this expenditure increase because
it lacks data about how many buildings covered by the bill are owned or operated by the State, a
local government unit, or a school district, and, of these, how many of those have already
implemented water management programs that would satisfy the bill's requirements. However,
many large office buildings and schools have cooling towers and would thus be covered by the
bill. The OLS understands that implementing a water management program that meets the
standards required by the bill could cost in the range of $2,000 to $10,000 or more, depending on
the size and complexity of the building. In addition, each program could cost several thousand
dollars annually for water monitoring and testing.
The bill would also result in an indeterminate annual expenditure increase by the State and by
local government units that operate public water systems with more than 100 service connections,
in order to satisfy the bill's requirement that public water systems maintain a certain level of
disinfectant in their water supply and institute a testing regimen to verify this level. Current DEP
rules require public water systems to maintain free chlorine levels that are comparable to those
required by the bill. In addition, some public water systems may already implement testing
regimens that would satisfy the bill's provisions. For those that do not, however, the OLS
understands that such testing would cost up to tens of thousands of dollars per system annually,
depending on the size of the system. The bill would also lead to discrete expenditure increases by
certain public water systems that experience disruptions that are likely to increase the growth of
Legionella bacteria, since the bill requires such public water systems to provide written notice to
its customers about the disruption. The OLS cannot quantify these expenditure increases because
it lacks data about the number of public water systems that would be required to expend funds to
come into compliance with the bill, and how many systems will experience disruptions that will
require the dissemination of written notices.
The bill would also result in an indeterminate annual expenditure increase by the DOH or local
health officers, since it requires the DOH or the local health officer to conduct an investigation FE to S1006 [2R]
4
into any reported diagnosis of Legionnaires' disease, and to perform other tasks associated with
the outbreak. The OLS notes that New Jersey experiences around 350 cases of Legionnaires’
disease each year on the high end of the range. According to information from the DOH, annual
departmental expenditure increases under the bill could be about $6 million to investigate cases of
Legionnaires’ disease. Depending on how the investigative responsibilities are delegated, some
of these costs could be borne by the affected local government entity rather than the State. The
bill also would result in marginal one-time expenditure increases by the DEP and the DOH, in
order to accomplish the administrative tasks required by the bill, including publishing notice
requirements for public water systems, reporting cases of Legionnaires’ disease, and adopting rules
and regulations to implement the bill. Finally, the DOH will face costs in the administration of
the public awareness campaign and consumer education program campaign required pursuant to
this bill. However, the OLS is unable to determine a precise cost estimate since the cost of public
awareness campaigns and education programs can vary widely depending on many factors,
including the types of media or educational material used.
The OLS notes that the State and municipalities may accrue an indeterminate amount of annual
revenue from penalties and court costs paid by building owners or operators that violate the
provisions of the bill.
Section: Environment, Agriculture, Energy, and Natural Resources
Analyst: Neha Patel
Senior Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).