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 SENATE COMMITTEE SUBSTITUTE FOR SENATE, No. 2544 STATE OF NEW JERSEY 221st LEGISLATURE DATED: JUNE 28, 2024 SUMMARY Synopsis: Establishes criminal penalties for production or dissemination of deceptive audio or visual media, commonly known as "deepfakes." Type of Impact: Annual State expenditure and revenue increases. Agencies Affected: The Judiciary; Department of Law and Public Safety; Office of the Public Defender. Office of Legislative Services Estimate Fiscal Impact Annual State Cost Increase Indeterminate State Revenue Increase Indeterminate The Office of Legislative Services (OLS) estimates that this bill may result in indeterminate annual State cost and revenue increases. The bill’s establishment of criminal penalties may result in the Department of Law and Public Safety prosecuting additional cases; the Judiciary adjudicating additional cases; and the Office of the Public Defender representing additional indigent defendants. The OLS cannot quantify the exact fiscal impact since the number of cases and convictions resulting from the bill’s provisions cannot be known. The State may realize an indeterminate increase in annual revenues from the collection of regular and enhanced fines and court fees. However, the State’s ability to collect these penalties and fees has historically been limited. BILL DESCRIPTION This bill establishes criminal penalties for the production or dissemination of deceptive audio or visual media, commonly known as “deepfakes.” FE to SCS for S2544 2 The bill defines deceptive audio or visual media and establishes a crime of the third degree if a person, without license or privilege to do so, generates or creates, or causes to be generated or created, deceptive audio or visual media that is used as part of a plan or course of conduct to commit any crime or offense including, but not limited to, certain crimes or offenses listed in the bill. The bill also establishes a crime of the third degree if a person, without license or privilege to do so, discloses a work of deceptive audio or visual media that the person knows or should reasonably know was created in violation of the provisions of this bill. A crime of the third degree is ordinarily punishable by a term of three to five years imprisonment, a fine of up to $15,000, or both. However, the bill provides that a court may impose a fine of up to $30,000. The civil action authorized by this bill is to be in addition to, and not in lieu, of any other civil action, injunctive relief, or other remedy available at law. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The OLS estimates that this bill may result in indeterminate annual State cost and revenue increases. The bill’s establishment of criminal penalties may result in the Department of Law and Public Safety prosecuting additional cases; the Judiciary adjudicating additional cases; and the Office of the Public Defender representing additional indigent defendants. The OLS cannot quantify the exact fiscal impact since the number of cases and convictions resulting from the bill’s provisions cannot be known. Generally, a presumption of non-incarceration applies for first time offenders of crimes of the third degree, and therefore no costs are anticipated for the Department of Corrections or the State Parole Board. The bill establishes crimes of the third degree for certain deceptive audio or visual media crimes. A crime of the third degree is ordinarily punishable by a term of three to five years imprisonment, a fine of up to $15,000, or both. However, the bill provides that a court may impose a fine of up to $30,000. The State may realize an indeterminate increase in annual revenues from the collection of regular and enhanced fines and court fees; however, the State’s ability to collect these penalties and fees has historically been limited. 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.).