A 4077 New Jersey General Assembly · 2026-2027 Regular Session

Imposes various taxes and fees on correctional service businesses to offset social costs of incarceration.*

This bill imposes three new fees on private prison operators in New Jersey to fund social support programs. It charges an 8% fee on the value of public contracts (section 2), a $15 daily fee per inmate (section 3), and a 3% surtax on taxable income (section 4). All revenue flows into two dedicated funds: one for legal services supporting detained individuals and another for community programs like job training and housing (sections 2e and 3e). The bill directly affects private prison companies operating under state contracts, with fees applying during active contracts or inmate stays.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Jun 2026

General Assembly Passage

Jun 2026

Senate Passage

Governor

Introduced Feb 19, 2026 Last action Jun 30, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Reprint · 5 edits

MODERATE

The First Reprint of A4077 (the KARIM Act) makes several drafting clarifications and one substantive policy change: the municipal share of private prison surtax revenues is now restricted to supporting police and fire services rather than general programs. The bill also clarifies that fund revenues come specifically from the fees in subsection b, adds the formal name 'Corporation Business Tax Act' in several places, and updates the co-sponsor list.

FISCAL

The one percent municipal share of private prison surtax revenues is now limited to supporting police and fire services specifically, rather than general programs provided by the municipality. This narrows how local governments can use their allocation.

TECHNICAL

Sections 2(e) and 3(e) now specify that fund revenues come from 'subsection b of this section' rather than just 'this section,' clarifying that only the specific fees described in subsection b feed into each fund.

Section 5 adds 'in the Department of the Treasury' after 'Director of the Division of Taxation' to clarify which department is referenced.

The entire STATEMENT section (a plain-language summary of the bill) was removed from the reprint, which is standard practice after committee reporting.

DEFINITION

Section 4(a) adds 'of section 4' to the S corporation definition cross-reference and changes 'Corporation Business Tax' to 'Corporation Business Tax Act (1945)' for precision. Section 3(a) adds a lowercase 'director' definition alongside the existing uppercase 'Director' definition.

Floor votes

How they voted

This bill passed the General Assembly by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Lower · Passed

Passed by the Assembly (57-22-0)

lower

Jun 8, 2026

Committee

Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee

lower

Jun 8, 2026

Committee

Transferred to Assembly Community Development and Women's Affairs Committee

lower

Mar 19, 2026

Committee

Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee

lower

Feb 19, 2026

Introduced

Introduced, Referred to Assembly Public Safety and Preparedness Committee

lower

4 primary · 7 co-sponsors