LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

ASSEMBLY, No. 118

STATE OF NEW JERSEY

DATED: JUNE 25, 1996

      Assembly Bill No. 118(1R) of 1996 requires the Division of Motor Vehicles (DMV) in the Department of Transportation to record in its electronic database the National Association of Insurance Commissioners (NAIC) insurance company code and the motor vehicle insurance policy number of a registered automobile or motorcycle. The bill also requires that the NAIC code be printed on the registration certificate. The bill requires that remote access to these records, including standard motor vehicle data, be available for use by law enforcement agencies, the Division of Insurance Fraud Prevention in the Department of Insurance (DOI), and special industry investigative units approved by the DOI.

      Based on information provided by DMV for a previous, similar proposal, Assembly Bill No. 786 of 1994, DMV estimated that there would be no implementation costs in the first year because the bill would become effective one year after enactment. DMV estimated the cost of implementation at $1,425,000, and $1,035,000, in the second and third years following enactment, respectively. The second year estimate includes $945,000 for computer programming, $150,000 for computer system modification and $330,000 to enter the required data. The third year estimate includes $933,000 for database maintenance and $102,000 to establish the user connection to the database. DMV also noted that costs may be reduced by $473,000 in the third year if the Division of Insurance Fraud Prevention can obtain adequate information from the main DMV database without requiring access to the uninsured motorist system file.

      Pending written confirmation from DMV that its earlier estimate is still reasonably accurate, the Office of Legislative Services would accept the previous DMV estimate.

The 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.