FISCAL NOTE TO

ASSEMBLY, No. 60

STATE OF NEW JERSEY

DATED: JUNE 24, 1996

      Assembly Bill, No. 60 of 1996 permits a municipality to impose a $5 surcharge on penalties for all motor vehicle and traffic violations. These moneys would be deposited into special funds created by municipalities choosing to do so, for the purpose of acquiring public safety motor vehicles. The surcharge shall apply to all motor vehicle or traffic violations which occur within a municipality which chooses to establish a fund for this purpose. The bill provides that $.50 of each $5 surcharge shall be forwarded to the Administrative Office of the Courts (AOC) for deposit in the Automated Traffic System Fund.

      The AOC states that based on current statistics, and assuming that all municipalities choose to impose the new surcharge, the municipalities will collect about $4.5 million in fines during the first year, while the State would collect $500,000 for the Automated Traffic System Fund. During the second and third year after the bill's enactment, municipalities are estimated to collect about $5 million annually, while the State would collect about $550,000. The AOC notes that the cost of updating the Judiciary's Automated Traffic System in order to accommodate the requirements of the bill would be covered by the additional $.50 forwarded to the State from each violation written.

      The AOC also states that there are non-quantifiable costs to the municipalities for the implementation of this bill. The AOC notes that municipalities that participate in this program would be required to update any computer systems tracking motor vehicle surcharges. In addition, tickets issued by State Police officers will no longer show a "Payable Amount" for the most commonly written offenses. The payable amount will be eliminated as the State Police could not be assured that all municipalities have established the Fund. Eliminating the payable amount will dramatically increase the number of telephone calls to municipal courts as defendants would be requested to call to determine the payable amount. Although no explicit value can be placed on the lost productivity caused by the increase in calls, it is expected to be substantial. The AOC adds that these additional costs could be offset by the revenue generated for the purchase of emergency vehicles.

      The Office of Legislative Services concurs.

This fiscal note has been prepared pursuant to P.L.1980, c.67.