FISCAL NOTE TO

ASSEMBLY, No. 1352

STATE OF NEW JERSEY

DATED: AUGUST 21, 1996

      Assembly Bill No. 1352 of 1996 allows the Victims of Crime Compensation Board (VCCB) to accept and satisfy claims filed by victims who were injured by persons convicted of operating a motor vehicle while under the influence of alcohol or drugs. It also provides for a surcharge of 5 percent on any fine imposed under N.J.S.A.39:4-50 to be deposited in a "Drunk Driver's Victims Indemnification Fund" to be administered by the VCCB. This fund will be used to satisfy claims and to defray administrative expenses. The bill would take effect immediately.

      The Administrative Office of the Courts estimates that the number of convictions under N.J.S.A.39:4-50 would be about 21,190 in FY 1997. The AOC further states that the fines range from $250 to $400 for a first offense, from $500 to $1,000 for a second offense, and $1,000 for third and subsequent offenses. Assuming that 78 percent of all cases disposed would be eligible for the imposition of the surcharge during the first year, and that a minimum fine of $250 would be charged for each offense committed, the AOC states that a minimum of $207,000 would be collected for the fund. The AOC notes that its data indicate that the number of guilty judgments for violations of this statute have been decreasing at a rate of about 7 percent per year. If this trend continues, the AOC notes that future year revenue would decrease at a comparable rate.

      The AOC further states that it would incur a one-time cost of about $7,000 to reprogram the Automated Traffic System (ATS) to accommodate the surcharge.

      The Office of Management and Budget (OMB) adds that historically, the collection of surcharges falls far below the amount anticipated, and the revenues as determined by the AOC would appear to be overstated. Because of the low compliance in paying surcharges, the OMB notes that the actual amount collected would be unknown.

      The Office of Legislative Services concurs with the OMB assessment and adds that if the number of convictions against drunk drivers decreases, so too would the claims against the fund.

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