LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

ASSEMBLY, No. 2893

STATE OF NEW JERSEY

DATED: DECEMBER 29, 1997

      Assembly Bill No. 2893 (1R) of 1997 amends current legislation regarding auto body repair facilities. This bill would establish minimum standards that a facility must meet in order to be licensed as an auto body repair facility and would create two classes of facility licenses: a full service license and a motor vehicle dealer sublet license. The bill also raises the fines that may be imposed on auto body repair facilities charged with certain violations from a maximum of $2,000 to $5,000 for the first offense, and from $5,000 to not more than $20,000 for subsequent offenses.

      Pursuant to conversations with the Department of Transportation on this bill, the department has not determined, as yet, if this bill would have a significant fiscal impact. Since the Division of Motor Vehicles within the department currently licenses about 2,100 auto body repair facilities and levies a $350 biennial licensing fee pursuant to regulations, the division is uncertain if a change in the licensing fee amount would be recommended to accommodate the changes proposed by this bill. In addition, while the division collected about $5,000 in fines imposed on auto body repair facilities in FY 1997, the division is uncertain whether the proposed increase in fines would translate into a corresponding amount of increased revenue from fines that would be received by the State.

      Although the department has not provided an official fiscal impact on this bill, the Office of Legislative Services would note that current legislation, section 2 of P.L.1983, c.360 (C.39:13-2), authorizes the director of the division to require a payment of a fee sufficient to cover the cost of implementing the provisions of the auto body repair licensing legislation. Consequently, if there is a future program cost increase arising from this bill, such cost could be accommodated by an increase in licensing fees, rather than relying on the State's general fund.

      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.