SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 135

with Senate committee amendments

STATE OF NEW JERSEY

DATED: OCTOBER 28, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 135 (1R) with amendments.

      As amended, Senate Bill No. 135 (1R) requires the Director of the Division of Motor Vehicles to issue special motor vehicle license plates to those persons who wish to support the development and maintenance of bicycle trails and bicycle education in the State through the payment of a fee for a special "Bicycle New Jersey" license plate for motor vehicles. The additional fee for the license plate would be $50, and the additional annual registration fee would be $10.

      If the average cost of producing and issuing the special plates is greater than $50 in two consecutive fiscal years, the director may discontinue the issuance of the plates.

      The monies collected pursuant to this bill would be deposited into a special non-lapsing "Bicycle New Jersey License Plate Fund," which would be administered by the Commissioner of Transportation. Monies in the fund would be dedicated to the support and funding of State and local projects and programs concerned with the development and maintenance of bicycle trails and educational programs for the safe operation of bicycles on roadways. Monies in the fund would also be used to reimburse the division for the reasonable costs of issuing the license plates and for any initial computer programming changes that would be necessary.

      Under current law, the Division of Motor Vehicles is already permitted to issue six fund-raising license plates for special purposes: wildlife conservation; historic preservation; Battleship New Jersey; U.S. Olympics; animal welfare; and coastal protection.

COMMITTEE AMENDMENTS

      The committee amended the bill at the request of the sponsor to incorporate amendments suggested by the Department of Transportation. The amendments change the name of the special license plates to be issue pursuant to this bill and permit the funds to

be raised from the sale of these plates to be used for educational programs for safe bicycle operation.

FISCAL IMPACT

            In a fiscal estimate prepared by the Office of Legislative Services (OLS) on this bill, the OLS states that DMV estimates total fixed costs to be about $41,000 for reprogramming agency and revenue automated systems and for one-time die costs. Variable costs would be about $8 for the issuance of each set of special plates. However, since DMV is generally unable to estimate public interest in new special license plates, it does not project revenues. However, as a possible reference range for potential revenues, OLS notes that DMV has estimated that FY 1996 revenues from special plates for animal welfare would provide about $433,000, plates for wildlife conservation would provide about $236,000, and plates for shore conservation would provide about $899,000.