SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 211

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 211 (1R) of 1996.

      Senate Bill No. 211 (1R) directs the Division of Motor Vehicles (DMV) to establish Barnegat Bay Decoy and Baymen's Museum and other specially designated maritime history or marine life preservation projects license plates. The special plates would contain markings or identification expressing the vehicle owner's interest in supporting the Barnegat Bay Decoy and Baymen's Museum or a maritime history or marine life protection project selected by DMV. The Director of the Division of Motor Vehicles would select the design of the license plate, after soliciting, in conjunction with the Legislature, input from the general public and reviewing the submissions before choosing the design. A $50 fee would be charged for the issuance of the plates, and an additional $10 fee would be collected for each annual renewal.

      Expenses incurred by the DMV in producing, issuing, renewing, making computer programming changes and publicizing these special license plates would be paid from fees collected. The bill directs DMV to include in all mailings of motor vehicle registration renewals a notice on the availability of the special license plates.

      Finally, the bill requires the Joint Budget Oversight Committee to approve the Division of Motor Vehicle's annual certification of the average cost to produce, issue and renew a license plate. If the average annual cost exceeds $50 for two consecutive fiscal years, the division may discontinue the issuance of these license plates.

FISCAL IMPACT

      In the past on other bills authorizing the issuance of special license plates, the Division of Motor Vehicles estimated total fixed costs at $41,000 for reprogramming agency and revenue automated systems and for one-time die costs. The division does not attempt to estimate public interest in new plates; therefore, it does not offer a revenue estimate.

      As a reference, the division in Fiscal Year 1996 estimated that the animal welfare license plate would raise $433,000, the wildlife conservation license plate would raise $236,000, and the shore protection license plate would raise $899,000.

      The bill requires that, of the first $600,000 in special license plate fees collected, $400,000 be appropriated, annually as a grant to Barnegat Bay Decoy and Baymen's Museum, and $200,000 as grants to maritime history and marine life preservation projects selected by the DMV. If less than $600,000 is collected, the amounts are to be reduced proportionately.