LEGISLATIVE FISCAL ESTIMATE TO


SENATE, No. 851


STATE OF NEW JERSEY

 

DATED: FEBRUARY 24, 1997

 

      Senate Bill No. 851 of 1996 reduces the motor vehicle registration fee by $11.50 until the "Motor Vehicle Inspection Fund" (MVIF) established by subsection j. of section 20 of P.L.1995, c.112 (R.S.39:8-2) is operative, after which the $11.50 fee would be reinstated for deposit in the MVIF for the intended purposes. In addition, an amount of $11.50 from each motor vehicle registration fee collected after June 30, 1995 that has not been deposited in the MVIF shall be refunded.

      The Office of Legislative Services (OLS) notes that there are about 6.0 million registered vehicles in the State. Consequently, about $69 million in annual revenue would be affected by this bill. OLS would further note that language in the FY 1997 Appropriations Act, P.L.1996, c.42, permits monies in the MVIF to be available for purposes other than Clean Air programs, pending final agreements between the federal Environmental Protection Agency and the State. However, this bill would appear to override P.L.1996, c.42 and require the return of at least $69 million received for FY 1996 and the return of a similar or proportional amount received for FY 1997, depending on the date of enactment of Senate Bill No. 851. Should this bill be enacted and the MVIF not established and operated as intended by P.L.1995, c.112, the State would forgo about $69 million in future, annual revenue.

      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.