SENATE, No. 851

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 26, 1996

By Senator CASEY

:An Act concerning motor vehicle registration fees and supplementing chapter 3 of Title 39 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey

    1. a. On and after the effective date of this act, every motor vehicle registration fee shall be reduced by $11.50 until such time as the "Motor Vehicle Inspection Fund" established by subsection j. of section 20 of P.L.1995, c.112 (R.S.39:8-2) is operative and $11.50 of each registration fee is being deposited into the fund pursuant to subsection j. of section 20 of P.L.1995, c.112 (R.S.39:8-2).

    b. An amount of $11.50 of each motor vehicle registration fee collected after June 30, 1995 and before the effective date of this act that has not been deposited in the "Motor Vehicle Inspection Fund" pursuant to subsection j. of section 20 of P.L.1995, c.112 (R.S.39:8-2) shall be immediately refunded to the registrant. 

    2. This act shall take effect immediately.

STATEMENT

    This bill reduces the motor vehicle registration fee of every New Jersey vehicle owner by $11.50. Beleaguered motorists have been paying this amount since July 1, 1995 to cover the cost of a planned enhanced vehicle inspection program even though the State Treasurer has not reserved the monies for this purpose as required by law. The $11.50 reduction would be in effect until such time as the Treasurer creates the proper reserve fund and deposits that portion of the registration fee in the fund as required by law. This bill also directs that $11.50 be refunded to every person who registered a motor vehicle between July 1, 1995 and the effective date of this act.

    P.L.1995, c.112 established the "Motor Vehicle Inspection Fund," administered by the State Treasurer, to defray the cost of implementing an enhanced motor vehicle inspection program in compliance with the federal Clean Air Act. The State law required that $11.50 of each motor vehicle registration fee received after June 30, 1995 be deposited in the fund. However, the "Motor Vehicle Inspection Fund" mandated by P.L.1995, c.112 has not been established and motor vehicle registration fees in their entirety continue to be deposited in the State general revenue fund.

    It is only fair that this portion of the motor vehicle registration fee be retained by motorists if it is not being properly reserved for the enhanced inspection program. The cost of that program has been estimated to be as high as $100 million. The Treasurer's diversion of these funds from the purpose dedicated by the Legislature virtually insures that the cost of an enhanced inspection program will be borne by these same motorists through increased inspection fees.

Reduces motor vehicle registration fee by $11.50.