SENATE, No. 922

STATE OF NEW JERSEY

INTRODUCED MARCH 14, 1996

By Senator KENNY

An Act concerning motor vehicle registration and renewal fees and amending P.L.1990, c.8 and P.L.1984, c.73.

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

    1. Section 68 of P.L.1990, c.8 (C.17:33B-63) is amended to read as follows:

    68. a. In addition to the registration fees imposed pursuant to Article 2 of chapter 3 of Title 39 of the Revised Statutes, the Director of the Division of Motor Vehicles shall impose and collect additional registration fees as follows:

    (1) For all motor vehicles, except commercial motor vehicles as defined by R.S.39:1-1 that were manufactured in any model year prior to the 1989 model year, the additional fee shall be $15[, except that on and after January 1, 1998 the additional fee shall be $12.50, and on and after January 1, 1999 the additional fee shall be $10 and on and after January 1, 2000 the additional fee shall be $7.50];

    (2) For all motor vehicles, except commercial motor vehicles as defined by R.S.39:1-1, that were manufactured in model year 1989 and thereafter, the additional fee shall be $40[, except that on and after January 1, 1998 the additional fee shall be $33.50, and on and after January 1, 1999 the additional fee shall be $27 and on and after January 1, 2000 the additional fee shall be $20] for the first two years of registration or renewal and $15[, except that on and after January 1, 1998 the additional fee shall be $12.50, and on and after January 1, 1999 the additional fee shall be $10 and on and after January 1, 2000 the additional fee shall be $7.50] for each year thereafter;

    (3) For all commercial motor vehicles as defined in R.S.39:1-1, the additional fee shall be $75[, except that on and after January 1, 1998 the additional fee shall be $62.50, and on and after January 1, 1999 the additional fee shall be $50 and on and after January 1, 2000 the additional fee shall be $37.50];

    (4) Notwithstanding the provisions of paragraphs (1) through (3) of this subsection, the additional fee on motorcycle registrations shall be $15 [, except that on and after January 1, 1998 the additional fee shall be $12.50, and on and after January 1, 1999 the additional fee shall be $10 and on and after January 1, 2000 the additional fee shall be $7.50] and [further provided] the additional registration fee on noncommercial trucks registered pursuant to section 2 of P.L.1968, c.429 (C.39:3-8.1) shall be $50[, except that on and after January 1, 1997 the additional fee collected on noncommercial trucks registered pursuant to section 2 of P.L.1968, c.429 (C.39:3-8.1) shall be $15 for any vehicle manufactured in any model year prior to the 1996 model year and for any vehicle manufactured in the model year 1996 and thereafter, the additional fee shall be $40 for the first two years of registration or renewal and $15 for each year thereafter and on and after January 1, 1998 the additional fee collected on noncommercial trucks shall be collected pursuant to the provisions of paragraphs (1) and (2) of this subsection];

    (5) Notwithstanding the provisions of paragraphs (1) through (3) of this subsection, there shall not be any additional fee imposed on any vehicle registered pursuant to R.S.39:3-24.

    b. Fees collected pursuant to subsection a. of this section shall be collected on registrations issued and renewed on or after July 1, 1990 through December 31, 1996.

    (1) Fees collected pursuant to subsection a. of this section prior to October 1, 1991 shall be remitted to the New Jersey Automobile Full Insurance Underwriting Association created by section 16 of P.L.1983, c.65 (C.17:30E-4) and shall be income to the association for purposes of section 20 of P.L.1983, c.65 (C.17:30E-8).

    (2) Fees collected pursuant to subsection a. of this section on or after October 1, 1991 [through December 31, 1996] shall be remitted to the New Jersey Automobile Insurance Guaranty Fund created pursuant to section 23 of this 1990 amendatory and supplementary act.      (3) [ Fees collected pursuant to subsection a. of this section on and after January 1, 1997, shall be remitted to the General Fund and so much thereof as is required pursuant to section 20 of P.L.1984, c.73 (C.27:1B-20) shall be credited to the "Transportation Trust Fund Account" created by section 20 of P.L.1984, c.73 (C.27:1B-20), such credited funds to be used for transportation projects, pursuant to the "New Jersey Transportation Trust Fund Authority Act of 1984," P.L.1984, c.73 (C.27:1B-1 et al.).] Deleted by amendment P.L.19 , c. (Now before the Legislature as this bill).

    c. Notwithstanding any provision of subsection a. of this section to the contrary, no fees shall be imposed pursuant to this section on a registration for which no fee is presently collected pursuant to Article 2 of chapter 3 of Title 39 of the Revised Statutes or on a registration for a motor vehicle, except commercial vehicles, if the registrant or, in the case of a leased vehicle, the lessee is eligible for pharmaceutical assistance to the aged and disabled pursuant to P.L.1975, c.194 (C.30:4D-20 et seq.). In the case of a leased vehicle, documentation verifying that the vehicle will be leased for the registration term to a lessee who is entitled to the exemption provided for in this subsection shall be provided according to the requirements established by the Director of the Division of Motor Vehicles. The lessor shall not collect from the lessee any payment for the registration of the vehicle that exceeds the amount that the lessor paid to register the vehicle.

(cf: P.L.1995, c.108, s.17)

    2. Section 20 of P.L.1984, c.73 (C.27:1B-20) is amended to read as follows:

    20. There is hereby established in the General Fund an account entitled "Transportation Trust Fund Account." During the fiscal year beginning July 1, 1984 and during each succeeding fiscal year in which the authority has bonds, notes or other obligations outstanding, the treasurer shall credit to this account:

    a. An amount equivalent to the revenue derived from $0.025 per gallon from the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes, as provided in Article VIII, Section II, paragraph 4 of the State Constitution, provided, however, such amount during any fiscal year shall not be less than $100,000,000;

    b. After approval by the voters of the constitutional amendment proposed in Senate Concurrent Resolution No. 2 of 1995 or Assembly Concurrent Resolution No. 9 of 1995, in addition to the amount credited in subsection a. of this section, for the fiscal year beginning July 1, 1996 and the fiscal year beginning July 1, 1997, an amount equivalent to the revenue derived from $0.045 per gallon from the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes, provided, however, such amount shall not be less than $180,000,000 during each of those fiscal years, and for the fiscal year beginning July 1, 1998, an amount equivalent to the revenue derived from $0.055 per gallon from the tax, provided, however, that such amount shall not be less than $220,000,000, and for the fiscal year beginning July 1, 1999 and for each fiscal year thereafter, an amount equivalent to the revenue derived from $0.065 per gallon from the tax, provided, however, that such amount shall not be less than $260,000,000 in any fiscal year, as provided in Article VIII, Section II, paragraph 4 of the State Constitution; and

    c. An amount equivalent to moneys received by the State in accordance with contracts entered into with toll road authorities or other State agencies, provided that effective with the fiscal year beginning July 1, 1988, the amount so credited shall not be less than $24,500,000.00 in any fiscal year.

    The treasurer shall also credit to this account, in accordance with a contract between the treasurer and the authority, an amount equivalent to the sum of the revenues due from the increase of fees for motor vehicle registrations collected pursuant to the amendment to R.S.39:3-20 made by this act and from the increase in the tax on diesel fuels imposed pursuant to the amendment to R.S.54:39-27 made by this act and by P.L.1987, c.460, provided that the total amount credited during the fiscal year beginning July 1, 1984 shall not be less than $20,000,000.00 and that the total amount credited during the fiscal year beginning July 1, 1985 and during every fiscal year thereafter shall not be less than $30,000,000.00.

    In addition to the amounts credited to the account by this section, commencing with the fiscal year beginning July 1, 1995 and every fiscal year thereafter, there shall be appropriated from the General Fund such additional amounts as are necessary to carry out the provisions of this act [and after January 1, 1997 the fees collected pursuant to subsection a. of section 68 of P.L.1990, c.8 (C.17:33B-63) shall be available for crediting to the account for the purposes of this act].

    No later than the fifth business day of the month following the month in which a credit has been made, the treasurer shall pay to the authority, for its purposes as provided herein, the amounts then credited to the Transportation Trust Fund Account, provided that the payments to the authority shall be subject to and dependent upon appropriations being made from time to time by the Legislature of the amounts thereof for the purposes of the act.

(cf: P.L.1995, c.108, s.5)

    3. This act shall take effect immediately.

STATEMENT

    This bill would amend section 68 of P.L.1990, c.8 (C.17:33B-63) to provide that the motor vehicle registration and renewal fees imposed by the "Fair Automobile Insurance Reform Act of 1990" (FAIR act) and extended by P.L.1995, c.108, the renewal of the New Jersey Transportation Trust Fund Authority, would be collected only through December 31, 1996 as originally provided in the FAIR act. The bill also amends section 20 of P.L.1984, c.73 (C.27:1B-20) to delete reference to the crediting of these motor vehicle registration and renewal fees to the Transportation Trust Fund Account.

    The FAIR act imposed the additional motor vehicle registration and renewal fees as one of the funding mechanisms for the Market Transition Facility created by that act. These fees were temporary and were to expire after December 31, 1996.

    The law renewing the New Jersey Transportation Trust Fund Authority, enacted in 1995, made these registration and renewal fees permanent, but provided that the fees be reduced by at least 50 percent over a period of years. P.L.1995, c.108 further provides that fees collected after December 31, 1996 be remitted to the General Fund and be available for crediting to the Transportation Trust Fund Account to be used for transportation projects.

    It is the sponsor's view that since the Governor's proposed budget for the 1996-1997 fiscal year does not provide for crediting the Transportation Trust Fund Account with the approximately $28 million in registration and renewal fees to be collected between January 1st and June 30th, 1997, collection of the fees should end as originally provided in the FAIR act.

Provides that certain motor vehicle registration and renewal fees expire December 31, 1996.