SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 1645

STATE OF NEW JERSEY

DATED: NOVEMBER 18, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1645.

      Senate Bill No. 1645 requires the Director of the Division of Motor Vehicles to reinstate an increased annual fee assessed upon and paid by motor vehicle registrants for the costs of issuing reflectorized motor vehicle registration plates in this State. A fee of $0.40 was collected by the division for a period of six years until June 30, 1996, pursuant to the provisions of P.L.1989, c.202 (C.39:3-33).

      This bill reinstates that annual fee and increases it to $0.60.

      The purpose of this bill is to establish this annual fee as a permanent funding source for the ongoing costs of issuing reflectorized plates. According to the Division of Motor Vehicles, continuation of the annual fee at the increased amount is necessary to meet projected budget needs for the reflectorized license plate program.

FISCAL IMPACT

      In a fiscal note prepared by the Office of Legislative Services (OLS), the Division of Motor Vehicles provided data to reveal this fee will generate $3.6 million annually. The FY97 annual appropriations act appropriated the receipts from this fee to the division for the preparation and issuance of reflectorized license plates.