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S149 2R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
SENATE, No. 149
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 16, 2026
SUMMARY
Synopsis:
Authorizes creation of �250th Anniversary Revolutionary
War� license plates.�
Type of Impact:
Potential annual State revenue and expenditure
increases.��
Agencies Affected:
New Jersey Motor Vehicle Commission, Department of
Community Affairs.�
Office of
Legislative Services Estimate
Fiscal Impact
Year 1�
Thereafter
Potential State Expenditure Increase
$46,423
Indeterminate
Potential State Revenue Increase
$50,000
At Least $5,000
�
The
Office of Legislative Services (OLS) finds that the bill will potentially
produce annual State revenue and expenditure increases that will largely offset
one another.� The OLS cannot quantify the annual increases because it is
unclear how many applications the New Jersey Motor Vehicle Commission will
receive for the 250th Anniversary Revolutionary War license plate.� However,
the OLS notes that the commission is required to receive a minimum of 500
applications for the new specialty plate to implement the bill.
�
The
bill establishes the 250th Anniversary Revolutionary War license plate program
in such a manner that the commission may fully recover the expenses incurred in
administering the program.� The commission has identified its initial cost of
designing and establishing a new license plate series as $46,423, which is
largely attributable to computer system changes and an initial print run of 900
plates.
�
The
commission will receive a $50 application fee and a $10 annual renewal fee for
each license plate issued under the program. �Initial fee collections will
reimburse the commission for the expenses it incurs in administering the
program.� In addition, the commission will receive an initial payment of up to
$25,000 and a minimum of 500 license plate applications, for a total maximum
collection of $50,000, to offset initial costs before license plate production
begins.
BILL DESCRIPTION
����� This bill requires the New Jersey Motor Vehicle
Commission, in consultation with the New Jersey Historic Trust, to issue
special 250th Anniversary Revolutionary War license plates, with proceeds
appropriated annually to support and preserve heritage tourism sites throughout
New Jersey.
����� In addition to the required motor vehicle registration
fees, there is an application fee of $50 and an annual renewal fee of $10 for
the license plates.� After deducting the costs to implement the license plate
program, the fees collected will be deposited into the 250th Anniversary
Revolutionary War License Plate Fund established by the bill.� The commission
is required to certify annually the average cost of producing, issuing,
renewing, and publicizing the availability of the specialty license plates.� If
the average cost per plate exceeds $50 in two consecutive fiscal years, the
commission may discontinue the license plate program.� The bill prohibits the
commission from using State or other public funds to cover the initial cost of
implementing the license plate program.� Instead, the bill requires the
historic trust, or an individual or entity designated by the historic trust, to
contribute non-public monies, not to exceed $25,000, to offset the initial
costs to design, produce, issue, and publicize the license plates and for any
computer programming necessary to implement the license plate program.� The
bill also permits the historic trust to receive funds from private sources to
offset the initial costs.
����� The commission is not required to design, produce,
issue, or publicize the availability of the specialty license plates or make
any necessary computer programming changes until:� (1) the historic trust, or
an individual or entity designated by the historic trust, has provided the
commission with the money necessary to offset the initial costs incurred by the
commission in establishing the license plate program; and (2) the historic
trust, or an individual or entity designated by the historic trust, has provided
the commission with a minimum of 500 completed applications for the specialty
license plates and the accompanying application fees.
����� The bill�s provisions will remain inoperative until
the first day of the 13th month after the date when the commission receives the
appropriate applications and fees required to offset its initial costs incurred
while implementing the license plate program.� The bill will expire on the last
day of the 12th month after the bill�s enactment if sufficient applications and
fees to offset the initial costs are not received.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.�
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the bill will potentially produce
annual State revenue and expenditure increases that will largely offset one
another.� The OLS cannot quantify the annual increases because it is unclear
how many applications the New Jersey Motor Vehicle Commission will receive for
the specialty license plate.
����� The bill establishes the 250th Anniversary
Revolutionary War license plate program in such a manner that the commission
may fully recover the expenses it incurs in administering the program.� If the
number of license plate applications is below 500 in the first 12 months
following the bill�s effective date, the bill will expire without the creation
of the license plate program.� Conversely, if the number of applications is
equal to or greater than 500, the commission will be able to recover its costs
within the first year of the license plate program.
����� Before the commission begins designing and producing
the specialty license plates, the historic trust, or an entity designated by
the historic trust, is required to provide up to $25,000 and pre-register 500
applicants for the specialty license plates.� This requirement ensures that the
commission will be able to recover its initial costs of producing the specialty
license plates.� If sufficient funds are not provided, the commission will not
be required to produce the specialty license plates.� The payment of up to
$25,000 is required to come from private sources, so the amount would not be a
State or local cost.
����� Upon production of the specialty license plates, the
commission may discontinue the license plate program if the production cost
exceeds $50 per specialty license plate in two consecutive fiscal years, which
is the initial fee that the commission will collect for each plate.� This
ensures that the commission will not experience any net costs in the
administration of the license plate program.� The current cost per plate to the
commission is $6.88, so it is unlikely that the commission will experience any
net cost in the administration of the license plate program.
Motor
Vehicle Commission: Computer Programming and Other Costs for New Plate Design
Description of Work
Hours
Total
Scope
of Work Specifications
85
$11,197.41
Development
145
$16,255.45
System
Testing
89.5
$10,033.54
Production
Implementation
24
$2,705.47
Total
Computer Programming Costs
343.5
$40,191.87
Plate
Costs
Sample
Plates (10 plates @3
.
90 each)
$39.00
Initial
Acquisition Plates (900 plates @ $6
.
88 each)
$6,192.00
Total
Specialty License Plate Costs
$46,422.87
����� In response to an FY 2025 OLS Discussion Point, the
commission indicated that it faced an upfront cost of $46,423 to set up a
license plate program, which includes computer changes and an initial print run
of 900 license plates.� The requirements of the bill provide the commission
with $50,000 through the initial $25,000 payment and the first 500 license
plate sales.� Additionally, the first 500 plate sales will generate $5,000 per
year from the $10 annual renewal fee.
����� The bill prevents the commission from realizing net
revenues in administering the license plate program because the bill requires
the commission to deposit all program fees into a special fund to be
distributed once the commission has subtracted its costs of administering the
license plate program.� The combination of guaranteed fee collection for the
commission and the limit on retaining any fees greater than its costs creates a
scenario where there is likely to be no net fiscal impact on the commission for
administering the license plate program.
Section:
Authorities, Utilities, Transportation and
Communications
Analyst:
Michael D. Walker Jr.
Associate Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
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 (C.52:13B-6 et seq.).