LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4401

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JULY 1, 2022

 

 

SUMMARY

 

Synopsis:

Provides one-year waiver of certain MVC fees imposed for driver’s licenses and non-driver identification cards.

Type of Impact:

One-year decrease in State revenue.

Agencies Affected:

New Jersey Motor Vehicle Commission.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1

 

State Revenue Decrease

$22.25 million

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill would result in a one-year decrease in revenues collected by the New Jersey Motor Vehicle Commission (MVC) of approximately $22.3 million.

 

·         As part of the proposed FY 2023 Budget, the Governor recommended a one-year waiver of the imposition of renewal fees for driver’s licenses and non-driver identification cards.  This bill would effectuate the Governor’s recommendation.

 

·         According to the Governor’s proposed FY 2023 Budget, the one-year waiver of renewal fees for driver’s licenses and non-driver identification cards is expected to decrease State revenues by approximately $22.3 million.  The OLS notes that the Governor also recommended an additional FY 2023 appropriation of $22.3 million to the MVC to offset the revenue losses that are expected to result from this proposal.

 

 

BILL DESCRIPTION

 

      This bill provides for a one-year waiver of certain fees imposed by the MVC related to driver’s licenses and non-driver identification cards.  Specifically, the bill provides that during the period beginning October 1, 2022 and ending September 30, 2023, the MVC would not impose fees for: (1) the renewal of a non-driver identification card; (2) the renewal of a commercial driver license; (3) the renewal of a motorcycle license or endorsement; (4) the renewal of a basic driver’s license; and (5) the digitized photographs required for the issuance and renewal of each license or non-driver identification card.  During this period, the fee imposed for upgrading a standard basic driver’s license or non-driver identification card to a REAL ID basic driver’s license or non-driver identification card would be reduced to $11.  However, the bill would not reduce the fees imposed for the initial issuance of a REAL ID basic driver’s license or non-driver identification card.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill would result in a one-year decrease in revenues collected by the MVC of approximately $22.3 million. 

      Specifically, these revenue losses would result from: (1) the temporary suspension of the renewal fee for non-driver identification cards, commercial driver licenses, motorcycle licenses or endorsements, basic driver’s licenses, and the digitized photographs required for each license; and (2) the temporary reduction of the fee imposed on persons who upgrade a standard basic driver’s license or non-driver identification card to a REAL ID basic driver’s license or non-driver identification.  The provisions of the bill would remain in effect during the one-year period beginning October 1, 2022 and ending September 30, 2023.

      As part of the proposed FY 2023 Budget, the Governor recommended a one-year waiver of the imposition of renewal fees for driver’s licenses and non-driver identification cards.  The OLS notes that this bill would effectuate the Governor’s recommendation.  Importantly, the Governor’s FY 2023 Budget indicates that this proposal is expected to result in a one-time decrease in State revenues of approximately $22.3 million.  As a result, the Governor also recommended an additional FY 2023 appropriation of $22.3 million to the MVC to offset the revenue losses that are expected to result from this proposal.

 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Joseph A. Pezzulo

Senior Research 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.).