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 |
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Fiscal Impact |
Year 1 |
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State Revenue Decrease |
$22.25 million |
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· 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: |
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.).