ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5355

STATE OF NEW JERSEY

DATED:  DECEMBER 18, 2025

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 5355.

      As reported, this bill authorizes the Chief Administrator (chief administrator) of the New Jersey Motor Vehicle Commission (commission) to issue special license plates (plates) honoring both the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated under the Phi Beta Sigma and Zeta Phi Beta license plate program (program).

      The bill provides that the plates are to display appropriate words or a slogan and an emblem honoring both organizations.  The chief administrator is to select the design and color scheme of the plates in consultation with the International First Vice President of the Phi Beta Sigma Fraternity, Inc. and the International Vice President of the Zeta Phi Beta Sorority, Incorporated.

      In addition to all fees otherwise required by law for the registration of a motor vehicle, the bill imposes an application fee of $50 and an annual renewal fee of $10 for the plates.  After the deduction of the cost to implement the program, any additional fee collections are required to be deposited into the special non-lapsing fund known as the “Phi Beta Sigma and Zeta Phi Beta License Plate Fund” (fund).  To support the mission and programs of both organizations, the proceeds of the fund are to be annually appropriated to the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated.

      The chief administrator is required to annually certify the average cost of producing, issuing, renewing, and publicizing the availability of the plates.  If the average cost per plate exceeds $50 in two consecutive fiscal years, the chief administrator may discontinue the program.  The bill also requires the International First Vice President of the Phi Beta Sigma Fraternity, Inc. and the International Vice President of the Zeta Phi Beta Sorority, Incorporated to appoint one liaison to represent the two organizations in all communications with the commission regarding the program.

      The bill prohibits the use of either State or other public funds by the commission to cover the initial cost to implement the program.  The bill requires the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated - or an individual or entity designated by the organizations - to contribute non-public monies, not to exceed $25,000, to offset the initial costs to design, produce, issue, and publicize the plates and for computer programming changes which may be necessary to implement the program.  The bill authorizes the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated to receive funds from private sources to offset the initial costs of the program.

      The commission is not required to design, produce, issue, or publicize the availability of the plates or make any necessary programming changes, until: (1) the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated - or the individual or entity designated by the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated—has provided the commission with the money necessary to offset the initial costs incurred by the commission in establishing the program; and (2) the liaison of the Phi Beta Sigma Fraternity, Inc. and the Zeta Phi Beta Sorority, Incorporated has provided the commission with a minimum of 500 completed applications for the plates.

      The provisions of the bill will remain inoperative until the first day of the 13th month after the commission receives the appropriate number of applications and amount in fees required to offset the initial cost to implement the program.  The bill expires on the last day of the 12th month after the date of enactment if the required number of applications or amount in fees to offset the initial costs is not received.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that the bill will 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 Phi Beta Sigma and Zeta Phi Beta license plate.  However, the OLS notes that the commission is required to receive a minimum of 500 applications for the Phi Beta Sigma and Zeta Phi Beta license plate to implement the bill.

      The bill establishes the 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 at a cost of $6.88 per plate.

      The commission will receive a $50 application fee and a $10 annual renewal fee for the Phi Beta Sigma and Zeta Phi Beta license plate.  Initial fee collections will reimburse the commission for the expenses incurred in administering the program.  In addition, the commission is required to receive an initial payment of up to $25,000 and a minimum of 500 license plate applications, for a total collection of $50,000 to offset initial costs before license plate production begins.

      After the commission’s cost recovery, indeterminate excess application renewal fee collections will be appropriated to Phi Beta Sigma and Zeta Phi Beta.