ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5758

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 5758.

      As reported, this bill authorizes the Chief Administrator (chief administrator) of the New Jersey Motor Vehicle Commission (commission) to issue special Lambda Theta Alpha Latin Sorority, Inc. (Lambda Theta Alpha) license plates.

      The bill provides that the design of the Lambda Theta Alpha license plate is to display appropriate words or a slogan and an emblem honoring Lambda Theta Alpha.  The chief administrator, in consultation with the Northeast Regional Board of Lambda Theta Alpha, is to select the design and color scheme of the Lambda Theta Alpha license plates.

      In addition to all fees otherwise required by law for the registration of a motor vehicle, there is an application fee of $50 and an annual renewal fee of $10 for the Lambda Theta Alpha license plates.  After deducting the costs to implement the plates, the additional fees are to be deposited into a special non-lapsing fund known as the “Lambda Theta Alpha Latin Sorority, Inc. License Plate Fund.”  The proceeds of the fund are to be annually appropriated to Lambda Theta Alpha to be used to support the organization’s mission and programs.

      The chief administrator is required to annually certify 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 chief administrator may discontinue the Lambda Theta Alpha license plate program.  The bill also requires the Northeast Regional Board of Lambda Theta Alpha to appoint a liaison to represent the Northeast Regional Board of Lambda Theta Alpha in all communications with the commission regarding the Lambda Theta Alpha license plates.

      The bill provides that State or other public funds are not to be used by the commission for the initial cost to implement the Lambda Theta Alpha license plate program.  The bill requires the Northeast Regional Board of Lambda Theta Alpha, or an individual or entity designated by the Northeast Regional Board of Lambda Theta Alpha, 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 computer programming changes that may be necessary to implement the program.  The bill authorizes the Northeast Regional Board of Lambda Theta Alpha 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 Lambda Theta Alpha license plates until:  (1) the Northeast Regional Board of Lambda Theta Alpha, or the individual or entity designated by the Northeast Regional Board of Lambda Theta Alpha, has provided the commission with the money necessary to offset the initial costs incurred by the commission in establishing the Lambda Theta Alpha license plate program; and (2) the Northeast Regional Board of Lambda Theta Alpha liaison has provided the commission with a minimum of 500 completed applications for the Lambda Theta Alpha license plates. 

      The provisions of the bill will remain inoperative until the first day of the seventh month after the appropriate applications and fees required to offset the initial costs incurred by the commission are provided to the commission.  The bill expires on the last day of the 12th month if sufficient applications and fees to offset the initial costs are not received by that date.

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 Lambda Theta Alpha Latin Sorority, Inc. license plate.  However, the OLS notes that the commission is required to receive a minimum of 500 applications for the Lambda Theta Alpha 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 Lambda Theta Alpha 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 Lambda Theta Alpha.