LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 359

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 26, 2024

 

 

SUMMARY

 

Synopsis:

Requires notice of motor vehicle safety recalls upon registration of motor vehicle; requires motor vehicle manufacturers to pay fee to MVC in certain circumstances.

Type of Impact:

Annual State expenditure increases. 

Agencies Affected:

New Jersey Motor Vehicle Commission. 

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

State Revenue Increase

Indeterminate

 

State Net Fiscal Impact

No Impact

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the New Jersey Motor Vehicle Commission will experience an indeterminate increase in annual expenditures to provide notice of open recalls applicable to motor vehicles that are being registered in the State.  These expenditure increases will be offset by equal annual revenue increases for the commission associated with the use of available grant money and fee collections from motor vehicle manufacturers.

 

·         The bill provides that the commission is not required to implement the bill’s provisions until it has received sufficient funding to cover its costs.  As a result, the bill will have no net fiscal impact to the State.

 

 

BILL DESCRIPTION

 

      This bill requires the Motor Vehicle Commission to provide written notice to the owner of a motor vehicle, at the time a vehicle is registered or upon mailing a motor vehicle’s registration renewal notice, of all open recalls applicable to the motor vehicle.  The recall notice is required to describe each open recall and state that each open recall may be repaired by certain motor vehicle dealers at no cost to the owner, except in certain circumstances. 

      The commission is required to apply for any funding to cover the costs to implement the bill, including federal funding.  Additionally, motor vehicle manufacturers that conduct business in the State are required to assist the commission in applying for any funding. 

      In the event the funding sources identified by the commission do not cover the costs to implement the provisions of the bill, the bill directs the commission to require each motor vehicle manufacturer that conducts business in the State to pay a fee to the commission, except that the total collections of the fee are not to exceed the actual costs incurred by the commission each year to implement the provisions of the bill.  Specifically, the bill requires the commission to determine the amount of the fee each year based on documentation of the actual costs incurred by the commission to implement the provisions of the bill, which documentation would be published annually on the commission’s website and provided directly to each motor vehicle manufacturer that conducts business in the State.  The bill clarifies that the commission is not required to implement the bill’s provisions until the commission has received sufficient funding to cover its costs.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the commission will experience an indeterminate increase in annual expenditures to provide notice of open recalls applicable to motor vehicles that are being registered in the State.  These expenditure increases will be offset by equal annual revenue increases for the commission associated with the use of available grant money and fee collections from motor vehicle manufacturers.

      The bill’s provisions are such that the commission is not required to implement them until it has received sufficient funding to cover its costs.  As a result, the bill will have no net fiscal impact to the State.  Notably, the bill requires motor vehicle manufacturers that conduct business in the State to assist the commission in applying for any funding, which may include federal grants.  In the event that these grants are insufficient to implement the bill, each motor vehicle manufacturer that conducts business in the State is required to pay an annual fee to the commission, except that the total collections are not to exceed the actual costs incurred by the commission to implement the provisions of the bill.  As a result, the bill will have no net fiscal impact to the State. 

 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker

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.).