LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 3907

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JULY 31, 2025

 

 

SUMMARY

 

Synopsis:

Authorizes creation of "Woman Veteran" license plates with emblem displaying silhouette of woman veteran saluting set against American flag background.

Type of Impact:

Potential annual State revenue and expenditure increases. 

Agencies Affected:

New Jersey Motor Vehicle Commission. 

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Thereafter 

 

Potential State Expenditure Increase

$46,423

Indeterminate

 

Potential State Revenue Increase

$50,000

At least $5,000

 

 

 

 

·       The Office of Legislative Services (OLS) finds that the bill will potentially 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 new Woman Veteran license plate.  However, the OLS notes that the commission is required to receive a minimum of 500 applications for the new specialty plate to implement the bill.

 

·       The bill establishes the Woman Veteran 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.

 

·       The commission will receive a $50 application fee and a $10 annual renewal fee for the Woman Veteran 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 annually to groups and organizations that support women veterans. 

 

 

BILL DESCRIPTION

 

      This bill authorizes the commission to issue special "Woman Veteran" license plates with an emblem displaying a silhouette of a woman veteran saluting set against American flag background and the words “Woman Veteran,” with proceeds dedicated to groups and organizations that support women veterans. 

      In addition to the required motor vehicle registration fees, there is an application fee of $50 and an annual renewal fee of $10 for the Woman Veteran license plates.  After deducting the costs to implement the license plate program, the additional fees collected will be deposited into the Woman Veteran License Plate Fund established by this bill. 

      The commission is required to certify annually the average cost per license plate of producing, issuing, renewing, and publicizing the availability of the specialty license plates.  If the average cost per license plate exceeds $50 in two consecutive fiscal years, the commission may discontinue the Woman Veteran license plate program.  The bill also specifies that the Department of Military and Veterans’ Affairs will appoint a liaison to represent the department in all communications with the commission regarding the Woman Veteran license plates. 

      The bill prohibits the commission from using State or other public funds to cover the initial cost of implementing the Woman Veteran license plate program.  The bill requires the department or an individual or entity designated by the department 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 any computer programming necessary to implement the program.  The bill also permits the department 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 Woman Veteran license plates or make any necessary programming changes until: (1) the department or an individual or entity designated by the department has provided the commission with the money necessary to offset the initial costs incurred by the commission in establishing the Woman Veteran license plate program; and (2) the department liaison has provided the commission with a minimum of 500 completed applications for the Woman Veteran license plates and the accompanying application fees. 

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

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill will potentially 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 commission will receive for the new specialty license plate. 

      The bill establishes the Woman Veteran license plate program in such a manner that the commission may fully recover the expenses it incurs in administering the program.  If the number of license plate applications is below 500 in the first 12 months following the effective date, the bill will expire without the creation of the license plate program.  Conversely, if the number of applications is equal to or greater than 500, the commission will be able to recover its costs within the first year of the creation of the program. 

      Before the commission begins designing and producing the license plates, an entity designated by the department is required to provide up to $25,000 and pre-register 500 applicants for the license plates.  This requirement ensures that the commission will be able to recover its initial costs of producing the license plates.  If enough funds are not provided, the commission will not be required to produce the license plates. 

      Upon production of the license plates, the commission may still discontinue the program if the production cost exceeds $50 per license plate, which is the initial fee that the commission will collect for each plate.  This ensures that the commission will not experience any net costs in the administration of this license plate program.  The current cost-per-plate to the commission is $6.88, so it is unlikely that the commission will experience any net cost in the administration of the program. 

 

Motor Vehicle Commission: Computer Programming Costs for New Plate Design

Description of Work

Hours

Total

Scope of Work Specifications

85

$11,197.41

Development

145

$16,255.45

System Testing

89.5

$10,033.54

Production Implementation

24

$2,705.47

Total Computer Programming Costs

343.5

$40,191.87

 

 

Plate Costs

 

Sample Plates (10 plates @3.90 each)

 

$39.00

Initial Acquisition Plates (900 plates @ $6.88 each)

 

$6,192.00

Total Specialty License Plate Costs

 

$46,422.87

 

      In response to an FY 2025 OLS Discussion Point, the commission indicated that it faced an upfront cost of $46,423 to set up a license plate program, which includes computer changes and an initial print run of 900 license plates.  The requirements of the bill would provide the commission with $50,000 through the initial $25,000 payment and the first 500 license plate sales.  Additionally, the first 500 plate sales will generate $5,000 per year from the $10 annual renewal fee. 

      The bill prevents the commission from realizing net revenues in administering the program because the bill requires the commission to deposit all program fees into a special fund to be appropriated to groups and organizations that support women veterans once the commission has subtracted its costs of administering the program.  The combination of guaranteed fee collection for the commission and the limit on retaining any fees greater than its costs creates a scenario where there is likely to be no net fiscal impact to the commission for administrating this license plate program.

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.).