LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5114

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 23, 2026

 

 

SUMMARY

 

Synopsis:

Authorizes creation of Borinqueneers license plates.

Type of Impact:

Potential annual State revenue and expenditure increases.  

Agencies Affected:

New Jersey Motor Vehicle Commission, Department of Veterans Affairs. 

 

 

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 Borinqueneers 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 Borinqueneers 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 each license plate issued under the program.  Initial fee collections will reimburse the commission for the expenses it incurs in administering the program.  In addition, the commission will receive an initial payment of up to $25,000 and a minimum of 500 license plate applications, for a total maximum collection of $50,000, to offset initial costs before license plate production begins.

BILL DESCRIPTION

 

      This bill requires the New Jersey Motor Vehicle Commission to issue special Borinqueneers license plates, with proceeds appropriated annually to support programs benefiting veterans of the United States Army.

      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 license plates.  After deducting the costs to implement the license plate program, the fees collected will be deposited into the Borinqueneers License Plate Fund established by the bill.  The commission is required to certify annually 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 commission may discontinue the license plate program.  The bill prohibits the commission from using State or other public funds to cover the initial cost of implementing the license plate program.  Instead, the bill requires the Department of Veterans Affairs, 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 license plate 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 specialty license plates or make any necessary computer 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 license plate program; and (2) the department, or an individual or entity designated by the department, has provided the commission with a minimum of 500 completed applications for the specialty license plates and the accompanying application fees.

      The bill’s provisions will remain inoperative until the first day of the 13th month after the date when the commission receives the appropriate applications and fees required to offset its initial costs incurred while implementing the license plate program.  The bill will expire 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.

 

 

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 New Jersey Motor Vehicle Commission will receive for the specialty license plate.

      The bill establishes the Borinqueneers 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 bill’s 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 license plate program.

      Before the commission begins designing and producing the specialty license plates, the department, or an entity designated by the department, is required to provide up to $25,000 and pre-register 500 applicants for the specialty license plates.  This requirement ensures that the commission will be able to recover its initial costs of producing the specialty license plates.  If sufficient funds are not provided, the commission will not be required to produce the specialty license plates.  The payment of up to $25,000 is required to come from private sources, so the amount would not be a State cost.

      Upon production of the specialty license plates, the commission may discontinue the license plate program if the production cost exceeds $50 per specialty license plate in two consecutive fiscal years, 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 the 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 license plate program.

 

Motor Vehicle Commission: Computer Programming and Other 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 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 license plate program because the bill requires the commission to deposit all program fees into a special fund to be distributed once the commission has subtracted its costs of administering the license plate 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 on the commission for administering the license plate program.

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker Jr.

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.).