SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4265

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 24, 2026

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 4265.

      As amended, this bill prohibits operating a motor vehicle with an obstructed license plate and the sale, distribution, transfer, purchase, receipt, or possession of merchandise that a person knows is designed or intended to obstruct a license plate.

      Merchandise that is designed or intended to obstruct a license plate includes retractable license plate holders, reflective spray, tinted or blackout license plate covers, and license plate flipping devices.  An “obstructed license plate” means a registration plate, temporary registration certificate, temporary registration plate, or registration plate insert issued by the commission that a person has purposely concealed or obfuscated with the intention of evading law enforcement or payment of tolls or other charges issued pursuant to Title 27 of the Revised Statutes, Highways, or Title 32 of the Revised Statutes, Interstate Port Authorities and Commissions.

      A person is subject to a fine not exceeding $500 for a first offense and a fine not exceeding $750 for a second or subsequent offense.  In addition, a person who operates a motor vehicle with an obstructed license plate three or more times is subject to two motor vehicle and two automobile insurance eligibility points.  If fined pursuant to the provisions of this bill, a person is not subject to the fines issued pursuant to R.S.39:3-33 for driving with an unintentionally obstructed license plate.

      This bill repeals section 1 of P.L.2015, c.49, which concerns merchandise that a person knows is designed or intended to obstruct a license plate.  This bill condenses the statutory provisions related to intentional obstruction of a license plate by repealing section 1 of the law and reimplementing the provision in a new section with the prohibition against operating a motor vehicle with an obstructed license plate.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  clarify that the bill only concerns license plates that are purposely concealed or obfuscated with the intention of evading law enforcement or payment of a toll or other charges; and

      (2)  make other clarifying and technical changes.

FISCAL IMPACT:

      The Office of Legislative Services anticipates that the bill may result in annual State and local revenue increases from the increased penalties established in the bill.

      The bill increases penalties for violators of the bill’s provisions from a fine not to exceed $100 for a driver having an obscured license plate and a fine not exceeding $500 for possession or transfer of merchandise which is designed or intended to be used to obscure a license plate to a fine not exceeding:  (1) $500 for the first offense; and (2) $750 for the second or subsequent offense.