LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 2394
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: MARCH 1, 2023
SUMMARY
Synopsis: Clarifies procedures for restoration of driver's license after suspension
or revocation; concerns waiver of penalties for operating vehicle while
license is suspended or revoked under certain circumstances.
Type of Impact: Annual State expenditure increases and revenue decreases; annual
local government expenditure and revenue decreases.
Agencies Affected: Motor Vehicle Commission, Judiciary, local governments.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
State Revenue Decrease Indeterminate
Local Expenditure Decrease Indeterminate
Local Revenue Decrease Indeterminate
 The Office of Legislative Services (OLS) finds that this bill will result in indeterminate annual
State expenditure increases from the new notification requirements imposed on the Motor
Vehicle Commission.
 The bill also may result in lower fine and fee revenues for local governments and the State,
respectively, as the bill prohibits the court from imposing any fine or additional period of
suspension or revocation for driving without a valid license or registration, provided that
certain conditions are met by the driver. These conditions include the completion of the
original period of suspension or revocation, the driver having no other suspensions or
revocations that are open or for which the restoration fee is not paid, the driver not having any
unsatisfied conditions ordered by the court for restoration of a license or registration, and the
driver submitting proof of payment of the restoration to the court.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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 Local governments also could experience a decrease in expenditures as fewer individuals will
be sentenced to county jails for driving without a valid license or registration as the bill
prohibits the court from imposing a term of imprisonment for these offenses, provided that the
aforementioned conditions are met. Furthermore, current law provides for longer terms of
imprisonment for certain violations involving the operation of a motor vehicle when a driver’s
license or registration is suspended or revoked. This bill makes the imposition of longer prison
terms discretionary in certain circumstances.
BILL DESCRIPTION
This bill requires certain drivers whose license or motor vehicle registration are suspended or
revoked to receive certain notices, and also concerns penalties for operating a vehicle while a
driver’s license or registration is suspended or revoked under certain circumstances. Upon
suspension or revocation of a driver’s license or registration for certain violations, the Motor
Vehicle Commission is required to provide written notification to the driver:
(1) of the period of suspension or revocation;
(2) that the period of suspension or revocation will remain in effect until the licensee pays
the restoration fee; and
(3) that the driver’s license will remain suspended or revoked until any additional conditions
ordered by the court for restoration of the driver’s license or registration are satisfied.
The bill further requires the commission to provide a licensee with proof of payment of the
restoration fee upon receipt of the payment and other pertinent information.
Current law provides that a person operating a vehicle while the person’s license or registration
is suspended or revoked may incur penalties including additional suspensions, fines, and terms of
imprisonment.
Under the bill, the courts would not be permitted to impose a term of imprisonment, fine, period
of suspension, or revocation for a violation if:
(1) the original period of suspension or revocation is complete;
(2) the person has no other outstanding suspensions or revocations for which the period of
suspension or revocation is incomplete or the restoration fee has not been paid;
(3) the driver does not have any unsatisfied conditions ordered by the court for restoration of
a license or registration; and
(4) the person provides proof of payment of the restoration fee.
Lastly, current law provides for longer terms of imprisonment for certain violations involving
the operation of a motor vehicle when a driver’s license or registration is suspended or revoked.
This bill makes the imposition of a longer term discretionary in certain circumstances.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
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OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill will result in indeterminate annual State expenditure increases from
the new notification requirements imposed on the Motor Vehicle Commission. The bill requires
the commission to provide written notice to drivers detailing certain information at the time their
license or registration is suspended or revoked, and the commission is to provide drivers with proof
of payment and other pertinent information when the restoration fee is paid by the licensee. The
OLS does not have further information on the associated costs or the number of such notices the
commission will need to provide annually.
Current law provides that drivers operating a vehicle while their license or registration is
suspended or revoked may incur penalties including additional suspensions, fines, and terms of
imprisonment. The bill prohibits the court from imposing any fine or additional period of
suspension or revocation for driving without a valid license or registration, provided that certain
conditions are met by the driver. These conditions include the completion of the original period
of suspension or revocation, the driver having no other suspensions or revocations that are open
or for which the restoration fee is not paid, the driver not having any unsatisfied conditions ordered
by the court for restoration of a license or registration, and the driver submitting proof of payment
of the restoration to the court. This may result in lower annual fine and restoration fee revenues
for local governments and the State, respectively.
Local governments could potentially experience a decrease in expenditures as fewer
individuals will be sentenced to county jails for driving without a valid license or registration as
the bill prohibits the court from imposing a term of imprisonment for such offenses, provided that
the aforementioned conditions are met. Furthermore, current law provides for longer terms of
imprisonment for certain violations involving the operation of a motor vehicle when a driver’s
license or registration is suspended or revoked. This bill makes the imposition of longer prison
terms discretionary in certain circumstances. The costs for housing inmates in a county jail vary,
but according to certain estimates, it could be more than $100 per day. For example, in 2021 when
Union County closed its county jail and moved its inmates to the Essex County jail, Union County
decided on a daily rate of $104 per person. The OLS is unable to estimate the amount of local cost
savings this bill will generate.
Section: Judiciary
Analyst: Anuja Pande Joshi
Senior 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.).


Statutes affected:
Introduced: 39:3-10