LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 585
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: SEPTEMBER 4, 2024
SUMMARY
Synopsis: Authorizes creation of Mental Health Awareness license plates.
Type of Impact: Potential annual State revenue and expenditure increases.
Agencies Affected: New Jersey Motor Vehicle Commission, Department of Human
Services.
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 Mental Health Awareness license plate.
However, the OLS notes that the commission is required to receive a minimum of 500
applications for the license plate to implement the bill.
 The bill establishes the Mental Health Awareness 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
program as $46,423, which is largely attributable to computer system changes and an initial
print run of 900 license 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 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.
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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 After the commission’s cost recovery, indeterminate excess application renewal fee collections
will be deposited into to the Mental Health Awareness License Plate Fund, established by this
bill, to support mental health and addiction services within the State.
BILL DESCRIPTION
This bill requires the commission to issue special Mental Health Awareness license plates,
with proceeds dedicated to the Division of Mental Health and Addiction Services in the
Department of Human Services.
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 Mental Health Awareness
License Plate Fund established by this bill. The proceeds of the fund will be distributed to the
division to conduct mental health research and provide and support mental health programs and
services in the State.
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 Mental Health Awareness license plate program. The bill
requires an individual or entity designated by the division 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 division 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
license plates or make any necessary programming changes until: (1) an individual or entity
designated by the division 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) an
individual or entity designated by the division has provided the commission with a minimum of
500 completed applications for the license plate and the accompanying application fees.
The provisions of the bill will remain inoperative until the first day of the 13th month after the
date when the appropriate applications and fees required to offset the initial costs incurred by the
commission are provided to the commission. 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
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because it is unclear how many applications the commission will receive for the new specialty
license plates.
The bill establishes the Mental Health Awareness 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 program.
Before the commission begins designing and producing the license plates, an entity designated
by the division 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. The payment of up to $25,000 is required to come from private
sources, so the amount would not be a State or local cost.
Upon production of the license plates, the commission may still discontinue the program if the
production cost exceeds $50 per 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 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 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 would provide the
commission with $50,000 through the initial $25,000 payment and the first 500 license plate sales.
Additionally, the first 500 license 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
distributed to the division 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 on the commission for administrating this license plate program.
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Section: Authorities, Utilities, Transportation and Communications
Analyst: Michael D. Walker
Assistant 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.).