Bill > A2236

Introduced Session

This bill restructures the current system of special license plates which may be issued to New Jersey drivers in place of standard registration plates. Under existing law, there are three main types of special license plates which are issued by the New Jersey Motor Vehicle Commission (MVC): 1) various statutorily-established special license plates that are meant to honor or recognize individuals' affiliations with certain groups or organizations; 2) dedicated cause special license plates that support statutorily identified funds and causes; and 3) special organizational vehicle registration plates, which are approved by the Chief Administrator of the MVC (chief administrator) for certain nonprofit alumni, community, or service organizations upon application to the MVC. Specialty License Plates The bill maintains the current system of issuing special license plates to nonprofit organizations through an application to and approval of the MVC, but alters the existing system by: - changing the name of special organizational vehicle registration plates to specialty registration plates; - requiring a sponsoring organization that is seeking approval of a specialty registration plate to certify that it has at least 1,000 members in good standing in this State; - changing the fee that is required to be paid by a sponsoring organization to the MVC for specialty registration plates from no more than $75 per set to a fee to be determined by the chief administrator; - providing that specialty registration plates may only be approved for organizations, not including those consisting of military service veterans, that have the primary purpose of service to the community through specific programs that promote the improvement of public health, education, or welfare; - requiring that the sponsoring organization maintain nonprofit status for at least five consecutive years prior to applying for a specialty registration plate, provide proof of nonprofit status through the submission of Internal Revenue Service documentation, and maintain its headquarters in this State, unless it is a branch of an international, national, or regional organization; - requiring the sponsoring organization to have an active telephone number published in a telephone directory in this State; - prohibiting certain content on specialty registration plates, including, but not limited to, anything that may be considered offensive, promotes a product, or displays a political or religious message; and - allowing sponsoring organizations to solicit and collect donations from persons applying for specialty registration plates as a condition of issuance, and permitting continued solicitation and collection of voluntary donations from drivers displaying specialty registration plates. Discontinuance of Specialty Registration Plates Under existing law, the chief administrator has the authority to revoke previous approval of a special organization vehicle registration plate only if the organization no longer qualifies for a special plate under the law or has perpetrated fraud against the MVC in obtaining plates for its members. This bill expands this authority by permitting, but not requiring, the chief administrator to revoke the approval of, or prohibit new sales of, specialty registration plates, amateur radio call letter plates, and street rod registration plates, if: - the sponsoring organization fails to comply with provisions of State law governing the use of registration plates; - fewer than 500 sets of new or existing specialty registration plates are sold in the first full fiscal year of sales after the effective date of the bill; or - after a fiscal analysis, the MVC determines it is no longer cost effective to produce a specialty registration plate and offer it for sale. If approved by the chief administrator, discontinued specialty registration plates may continue to be displayed on properly registered vehicles. The sponsoring organization of a discontinued plate may solicit and collect voluntary donations, in accordance with any guidelines established by the chief administrator. If a sponsoring organization's approval is revoked or new sales of its plate are prohibited, the organization may request the chief administrator to approve the manufacture of novelty products using the remaining stock of the discontinued plate, subject to the approval of the chief administrator and the Commissioner of Corrections, who would be responsible for the manufacture of such novelty products. The products would be issued for a fee, to be determined by the chief administrator, to the sponsoring organization and the fees would be considered revenue of the MVC. Discontinuance of Certain Dedicated Cause Plates Under existing law, dedicated cause plates may only be discontinued through an act of the Legislature. Under the bill, the chief administrator may discontinue the production or issuance of a dedicated cause plate if: - less than $7,500 is derived from the annual renewal fee required under existing law for such a plate; and - after fiscal analysis, the MVC determines that it is no longer cost effective to produce the plate and offer it for sale. For any discontinued dedicated cause plate, the entity or organization which receives revenues generated through the issuance and renewal of the plate would be permitted to solicit and collect voluntary donations from those registrants who continue to display the discontinued plates. Reclassification of Dedicated Cause Plates Prior to the discontinuance of any dedicated cause plate, but not later than six month following the effective date, the bill directs any organization or entity which receives funds through the issuance and renewal of dedicated cause plates to apply to be approved by the MVC to become the sponsoring organization of the dedicated cause plate. From that point forward, the dedicated cause plate would be known as a specialty registration plate. The sponsoring organization of a plate would not be required to go through the approval process required for any specialty registration plate established after the effective date of the bill, but the sponsoring organization and specialty registration plate would be required to comply with all laws, rules, and regulations governing organizations and plates. Six months following the effective date of the bill, which serves as the deadline for the reclassification of the dedicated cause plates, the fee for all specialty registration plates, including dedicated cause plates and certain other statutorily-established plates, is to become $35. Six months following the effective date of the bill, all fees generated through the issuance of specialty registration plates, established both before and after the effective date, are to become revenues of the commission. At that time, the MVC is to cease to submit any revenue generated through the sale of dedicated cause plates to the funds or causes the plates support. However, the annual renewal fees required for dedicated cause plates would continue to be collected by the MVC and remitted to the funds or cause the plates support. Novelty License Plates The bill permits the chief administrator, upon the request of a sponsoring organization, to issue novelty license plates which are similar or identical to approved specialty registration plates, but which are not authorized for vehicle registration and may not be mounted on any motor vehicle. The sponsoring organization would have to request a minimum of 100 plates per order and may make such plates available for sale at a cost to be determined by the organization. The bill also permits the MVC to establish and sell commemorative novelty license plates as a way of generating revenue for the MVC. Short Run Graphic Plates The bill authorizes the chief administrator to establish short run graphic plates. As is the case with specialty registration plates, short run graphic plates would bear the name, initials, logotype, graphic, or identifying phrase of a group or organization. These plates would be limited to recognizing groups of less than 100 people who have been recognized or honored as members or individuals affiliated with a community or service organization that, in the chief administrator's determination, has made extraordinary sacrifices. These plates may only be established upon the written request of a member of the Legislature or certain officers of the Executive Branch, which includes, but is not limited to, the Governor or Lieutenant Governor. Other Provisions The bill changes the fee for transferring personalized, courtesy, special license, or specialty registration plates to another motor vehicle from $4.50 to an amount to be determined by the chief administrator. Finally, in order to prevent the potential abuse of certain special registrations that are issued by the chief administrator but are technically only valid for short durations of not more than 10 days, the bill repeals a statutory provision permitting special registrations and special registration plates for motor vehicles used in connection with a convention, conference, meeting, pageant, parade, celebration, or similar function.

AI Summary

Committee Categories

Yvonne Lopez (D)*, 

Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 01/09/2024)

Official Document