License plate funds fraternity programs

Summary#

S-4839 would supplement New Jersey’s Title 39 to authorize special license plates honoring Alpha Phi Alpha Fraternity, Inc. Its stated goal is to support the fraternity’s mission and programs with money raised from plate fees. The bill has been introduced and referred to a Senate committee; it is not law.

  • The New Jersey Motor Vehicle Commission (MVC) would issue the plates after a proper application. The MVC administrator would choose their design and colors in consultation with the fraternity’s Eastern Region Vice-President.
  • Applicants would pay a $50 fee, in addition to regular registration fees. After the year of issue, plate holders would pay an additional $10 each year.
  • After reimbursing the MVC for specified costs, the remaining fees would go into a non-lapsing state fund and be appropriated annually to the fraternity for its mission and programs.
  • Before the MVC begins the program, a fraternity-designated individual or entity must provide private money for initial costs, up to $25,000, and the fraternity’s liaison must provide at least 500 completed applications with fees.
  • The MVC must publicize the plates on its website and enter a memorandum of agreement with the fraternity’s Eastern Region Vice-President. The Vice-President must appoint the sitting District Director as liaison.

What it means for you#

  • New Jersey motorists: You could apply for the plates for a vehicle owned or leased and registered in the state. The plates are optional; the bill does not require motorists to get them. You would pay the $50 application fee and, after the first year, the $10 annual plate fee, as well as regular registration fees.
  • Alpha Phi Alpha Fraternity, Inc.: The fraternity would receive the fund’s remaining money through annual appropriations, for its mission and programs. The bill does not set limits on which of those programs may receive support.
  • MVC: The agency would handle plate design, production, issuance, renewal and publicity, and would be reimbursed from plate fees for specified costs. It may stop issuing the plates if its certified average cost per plate exceeds $50 in two consecutive fiscal years.
  • State government: The bill creates a special fund in the Department of the Treasury, not a new independent agency.

Money#

The bill sets fees and reimbursement rules, but no cost estimate is provided; no publicly available information on expected sales or actual program costs is included in the supplied materials.

  • The $50 application fee and $10 annual fee are additional to regular vehicle registration fees.
  • Before the fund receives money, plate fees must reimburse the MVC for costs it reasonably and actually incurs for design, production, issuance, renewal and publicity. Computer-programming costs are included, with reimbursement for those costs capped at $150,000.
  • Private money must cover initial costs before the MVC starts the program. The contribution amount is set by the MVC administrator and cannot exceed $25,000. The bill bars public funds from paying the initial costs.
  • The MVC administrator must certify average costs per plate each year, subject to approval by the Joint Budget Oversight Committee or its successor. If the average exceeds $50 in two consecutive fiscal years, the administrator may discontinue the plates.

What is unclear#

  • The bill does not explain how the MVC would decide the amount of private money needed for initial costs if that amount is more than $25,000.
  • It does not set rules for how the fraternity must award or account for grants from the fund.
  • It does not specify how the MVC would calculate average cost per plate or what would happen to existing plate holders if issuance is discontinued.
  • The bill requires a memorandum of agreement but does not set its terms, or provide other details about oversight and reporting.
  • The plates cannot begin until both the private contribution and 500 completed applications are provided. The bill does not say what happens if those conditions are not met by the deadline except that the act expires.

Case for#

  • The bill appears intended to create a way for motorists who choose these plates to support the fraternity’s mission and programs.
  • Requiring private money and 500 applications before startup could limit the risk of launching the program without initial support or demonstrated interest.
  • Reimbursing the MVC before directing remaining fees to the fund could keep some operating costs from reducing general public funds.
  • The bill gives the fraternity a role in choosing the plate design and in communicating with the MVC.

Case against#

  • One concern is that the bill does not explain how the required initial costs will be covered if they exceed the $25,000 contribution limit.
  • Plate fees may produce little or no money for the fraternity if MVC costs take up much of the revenue.
  • The bill directs the fund’s money to the fraternity’s mission and programs without specifying how grants are chosen or reported.
  • The MVC may discontinue issuance if costs exceed the $50 application fee for two consecutive years, but the bill does not explain how that would affect people who already have the plates.