LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 2748

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: SEPTEMBER 15, 2020

 

 

SUMMARY

 

Synopsis:

Establishes NJMVC Virtual Check-In Pilot Program.

Type of Impact:

One-year increase in State expenditures.

Agencies Affected:

New Jersey Motor Vehicle Commission; Office of Information Technology.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

 

State Cost Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that the New Jersey Motor Vehicle Commission (MVC) and Office of Information Technology (OIT) will incur indeterminate increased costs in the first year after the bill’s effective date to contract with an entity to create the mobile application for the virtual check-in system.  The MVC may also incur additional costs in updating the MVC website to accommodate the inclusion of the virtual queue system if the changes to the website cannot be completed in-house by OIT engineers.

 

·         The MVC may also incur additional costs for acquisition of tablets and kiosk display stands or for additional security personnel and personal protective equipment that may be required for staff as a part of the new check-in process established under the bill.

 

 

BILL DESCRIPTION

 

      This bill requires the MVC, in consultation with the OIT, to establish a one-year virtual check-in pilot program.

      Under the bill, the pilot program is required to allow a customer visiting an MVC agency to: (1) reserve a spot in the queue through the MVC’s website without being physically present at the agency; (2) advance in the queue without being physically present at the agency; and (3) check-in remotely from the parking lot of the agency by using a mobile application to claim the customer’s spot in the queue, or check-in in-person at the agency by using a kiosk, or tablet or by speaking with an MVC employee.

      After the customer checks in remotely or checks in in-person, the MVC is required to either notify the customer electronically when the customer may enter the MVC agency to complete the requested transaction, or send an MVC employee to the customer waiting outside of the agency to ensure that the customer has the required documentation to complete the requested transaction and to notify the customer when the customer may enter the agency to complete the requested transaction.

      Under the bill, the MVC, in consultation with the OIT, is required to contract with an entity to develop and maintain a mobile application that allows customers to check-in remotely when physically present in the parking lot of the agency.  The mobile application is to be available in English and Spanish.

      The Chief Administrator of the MVC is required to select at least ten MVC agencies to participate in the pilot program and is to decide whether to continue the pilot program within 150 days after the completion of the pilot program. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill will result in an indeterminate increase in State expenditures in the first year after the bill’s effective date.  It is unclear whether the State will incur additional costs after the conclusion of the pilot program because the chief administrator has discretion to decide whether to continue the program after completion. 

      Under the bill, the MVC, in conjunction with the OIT, is required to oversee the creation of two Internet-based systems that are designed to work in tandem: 1) the virtual queue system that allows a customer to reserve a spot and advance in the queue without being physically present at an MVC agency, which is to be established through the MVC website; and 2) the virtual check-in system that allows customers to check in remotely when physically present in the parking lot of the agency, which is to be established as a mobile application.  

      In response to the COVID-19 public health emergency, the MVC announced the introduction of a text notification system.  The text notification system would allow customers to reserve a spot in the queue at an MVC agency, leave the MVC agency if the customer chooses, and then receive a text notification from the MVC to the customer’s mobile phone instructing the customer when it is the customer’s time to return to the MVC agency for service.  Additionally, the MVC is notifying customers via the MVC website when each MVC agency has reached capacity and customers can no longer reserve spots for service at a specific MVC agency.  The MVC has not provided any information on the cost of the text notification system, the entity that it contracted with to create the text notification system, or the success of the text notification system and likelihood for continuation beyond the COVID-19 public health emergency.   

      The bill explicitly requires the MVC, in consultation with the OIT, to contract with an entity to develop and maintain the mobile application for the check-in system.  The bill does not explicitly require the MVC to contract with an entity to create the virtual queue system on the MVC’s Internet website.  The MVC can potentially expand upon the newly created text notification system by allowing customers to reserve spots online, instead of physically signing-up at the MVC agency; and by allowing a customer to also notify the MVC when the customer has arrived at the agency, instead of the customer simply receiving a text notification about when to return to the MVC agency for service.  The MVC will likely incur additional costs to make these updates to the text notification system.  However, without further details about the existing contract, it is unclear how much it will cost the MVC to renegotiate the contract with the entity that created the text notification system to create these additional features or how many of the additional functions can be completed by using existing State resources of the OIT computer engineers.      

      The bill also requires the MVC to permit customers who are unable to check-in remotely to check-in in-person at an MVC agency using a kiosk, tablet, or by speaking with an MVC employee.  The bill provides discretion to the chief administrator as to how the MVC will handle those customers who are unable to remotely check-in once at an MVC agency.  The MVC will likely incur additional costs in the acquisition of tablets and kiosk display stands.  As a result of the COVID-19 public health emergency, an additional factor that agencies must consider is the new risk that customer interaction imposes on staff.  The check-in option that poses the greatest risk to MVC employees is the option to physically send MVC employees to customer vehicles to check-in a customer who cannot do so remotely.  If the MVC considers this option, the MVC will likely incur additional costs for addition security personnel and personal protective equipment for employees as a part of the new check-in process.

 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Sheree D. Henderson

Senior Counsel

Approved:

Frank W. Haines III

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.).