How is the time payment fee disbursed?

• A. Each quarter, the city must send 50 percent of the time payment fee to the State Comptroller. The other 50 percent is retained by the city. The city is required to use 10 percent of the fee ($2.50) for improving the efficiency of the administration of justice. The other 40 percent ($10) may be used by the city for any lawful purpose.
• B. All received by the city and no state remittance.
• C. All to the State Comptroller.
• D. The city must withhold the entire amount for administration.

Answer: (A)

The time payment fee is divided between the state and the city, with a fixed split and a targeted use of the city’s portion. Each quarter, half of the fee is sent to the State Comptroller, while the other half remains with the city. Of that retained half, a portion is earmarked for improving the efficiency of justice administration (10 percent of the total fee, which would be $2.50 if the total is $25), and the remaining portion (40 percent of the total fee, or $10 in this example) can be used by the city for any lawful purpose. This structure explains why the described distribution is correct.