S2151

An Act concerning the New Jersey Transit Corporation and destructive competition against private entities providing certain public transportation services, and amending P.L.1979, c.150.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.1979, c.150 (C.27:25-2) is amended to read as follows:

2. The Legislature hereby finds and declares that:

a. The provision of efficient, coordinated, safe, and responsive public transportation is an essential public endeavor which promotes mobility, serves the needs of the transit dependent, fosters commerce, conserves limited energy resources, protects the environment, and promotes sound land use and the revitalization of our urban centers.

b. As a matter of public policy, it is the responsibility of the State to establish and provide for the operation and improvement of a coherent public transportation system in the most efficient and effective manner.

c. In the development of public transportation policy and planning, participation by county and municipal governments, transit riders, and concerned citizens should be encouraged.

d. In the provision of public transportation services, it is desirable to encourage to the maximum extent feasible the participation of private enterprise and to avoid destructive competition against any private entity that provides safe, adequate, and reliable public transportation services to the people of this State. Under circumstances where the private entity fails to provide safe, adequate, and reliable public transportation services, it is the responsibility of the State, and instrumentalities thereof, to supplement, compete against, or replace such services.

e. In furtherance of these findings and declarations, a public corporation shall be created with the necessary powers to accomplish the purposes and goals set forth in this section, including the power to acquire and operate public transportation assets.

(cf: P.L.1979, c.150, s.2)

2. Section 7 of P.L.1979, c.150 (C.27:25-7) is amended to read as follows:

7. a. The corporation or any public or private entity under contract to the corporation operating motorbus regular route [motorbus] service may provide motorbus charter service provided that the carrier complies with applicable State and Federal statutes, rules and regulations with regard to any such operations. Where the corporation acquires a public or private entity engaged in the provision of motorbus regular route service and that entity, at the time of acquisition, provides school bus services or is authorized to provide motorbus charter services, the corporation or any subsidiary thereof may continue to provide the services only to the extent that the acquired entity is providing or is authorized to provide the services.

b. The corporation shall promulgate rules and regulations regarding procedures for hearings before the board of claims of destructive competition arising from actions of the corporation. Such claims may be brought by private entities providing motorbus regular route service. Nothing in such rules and regulations shall restrict the corporation from supplementing, competing against, or replacing motorbus regular route service that is provided by any private entity, whether or not such entity is under contract to the corporation to provide motorbus regular route service, if the corporation determines that such entity has failed to provide safe, adequate, and reliable service.

(cf: P.L.1979, c.150, s.7)

3. This act shall take effect immediately.

STATEMENT

This bill amends the “New Jersey Public Transportation Act of 1979,” which established the New Jersey Transit Corporation. Current law states that it is desirable to encourage, to the maximum extent feasible, the participation of private enterprise and to avoid destructive competition in the provision of public transportation services. This bill would amend this provision to clarify that NJ Transit should only avoid destructive competition against a private entity if such entity provides safe, adequate, and reliable services. If a private entity fails to provide safe, adequate, and reliable public transportation services, then it is the responsibility of the State, or instrumentalities thereof, such as NJ Transit, to supplement, compete against, or replace such services.

This bill also amends the current law to clarify that no rule or regulation promulgated by NJ Transit shall restrict the corporation from supplementing, competing against, or replacing motorbus regular route service provided by a private entity, whether or not such entity is under contract to the corporation, if the corporation determines such entity has failed to provide safe, adequate, and reliable service.