S3151

An Act concerning the Port Authority of New York and New Jersey, supplementing Title 32 of the Revised Statutes and amending R.S.32:1-128 and R.S.32:2-7.

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

1. (New section) Notwithstanding any other law to the contrary, a resolution or other action of the Port Authority of New York and New Jersey providing for an increase in tolls or new tolls, which is adopted on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be simultaneously transmitted, prior to taking effect, to the Legislature of the State of New York and the Legislature of the State of New Jersey for review and approval. The resolution or other action transmitted to each Legislature shall not take effect for 90 days following receipt by the presiding officers of the New York Senate, the New York State Assembly, the New Jersey Senate, and the New Jersey General Assembly of a copy of the resolution or a written copy of the other action.

If, within 90 days of receipt of a copy of the resolution or other action, the Legislature of either state shall disapprove the toll increase or new toll by adoption of a concurrent resolution to this effect by that Legislature, the toll increase or new toll shall not take effect. Any such concurrent resolution of disapproval shall set forth the reasons for disapproving the resolution or other action and the recommendations of that Legislature thereon. If the Legislatures of both states fail to act within the prescribed period of time, the resolution or other action shall be deemed approved.

2. R.S.32:1-128 is amended to read as follows:

32:1-128. The port authority is hereby authorized to make and enforce such rules and regulations and to establish, levy and collect such tolls and other charges in connection with any vehicular bridges and tunnels which it may now or hereafter be authorized to own, construct, operate or control (including the said Holland Tunnel and the said Midtown Hudson Tunnel), as it may deem necessary, proper or desirable, which said tolls and charges shall be at least sufficient to meet the expenses of the construction, operation and maintenance thereof, and to provide for the payment of, with interest upon, and the amortization and retirement of bonds or other securities or obligations issued or incurred for bridge or tunnel purposes. There shall be allocated to the cost of the construction, operation and maintenance of such bridges and tunnels, such proportion of the general expenses of the port authority as it shall deem properly chargeable thereto.

The moneys in the General Reserve Fund of the port authority (authorized by chapter 5 of the laws of New Jersey, 1931, as amended, and chapter 48 of the laws of New York, 1931, as amended may be pledged in whole or in part by the port authority as security for or applied by it to the repayment with interest of any moneys which it may raise upon bonds or other securities or obligations issued or incurred from time to time for any of the purposes of this act or secured in whole or in part by the pledge of the revenues of the port authority from any bridge or tunnel or both so issued or incurred and so secured; and the moneys in said General Reserve Fund may be applied by the port authority to the fulfillment of any other undertakings which it may assume to or for the benefit of the holders of any such bonds, securities or other obligations.

Subject to prior liens and pledges (and to the obligation of the port authority to apply revenues to the maintenance of its General Reserve Fund in the amount prescribed by the said statutes authorizing said fund), the revenues of the port authority from facilities established, constructed, acquired or effectuated through the issuance or sale of bonds of the port authority secured by a pledge of its General Reserve Fund may be pledged in whole or in part as security for or applied by it to the repayment with interest of any moneys which it may raise upon bonds or other securities or obligations issued or incurred from time to time for any of the purposes of this act or secured in whole or in part by the pledge of the revenues of the port authority from any bridge or tunnel or both so issued or incurred and so secured; and said revenues may be applied by the port authority to the fulfillment of any other undertakings which it may assume to or for the benefit of the holders of such bonds, securities or other obligations.

In the event that at any time the balance of moneys theretofore paid into the General Reserve Fund and not applied therefrom shall exceed an amount equal to 1/10 of the par value of all bonds legal for investment, as defined and limited in the said statutes authorizing said fund, issued by the port authority and currently outstanding at such time, by reason of the retirement of bonds or other securities or obligations issued or incurred from time to time for any of the purposes of this act or secured in whole or in part by the pledge of the revenues of the port authority from any bridge or tunnel or both so issued or incurred and so secured, the par value of which had theretofore been included in the computation of said 1/10, then the port authority may pledge or apply such excess for and only for the purposes for which it is authorized by the said statutes authorizing said fund to pledge the moneys in the General Reserve Fund, and such pledge may be made in advance of the time when such excess may occur.

No tolls or other charges authorized by this section shall hereafter be instituted or increased until after a public hearing thereon shall have been held, at which persons affected thereby shall be given adequate opportunity to be heard, and notice whereof shall be published by the port authority in a newspaper or newspapers of general circulation within the port district not less than 10 days prior to the convening of such hearing. Such notice shall state with particularity the charge or charges proposed to be instituted or increased and shall set forth in tabular form a comparison of the existing charges with the charges which would result from such institution or increase; and such tabulation shall also include a similar comparison of any decreases or abolitions of charges which are concomitantly proposed as part of a single proposal for restructuring of rates. Such notice shall also set forth an estimate of the overall increase or decrease in annual revenues to the port authority resulting from the proposed institution, increase, decrease or abolition of charges, or combination thereof forming items of a single proposal; the purpose or purposes to which any such overall increase is to be applied, and, if there be more than one such purpose, the specific allocation of such funds between or among them.

Following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and notwithstanding any other law to the contrary, the portion of any toll revenue raised by the port authority that derives from an increase in tolls or a new toll authorized pursuant to this section and approved in accordance with R.S.32:2-7 and section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall only be used for capital improvement debt service.

(cf: P.L.1977, c.108, s.1)

3. R.S.32:2-7 is amended to read as follows:

32:2-7. The Governor shall, within 10 days exclusive of Saturdays, Sundays or public holidays after the minutes shall have been so delivered, cause the same to be returned to the port authority either with or without his veto on any action therein recited as having been taken by any commissioner appointed from this State . If the Governor shall not return the minutes within said 10-day period, any action therein recited shall have force and effect according to the wording thereof ; except that a resolution or other action of the authority providing for an increase in tolls or for new tolls shall not take effect, notwithstanding that the Governor shall approve or fail to veto the resolution action within the 10-day period, unless that resolution or other action shall be approved by the Legislature in accordance with section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.1972, c.20, s.2)

4. This act shall take effect upon the enactment into law by the State of New York of legislation having an identical effect with this act; but if the State of New York shall already have enacted such legislation, this act shall take effect immediately.

STATEMENT

This bill requires the Port Authority of New York and New Jersey to transmit proposed toll increases or new tolls to the Legislatures of New York and New Jersey for review and approval. Either Legislature, by concurrent resolution, may disapprove the toll increase or new toll within 90 days of receipt of the transmission. If neither Legislature acts within the prescribed period of time, the proposed toll increase or new toll shall be deemed to be approved.

The bill also provides that any toll revenue raised by the port authority from an increase in tolls or a new toll shall only be used for capital improvement debt service of the authority.