Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Requires DOT to compensate local government entities for penalties, fines, and other damages resulting from shutdown of transportation projects funded by Transportation Trust Fund.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning local transportation aid and penalties and damages related to construction contracts and supplementing Title 27 of the Revised Statutes..
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Department of Transportation shall make payment on behalf of a local government entity, or provide full reimbursement to a local government entity, for any damages incurred by the local government entity and any contractual fines or penalties incurred by the local government entity pursuant to the provisions of any construction contract between a local government entity and a contractor funded, in whole or in part, from aid provided by the department through the aid programs established in section 25 of P.L.1984, c.73 (C.27:1B-25) and where the damages or contractual fines or penalties were directly caused by State government shutdown or by the failure of the State to provide the New Jersey Transportation Trust Fund Authority with the necessary funding to fulfill its financial obligations to local government entities through the aid programs established in section 25 of P.L.1984, c.73 (C.27:1B-25).
2. This act shall take effect immediately.
STATEMENT
This bill requires the Department of Transportation to compensate municipalities, counties, or other local government entities for damages or contractual fines or penalties related to transportation projects supported through the local aid program, if those damages, fines, or penalties were caused by a State government shutdown or the shutdown of Transportation Trust Fund projects due to a failure by the State to provide adequate funding to the Transportation Trust Fund Authority to meet its local aid program grant obligations.