A2704

An Act consolidating the State’s transportation entities within the New Jersey Department of Transportation, supplementing Title 27 of the Revised Statutes, and revising various parts of the statutory law.

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

1. (New Section) The Legislature finds and declares that the State’s transportation system, as one of the most extensive in the United States, is of vital importance to its residents and the nation. Due to its size and significance, New Jersey’s transportation system requires a greater level of government oversight to ensure that all persons and industries served by the State’s transportation system receive high-quality and safe transportation service. By consolidating several of the State’s major transportation entities within the Department of Transportation, New Jersey can improve its transportation planning and facilitate more efficient operations. Moreover, it allows the State to make critical infrastructure improvements to meet the needs of those individuals and entities dependent on our State’s transportation system with greater speed and flexibility.

2. (New section) a. As used in this section:

“Department” means the New Jersey Department of Transportation.

“Transfer Date” means the date on which the department has certified to the Governor and each presiding officer of the Legislature, pursuant to subsection d. of this section, that the department has assumed the powers, duties, assets, and responsibilities of each transportation entity.

“Transportation entity” means the New Jersey Turnpike Authority established pursuant to section 3 of P.L.1948, c.454 (C.27:23-3); the South Jersey Transportation Authority established pursuant to section 4 of P.L.1991, c.252 (C.27:25A-4); or the New Jersey Transit Corporation established pursuant to P.L.1979, c.150 (C.27:25-1 et seq.).

b. Until the Transfer Date, the Department of Transportation shall not exercise any powers, rights, or duties conferred by P.L. , c. (C. ) (pending before the Legislature as this bill), or by any other law, in any way that interferes with the powers, rights, and duties of the New Jersey Turnpike Authority, the South Jersey Transportation Authority, or the New Jersey Transit Corporation. Before the Transfer Date, the department shall not exercise any powers of the transportation entities. The department and the transportation entities shall cooperate with each other so that the Transfer Date shall occur as soon as practicable after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). The department and the transportation entities shall make available information concerning their property and assets, outstanding bonds and other debts, obligations, liabilities, contracts, operations, and finances as the department may require to retire any outstanding bonds, notes, or other obligations of the transportation entities and efficiently exercise all powers, rights, and duties conferred upon the department by P.L. , c. (C. ) (pending before the Legislature as this bill).

c. On the Transfer Date:

(1) each transportation entity shall be consolidated within the department, and the department shall assume all powers, rights, assets, and duties of the transportation entities, to the extent provided by P.L. , c. (C. ) (pending before the Legislature as this bill), and such powers shall then and thereafter be vested in and exercised by the department;

(2) the terms of office of the members of each transportation entity shall terminate, the officers having custody of the funds of a transportation entity shall deliver those funds into the custody of the chief financial officer of the department, the property and assets of each transportation entity shall, without further act or deed, become the property and assets of the department, and each transportation entity shall be consolidated within the department;

(3) the officers and employees of each transportation entity shall be transferred to the department and become employees of the department until determined otherwise by the department. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to deprive any officers or employees of a transportation entity of their rights, privileges, obligations, or status with respect to any pension or retirement system. The employees shall retain all their rights and benefits under existing collective negotiation agreements or contracts until new or revised agreements or contracts are agreed to. All existing employee representatives shall be retained to act on behalf of those employees until the employees shall, pursuant to law, elect to change those representatives. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall affect the civil service status, if any, of those officers or employees;

(4) all debts, liabilities, and obligations incurred, and all contracts entered into, by a transportation entity prior to the Transfer Date, except to the extent specifically provided or established to the contrary in P.L. , c. (C. ) (pending before the Legislature as this bill), are imposed upon the department, and all creditors of a transportation entity and persons having claims against or contracts with a transportation entity of any kind or character may enforce those debts, claims, and contracts against the department as successor to a transportation entity in the same manner as they might have had against a transportation entity, and the rights and remedies of those holders, creditors, and persons having claims against or contracts with a transportation entity shall not be limited or restricted in any manner by P.L. , c. (C. ) (pending before the Legislature as this bill);

(5) in continuing the functions, contracts, obligations, and duties of each transportation entity, the department may act in its own name, or in the name of a transportation entity, as may be convenient or advisable under the circumstances from time to time;

(6) the assets of a transportation entity shall not be used by the department for non-transportation related purposes;

(7) the department shall not be authorized to issue new bonds, notes, or other obligations in its own name or in the name of any transportation entity under the powers transferred from each transportation entity to the department pursuant to this section;

(8) notwithstanding any law, rule, or regulation to the contrary, a transportation entity shall no longer be authorized to issue new bonds, notes, or other obligations;

(9) any references to the New Jersey Turnpike Authority, the South Jersey Transportation Authority, or the New Jersey Transit Corporation in any other law, rule, or regulation shall be deemed to refer and apply to the department;

(10) the rules and regulations of each transportation entity shall continue in effect as the rules and regulations of the department until amended, supplemented, or rescinded by the department in accordance with law. Notwithstanding the requirements of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the department may adopt rules and regulations, after notice and an opportunity for public comment, amending, supplementing, modifying, or repealing the regulations of the department or any transportation entity. Such rules and regulations shall be effective immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months from the Transfer Date and may thereafter be amended, adopted, or readopted in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.). Rules and regulations of any transportation entity that are inconsistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), or with the provisions of rules and regulations of the department, shall be deemed void if so judged by the department acting pursuant to the provisions of this paragraph;

(11) the operations of each transportation entity shall continue as operations of the department until altered by the department as may be permitted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill); and

(12) the powers vested in the department by P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed as being in addition to and not in diminution of the powers vested by law in each transportation entity prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) to the extent not otherwise altered or provided for in P.L. , c. (C. ) (pending before the Legislature as this bill).

d. As soon as practicable after the Transfer Date, the department shall notify the Governor and the presiding officer of each house of the Legislature:

(1) that the transfer has occurred;

(2) of the date of the transfer; and

(3) of any other information concerning the transfer that the department deems appropriate.

e. On and after the Transfer Date, no officer or employee of the department shall be granted permanent tenure at the department.

3. Section 3 of P.L.1948, c.454 (C.27:23-3) is amended to read as follows:

3. [New Jersey Turnpike Authority. (A)] a. There is hereby established in the [State] Department of Transportation a body corporate and politic, with corporate succession, to be known as the "New Jersey Turnpike Authority." The authority is hereby constituted an instrumentality exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by this act in the acquisition, construction, operation, improvement, management, repair and maintenance of transportation projects or any part thereof shall be deemed and held to be an essential governmental function of the State.

[(B)] b. The New Jersey Turnpike Authority shall consist of eight members, as follows: the Commissioner of Transportation, ex officio, or his designee; five members appointed by the Governor, with the advice and consent of the Senate, and two members appointed by the Governor, one upon recommendation of the President of the Senate and the other upon recommendation of the Speaker of the General Assembly, each of whom shall be a resident of the State and shall have been a qualified elector therein for a period of at least one year next preceding his appointment. Each appointed member of the authority shall serve for a term of five years and until his successor is appointed and has qualified; except that of the first appointments hereunder, one shall be for a term of two years and one for a term of three years, and they shall serve until their respective successors are appointed and have qualified. The term of each of the first appointees hereunder shall be designated by the Governor. Each appointed member of the authority may be removed from office by the Governor, for cause, after a public hearing. Each member of the authority before entering upon his duties shall take and subscribe an oath to perform the duties of his office faithfully, impartially and justly to the best of his ability. A record of such oaths shall be filed in the office of the Secretary of State. Any vacancies in the appointed membership of the authority occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only.

[(C)] c. The Governor shall designate one of the members of the authority as chairman thereof and another member as vice chairman thereof. The chairman and vice chairman of the authority so designated shall serve as such at the pleasure of the Governor and until their respective successors have been designated. The authority shall elect a secretary and a treasurer who need not be members. At the option of the authority, the same person may be elected to serve both as secretary and treasurer. Five members of the authority shall constitute a quorum and the vote of five members shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.

[(D)] d. Each member of the authority shall execute a surety bond in the penal sum of [$25,000.00] $25,000 and the treasurer shall execute a surety bond in the penal sum of [$50,000.00] $50,000, each such surety bond to be conditioned upon the faithful performance of the duties of the office of such member or treasurer, as the case may be, to be executed by a surety company authorized to transact business in the State of New Jersey as surety and to be approved by the Attorney General and filed in the office of the Secretary of State.

[(E)] e. The members of the authority shall not receive compensation for their services as members of the authority. Each member shall be reimbursed by the authority for [his] the actual expenses necessarily incurred in the performance of [his] the member’s duties. Notwithstanding the provisions of any other law, no member shall be deemed to have forfeited, nor shall the member forfeit, the member's office or employment or any benefits or emoluments thereof by reason of the member's acceptance of the office of ex officio member of the authority or the member's services therein.

[(F)] f. No resolution or other action of the authority providing for the issuance of bonds, refunding bonds or other obligations or for the fixing, revising or adjusting of tolls for the use of any transportation project or parts or sections thereof shall be adopted or otherwise made effective by the authority without the prior approval in writing of the Governor and at least one of the following: the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury. A true copy of the minutes of every meeting of the authority shall be forthwith delivered by and under the certification of the secretary thereof, to the Governor. No action taken at such meeting by the authority shall have force or effect until 10 days, exclusive of Saturdays, Sundays and public holidays, after [such] the copy of the minutes shall have been so delivered. If, in [said] the 10-day period, the Governor returns [such] the copy of the minutes with veto of any action taken by the authority or any member thereof at [such] the meeting, [such] the action shall be null and of no effect. The Governor may approve all or part of the action taken at such meeting prior to said 10-day period. The powers conferred in this subsection [(F)] upon the Governor, the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury shall be exercised with due regard for the rights of the holders of bonds of the authority at any time outstanding, and nothing in, or done pursuant to, this subsection [(F)] shall in any way limit, restrict or alter the obligation or powers of the authority or any representative or officer of the authority to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into by or on behalf of the authority with respect to its bonds or for the benefit, protection, or security of the holders thereof.

[(G)] g. The ex officio member of the authority may designate an employee of [his] the member’s department to represent [him] the member at meetings of the authority. A designee may lawfully vote and otherwise act on behalf of the member for whom [he constitutes] the designee is constituted. The designations shall be in writing and delivered to the authority and shall be effective until revoked or amended by a writing delivered to the authority.

h. Upon the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), all powers and duties of the authority are transferred to the Department of Transportation.

(cf: P.L.2003, c.79, s.6)

4. Section 4 of P.L.1979, c.150 (C.27:25-4) is amended to read as follows:

4. a. There is hereby established in the Executive Branch of the State Government the New Jersey Transit Corporation, a body corporate and politic with corporate succession. [For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the corporation is hereby allocated within the Department of Transportation, but, notwithstanding that allocation, the corporation shall be independent of any supervision or control by the department or by any body or officer thereof. The corporation is hereby constituted as an instrumentality of the State exercising public and essential governmental functions, and the exercise by the corporation of the powers conferred by this act shall be deemed and held to be an essential governmental function of the State.]

b. The corporation shall be governed by a board which shall consist of 13 members.

[11] Eleven of the members shall be voting members and shall consist of: the Commissioner of Transportation and the State Treasurer, who shall be members ex officio, another member of the Executive Branch to be selected by the Governor who shall also serve ex officio, and eight public members who shall be appointed by the Governor as follows:

two members, with the advice and consent of the Senate, who shall each have experience as either a regular corporation motorbus regular route service rider or regular corporation rail passenger service or light rail service rider or have a professional background in passenger rail service, freight rail management, transportation capital planning, transportation and public transportation capital construction, federal transportation policy, State transportation policy, real estate investment or development, human resources management, or transportation capital finance, one upon the recommendation of the New Jersey members of the Delaware Valley Regional Planning Commission and one upon the recommendation of the North Jersey Transportation Planning Authority;

two members, with the advice and consent of the Senate, one who shall have experience as a regular corporation motorbus regular route service rider and one who shall have experience as a regular corporation rail passenger service or light rail service rider; and

four members, who shall each have a professional background in passenger rail service, freight rail management, transportation capital planning, transportation and public transportation capital construction, federal transportation policy, State transportation policy, real estate investment or development, human resources management, communication, or transportation capital finance, one appointed by the Governor upon the recommendation of the President of the Senate, one appointed by the Governor upon the recommendation of the Speaker of the General Assembly, and two appointed by the Governor, with the advice and consent of the Senate.

All public members, except for those appointed upon the recommendation of the President of the Senate and the Speaker of the General Assembly, shall be appointed by the Governor with the advice and consent of the Senate, and all public members shall serve for [four year] four-year staggered terms and until their successors are appointed and qualified. No more than three of the six public members appointed by the Governor with the advice and consent of the Senate shall be members of the same political party. Each public member may be removed from office by the Governor for cause. A vacancy in the membership of the board occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only. The board shall annually designate a vice chairperson and secretary. The secretary need not be a member.

There shall be two non-voting members of the board, who shall not be considered in determining a quorum. The non-voting members shall be appointed as follows: one appointed by the Governor upon the recommendation of the labor organization representing the plurality of the employees of the corporation involved in rail operations and one appointed by the Governor upon the recommendation of the labor organization representing the plurality of the employees of the corporation involved in motorbus operations. Each non-voting member appointed upon recommendation of a labor organization shall be appointed for a term of four years [, provided, however] . However, [that] if at any time during the term of appointment the non-voting member ceases to be affiliated with the labor organization representing the plurality of the relevant segment of employees of the corporation, then [such] the labor organization may, thereupon or at any time thereafter during such term, recommend a new member to the Governor for appointment to serve the remainder of the term. If the local bargaining unit decertifies its existing union affiliation and certifies a new union, the union which represents the plurality of the relevant segment of employees may recommend a new member to the Governor for appointment to serve the remainder of the term. The chairman of the board may, at the chairman's discretion, exclude such non-voting member from attending any portion of a board meeting or any other meeting held for the purpose of discussing negotiations with labor organizations, pending litigation involving the labor organization, the investigation, evaluation, or discipline of an employee of the corporation, or matters concerning private entities engaged in the provision of motorbus regular route service, paratransit service, or motorbus charter service that would otherwise not be considered public information. Each non-voting member appointed upon recommendation of a labor organization may be removed by the Governor for cause.

For the purposes of this subsection:

"experience as a regular corporation motorbus regular route service rider" includes any rider who is a regular corporation motorbus regular route service rider at the time of the member's appointment or reappointment and any rider who has been a regular corporation motorbus regular route service rider in three of the five years preceding the member's appointment or reappointment.

"experience as a regular corporation rail passenger service or light rail service rider" includes any rider who is a regular corporation rail passenger service or light rail service rider at the time of the member's appointment or reappointment and any rider who has been a regular corporation rail passenger service or light rail service rider in three of the five years preceding the member's appointment or reappointment.

c. Board members other than those serving ex officio shall serve without compensation, but members shall be reimbursed for actual expenses necessarily incurred in the performance of their duties.

d. The Commissioner of Transportation shall serve as chairperson of the board, shall chair board meetings, and shall have responsibility for the scheduling and convening of all meetings of the board. In the absence of the chairperson, the vice chairperson shall chair the board meeting. Each ex officio member of the board may designate two employees of the ex officio member's department or agency, one of whom may represent the ex officio member at meetings of the board. A designee may lawfully vote and otherwise act on behalf of the member for whom the person constitutes the designee. Any such designation shall be in writing delivered to the board and shall continue in effect until revoked or amended by writing delivered to the board.

e. The powers of the corporation shall be vested in the voting members of the board thereof and a majority of the appointed members of the board who are authorized to vote shall constitute a quorum at any meeting thereof. Actions may be taken and motions and resolutions adopted by the board at any meeting thereof by the affirmative vote of a majority of the appointed members who are authorized to vote. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.

f. A true copy of the minutes of every meeting of the board shall be delivered forthwith, by and under the certification of the secretary thereof, to the Governor. No action taken at [such] a meeting by the board shall have force or effect until approved by the Governor or until 10 days after [such] the copy of the minutes shall have been delivered. If, in [said] the 10-day period, the Governor returns [such] the copy of the minutes with veto of any action taken by the board or any member thereof at [such] the meeting, [such] the action shall be null and of no effect. The Governor may approve all or part of the action taken at [such] the meeting prior to the expiration of the [said] 10-day period.

g. (1) The board meetings shall be subject to the provisions of the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.), except that any agenda related to a meeting of the corporation's board of directors shall be provided to the public at least five calendar days prior to the meeting and except that one-half of the total number of meetings of the board shall be held in the evening after 6:00 p.m. Agendas may be revised up to 48 hours prior to the meeting in the case of emergencies requiring immediate action. Each notice of a board meeting and each agenda for a board meeting shall be published on the corporation's website. Board meetings shall be viewable on the corporation's website in real time and shall be archived and made available to the public for subsequent viewing on the corporation's website. Meeting minutes shall be archived and published on the corporation's website.

(2) The board shall hold a minimum of 10 public board meetings per year. Public hearings held pursuant to subsection d. of section 8 of P.L.1979, c.150 (C.27:25-8) shall not be considered public board meetings for the purposes of this subsection.

h. Upon the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), all powers and duties of the corporation are transferred to the Department of Transportation.

(cf: P.L.2018, c.162, s.1)

5. Section 4 of P.L.1991, c.252 (C.27:25A-4) is amended to read as follows:

4. a. There is established in the Department of Transportation a public body corporate and politic, with corporate succession, to be known as the "South Jersey Transportation Authority," as the successor to the New Jersey Expressway Authority and the Atlantic County Transportation Authority. The authority, which shall be a continuance of the corporate existence of the New Jersey Expressway Authority and the Atlantic County Transportation Authority, shall constitute an instrumentality of the State exercising public and essential governmental functions to provide for the public safety, convenience, benefit and welfare, and the exercise by the authority of the powers conferred by this act shall be deemed and held to be an essential governmental function of the State. [For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the authority is allocated within the Department of Transportation, but notwithstanding that allocation, the authority shall be independent of any supervision or control by the department or any board or officer thereof, except as may be provided in this act.]

b. Upon the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), all powers and duties of the authority are transferred to the Department of Transportation.

(cf: P.L.1991, c.252, s.4)

6. Section 43 of P.L.1991, c.252 (C.27:1A-5.6) is amended to read as follows:

43. a. Notwithstanding any other provision of law to the contrary, the Department of Transportation and the commissioner thereof are authorized to acquire lands and improvements for airport purposes, in Egg Harbor, Hamilton and Galloway Townships, and the county of Atlantic [, and to convey the same to the South Jersey Transportation Authority for a nominal or other consideration and under other terms and conditions as the commissioner deems appropriate].

b. The department and the commissioner thereof are authorized to expend funds specifically appropriated by P.L.1991, c.185 from the revenues and other funds of the Transportation Trust Fund Authority for the acquisition authorized under subsection a. of this section and also for the planning, engineering, construction, reconstruction, repair, and rehabilitation of the transportation project known as the Atlantic City International Airport and related facilities and activities, or a portion thereof, as authorized by section 24 of this act.

(cf: P.L.1991, c.252, s.43)

7. Section 2 of P.L.1973, c.126 (C.27:1A-65) is amended to read as follows:

2. For the purposes of P.L.1973, c.126 (C.27:1A-64 et seq.), unless the context clearly indicates otherwise:

"Access Link service" means the paratransit service implemented by the [New Jersey Transit Corporation] department for the purposes of complying with the "Americans with Disabilities Act of 1990," Pub.L.101-336 (42 U.S.C. s.12101 et seq.).

"Carrier" means any individual, copartnership, association, corporation, joint stock company, public agency, trustee, or receiver operating motor buses or rail passenger service on established routes within this State or between points in this State and points in adjacent states.

"Commissioner" means the Commissioner of Transportation; [provided,] however, [that] the commissioner may delegate any of the commissioner's powers or duties under P.L.1973, c.126 (C.27:1A-64 et seq.) to any subordinate division, agency, or employee of the Department of Transportation [or to the New Jersey Transit Corporation].

"Disabled veteran" means "disabled veteran" as defined in N.J.S.11A:5-1.

"Motor bus" means "autobus" as defined in R.S.48:4-1, and includes those autobuses, commonly called jitneys, as defined in R.S.48:16-23.

"Offpeak times" means the hours from 9:30 a.m. to 4 p.m. and from 7 p.m. to 6 a.m. during the weekdays, and all day on Saturdays, Sundays, and holidays.

"Person with disabilities" means any individual who, by reason of illness, injury, age, congenital malfunction, or other permanent or temporary incapacity or disability, is unable without special facilities or special planning or design to utilize mass transportation facilities and services as effectively as persons who are not so affected. A "person with disabilities" shall include a person determined by the [New Jersey Transit Corporation] department to be eligible for its Access Link service.

"Senior citizen" means any individual 62 years of age or over.

(cf: P.L.2020, c.155, s.1)

8. Section 3 of P.L.1973, c.126 (C.27:1A-66) is amended to read as follows:

3. The Commissioner of Transportation is hereby authorized and directed to establish and implement a program to provide motor bus and rail passenger service for senior citizens during [offpeak] off-peak times and to provide motor bus and rail passenger service for senior citizens age 65 and older, persons with disabilities, and all disabled veterans at all times bus or rail service is offered, on regular routes of carriers within the State or between points in this State and points in adjacent states at one-half of the regular adult rates of fare, except that the reduced fare shall not be available to senior citizens, persons with disabilities, or disabled veterans traveling on commuter railroad trains operated during peak times which have been designated by the [New Jersey Transit Corporation] Department of Transportation as ineligible for round trip excursion fares. The commissioner may take any action that the commissioner deems necessary to implement this program, including contracts with carriers for the provision of transportation services under this program, purchase of regular tickets and resale to senior citizens, persons with disabilities, and disabled veterans at one-half the ordinary fare, or direct payments to carriers for services provided to senior citizens, persons with disabilities, and disabled veterans under this program. Where carriers may be entitled to receive or do receive funds from sources other than the Department of Transportation for the provision of service to senior citizens, persons with disabilities, and disabled veterans, reimbursement payments which may be made by the Department of Transportation to the carriers may be adjusted accordingly.

(cf: P.L.2017, c.131, s.108)

9. Section 4 of P.L.1973, c.126 (C.27:1A-67) is amended to read as follows:

4. In establishing this program, the commissioner shall, after consulting with the Commissioner of Community Affairs, the Director of the Division of Aging Services in the Department of Human Services, and the Board of Public Utilities, establish uniform procedures for:

a. Determining the eligibility of persons to receive the reduced fares provided pursuant to P.L.1973, c.126 (C.27:1A-64 et seq.), which shall include those persons determined by the [New Jersey Transit Corporation] Department of Transportation to be eligible for its Access Link service;

b. Making reduced fares available to eligible persons; and

c. Auditing and accounting to [insure] ensure that no carrier receives payments in excess of the value of services actually rendered

to senior citizens, persons with disabilities, and disabled veterans pursuant to P.L.1973, c.126 (C.27:1A-64 et seq.).

(cf: P.L.2020, c.64, s.2)

10. Section 2 of P.L.1987, c.99 (C.27:1A-74) is amended to read as follows:

2. The Commissioner of Transportation shall, after consulting with other relevant departments and agencies, adopt reasonable regulations necessary to carry out the purposes of P.L.1987, c.99 (C.27:1A-73 et seq.) pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). The regulations shall include a procedure by which the commissioner shall:

a. issue an identification card, upon certification of a physician or upon certification of another person as prescribed by the commissioner, that a person with disabilities requires the assistance of a travel attendant in order to use public transportation; and

b. automatically issue an identification card to a person determined by the [New Jersey Transit Corporation] Department of Transportation, after the effective date of P.L.2020, c.64, to be eligible for its Access Link service at the time of that determination. For a person determined eligible for Access Link service prior to the effective date of P.L.2020, c.64, the commissioner shall issue an identification card within 60 days after the effective date of P.L.2020, c.64 or immediately upon request of the eligible person, whichever shall be earlier.

(cf: P.L.2020, c.64, s.3)

11. Section 2 of P.L.2019, c.196 (C.27:1B-21.34) is amended to read as follows:

2. a. In order to ensure the expeditious completion of public highway projects, the department shall coordinate with municipalities [, the South Jersey Transportation Authority,] and counties to expedite project delivery.

b. The department shall develop, in conjunction with county officials, an annual highway project priority list for each county. The department shall present to county officials in each county a candidate list of State highway pavement areas rated below acceptable condition and structurally deficient State bridges located in the county. The county may select highway pavement areas and bridges from the candidate list that it deems to be priority repairs and submit the highway project priority list to the Commissioner of Transportation for the commissioner's consideration for inclusion in the department's capital program. Once a project from the highway project priority list has been added to the capital program, the department shall have three fiscal years to advance that project to the construction phase of work subject to the availability of funds.

c. If a project on the highway project priority list that has been placed on the capital program by the commissioner is not started within three years of that project's inclusion in the capital program, a county may notify the department that the county intends to take over the project.

d. Once the department has been notified of a county's intent to take over a project on the highway project priority list, the department and notifying county shall confer regarding whether the decision to allow the county [or the South Jersey Transportation Authority] to take over the project is cost-effective and will expedite completion of the project. The department shall have the discretion to determine whether to transfer the project to the county [or the South Jersey Transportation Authority] based on whether the transfer is cost-effective and will expedite completion of the project. If the department agrees to transfer the project, the department shall have 90 days from the date it agrees to the transfer to transfer all aspects of the project to the engineering department of the notifying county [or the South Jersey Transportation Authority].

e. The costs of any project transferred to a county [or to the South Jersey Transportation Authority] pursuant to this section shall be fully funded by the department on a reimbursement basis until such costs exceed the most recent estimated cost for the project developed as part of the project schedule pursuant to subsection a. of section 1 of P.L.2019, c.196 (C.27:1B-21.33) or, if unavailable, the estimated cost developed with the initial project schedule. If the cost of the project exceeds already existing capital program appropriations for that project, the department shall deduct the necessary amounts from the amounts granted to that county from the formula established in subsection e. of section 25 of P.L.1984, c.73 (C.27:1B-25) through the Local County Aid Program for the fiscal year in which the costs arise or for one or more future fiscal years as determined by, and at the discretion of, the commissioner.

f. If the department and a county agree that [a] the county [or the South Jersey Transportation Authority] is better suited to advance a project on the highway project priority list, the department may also enter into an agreement with the county [or the South Jersey Transportation Authority] to transfer a project to the county [or the South Jersey Transportation Authority] notwithstanding whether the project has been in the capital program for less than three years.

g. All transportation projects included in the highway project priority list and transferred by the department pursuant to subsection d. or subsection f. of this section shall comply with section 24 of P.L.1984, c.73 (C.27:1B-24), chapters 32 through 35 of Title 52 of the Revised Statutes, and any other provision of law concerning the State's public bidding requirements and business set-aside programs.

(cf: P.L.2019, c.196, s.2)

12. Section 1 of P.L.2024, c.109 (C.27:5F-44) is amended to read as follows:

1. a. There is established in, but not of, the Department of Transportation, the "New Jersey Target Zero Commission."

b. The commission shall consist of [13] 10 members, as follows:

(1) the Commissioner of Transportation, ex officio, or the commissioner's designee;

(2) the Superintendent of State Police, ex officio, or the superintendent's designee;

(3) the Commissioner of Health, ex officio, or the commissioner's designee;

(4) the Commissioner of Community Affairs, ex officio, or the commissioner's designee;

(5) the Chief Administrator of the New Jersey Motor Vehicle Commission, ex officio, or the chief administrator's designee;

(6) the Commissioner of Human Services, ex officio, or the commissioner's designee;

(7) the Director of Highway Traffic Safety, ex officio, or the director's designee;

(8) the Director of the Office of Environmental Justice in the Department of Environmental Protection, ex officio, or the director's designee;

(9) [the Executive Director of the New Jersey Transit Corporation, ex officio, or the executive director's designee;

(10) the Executive Director of the New Jersey Turnpike Authority, ex officio, or the executive director's designee;

(11)] the Executive Director of the Delaware Valley Regional Planning Commission, ex officio, or the executive director's designee; and

[(12)] (10) the Executive Director of the North Jersey Transportation Planning Authority, ex officio, or the executive director's designee [; and

(13) the Executive Director of the South Jersey Transportation Planning Organization, ex officio, or the executive director's designee].

c. The commission shall hold its initial meeting as soon as practicable, but no later than 60 days after the effective date of P.L.2024, c.109 (C.27:5F-44 et seq.). The chairperson of the commission shall be the Commissioner of Transportation, and the commission shall meet no less than twice per year at such places and times as the chairperson may designate. The commission shall hold a minimum of two annual public hearings. The chairperson may appoint a secretary who need not be a member of the commission.

d. The commission shall meet with key stakeholders, advocates, and experts and shall consult with policy experts including, but not limited to, policy experts in the fields of bicycle and pedestrian safety, mobility, visual or cognitive impairments, and motor vehicle crashes for expertise and input.

e. The Department of Transportation shall provide professional, stenographic, and clerical staff to the commission as may be necessary for the commission to carry out its duties. The commission shall also be entitled to call upon the services of any State, county, or municipal department, board, commission, or agency as may be available to it for its purposes.

(cf: P.L.2024, c.109, s.1)

13. R.S.27:7-21 is amended to read as follows:

27:7-21. In addition to, and not in limitation of, [his] the commissioner’s general powers [,] the commissioner may:

a. Determine and adopt rules, regulations, and specifications and enter into contracts covering all matters and things incident to the acquisition, improvement, betterment, construction, reconstruction, maintenance, and repair of State highways;

b. Execute and perform as an independent contractor, or through contracts made in the name of the State, all work incident to the maintenance and repair of State highways;

c. Establish and maintain as an independent contractor or employer a patrol repair system for the proper and efficient maintenance and repair of State highways;

d. Employ and discharge, subject to the provisions of the Civil Service law, all foremen and laborers, prescribe their qualifications, and furnish all equipment, tools, and material necessary for such patrol repair system;

e. Widen, straighten, and regrade State highways;

f. Vacate any State highway or any part [thereof] of a State highway;

g. The commissioner and [his] the commissioner’s authorized agents and employees may enter upon any lands, waters, and premises in the State, after giving written notice to the recorded owner at least three days prior thereto, for the purpose of making surveys, soundings, drillings, borings, and examinations as [he] the commisioner may deem necessary or convenient for the purposes of this Title [, and such] . Such entry shall not be deemed a trespass [; nor shall such entry be deemed] or an entry under any condemnation proceedings [which] that may be [then] pending. The commissioner shall make reimbursement for any actual damages resulting to such lands, waters, and premises as a result of such activities;

h. Enter into cooperative agreements with any State department, agency, or authority or any county or municipality enabling the State to negotiate for and condemn lands and also provide relocation services and payments deemed necessary for the effectuation of State or federally financed State Aid Transportation and related Programs;

i. [Enter] Prior to the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), enter into agreements with the New Jersey Turnpike Authority with respect to the funding of the resurfacing, restoring, rehabilitation and reconstructing of the I-95 Extension of the New Jersey Turnpike through the allocation of monies apportioned by the United States Department of Transportation pursuant to 23 U.S.C. s.119 or a successor program. Any such agreement shall be subject to the continued eligibility of the I-95 Extension for federal aid, the availability of funds appropriated by Congress and the appropriation of funds by the Legislature for that purpose. No such agreement shall constitute or create a debt or liability of the State within the meaning of any constitutional or statutory limitation nor shall any such agreement constitute a pledge of either the faith and credit or the taxing power of the State; and

j. Do whatever may be necessary or desirable to effectuate the purposes of this Title.

(cf: P.L.1991, c.183, s.2)

14. Section 20 of P.L.1979, c.150 (C.27:25-20) is amended to read as follows:

20. a. [The corporation shall, by October 31 of each year, file with the Commissioner of Transportation a report in such format and detail as the Commissioner may require setting forth the actual, operational, capital and financial results of the previous fiscal year, the operational, capital and financial plan for the current fiscal year and a proposed operational, capital and financial plan for the next ensuing fiscal year.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

b. On or before October 31 of each year, the corporation shall make an annual report of its activities for the preceding fiscal year to the Governor, the President of the Senate, the Speaker of the General Assembly, and the Assembly Transportation and Independent Authorities Committee and the Senate Transportation Committee, or their successor committees. Each [such] report shall set forth a complete operating and financial statement covering its operations and capital projects during the year. The report shall also include an account of the on-time performance of rail passenger service, including light rail service, operated by, or under contract to, the corporation, including data for each such passenger line. The report shall provide a detailed discussion of the methodology used by the corporation in measuring on-time performance. The report shall include information from the customer advocate, as required by section 16 of P.L.2018, c.162 (C.27:25-5.27). The report shall include certain personnel information of employees of the corporation, including the average salary, number of employees in management positions, and number of employees that are not in management positions in key demographic groups, which shall include, at minimum, race, ethnicity, and gender. The report shall include certain accident information for reportable accidents that occurred during the previous year which involved a rail passenger vehicle or motorbus operated by, or under contract to, the corporation, including the total number of accidents and any fines, penalties, or judgments levied against the corporation related to any such accident. The report shall also include information regarding any safety violations for which the corporation received a notice of violation in the previous year, including the total number of safety violations and any fines or penalties levied against the corporation related to any such safety violation. For the purposes of this subsection, "reportable accidents" shall be defined in accordance with applicable federal reporting criteria.

c. All records of minutes, accounts, bills, vouchers, contracts or other papers connected with or used or filed with the corporation or with any officer or employee acting on its behalf are hereby declared to be government records and shall be open to public inspection in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.) and regulations prescribed by the corporation.

d. The corporation shall cause an audit of its books and accounts to be made at least once each year by certified public accountants and the cost thereof may be treated as a cost of operation. The audit shall be filed within four months after the close of the fiscal year of the corporation and a certified duplicate copy thereof shall be filed with the Division of Budget and Accounting in the Department of the Treasury.

e. Notwithstanding the provisions of any law to the contrary, the State Auditor or a legally authorized representative may examine the accounts and books of the corporation.

f. On or before October 1 of each year, the board shall approve and the corporation shall transmit to the Commissioner of Transportation and to the President of the Senate, the Speaker of the General Assembly, and the Assembly Transportation and Independent Authorities Committee and the Senate Transportation Committee, or their successor committees, a report containing: a list of each parcel of real property owned by the corporation; the most recent appraised value of that real property only if the corporation has obtained an appraisal during the three years immediately preceding the report; the purpose for which the corporation holds the real property; any revenue the corporation receives that arises out of the real property; and any real property sold or otherwise disposed of, including the amount of money received by the corporation for that sale or disposition, during the [one year] one-year period immediately preceding the report and including an accompanying explanation for any real property disposed of for less than market value and any real property acquired for more than market value.

g. On or before April 1 of each year, the board shall approve and the corporation shall transmit to the Commissioner of Transportation and to the President of the Senate, the Speaker of the General Assembly, and the Assembly Transportation and Independent Authorities Committee and the Senate Transportation Committee, or their successor committees, an annual proposed budget recommendation. The budget document shall be a two-year budget which covers the most recent completed fiscal year, estimated results for the fiscal year in progress, a recommendation for the fiscal year to commence, and estimated needs and projections for the following fiscal year. At a minimum, the budget shall provide detailed information in the following areas:

(1) An executive summary outlining the highlights of the budget document;

(2) A profile describing the history of the corporation and the services it provides;

(3) An analysis of regional and agency transportation trends, including a detailed ridership analysis;

(4) [A synopsis of the current corporation business plan] (Deleted by amendment, P.L. , c. );

(5) A list of key performance indicators;

(6) A statement of current budget year assumptions regarding funding and ridership;

(7) [A summary of the internal corporation budgeting process and its interaction with the Statewide budgeting process] (Deleted by amendment, P.L. , c. );

(8) A description of the current corporation organizational structure;

(9) Detailed operating revenue and expense projections for each division within the corporation, with 10 year revenue and expense trends and five year revenue and expense projections;

(10) A detailed headcount analysis by department or unit, which includes actual employee count, funded headcount, actual salary and fringe expenses, and recent employment trends; and

(11) A summary of the capital program and analysis of current capital projects for which capital funds have already been appropriated, but where the project is not yet complete, which includes the years of appropriation, amounts expended, future appropriations required to complete the project, and a brief analysis of project progress.

(cf: P.L.2018, c.162, s.9)

15. Section 21 of P.L.1979, c.150 (C.27:25-21) is amended to read as follows:

a. [All] Prior to the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), all real or personal properties purchased heretofore for public transportation purposes in the name of the Commuter Operating Agency, the Department of Transportation, its predecessors, or the Commissioner of Transportation [,] shall be deemed to have been purchased in the name of the State by and through the corporation and shall henceforth be deemed to be and shall actually be the property of the corporation.

b. Upon the Transfer Date established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), all real or personal properties outlined in subsection a. of this section shall become the property of the Department of Transportation.

(cf: P.L.1979, c.150, s.21)

16. R.S.48:3-10 is amended to read as follows:

48:3-10. a. Except as otherwise provided by subsection b. of this section, no public utility incorporated under the laws of this State shall sell, nor shall any such public utility make or permit to be made upon its books any transfer of any share or shares of its capital stock, to any other public utility, unless authorized to do so by the board. Nor shall any public utility incorporated under the laws of this State sell any share or shares of its capital stock or make or permit any transfer thereof to be made upon its books, to any corporation, domestic or foreign, or any person, the result of which sale or transfer in itself or in connection with other previous sales or transfers shall be to vest in such corporation or person a majority in interest of the outstanding capital stock of such public utility corporation unless authorized to do so by the board.

Every assignment, transfer, contract, or agreement for assignment or transfer, by or through any person or corporation to any corporation or person in violation of any of the provisions hereof shall be void and of no effect, and no such transfer shall be made on the books of any public utility corporation. Nothing herein contained shall be construed to prevent the holding of stock lawfully acquired before March 5, 1935.

Where, by the proposed assignment, transfer, contract, or agreement for assignment or transfer of capital stock as set forth herein, it appears that the public utility or a wholly owned subsidiary thereof may be unable to fulfill its obligation to any employees thereof with respect to pension benefits previously enjoyed, whether vested or contingent, the board shall not grant its authorization unless the public utility seeking the board's authorization assumes such responsibility as will be sufficient to provide that all such obligations to employees will be satisfied as they become due.

[Nothing herein shall require the approval of the Department of Transportation to any sale or transfer by any public utility of any share or shares of its capital stock to the New Jersey Transit Corporation or any subsidiary thereof for public use.]

b. Nothing herein shall require the review and approval by the board of any parent or affiliate corporation of a telecommunications company if such parent or affiliate corporation seeks to sell, or to make or permit to be made upon its books any transfer of any share or shares of its capital stock, to any other public utility, if the telecommunications company which seeks to engage in any of the aforementioned transactions does not itself provide regulated telecommunications services over a telecommunications network or telephone access line service, but does directly or through one or more affiliates own a controlling interest in such a telecommunications network or does otherwise control or exercise responsibility for, through any arrangement, the management and operation of such a telecommunications network, or owns a controlling interest in a telecommunications company that provides regulated telecommunications service or telephone access line service.

(cf: P.L.2008, c.87, s.4)

17. Section 1 of P.L.1999, c.261 (C.27:1A-5.17) is repealed.

18. This act shall take effect on the Transfer Date. However, section 1 shall take effect immediately, provided that the Department of Transportation shall be granted such powers as are contained herein that are necessary or appropriate for the department to effectuate the transfer of the New Jersey Turnpike Authority, the South Jersey Transportation Authority, and the New Jersey Transit Corporation, and the projects and functions of such entities, to the department as soon as practicable after the date of enactment. The Department of Transportation may take such anticipatory action in advance as shall be necessary for the implementation of this act.

STATEMENT

This bill consolidates the New Jersey Turnpike Authority, the South Jersey Transportation Authority, and the New Jersey Transit Corporation (collectively, transportation entities) within the New Jersey Department of Transportation (department) and transfers the powers and duties of the transportation entities to the department. The bill also amends current law to clarify this transfer of powers and duties.

Specifically, on the Transfer Date specified in the bill, the outstanding bonds of each transportation entity are to be retired, the department is to assume all assets, debts, liabilities, and statutory responsibilities of the transportation entities, and each transportation entity is to be consolidated within the department. In addition, the employees of each transportation entity are to be transferred to the department and become employees of the department; any union contracts for the transportation entities are to continue in effect until new or revised contracts are agreed to; and nothing in the bill is to deprive any employee of a transportation entity of their rights, privileges, obligations, or status regarding any pension or retirement system or to affect the civil service status, if any, of the employees. Any rules and regulations adopted by the transportation entities are to continue in effect as rules and regulations adopted by the department until the rules and regulations are amended, supplemented, or rescinded by the department. The department is permitted to adopt rules and regulations modifying or repealing the rules and regulations of a transportation entity pursuant to a procedure prescribed in the bill. After the Transfer Date, neither the department nor any transportation entity is permitted to issue new bonds. Moreover, the bill prohibits the department from using any asset transferred to the department by a transportation entity for non-transportation related purposes.

As soon as practicable after the Transfer Date, the department is to notify the Governor and the presiding officers of each house of the Legislature that the transfer has occurred, of the date of the transfer, and of any other information concerning the transfer as the department deems appropriate.

The New Jersey transportation system is of vital importance to its residents and the nation. Due to its size and significance, it requires a greater level of government oversight to ensure that all persons and industries served by the State’s transportation system receive high quality and safe transportation service. With this legislation, the sponsor seeks to streamline operations, reduce bureaucracy, and improve accountability within the State’s transportation sector and thereby mend the fragmented nature of the State’s transportation system, which has resulted in inefficiencies, rising costs, and reliability issues.