S3567

An Act concerning transportation grants, supplementing Title 27 of the Revised Statutes, and making an appropriation.

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

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Department” means the New Jersey Department of Transportation.

“Grant program” means the “Workforce Shuttle Grant Program” established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Local government unit” means a municipality, county, or an agency, authority, or other entity thereof.

“Nonprofit organization” means a nonprofit organization which provides services throughout the State and is tax exempt under section 501(c)(3) of the federal Internal Revenue Code (26 U.S.C. s.501(c)(3)), and is not a private foundation as defined in section 509(a) of the federal Internal Revenue Code (26 U.S.C. s.509(a)).

“Program” means the temporary program to provide grants to small businesses, nonprofit organizations, and temporary help service firms pursuant to section 4 of P.L. , c. (pending before the Legislature as this bill).

“Small business” means a business that has its principal place of business in this State and employs fewer than 50 full-time employees as of the date that the business submits an application to the department pursuant to subsection c. of section 4 of P.L. , c. (pending before the Legislature as this bill).

“Temporary help service firm” means any person or entity who operates a business which consists of employing individuals directly or indirectly for the purpose of assigning the employed individuals to assist the firm's customers in the handling of the customers' temporary, excess or special workloads, and who, in addition to the payment of wages or salaries to the employed individuals, pays federal social security taxes and State and federal unemployment insurance; carries workers’ compensation insurance as required by State law; and sustains responsibility for the actions of the employed individuals while they render services to the firm's customers. A temporary help service firm is required to comply with the provisions of P.L.1960, c. 39 (C.56:8-1 et seq.).

“Transportation costs” means all expenses incurred by a small business, nonprofit organization, or temporary help service firm related to the provision of transportation services to any employees of the small business, nonprofit organization, or temporary help service firm which expenses may include, but shall not be limited to, any costs associated with the transportation of full-time, part-time, or temporary employees to and from work sites. “Transportation costs” shall not include any capital purchases.

“Workforce shuttle” means a motor vehicle with a seating capacity of at least six adults, excluding the operator of the vehicle, which is used for the primary purpose of transporting employees between their places of residence or other designated pick-up locations and their places of employment.

2. a. The Department of Transportation shall establish and administer the “Workforce Shuttle Grant Program” for the purpose of awarding grants to local government units and non-profit organizations that provide workforce shuttle services in areas of rapid population and housing growth. The purpose of the grant program is to support the purchase of workforce shuttles and the operation of workforce shuttle services in order to reduce traffic congestion in areas experiencing rapid growth.

b. To qualify for the grant program, a local government unit or non-profit organization shall demonstrate to the department that the local government unit or non-profit organization:

(1) intends to use the grant to provide workforce shuttle services, as permitted under subsection c. of this section;

(2) has entered into an agreement with one or more employers to provide workforce shuttles in which the employer has committed to contributing funding to support the provision of workforce shuttle services; and

(3) meets any other eligibility requirements that the department may deem appropriate.

c. The grants may be awarded to one or more local government units or non-profit organizations in any amounts as may be determined by the department. The grant funds shall be used to support:

(1) the purchase or leasing of workforce shuttles;

(2) the operation of workforce shuttle services targeting high traffic corridors;

(3) the effectuation of partnerships with local employers to provide workforce shuttle services; or

(4) any other workforce shuttle related purposes as may be determined by the department.

d. A local government unit or non-profit organization that seeks assistance under the grant program shall submit an application to the department in a form and manner prescribed by the department. In addition to any other information that the department may deem appropriate, the application shall require the local government unit or non-profit organization to submit information:

(1) demonstrating that the local government unit or non-profit organization meets the eligibility requirements set forth in subsection b. of this section;

(2) outlining the anticipated use of the grant, including the types of workforce shuttle services to be provided and the anticipated total costs of providing these services; and

(3) identifying the funding sources available to support the workforce shuttle services, including evidence that sufficient resources are available to cover operating expenses.

e. (1) The department may approve applications for the grant program on a rolling basis, subject to the availability of funds. The department shall prioritize applications submitted by local government units or non-profit organizations that have: (a) experienced a significant increase in population, housing development, or traffic congestion; and (b) demonstrated the greatest level of employer contribution towards operating expenses, or the provision of funding agreements that create the least risk, as determined by the department, that there will not be enough funding to continue operating the shuttle for its useful life.

(2) Upon approval of an application, the department shall provide a grant, in the amount determined by the department, to the local government unit or non-profit organization for one or more uses provided in subsection c. of this section and as outlined in the local government unit or non-profit organization’s application.

f. The department shall prepare and submit a report on the “Workforce Shuttle Grant Program” to the Governor, and pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, and make the report available on the department’s Internet website. The report shall include the number of local government units and non-profit organizations that applied for the grant program, the number and names of the local government units and non-profit organizations approved for the grant program, the total number of grants distributed, the amount received per local government unit and non-profit organization, and any other information the department determines necessary to evaluate the progress of the grant program.

g. After the department has established the grant program, the State shall annually appropriate $10,000,000 to the department to support the operations of the grant program.

h. The department shall adopt rules and regulations pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) as may be necessary to effectuate the purposes of this section. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted use of grant funding.

3. a. The Department of Transportation shall establish and administer a temporary program to provide grant funding to qualified small businesses, nonprofit organizations, and temporary help service firms to offset transportation costs until such time as the “Workforce Shuttle Grant Program,” established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), is operational.

b. To qualify for the program, an applicant shall demonstrate to the department that the applicant:

(1) qualifies as a small business, nonprofit organization, or temporary help service firm;

(2) intends to use the grant to offset transportation costs;

(3) intends to enter into an operating partnership with either a county or nonprofit organization to provide transportation on a permanent basis after receipt of the grant funding; and

(4) meets any other eligibility requirements that the department may deem appropriate.

c. A small business, nonprofit organization, or temporary help service firm that seeks assistance under the program shall submit an application to the department in a form and manner prescribed by the department. In addition to any other information that the department may deem appropriate, the application shall require the applicant to submit information:

(1) demonstrating that the applicant meets the eligibility requirements set forth in subsection b. of this section; and

(2) outlining the anticipated use of the grant.

d. (1) The department may approve applications for the program on a rolling basis, subject to the availability of funds. The department may prioritize applications based on any considerations that the department deems appropriate, which considerations may include, but shall not be limited to, the type of transportation costs incurred by the applicant and the scope of any transportation services to be provided to employees of the applicant.

(2) Upon approval of an application, the department shall provide a grant, in the amount determined by the department, to the small business, nonprofit organization, or temporary help service firm to offset transportation costs. Upon approving an application, the department may establish any terms and conditions that the department deems appropriate for the provision of grant funding to a small business, nonprofit organization, or temporary help service firm, and the department shall monitor the small business, nonprofit organization, or temporary help service firm’s compliance with those terms and conditions.

e. The department shall exclusively use the funding provided pursuant to section 4 of P.L. , c. (pending before the Legislature as this bill) to fund the temporary grant program established by this section until such time as the “Workforce Shuttle Grant Program,” established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), is operational, at which time the funds shall be used exclusively for that program.

f. Notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) or any other law to the contrary, the department may adopt, immediately upon filing with the Office of Administrative Law and no later than the 90th day after the effective date of P.L. , c. (pending before the Legislature as this bill), such rules and regulations as the department deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 12 months. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted use of grant funding. The regulations shall thereafter be amended, adopted, or readopted by the department in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

4. Subject to the availability of federal funds provided or made accessible to the State pursuant to federal block grant funds allocated to the State from the federal “Coronavirus State Fiscal Recovery Fund,” established pursuant to the federal “American Rescue Plan Act of 2021,” Pub.L.117-2, $10,000,000 from such federal funds shall be appropriated to the Department of Transportation to support the temporary grant program established pursuant to section 4 of P.L. , c. (pending before the Legislature as this bill) until such time as the “Workforce Shuttle Grant Program,” established pursuant to section 2 of P.L. , c. (pending before the Legislature as this bill), is operational, at which time the funds shall be used exclusively for that program.

5. This act shall take effect immediately.

STATEMENT

This bill requires the Department of Transportation (department) to establish and administer the “Workforce Shuttle Grant Program” (grant program) for the purpose of awarding grants to local government units or non-profit organizations that provide workforce shuttle services in areas of rapid population and housing growth. The bill also requires the department to establish and administer a temporary program, until the grant program is operational, to provide grant funding to qualified businesses, nonprofit organizations, and temporary help service firms (temporary program) to provide temporary grant funding to offset the transportation costs incurred by qualified small businesses, nonprofit organizations, and temporary help service firms.

The purpose of the grant program is to support the purchase of workforce shuttles and the operation of workforce shuttle services in order to reduce traffic congestion in areas experiencing rapid growth. To qualify for the grant program, a local government unit or non-profit organization is required to meet certain eligibility requirements set forth in the bill, including a requirement to enter into agreements with employers to provide workforce shuttles, and any other eligibility criteria established by the department. The amount of each grant is determined by the department. The grant funds may be used to support: (1) the purchase or leasing of workforce shuttles; (2) the operation of workforce shuttle services targeting high traffic corridors; (3) the effectuation of partnerships with local employers to provide workforce shuttle services; or (4) any other workforce shuttle related purposes as determined by the department.

Under the bill, applications for the grant program are to be submitted to the department in a form and manner determined by the department. In addition to any other information required by the department, each application is required to contain information demonstrating that the local government unit or non-profit organization meets the eligibility requirements, outlining the anticipated use of the grant, and identifying the funding sources available to support the workforce shuttle services.

The department is permitted, under the bill, to approve applications for the grant program on a rolling basis, subject to the availability of funds. The department is required to prioritize applications submitted by local government units or non-profit organizations that have experienced a significant increase in population, housing development, or traffic congestion and those that have the greatest level of financial support from participating employers.

Under the bill, the department would be required to prepare and submit a report on the “Workforce Shuttle Grant Program” to the Governor and the Legislature and make the report available on the department’s Internet website. The report is required to include certain information as set forth in the bill.

To qualify for the temporary program, applicants are required to demonstrate to the department that the applicant: (1) qualifies as a small business, nonprofit organization, or temporary help service firm; (2) intends to use the grant to offset transportation costs; (3) intends to enter into an operating partnerships with either a county or nonprofit entity to provide transportation on a permanent basis after receipt of the grant funding; and (4) meets any other eligibility requirements that the department deems appropriate.

Under the bill, applications for the temporary program are to be submitted to the department in a form and manner prescribed by the department. In addition to any other information that the department may deem appropriate, each application is required to contain information demonstrating that the applicant meets the eligibility requirements and outlining the anticipated use of the grant. The department is permitted, under the bill, to approve applications for the temporary program on a rolling basis, subject to the availability of funds, and is also permitted to prioritize applications based on any considerations that the department deems appropriate.

Once an applicant is approved, the department may establish any terms and conditions that the department deems appropriate for the provision of grant funding to a small business, nonprofit organization, or temporary help service firm.

Finally, the bill appropriates $10,000,000 from the federal “Coronavirus State Fiscal Recovery Fund,” established pursuant to the federal “American Rescue Plan Act of 2021,” to the department to provide the grant funding for the temporary program until the “Workforce Shuttle Grant Program” is fully operational, at which point the funds are required to be used exclusively for that program. After the grant program has been established, the bill also requires the State to annually appropriate $10,000,000 to the department to support the operations of the grant program.