LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4460

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: NOVEMBER 15, 2024

 

 

SUMMARY

 

Synopsis:

Provides certain requirements concerning railroad safety. 

Type of Impact:

Annual State expenditure increases; potential annual State revenue increases.

Agencies Affected:

Department of Transportation; Board of Public Utilities.                     

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

Potential State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that this bill will result in annual expenditure increases for both the New Jersey Department of Transportation and the Board of Public Utilities associated with the oversight of the railroad wayside detector systems.  The OLS is unable to quantify the magnitude of the expenditure increase because it will depend on administrative decisions made by the department and the board that cannot be anticipated.

·         The OLS finds that the bill may result in annual revenue increases attributed to the collection of fines for violations against certain safety requirements outlined in the bill.  The OLS cannot estimate the magnitude of the annual revenue increases because it is unable to predict the number of violations and the potential penalties assessed as a result of the nature of the violation. 

 

 

BILL DESCRIPTION

 

      This bill provides certain requirements concerning railroad safety.  The bill prohibits a railroad company, including a short line, from operating any train that exceeds 8,500 feet in length on any main line or branch line within the State.  Any person or railroad company that violates this maximum length is liable for a civil penalty of at least $500 but not more than $1,000 per foot exceeding the maximum train length allowed under the bill. The maximum penalty allowed is $250,000 in instances of gross negligence or a pattern of repeated violations that cause an imminent hazard of death or injury or that have caused death or injury, regardless of train length.

      The bill also requires the Board of Public Utilities and the Department of Transportation to work with each railroad company that operates in the State to ensure that wayside detector systems are installed and are operating along railroad tracks on which the railroad company operates and to ensure that such systems meet certain standards.  If a railroad company refuses to work or otherwise cooperate with the board and department in good faith concerning wayside detector systems, the board and department are required to investigate the railroad company’s safety practices and standards.  In certain circumstances, the bill requires the board and department to make a report to the Federal Railroad Administration detailing results of their investigation and recommend that the administration take enforcement action.  The bill requires the board and department to send a copy of the report to the Governor and Legislature.

      Additionally, the bill requires the department to work with certain non-profit labor organizations and local emergency services providers to apply for federal grants.

      With the exception of the maximum train length provisions of the bill, this bill does not apply to certain Class III carriers as defined by the Surface Transportation Board. 

      The bill also requires the owner or operator of a dangerous hazardous train to clearly display the name of the railroad company that owns the dangerous hazardous train and to require a minimum of two crew members on all such trains with certain exceptions.  Additionally, the bill requires owners and operators of privately owned railroads to submit copies of the most recent bridge inspection reports to the Governor and Legislature. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that this bill will result in annual expenditure increases for both the New Jersey Department of Transportation and the Board of Public Utilities associated with the oversight of the railroad wayside detector systems.  The OLS is unable to quantify the magnitude of the expenditure increase because it will depend on administrative decisions made by the department and the board that cannot be anticipated.  Additionally, the OLS finds that the bill may result in indeterminate annual revenue increases attributed to the collection of fines for violations against certain safety requirements outlined in the bill. 

      The bill requires the Board of Public Utilities and the Department of Transportation to work with railroad train operators in the State to oversee the railroad wayside detector system.  Oversight responsibilities include, but are not limited to, ensuring that railroad train operators maintain wayside detector systems that are properly installed, maintained, repaired, and operational in accordance with federal guidelines.  Additionally, the bill requires the board and department to investigate and report on the safety practices and standards of railroad companies in certain situations.  The OLS anticipates that the board and the department will have to hire an unknown number of additional staff with the necessary subject area expertise to perform the oversight and reporting duties outlined in the bill.  The department may also need to hire additional staff to perform the required outreach and assistance to non-profit labor organizations and local emergency services providers applying for federal safety grants. 

      The bill prohibits railroad companies, including short line railroad operators, from operating any train that exceeds 8,500 feet in length on any main line or branch line within the State.  The bill establishes penalties of at least $500 but not more than $1,000 per foot for exceeding the maximum train length allowed under the bill.  The maximum penalty allowed under the bill is $250,000 for grossly negligent violations or patterns of repeated violations that cause an imminent hazard of death or injury or have caused death or injury.  The OLS cannot estimate the magnitude of annual revenue increases because it is unable to predict the number of violations and the potential penalties assessed as a result of the nature of the violation. 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker

Assistant Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).