LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 4460
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 26, 2025
SUMMARY
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Synopsis: |
Provides certain requirements concerning railroad safety. |
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Type of Impact: |
Annual State expenditure increases; potential annual State revenue increases. |
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Agencies Affected: |
Department of Transportation; the Judiciary. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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Potential State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) determines that this bill will result in annual expenditure increases for the New Jersey Department of Transportation associated with the oversight of the railroad wayside detector systems. The department will also incur an indeterminate amount of costs to provide grants, reimbursements, and technical assistance to railroad companies under the new funding assistance program. The OLS is unable to quantify the magnitude of the expenditure increases because it will depend on administrative decisions made by the department that cannot be anticipated.
· The OLS finds that the bill may result in annual revenue increases attributed to the collection of civil penalties 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.
· The Judiciary would incur indeterminate workload increases as the Superior Court is to have jurisdiction to enforce the civil penalties authorized under the bill. The OLS lacks the informational basis to determine the number of violations that will occur to estimate the additional costs to the Judiciary
BILL DESCRIPTION
This bill provides certain requirements concerning railroad safety. The bill prohibits a railroad company from operating any train that exceeds 8,500 feet in length on any main line or branch line within the State. Any railroad company that violates this maximum length is liable for a civil penalty of at least $500 but not more than $1,000 if the train exceeds 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. Each day a violation continues is to constitute a separate and distinct violation.
The bill also requires 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 department in good faith concerning wayside detector systems, the department is required to investigate the railroad company’s safety practices and standards. In certain circumstances, the bill requires the 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 department to send a copy of the report to the Governor and the Legislature.
Additionally, the bill requires the department to develop and administer a funding assistance program for railroad companies operating in the State to support compliance with certain installation and maintenance requirements.
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.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that this bill will result in annual expenditure increases for the New Jersey Department of Transportation 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 that cannot be anticipated. Additionally, the OLS finds that the bill may result in indeterminate annual revenue increases attributed to the collection of civil penalties for violations against certain safety requirements outlined in the bill.
The bill requires the Department of Transportation to work with railroad train companies in the State to oversee the railroad wayside detector system. Oversight responsibilities include ensuring that railroad train companies maintain wayside detector systems that are properly installed, maintained, repaired, and operational in accordance with federal guidelines. Additionally, the bill requires the department to investigate and report on the safety practices and standards of railroad companies in certain situations. The OLS anticipates that 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. Moreover, the department will incur an indeterminate amount of costs to provide grants, reimbursements, and technical assistance to railroad companies under the new funding assistance program and may require additional staff to administer the program.
The bill prohibits railroad companies 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 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.
The Judiciary would also incur indeterminate workload increases as the Superior Court is to have jurisdiction to enforce the civil penalties authorized under the bill. The OLS lacks the informational basis to determine the number of violations that will occur to estimate the additional costs to the Judiciary.
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Section: |
Authorities, Utilities, Transportation and Communications |
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Analyst: |
Associate Fiscal Analyst |
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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.).