FISCAL NOTE
[Second Reprint]
ASSEMBLY, No. 5612
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 26, 2025
SUMMARY
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Synopsis: |
Concerns parking violations that obstruct NJT bus operations and bicycle lanes in certain circumstances. |
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Type of Impact: |
Annual State expenditure and revenue increases. |
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Agencies Affected: |
New Jersey Transit Corporation. |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
$72 Million |
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Local Revenue Increase |
Indeterminate |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
$72 Million |
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State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concurs with the Executive’s estimate that this bill may increase New Jersey Transit Corporation (NJ Transit) costs by $72 million annually based on the current contracts awarded for automated bus lane enforcement systems.
· Additionally, the OLS concurs that the bill will result in increase annual revenue of indeterminate magnitude attributable to the collections of parking or bus lane encroachment violations. However, due to a provision outlined in subsection d. of section 6 in the bill, the OLS estimates that NJ Transit will be able to retain revenue from fines collected to cover in whole or in part the administrative costs for the program.
BILL DESCRIPTION
This bill requires NJ Transit to install and operate bus obstruction monitoring systems on buses owned or operated by NJ Transit to capture recorded images of motor vehicles that unlawfully stop or park in dedicated bus lanes, bus stop zones, or designated bicycle lanes that serve motorbus regular routes.
Under the bill, vehicles that commit violations will be subject to citations issued by NJ Transit. If an owner or operator of a motor vehicle violates the bill’s provisions, as captured by a bus obstruction monitoring system, the owner or operator of the motor vehicle is subject to a fine of $45 for the first offense. Subsequent offenses within a 12-month period from the date of the first offense are to increase by $45, with a maximum fine of $135 per offense. The bill authorizes NJ Transit to retain any fines collected for the purposes of covering the cost of administering the bus obstruction monitoring system program. Any excess revenue from fines collected pursuant to the program is to be used to fund Access Link services. Finally, NJ Transit is prohibited from entering into any agreement for bus obstruction monitoring systems or bus obstruction monitoring system operator services that bases contractor compensation on the amount of revenue generated in monetary fines collected pursuant to the bill.
FISCAL ANALYSIS
EXECUTIVE BRANCH
The New Jersey Transit Corporation has provided the OLS with a fiscal note that estimates that this bill will result in a $72 million increase in annual expenditures to operate a bus and parking lane camera program on NJ Transit-owned or operated buses. According to the corporation, maintaining the cameras, camera data, and citation issuances, as outlined in the bill, is estimated to cost $2,500 per month for each of NJ Transit’s approximately 2,400 buses.
Additionally, the corporation has indicated that the bill will result in an indeterminate increased annual revenue attributable to the issuance of parking or bus lane encroachment citations. The annual increase in revenue is indeterminate because the corporation is unable to anticipate the number of citations that the bus obstruction monitoring system program will generate. Notably, the corporation has indicated that the provisions in the bill will cause the revenue from citation issuances to be received by the municipalities and counties in which the citations are issued and would not directly offset the program’s cost to NJ Transit.
OFFICE OF LEGISLATIVE SERVICES
In 2024, the Philadelphia Parking Authority reviewed two requests for proposals for the Automated Bus Camera Program established by the City of Philadelphia to equip 150 buses and 30 trolleys with the automated camera system. The two bids under review were from: (1) Hayden AI at a monthly fixed cost of $2,095 per bus for a two-year term; and (2) Safe Fleet at a monthly fixed cost of $1,895 per bus.
In 2024, New York City’s MTA reviewed two requests for proposals for the Automated Bus Lane Enforcement Program to equip 2,023 buses with the automated camera system. The MTA award to Hayden AI was for the purchase, installation, operation, and maintenance of up to 1,023 Automated Bus Lane Enforcement (ABLE) systems, in the total estimated amount of $83,133,058 per year and the award to Seon USA was for the purchase, installation, operation, and maintenance of up to 1,000 ABLE systems in the total estimated amount of $58,405,780 per year.
Notably, while similar automated enforcement programs have recently been adopted in other states, the OLS cannot determine specific details of the contracts and systems used by the City of Philadelphia and New York City and how those systems differ from the bus obstruction monitoring system to be installed into NJ Transit buses pursuant to the bill.
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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 fiscal note has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).