SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE, No. 3389
with committee amendments
STATE OF NEW JERSEY
DATED: NOVEMBER 13, 2025
The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 3389.
As amended, this bill establishes certain railroad safety requirements for certain railroads in the State. Specifically, under the bill, the owner or operator of a dangerous hazardous train is to require at least two crew members on all dangerous hazardous trains unless certain exceptions, as outlined in the bill, are present. The bill specifies, however, that the exceptions do not apply if the dangerous hazardous train is transporting certain materials outlined in the bill.
The bill also 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. A privately owned railroad found in violation of the train length restriction is to be liable for a civil penalty of at least $500 but not more than $1,000. The bill provides, however, that the civil penalty may be increased to up to $250,000 in certain situations involving a grossly negligent violation or a pattern of repeated violations. Under the bill, each day a violation continues is to constitute a separate and distinct violation. However, the bill authorizes the Commissioner of Transportation (commissioner) to grant a temporary waiver of the train length restriction in certain situations and establishes certain parameters regarding the award and any extension of a temporary waiver.
In addition, the bill establishes certain bridge inspection reporting requirements for owners and operators of privately owned railroads.
The bill further requires the Department of Transportation (department), in conjunction with the Board of Public Utilities (board), to work with railroad companies in the State to determine the appropriate type of wayside detector system to employ and to ensure that certain requirements for wayside detector systems are met. The bill requires the board and the department to investigate a railroad company’s safety practices and standards if the railroad company unreasonably refuses to work or otherwise cooperate with the board and the department to ensure that the wayside detector system requirements established by the bill are met. The bill requires the board, in collaboration with the department, to develop and administer a funding assistance program to ensure railroad companies in the State meet the wayside detector system installation and maintenance requirements established by the bill. The bill establishes the minimum requirements for the funding assistance program, as outlined in the bill.
Additionally, the bill requires a “labor representative,” defined in the bill as a member of a non-profit labor organization, who has been designated by a non-profit labor organization as an inspector with certain qualifications, to be permitted to enter the property of a privately owned railroad (property) to inspect for safety hazards pursuant to State and federal regulations. Under the bill, an owner or operator may designate a railroad company employee to accompany the labor representative while on the property. In addition, the bill requires the labor representative to carry valid photo identification and written authorization issued by the non-profit labor organization while on the property, and to present the identification and written authorization upon request. Under the bill, a labor representative acting in good faith and without gross negligence or willful misconduct is to be immune from civil liability for actions taken while on the property. The bill permits an owner or operator to require a labor representative to execute a nondisclosure agreement to protect trade secrets or confidential information viewed during an inspection, except where necessary to report hazardous conditions or violations.
The bill further specifies that, with the exception of the provisions concerning the train length restriction, the provisions of the bill are not to apply to an owner or operator of a Class III carrier, as defined by federal regulations, that operates within a single municipality on 25 track miles or less and which is engaged in switching or terminal railroad services. Finally, the bill clarifies that its provisions are not to be construed to exempt a major facility from the provisions of the “Spill Compensation and Control Act.”
COMMITTEE AMENDMENTS:
The committee amended the bill to:
(1) revise the definitions section to:
(a) remove certain defective bearings from the definition of “defects”;
(b) remove the definition of “emergency services provider”;
(c) provide that the term “hazardous substances” also includes any new or emerging hazardous substances, as determined by the commissioner, in consultation with the Commissioner of Environmental Protection, that may be deemed to be environmentally sensitive chemicals; and
(d) provide that the term “owner” or “operator” applies to private persons owning or operating the dangerous hazardous train, rather than a person owning or operating such train;
(2) remove the requirement for an owner’s name to be clearly displayed on all dangerous hazardous trains;
(3) clarify that a minimum of two crew members are to be aboard a dangerous hazardous train transporting one or more intermodal portable tanks containing certain materials;
(4) specify that a privately owned railroad, rather than a person or railroad, found in violation of certain provisions of the bill is to be liable for a civil penalty if the train exceeds a maximum train length set forth in the bill;
(5) clarify that each day a violation of certain provisions of the bill continues constitutes a separate and distinct violation;
(6) authorize the commissioner to grant a temporary waiver from the train length restriction in certain circumstances outlined in the bill and to establish certain parameters regarding the award and any extension of a temporary waiver;
(7) provide that the bridge inspection reporting requirements provided in the bill apply to bridges owned by privately owned railroads and to provide that the reports are to be provided within 30 days of each inspection;
(8) require the department, in conjunction with the board, to work with certain railroad companies to determine the appropriate type of wayside detector system for a section of track;
(9) specify that the board and department are to investigate a railroad company’s safety practices and standards if the railroad company unreasonably refuses to work or otherwise cooperate with the board and the department in accordance with certain provisions of the bill. As introduced, the board and the department were to conduct such investigation if the railroad company refused to work or otherwise cooperate with the board and the department;
(10) include the clarity and accuracy of radio communications, the length of the train, and the frequency of the trains in the standards for determining whether the distance between wayside detector systems is reasonable;
(11) require the board, in collaboration with 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 set forth in the bill and to specify certain requirements for the funding assistance program;
(12) remove a provision authorizing all non-profit labor organizations representing a class or craft of employees of rail carriers or rail carrier contractor officials to enter onto railroad property to assist in inspecting for safety hazards, and to instead authorize a labor representative, who has been designated by a non-profit labor organization as an inspector with certain qualifications, to enter the property of a privately owned railroad to inspect for certain safety hazards, to require the labor representative to carry photo identification and written authorization while on the property, and to permit an owner or operator to designate a railroad company employee to accompany the labor representative while on the property;
(13) establish certain circumstances in which an owner or operator may deny a labor representative access to the entire property of a privately owned railroad, or areas of the property, as outlined in the bill;
(14) provide that a labor representative acting in good faith and without gross negligence or willful misconduct is to be immune from civil liability for actions undertaken while on the property of a privately owned railroad;
(15) permit an owner or operator to require a labor representative to execute nondisclosure agreements to protect trade secrets or confidential information viewed during an inspection, except where necessary to report hazardous conditions or violations;
(16) remove a section of the bill that would have required the department to assist certain non-profit labor organizations and local emergency services providers to apply for federal infrastructure safety grants;
(17) remove a provision requiring the board to adopt rules and regulations to effectuate certain provisions of the bill and to instead require the department to coordinate with the board through a memorandum of understanding to ensure alignment of certain regulatory activities; and
(18) make technical corrections.
FISCAL IMPACT:
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 board and the department may incur additional increased annual expenditures attributed to the development and administration of a funding assistance program for railroad companies. 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 of 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.