S4500

An Act creating notice requirements for certain fare, charge, toll, or rate increases, amending various parts of the statutory law, and supplementing Title 48 of the Revised Statutes.

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

1. Section 1 of P.L.1977, c.230 (C.27:23-5.10) is amended as follows:

1. a. The authority shall, whenever it desires to increase any existing toll or establish any new toll for the use of any highway project and the different parts or sections thereof, hold a public hearing on such proposed toll at least 45 days prior to the date on which such toll is proposed to become effective.

b. Notwithstanding any law, rule, regulation, or order to the contrary, no less than 15 days prior to providing notice of a public hearing pursuant to section 2 of P.L.1977, c.230 (C.27:35-5.11) where the authority will consider any proposal that would result in the creation of or an increase to a toll, the authority shall provide copies of the proposal to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

(cf: P.L.2003, c.79, s.16)

2. Section 9 of P.L.1948, c.454 (C.27:23-9) is amended as follows:

9. Revenues. (A) The authority is hereby authorized by resolution to fix, revise, charge and collect tolls, fees, licenses, rents, concession charges and other charges for the use of each project and the different parts or sections thereof, and to contract with any person, partnership, association or corporation desiring the use of any part thereof, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light or power lines, gas stations, garages, stores, hotels, and restaurants, offices, entertainment facilities, or for any other purpose, and to fix the terms, conditions, rents and rates of charges for such use; provided, that a sufficient number of gas stations may be authorized to be established in each service area along any such highway to permit reasonable competition by private business in the public interest. Such tolls shall be so fixed and adjusted as to carry out and perform the terms and provisions of any contract with or for the benefit of bondholders. Such tolls shall not be subject to supervision or regulation by any other commission, board, bureau or agency of the State. The use and disposition of tolls and revenues shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of the trust agreement securing the same.

(B) (Deleted by amendment, P.L.2003, c.79).

(C) All revenues and other funds of the authority not pledged or otherwise required to pay or secure the payment of principal and interest on any indebtedness of the authority existing from time to time under, and not otherwise required for the purpose of, this act and not pledged under a contract providing for payment of funds to the State or New Jersey Transportation Trust Fund Authority created pursuant to P.L.1984, c.73 (C.27:1B-1 et seq.) shall be applied to the authority's corporate purposes or as hereafter provided by law.

(D) Notwithstanding any law, rule, regulation, or order to the contrary, no less than 70 days prior to implementing any proposal that would result in the creation of or an increase to a toll, fee, or charge, the authority shall provide copies of the proposal to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

(cf: P.L.2003, c.79, s.22)

3. Section 8 of P.L.1979, c.150 (C.27:25-8) is amended as follows:

8. a. The corporation or any subsidiary thereof shall not be considered a public utility as defined in R.S.48:2-13, and except with regard to subsection c. of this section, subsection b. of R.S.48:3-38, section 2 of P.L.1989, c.291 (C.27:25-15.1), and R.S.48:12-152, the provisions of Title 48 of the Revised Statutes shall not apply to the corporation or any subsidiary thereof.

b. The authority hereby given to the corporation pursuant to section 6 of P.L.1979, c.150 (C.27:25-6) with respect to fares and service, shall be exercised without regard or reference to the jurisdiction formerly vested in the Department of Transportation regarding rates and rate schedules under R.S.48:2-21; discontinuance, curtailment, or abandonment of service under R.S.48:2-24; and the issuance of a certificate of public convenience and necessity under R.S.48:4-3, and transferred to the New Jersey Motor Vehicle Commission by P.L.2003, c.13 (C.39:2A-1 et al.). The New Jersey Motor Vehicle Commission shall resume jurisdiction over service and fares upon the termination and discontinuance of a contractual relationship between the corporation and a private or public entity relating to the provision of public transportation services operated under the authority of certificates of public convenience and necessity previously issued by the New Jersey Motor Vehicle Commission or its predecessors; provided, however, that a private entity shall not be required to restore any service discontinued or any fare changed during the existence of a contractual relationship with the corporation, unless the New Jersey Motor Vehicle Commission shall determine, after notice and hearing, that the service or fare is required by public convenience and necessity.

c. Notwithstanding any other provisions of P.L.1979, c.150 (C.27:25-1 et seq.), all vehicles used by any public or private entity pursuant to contract authorized by P.L.1979, c.150 (C.27:25-1 et seq.), and all vehicles operated by the corporation directly, shall be subject to the jurisdiction of the department with respect to maintenance, specifications, and safety to the same extent that jurisdiction is conferred upon the department by Title 48 of the Revised Statutes.

d. (1) Before implementing the substantial curtailment or abandonment of rail passenger services, the corporation shall hold at least two public hearings in the area affected, as close as possible to the highest trafficked stop on the route. At least one of the two hearings shall take place on a State working day. One hearing shall take place for at least two hours between the hours of 9:00 a.m. and 5:00 p.m., and the other hearing shall take place for at least two hours between the hours of 6:00 p.m. and 10:00 p.m. Before implementing the substantial curtailment or abandonment of motorbus regular route services, the corporation shall hold at least one public hearing in the area affected, as close as possible to the highest trafficked station on the route. Each public hearing required pursuant to this paragraph shall be attended by at least two members of the corporation's board of directors.

(2) Before implementing any fare increase for any motorbus regular route or rail passenger services, at least 10 public hearings shall be held and shall be distributed geographically throughout the State. Not more than one hearing required pursuant to this paragraph shall take place in each county, and each hearing shall be located as close as possible to both a rail passenger service line and a motorbus regular route. At least half of the hearings required pursuant to this paragraph shall take place on State working days. Five of the hearings shall take place for at least two hours between the hours of 9:00 a.m. and 5:00 p.m., and the other five hearings shall take place for at least two hours between the hours of 6:00 p.m. and 10:00 p.m. Each public hearing required pursuant to this paragraph shall be attended by at least two members of the corporation's board of directors.

For the hearings required under paragraphs (1) and (2) of this subsection, notice of the hearing shall be given by the corporation at least 15 days prior to the hearing to the governing body of each county whose residents will be affected and to the clerk of each municipality in the county or counties whose residents will be affected; the notice shall also be posted at least 15 days prior to the hearing in prominent places on the railroad cars and buses serving the routes to be affected. In addition to the public hearing, the corporation shall post, in prominent places on the railroad cars and buses serving the routes to be affected, a postal mailing address and electronic mailing address where members of the public may provide written comments to the corporation regarding the proposed fare increase or substantial curtailment or abandonment of service. The corporation shall prepare and publish a written response concerning any issue or concern raised by a member of the public at any public hearing or in any written comment provided pursuant to this subsection.

e. Public hearings shall be concluded at least seven days prior to final action by the board.

f. For the purposes of this section, "substantial curtailment" and "substantially curtail" shall mean a change in service that: (1) discontinues or abandons all service on an entire bus route, rail line, or light rail line; (2) discontinues or abandons all service on a portion of a bus route, rail line, or light rail line that represents more than 25 percent of the route or line's miles; provided however that "substantial curtailment" or "substantially curtail" shall not mean the discontinuance or abandonment of a portion of a route or line's service if alternate service is available by existing duplicative service that is provided by the corporation or another transit provider or by transfer to another route with a comparable level of service; (3) discontinues all service on a particular day or days of the week for an entire bus route, rail line, or light rail line, or on a portion of a bus route, rail line, or light rail line that represents more than 25 percent of the route or line's miles; (4) reduces service on a regular bus route or light rail line in a way that the headway on the peak service increases by more than 50 percent, or that more than doubles the non-peak headway; (5) reduces service on a rail line in a way that reduces the amount of total service on the line by more than 25 percent or reduces service on a rail line during peak hours in a way that reduces the total number of daily trips provided during peak hours; (6) completely closes an existing bus terminal, rail station, or light rail station; or (7) reduces service that would change the span of service on a rail line, regular bus route or light rail line by two hours or more during non-peak hours or reduces the span of service during peak hours by more than 20 minutes.

For the purposes of this section, a temporary change in service lasting two weeks or less, and where service returns to the regularly scheduled service within two weeks of the start of the change, shall not constitute "substantial curtailment," but shall require public notice for all temporary changes and, for temporary changes where the impact to riders is significant, alternate provision of service.

g. Nothing contained herein shall prevent the corporation from taking any action necessary to address emergency or exigent circumstances, provided that if such action constitutes a substantial curtailment under this section, the corporation shall hold public hearings as soon as practicable. The corporation shall explain to the public the reasons for the emergency at the hearing, and shall take public input concerning the impacts of the emergency on riders. The corporation shall take the public testimony into account when determining alternate service measures to mitigate the impact of the substantial curtailment.

h. No less than 15 days prior to providing notice pursuant to subsection d. of this section of a public hearing where the corporation will consider any proposal that would result an increase to a fare, the corporation shall provide copies of the proposal to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

(cf: P.L.2018, c.162, s.5)

4. Section 20 of P.L.1991, c.252 (C.27:25A-20) is amended as follows:

20. The authority may increase any existing toll, fare or facility or other charge or establish any new toll, fare or charge for the use of any project and the different parts or sections thereof.

a. The authority shall hold at least three public hearings, each in a different county, on a proposed toll, fare or charge for any expressway project the latter of which shall be held at least 45 days prior to the date on which the toll, fare or charge is proposed to become effective. The authority shall publish a notice of the hearing at least 10 days prior to each hearing in at least five newspapers with the largest daily circulation in South Jersey and in at least one newspaper with the largest daily circulation in this State.

b. The authority shall hold at least two public hearings, each in a different location in Atlantic County, on a proposed toll, fare or charge related to any project operated pursuant to section 22 of [this act] P.L.1991, c.252 (C.27:25A-22) at least 45 days prior to the date on which the toll, fare or charge is proposed to become effective. The authority shall publish a notice of the hearing at least 10 days prior to each hearing in at least five newspapers with the largest daily circulation in South Jersey and in at least one newspaper with the largest daily circulation in this State.

c. Notwithstanding any law, rule, regulation, or order to the contrary, no less than 15 days prior to providing notice pursuant to subsection a. or subsection b. of this section of a public hearing where the authority will consider any proposal that would result in the creation of or an increase to a toll, fare, or charge, the authority shall provide copies of the proposal to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

(cf: P.L.1991, c.252, s.20)

5. (New section) a. As used in this section:

“Board” means the New Jersey Board of Public Utilities or any successor agency.

“Public utility” means the same as that term is defined in R.S.48:2-13.

b. Notwithstanding any law, rule, regulation, or order to the contrary, no less than 15 days prior to providing notice of a public hearing where the board will consider a filing by a public utility that would result in the creation of or an increase to an individual rate, joint rate, toll, charge, or schedule thereof, the board shall provide copies of the filing to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

6. Section 3 of P.L.1983, c.454 (C.48:2-32.7) is amended as follows:

3. a. The board shall adopt a final decision or order with respect to an application under section 2 of P.L.1983, c.454 (C.48:2-32.6) at a public meeting, in accordance with subsection (d) of section 10 of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-10(d)). Each member of the board shall individually state the reason for the member's decision on the application either at the public meeting or in a written document, which document shall be available to the public upon request.

b. A final decision or order pursuant to subsection a. of this section shall be made within 12 months of the final public hearing held to review an application under section 2 of P.L.1983, c.454 (C.48:2-32.6). If the board has not adopted a final decision or order within 12 months of the final public hearing, the board shall hold an additional public hearing before adopting a final decision or order. A final decision or order shall not be adopted pursuant to subsection a. of this section unless a public hearing to review an application has been held in the previous 12 months.

c. Notwithstanding any law, rule, regulation, or order to the contrary, within 15 days of adopting a final decision or order on a filing submitted by a public utility that would result in the creation of or an increase to an individual rate, joint rate, toll, charge, or schedule thereof pursuant to subsection a. of this section, the board shall provide copies of the final decision or order to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature.

(cf: P.L.2017, c.77, s.3)

7. This act shall take effect immediately.

STATEMENT

This bill creates certain notice requirements for the New Jersey Turnpike Authority (NJTA), New Jersey Transit Corporation (corporation), the South Jersey Transportation Authority (SJTA), and the Board of Public Utilities (board). Under this bill, NJTA, the corporation, and SJTA are required to provide copies of any proposal that would result in the creation of or an increase to a toll, fare, or charge, as applicable, to the Governor and the Legislature at least 15 days prior to providing public notice that the entity is considering the proposal. Further, when NJTA fixes, revises, charges, or collects a toll, fare, or charge, this bill requires NTJA to provide 70 days notice prior to implementing the creation of or an increase to a toll, fare, or charge.

The bill further requires the board to provide copies of any filing submitted by a public utility that would result in the creation of or an increase to an individual rate, joint rate, toll, charge, or schedule to the Governor and the Legislature 15 days prior to providing public notice that the board will consider that filing by a public utility that would result in the creation of or an increase to an individual rate, joint rate, toll, charge, or schedule

The bill also requires the board to provide copies of the board’s final decision and order on a filing submitted by a public utility that would result in the creation of or an increase to an individual rate, joint rate, toll, charge, or schedule thereof to the Governor and the Legislature within 15 days of adopting such final decision and order.