S3695

An Act concerning the State’s transportation entities, supplementing Title 27 of the Revised Statutes, and revising various parts of the statutory law.

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

1. (New section) Sections 1 through 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the “Transit Agency Consolidation Act.”

2. (New section) As used in sections 1 through 6 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill):

“Authority” means the Transportation Authority of New Jersey established pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Board” means the Board of the Transportation Authority of New Jersey established pursuant to subsection b. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Board chair” means the Chair of the Board of the Transportation Authority of New Jersey appointed pursuant to subsection b. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Department” means the New Jersey Department of Transportation.

“Leadership committee” means a committee established by the Chair of the Board of the Transportation Authority of New Jersey pursuant to paragraph (3) of subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) to govern a transportation entity consolidated within the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

“Transportation planning” means any effort undertaken by the department to design, update, or manage the State’s transportation system, including, but not limited to: developing strategic planning and finance documents such as the State’s Annual Transportation Capital Program, the Transportation Master Plan, the Statewide Capital Investment Strategy, the Transportation Trust Fund Authority Financial Plan, and the Five-Year Capital Plan; and administering local aid through municipal and county capital programs. “Transportation planning” shall not include routine road maintenance, disaster relief, or emergency preparedness efforts.

“Transfer Date” means the date on which the authority has certified to the Governor and each presiding officer of the Legislature, pursuant to subsection c. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), that the authority has assumed the powers, duties, assets, and responsibilities of each transportation entity and the department to the extent necessary to effectuate its responsibilities prescribed in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Transportation entity” means the New Jersey Turnpike Authority established pursuant to section 3 of P.L.1948, c.454 (C.27:23-3); the New Jersey Transit Corporation established pursuant to section 4 of P.L.1979, c.150 (C.27:25-4); or the New Jersey Transportation Trust Fund Authority established pursuant to section 4 of P.L.1984, c.73 (C.27:1B-4).

3. (New section) a. There is established in the Department of Transportation the Transportation Authority of New Jersey. To comply with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the authority is allocated within the Department of Transportation. Notwithstanding that allocation, the authority shall be independent of any supervision or control by the department or by any body or officer of the department. The authority shall be constituted as an instrumentality of the State exercising public and essential governmental functions, and the authority’s exercise of the powers conferred in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed an essential governmental function of the State.

b. (1) The authority shall be governed by a board with the following members appointed to the board by the Governor:

(a) a board chair, who shall also serve as the chief executive officer of the authority and shall be a voting member of the board;

(b) 16 other voting members; and

(2) Within three months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Governor shall appoint the first members to fill each vacancy on the board as follows:

(1) four members shall serve for a term of one year;

(2) five members shall serve for a term of two years;

(3) five members shall serve for a term of three years; and

(4) five members, including the board chair, shall serve for a term of four years.

Thereafter, any appointment to the board shall be for a term of four years and the terms shall remain staggered.

(3) Any member appointed to the board shall serve at the pleasure of the Governor and until the appointment of the member’s successor.

c. The powers of the authority shall be vested in the voting members of the board and a majority of the appointed members of the board who are authorized to vote shall constitute a quorum at any board meeting. Actions may be taken and motions and resolutions adopted by the board at any board meeting by the affirmative vote of a majority of the appointed members who are authorized to vote. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.

d. The board meetings shall be subject to the provisions of the “Senator Byron M. Baer Open Public Meetings Act,” P.L.1975, c.231 (C.10:4-6 et seq.). Each notice of a board meeting and each agenda for a board meeting shall be published on the authority’s Internet website. Board meetings shall be viewable on the authority’s Internet website in real time and shall be archived and made available to the public for subsequent viewing on the authority’s Internet website. Meeting minutes shall be archived and published on the authority’s Internet website.

4. (New section) a. The New Jersey Turnpike Authority, the New Jersey Transit Corporation, and the New Jersey Transportation Trust Fund Authority, along with the transportation planning function of the Department of Transportation pursuant to subsection b. of this section, shall be consolidated as subsidiaries within the Transportation Authority of New Jersey. The authority shall serve as the central transportation hub for the State. Any function of the transportation entities that the authority deems appropriate for centralization shall be moved from the transportation entities, along with corresponding personnel, and shall be administered by the authority, including, but not limited to:

(1) information technology;

(2) security;

(3) audits;

(4) budget and financial management, including, but not limited to, developing and approving the budget of each transportation entity in consultation with the transportation entity’s leadership committee, and directing, as necessary, the transfer of funds between transportation entities, consistent with any covenants or agreements with debt holders;

(5) capital program management pursuant to subsection b. of this section;

(6) government relations;

(7) legal services;

(8) procurement;

(9) real estate;

(10) insurance and risk management;

(11) corporate compliance and ethics; and

(12) any other operations necessary for the authority to effectuate its responsibilities outlined in this section, as determined by the authority or the independent consultant hired pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Upon the Transfer Date:

(1) the authority shall assume responsibility from the Department of Transportation for transportation planning; and

(2) thereafter, the authority shall be the sole entity responsible for developing a holistic transportation capital program for the State, including capital planning for the transportation entities and transportation planning formerly performed by the Department of Transportation.

d. As chief executive officer of the authority, the board chair shall:

(1) establish different committees to help the authority fulfill its responsibilities prescribed in P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) assign board members to any committee established by the board pursuant to paragraph (1) of this subsection;

(3) establish leadership committees to oversee each transportation entity;

(4) assign board members or current or former officers of a transportation entity to any leadership committee established pursuant to paragraph (3) of this subsection; and

(5) serve as the committee chair for each leadership committee, established pursuant to paragraph (3) of this subsection.

e. Until the Transfer Date, the board shall effectuate the authority’s responsibilities, as outlined in P.L. , c. (C. ) (pending before the Legislature as this bill), in consultation with the independent consultant hired by the Department of the Treasury pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. (New section) a. Until the Transfer Date, which shall occur within one year of the appointment of the Board of the Transportation Authority of New Jersey pursuant to subsection b. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the Transportation Authority of New Jersey shall not exercise any powers, rights, or duties conferred by P.L. , c. (C. ) (pending before the Legislature as this bill), or by any other law, in any way that interferes with the powers, rights, and duties of the New Jersey Turnpike Authority, the New Jersey Transit Corporation, the New Jersey Transportation Trust Fund Authority, or the Department of Transportation. The authority, the transportation entities, and the department shall cooperate with each other so that the Transfer Date shall occur as soon as practicable after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). The authority, the transportation entities, and the department shall make available information concerning their property and assets, contracts, operations, and finances as the authority may require to efficiently exercise all powers, rights, and duties conferred upon the authority by P.L. , c. (C. ) (pending before the Legislature as this bill).

b. On the Transfer Date, to the extent necessary to effectuate the authority’s responsibilities outlined in P.L. , c. (C. ) (pending before the Legislature as this bill):

(1) the authority shall assume the applicable powers, rights, assets, and duties of each transportation entity and the powers, rights, assets, and duties of the department that concern transportation planning. Such powers shall then and thereafter be vested in and exercised by the authority;

(2) the terms of office of the members of the governing body of each transportation entity shall terminate. However, the members of a governing body shall continue to serve, as necessary, until the establishment and appointment of the transportation entity’s leadership committee;

(3) any officer or employee of a transportation entity or the department who primarily administers one or more of the responsibilities transferred from a transportation entity or the department to the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be transferred to the authority and become employees of the authority until determined otherwise by the authority. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to deprive any officers or employees of a transportation entity or the department of their rights, privileges, obligations, or status with respect to any pension or retirement system. The employees shall retain all their rights and benefits under existing collective negotiation agreements or contracts until new or revised agreements or contracts are entered. All existing employee representatives shall be retained to act on behalf of those employees until the employees shall, pursuant to law, elect to change those representatives. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall affect the civil service status, if any, of those officers or employees;

(4) contracts entered into by a transportation entity, or contracts entered into by the department in service of transportation planning, are imposed upon the authority, and all persons having contracts with a transportation entity of any kind or character, and all persons having contracts related to transportation planning with the department, may enforce those contracts against the authority as successor to a transportation entity or the department in the same manner as the contracting parties might have had against a transportation entity or the department. The rights and remedies of those persons having contracts with a transportation entity or the department shall not be limited or restricted in any manner by P.L. , c. (C. ) (pending before the Legislature as this bill). However, bond covenants or other contracts entered into by a transportation entity with its debt holders shall remain with each applicable transportation entity and shall not be transferred to the authority under the provisions of this paragraph;

(5) in continuing the functions, contracts, and duties of each transportation entity, and of the department as those functions, contracts, and duties relate to transportation planning, the authority may act in its own name, or in the name of a transportation entity or the department, as may be convenient or advisable under the circumstances from time to time;

(6) each transportation entity, as appropriate, shall maintain its authority to issue bonds, notes, or other obligations in compliance with the provisions of any relevant law, rule, or regulation;

(7) any references to the New Jersey Turnpike Authority, the New Jersey Transit Corporation, the New Jersey Transportation Trust Fund Authority, or, as those references concern transportation planning, the Department of Transportation in any other law, rule, or regulation shall be deemed to refer and apply to the authority;

(8) the rules and regulations of each transportation entity, and of the department as those rules and regulations concern transportation planning, shall continue in effect as the rules and regulations of the authority until amended, supplemented, or rescinded by the authority in accordance with law. Notwithstanding the requirements of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the authority may adopt rules and regulations, after notice and an opportunity for public comment, amending, supplementing, modifying, or repealing the regulations of the authority, any transportation entity, or, as appropriate, the department. Such rules and regulations shall be effective immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months from the Transfer Date and may thereafter be amended, adopted, or readopted in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.). Rules and regulations of any transportation entity, or of the department as those rules and regulations concern transportation planning, that are inconsistent with P.L. , c. (C. ) (pending before the Legislature as this bill) or the rules and regulations of the authority shall be deemed void if so judged by the authority acting pursuant to the provisions of this paragraph; and

(9) the operations of each transportation entity, and the department’s operations concerning transportation planning, shall continue as operations of the authority until altered by the authority as may be permitted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

c. As soon as practicable after the Transfer Date, the authority shall notify the Governor and the presiding officer of each house of the Legislature:

(1) that the transfer has occurred;

(2) of the date of the transfer; and

(3) of any other information concerning the transfer that the authority deems appropriate.

d. On and after the Transfer Date, no officer or employee of the authority shall be granted permanent tenure at the authority.

6. (New section) a. Within three months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of the Treasury shall, through a competitive bidding process, select an independent consultant to assist the Board of the Transportation Authority of New Jersey in effectuating: the transfer of powers and responsibilities pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill); and the authority’s responsibilities outlined in P.L. , c. (C. ) (pending before the Legislature as this bill). At a minimum, the independent consultant shall advise the board on best practices in other states and industry standards for centralizing transportation oversight, planning, and finance within the State.

b. The independent consultant selected pursuant to subsection a. of this section shall not have a conflict of interest, which shall be determined by the Department of the Treasury, in the centralization of transportation oversight, planning, and finance in New Jersey.

c. The Department of the Treasury shall compensate the independent consultant required pursuant to subsection a. of this section using any monies that may be appropriated by the Legislature for this purpose.

d. The independent consultant shall begin performing its services pursuant to subsection a. of this section upon the appointment of the board and shall terminate its services upon the Transfer Date, as certified to the Governor and the Legislature pursuant to subsection c. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

e. The Department of the Treasury may adopt, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this section.

7. (New section) Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):

a. the New Jersey Turnpike Authority shall be governed by a leadership committee to be established by the Board of the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), which committee shall be under the direct oversight of the Transportation Authority of New Jersey, and the Chair of the Board of the Transportation Authority of New Jersey shall serve as committee chair of the leadership committee of the New Jersey Turnpike Authority; and

b. any reference to the governing body of the New Jersey Turnpike Authority in any law, rule, or regulation shall be deemed a reference to the leadership committee of the New Jersey Turnpike Authority established by the Transportation Authority of New Jersey.

8. Section 5 of P.L.1948, c.454 (C.27:23-5) is amended to read as follows:

5. [General grant of powers.] a. The authority shall [be a body corporate and politic and shall have perpetual succession and shall] have the following powers:

[(a) To] (1) to adopt bylaws for the regulation of its affairs and the conduct of its business;

[(b) To] (2) to adopt an official seal and alter the same at pleasure;

[(c) To] (3) to maintain an office at such place or places within the State as it may designate and to organize itself into such sub-departments, operating divisions or units as it deems appropriate;

[(d) To] (4) to sue and be sued in its own name;

[(e) To] (5) to acquire, improve, construct, maintain, repair, manage, and operate transportation projects or any part thereof at such locations as shall be established by law or by the authority;

[(f) To] (6) to borrow money and issue negotiable bonds for any of its corporate purposes, and to secure the same through the pledging of tolls and other revenues and proceeds of such bonds, or other available sources, and to refund its bonds, and to enter into any credit agreement, all as provided in this act;

[(g) In] (7) in the exercise of any of its powers, by resolution, to fix and revise from time to time and charge and collect tolls, fees, licenses, rents, concession charges, and other charges for each transportation project or any part thereof constructed or acquired by it. [No toll revenues derived from the New Jersey Turnpike or the Garden State Parkway shall be used or available for any transportation project other than a highway project and all transportation projects other than highway projects shall be self-sustaining; provided however that such toll revenues may be used to finance or support the costs of non-highway transportation projects on an interim basis according to such terms, with or without interest, as the authority shall establish];

[(h) To] (8) to establish rules and regulations for the use of any project, including restrictions on the type, weight, and size of vehicles utilizing transportation projects, and [also including] the power to exclude from any part of a highway project any traffic other than passenger automobiles if the authority finds that such part is not suitable or sufficient as a highway to carry mixed traffic;

[(i) To] (9) to acquire, hold, and dispose of real and personal property in the exercise of its powers and the performance of its duties under this act;

[(j) To] (10) to acquire in the name of the authority by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the power of eminent domain, except as against the State of New Jersey, any land and other property, which it may determine is reasonably necessary for any transportation project or feeder road or for the relocation or reconstruction of any highway by the authority under the provisions of this act and any and all rights, title, and interest in such land and other property, including public lands, parks, playgrounds, reservations, highways, or parkways, owned by or in which the State of New Jersey or any county, city, borough, town, township, village, or other political subdivision of the State of New Jersey has any right, title, or interest, or parts thereof or rights therein and any fee simple absolute or any lesser interest in private property, and any fee simple absolute in, easements upon, or the benefit of restrictions upon, abutting property to preserve and protect transportation projects.

Upon the exercise of the power of eminent domain, the compensation to be paid thereunder shall be ascertained and paid in the manner provided in the “Eminent Domain Act of 1971,” P.L.1971, c.361 (C.20:3-1 et seq.), insofar as the provisions thereof are applicable and not inconsistent with the provisions contained in this act. The authority may join in separate subdivisions in one petition or complaint the descriptions of any number of tracts or parcels of land or property to be condemned and the names of any number of owners and other parties who may have an interest therein and all such land or property included in said petition or complaint may be condemned in a single proceeding; provided [, however,] that separate awards be made for each tract or parcel of land or property; and provided, further, that each of said tracts or parcels of land or property lies wholly in or has a substantial part of its value lying wholly within the same county.

Upon the filing of such petition or complaint or at any time thereafter the authority may file with the clerk of the county in which such property is located and also with the Clerk of the Superior Court a declaration of taking, signed by the authority, declaring that possession of one or more of the tracts or parcels of land or property described in the petition or complaint is thereby being taken by and for the use of the authority. The [said] declaration of taking shall be sufficient if it sets forth:

[(1)] (a) a description of each tract or parcel of land or property to be so taken sufficient for the identification thereof, to which there may or may not be attached a plan or map thereof;

[(2)] (b) a statement of the estate or interest in the [said] land or property being taken; and

[(3)] (c) a statement of the sum of money estimated by the authority by resolution to be just compensation for the taking of the estate or interest in each tract or parcel of land or property described in said declaration.

Upon the filing of the [said] declaration, the authority shall deposit with the Clerk of the Superior Court the amount of the estimated compensation stated in said declaration.

Upon the filing of the said declaration as aforesaid and depositing with the Clerk of the Superior Court the amount of the estimated compensation stated in said declaration, the authority, without other process or proceedings, shall be entitled to the exclusive possession and use of each tract of land or property described in said declaration and may forthwith enter into and take possession of said land or property, it being the intent of this provision that the proceedings for compensation or any other proceedings relating to the taking of said land or interest therein or other property shall not delay the taking of possession thereof and the use thereof by the authority for the purpose or purposes for which the authority is authorized by law to acquire or condemn such land or other property or interest therein.

The authority shall cause notice of the filing of said declaration and the making of said deposit to be served upon each party in interest named in the petition residing in this State, either personally or by leaving a copy thereof at [his] each party’s residence, if known, and upon each party in interest residing out of the State, by mailing a copy thereof to[him at his] each party’s residence, if known. In the event that the residence of any such party or the name of such party is unknown, such notice shall be published at least once in a newspaper published or circulating in the county or counties in which the land is located. Upon the application of any party in interest and after notice to other parties in interest, including the authority, any judge of the Superior Court assigned to sit for said county may order that the money deposited with the Clerk of the Superior Court or any part thereof be paid forthwith to the person or persons entitled thereto for or on account of the just compensation to be awarded in said proceeding; provided, that each such person shall have filed with the Clerk of the Superior Court a consent in writing that, in the event the award in the condemnation proceeding shall be less than the amount deposited, the court, after notice as herein provided and hearing, may determine [his] the person’s liability, if any, for the return of such difference or any part thereof and enter judgment therefor. If the amount of the award as finally determined shall exceed the amount so deposited, the person or persons to whom the award is payable shall be entitled to recover from the authority the difference between the amount of the deposit and the amount of the award, with interest at the rate of six per centum [(6%)] (six percent) per annum thereon from the date of making the deposit. If the amount of the award shall be less than the amount so deposited, the Clerk of the Superior Court shall return the difference between the amount of the award and the deposit to the authority, unless the amount of the deposit or any part thereof shall have theretofore been distributed, in which event the court, on petition of the authority and notice to all persons interested in the award and affording them an opportunity to be heard, shall enter judgment in favor of the authority for such difference against the party or parties liable for the return thereof. The authority shall cause notice of the date fixed for such hearing to be served upon each party thereto residing in this State, either personally or by leaving a copy thereof at [his] each party’s residence, if known, and upon each party residing out of the State, by mailing a copy to [him at his] each party’s residence, if known. [In the event that] If the residence of any party or the name of such party is unknown, such notice shall be published at least once in a newspaper published or circulating in the county or counties in which the land is located. Such service, mailing or publication shall be made at least 10 days before the date fixed for such hearing.

Whenever under the “Eminent Domain Act of 1971” the amount of the award may be paid into court, payment may be made into the Superior Court and may be distributed according to law;

[(k) To] (11) to designate the locations, [and] establish, limit, and control such points of ingress to and egress from each highway or transportation project as may be necessary or desirable in the judgment of the authority to [insure] ensure the proper operation and maintenance of such project, and [to] prohibit entrance to such project from any point or points not so designated;

[(l) To] (12) to make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this act and to enter into contracts with federal, State, and local governments and private entities for the financing, administration, operation, management and construction of transportation projects;

[(m) To] (13) to appoint such additional officers, who need not be members of the authority, as the authority deems advisable, and to employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers, and such other similarly situated employees and agents as may be necessary in its judgment; to fix their compensation; and to promote and discharge such officers, employees, and agents, all without regard to the provisions of Title 11A of the New Jersey Statutes;

[(n) To] (14) to receive and accept from any federal agency, subject to the approval of the Governor, grants for or in aid of the acquisition or construction of any transportation project or any part thereof, and to receive and accept aid or contributions, from any source, of [either] money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which such grants and contributions may be made;

[(o) To] (15) to do all acts and things necessary or convenient to carry out the powers expressly or impliedly granted in this act;

[(p) Subject] (16) subject to any agreement with the bondholders, to invest moneys of the authority not required for immediate use, including proceeds from the sale of any bonds, in such obligations, securities, and other investments as the authority shall deem prudent;

[(q) To] (17) to apply for, receive, and accept from any federal agency, any bistate agency, or the State and any subdivision thereof, grants for or in aid of the planning, acquisition, management, maintenance, operation, or construction of any project, and to receive and accept aid or contributions from any other public or private source, of [either] money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which those grants and contributions may be made;

[(r) To] (18) to procure and enter into contracts for any type of insurance and to indemnify against loss or damage to property from any cause, including the loss of use and occupancy and business interruption, death, or injury of any person, employee liability, any act of any member, officer, employee, or servant of the authority, whether part-time, compensated or uncompensated, in the performance of the duties of office or employment or any other insurable risk or any other losses in connection with property, operations, assets, or obligations in any amounts and from any insurers as are deemed desirable. In addition, the authority may carry its own liability insurance;

[(s) To] (19) to adopt regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to provide open and competitive procedures for awarding contracts for towing and storage services. Towing and storage services on a highway project may be provided on a rotating basis, provided that the authority determines that there would be no additional cost to the authority, excepting administrative costs, as a result of those services being provided on a rotating basis. The regulations shall fix maximum towing and storage fees, and establish objective criteria to be considered in awarding a contract for towing and storage services, which shall include, but shall not be limited to, reliability, experience, response time, acceptance of credit cards and prepaid towing contracts, adequate equipment to safely handle a sufficient volume of common vehicle types under a variety of traffic and weather conditions, location of storage and repair facilities, security of vehicles towed or stored, financial return to the authority, maintenance of adequate liability insurance and appropriate safeguards to protect the personal safety of customers, including considerations related to the criminal background of employees. The Division of Consumer Affairs in the Department of Law and Public Safety shall provide, at the authority’s request, a report to the authority on any prospective contractor for which the division has information relevant to the prospective contractor’s service record, subject to the provisions of the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). The Division of Insurance Fraud Prevention in the Department of Banking and Insurance also shall provide, at the authority’s request, a report to the authority on any prospective contractor for which the division has information relevant to the prospective contractor’s service record, subject to the “New Jersey Insurance Fraud Prevention Act,” P.L.1983, c.320 (C.17:33A-1 et seq.);

[(t) To] (20) to adopt, prior to the Transfer Date and notwithstanding any other provision of law to the contrary, a resolution authorizing the issuance of bonds, notes, or other obligations on such terms as otherwise provided for in this act for the retirement by defeasance, redemption, secondary market purchase, tender payment at maturity or otherwise, of all of the New Jersey Highway Authority’s outstanding bonds, notes, or other obligations, as if the Transfer Date transferring to the authority the rights, duties, and obligations to operate, maintain, and manage the Garden State Parkway had already occurred; and

[(u) To] (21) to transfer, sell, dispose of, or otherwise relinquish all right, title, or interest in the Garden State Arts Center, and any related or auxiliary facilities, to the New Jersey Sports and Exposition Authority, established by the “New Jersey Sports and Exposition Authority Law,” P.L.1971, c.137 (C.5:10-1 et seq.), or to any other entity, according to such terms and process as the authority may establish in its discretion.

b. Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), any power of the New Jersey Turnpike Authority enumerated in subsection a. of this section, which power is necessary to effectuate the responsibilities of the Transportation Authority of New Jersey as outlined in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be transferred to the Transportation Authority of New Jersey. Any powers enumerated in subsection a. of this section that are not necessary to effectuate the responsibilities of the Transportation Authority of New Jersey will remain the powers of the leadership committee of the New Jersey Turnpike Authority, which committee is to be established by the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2003, c.79, s.9)

9. (New section) Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):

a. the New Jersey Transportation Trust Fund Authority shall be governed by a leadership committee to be established by the Board of the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), which committee shall be under the direct oversight of the Transportation Authority of New Jersey, and the Chair of the Board of the Transportation Authority of New Jersey shall serve as committee chair of the leadership committee of the New Jersey Transportation Trust Fund Authority; and

b. any reference to the governing body of the New Jersey Transportation Trust Fund Authority in any law, rule, or regulation shall be deemed a reference to the leadership committee of the New Jersey Transportation Trust Fund Authority established by the Transportation Authority of New Jersey.

10. Section 6 of P.L.1984, c.73 (C.27:1B-6) is amended to read as follows:

6. a. In addition to all other powers granted to the authority in the act, the authority shall have the power:

[a. To] (1) to sue and be sued;

[b. To] (2) to have an official seal and alter the same at its pleasure;

[c. To] (3) to make and alter bylaws for its organization and internal management and rules and regulations for the conduct of its affairs and business;

[d. To] (4) to maintain an office at a place or places within the State as it may determine;

[e. To] (5) to acquire, hold, use, and dispose of its income, revenues, funds, and moneys;

[f. To] (6) to acquire, own, lease as lessee or lessor, hold, use, sell, transfer, and dispose of real or personal property for its purposes;

[g. To] (7) to borrow money and to issue its bonds, notes, or other obligations and to secure the same by its revenues or other funds and otherwise to provide for and secure the payment thereof and to provide for the rights of the holders thereof and to provide for the refunding thereof, all as provided in the act;

[h. To] (8) to issue subordinated indebtedness and to enter into any revolving credit agreement, agreement establishing a line of credit or letter of credit, reimbursement agreement, interest rate exchange agreement, insurance contract, surety bond, commitment to purchase or sell bonds, purchase or sale agreement, or commitments or other contracts or agreements, and other security agreements as approved by the authority in connection with the issuance of bonds or notes;

[i. In] (9) in its own name, in the name of the New Jersey Transit Corporation or in the name of the State, to apply for and receive and accept appropriations or grants of property, money, services, or reimbursements for money previously spent and other assistance offered or made available to [it] the authority by or from any person, government agency, public authority, or any public and private entity whatever for any lawful corporate purpose of the authority, including, without limitation, grants, appropriations, or reimbursements from the State or federal government with respect to their respective shares under federal aid highway laws of the costs of planning, acquisition, engineering, construction, reconstruction, repair, resurfacing, and rehabilitation of public highways or the costs of planning, acquisition, engineering, construction, reconstruction, repair, permitted maintenance, and rehabilitation of public transportation projects and other transportation projects in the State and the authority’s operating expenses and to apply and negotiate for the same upon such terms and conditions as may be required by any person, government agency, authority, or entity or as the authority may determine to be necessary, convenient, or desirable;

[j. Subject] (10) subject to any agreement with the holders of bonds, notes, or other obligations, to invest moneys of the authority not required for immediate use, including proceeds from the sale of any bonds, notes, or other obligations, in obligations, securities and other investments as the authority shall deem prudent;

[k. Subject] (11) subject to any agreements with holders of bonds, notes or other obligations, to purchase bonds, notes or other obligations of the authority out of any funds or moneys of the authority available therefor, and to hold, cancel or resell the bonds, notes or other obligations;

[l. For] (12) for its sole purpose as established in section 5 of this act, to appoint and employ [an executive director and such additional] officers, who need not be members of the authority, and such other personnel and staff as it may require, at an annual expense not to exceed $100,000.00, all without regard to the provisions of Title 11A of the New Jersey Statutes;

[m. To] (13) to do and perform any acts and things authorized by the act under, through, or by means of its officers, agents, or employees or by contract with any person, firm, or corporation, or any public body;

[n. To] (14) to procure insurance against any losses in connection with its property, operations, assets, or obligations in amounts and from insurers as [it] the authority deems desirable;

[o. To] (15) to make and enter into any and all contracts and agreements [which] that the authority determines are necessary, incidental, convenient, or desirable to the performance of its duties and the execution of its powers under the act; and

[p. To] (16) to do [any and] all things necessary, convenient, or desirable to carry out its purposes and exercise the powers given and granted in the act.

b. Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), any power of the New Jersey Transportation Trust Fund Authority enumerated in subsection a. of this section, which power is necessary to effectuate the responsibilities of the Transportation Authority of New Jersey as outlined in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be transferred to the Transportation Authority of New Jersey. Any powers enumerated in subsection a. of this section that are not necessary to effectuate the responsibilities of the Transportation Authority of New Jersey will remain the powers of the leadership committee of the New Jersey Transportation Trust Fund Authority, which committee is to be established by the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2000, c.73, s.17)

11. (New section) Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):

a. the New Jersey Transit Corporation shall be governed by a leadership committee to be established by the Board of the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), which committee shall be under the direct oversight of the Transportation Authority of New Jersey, and the Chair of the Board of the Transportation Authority of New Jersey shall serve as committee chair of the leadership committee of the New Jersey Transit Corporation; and

b. any reference to the governing body of the New Jersey Transit Corporation in any law, rule, or regulation shall be deemed a reference to the leadership committee of the New Jersey Transit Corporation established by the Transportation Authority of New Jersey.

12. Section 2 of P.L.2018, c.162 (C.27:25-4.1) is amended to read as follows:

2. a. The board of directors of the corporation shall:

(1) [Execute] execute oversight of the corporation’s [executive director and other] management in the effective and ethical management of the corporation, including review and approval of any fare changes and the elimination or substantial curtailment of motorbus regular route service, rail passenger service, or light rail service;

(2) [Understand] understand, review, and monitor the implementation of fundamental financial and management controls and operational decisions of the corporation, including review and approval of any fare changes and the elimination or substantial curtailment of motorbus regular route service, rail passenger service, or light rail service;

(3) [Establish] establish policies regarding the payment of salary, compensation, and reimbursements to, and establish rules for the time and attendance of [, the executive director and] management, provided that nothing in P.L.2018, c.162 (C.27:25-4.1 et al.) shall be construed to apply civil service rules and regulations to the corporation;

(4) [Adopt] adopt a code of ethics, in consultation with the chief ethics officer, applicable to each [board member,] officer [,] and employee that, at a minimum, includes the applicable standards established by State law;

(5) [Require] require that the corporation establish written policies and procedures on personnel, including policies protecting employees from retaliation for disclosing information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate behavior by an employee of the corporation;

(6) [Adopt] adopt a policy that provides guidelines for when it is appropriate for the chief ethics officer to forward the results and findings of a preliminary investigation conducted by the chief ethics officer to the State Ethics Commission, Office of the Attorney General, county prosecutor’s office, or any other appropriate agency for further investigation or action;

(7) [Adopt] adopt a defense and indemnification policy and disclose [such] the policy to any and all prospective board members; and

(8) [Adopt] adopt corporate bylaws, which shall be reviewed and updated at least once every five years.

b. [(1) The members of the board shall perform each of their duties as board members, including but not limited to those imposed by this section, in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in like position would use under similar circumstances, and may take into consideration the views and policies of any elected official or body, or other person and ultimately apply independent judgment in the best interest of the corporation, its mission, and the public.

(2) At the time that a board member takes and subscribes the board member's oath of office, or within 60 days after the effective date of P.L.2018, c.162 (C.27:25-4.1 et al.) if the board member has already taken and subscribed the board member's oath of office, the board member shall execute an acknowledgement, in a form developed by the corporation, in which the board member shall, at a minimum:

(a) acknowledge that the board member understands that a board member has an obligation to perform duties and responsibilities to the best of the board member's abilities, in good faith and with proper diligence and care, consistent with the enabling compact, mission, and by-laws of the corporation and the applicable laws of this State; and that the duty to the corporation is derived from and governed by its mission;

(b) acknowledge that the board member understands the board member’s duty of loyalty and care to the corporation and commitment to the corporation’s mission and the public interest; and the board member’s obligation to act in the best interests of the corporation and the people whom the corporation serves;

(c) agree that a board member has an obligation to become knowledgeable about the mission, purpose, functions, responsibilities, and statutory duties of the corporation and, when necessary, to make reasonable inquiry of management and others with knowledge and expertise so as to inform the board member’s decisions;

(d) agree to exercise independent judgment on all matters before the board;

(e) agree not to divulge confidential discussions and confidential matters that come before the board for consideration or action;

(f) agree to disclose to the board and the chief ethics officer any conflicts, or the appearance of a conflict, of a personal, financial, ethical, or professional nature that could inhibit the board member from performing the board member’s duties in good faith and with due diligence and care; and

(g) certify that the board member does not have any interest in, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of the board member’s duties in the public interest.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

c. [Individuals appointed to the board of directors shall participate in training regarding their legal, financial, and ethical responsibilities as directors of the corporation within six months of appointment to the board. Board members shall participate in continuing training as may be required to remain informed of best practices and regulatory, legal, financial, and ethical responsibilities and standards.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

d. [No board member, including the chairperson, shall serve as the corporation’s executive director, chief financial officer, or hold any senior management position while serving as a member of the board.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

e. [(1) The board of directors shall establish an audit committee, to be comprised of not less than three members, who shall possess the necessary skills to understand the duties and functions of the committee, including having sufficient knowledge in the areas of finance and accounting. The audit committee shall meet on at least a quarterly basis.

(2) The audit committee shall review and monitor: the reliability of financial statements and the adequacy of financial controls; the results of any audit; and compliance with legal, regulatory, and ethical requirements. The audit committee shall have responsibility for supervising and reviewing the work of the internal audit department, which has responsibility for investigating fraud, waste and abuse within and affecting the agency.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

f. [(1) The board of directors shall establish an administration committee to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee; provided, however, that in the event that a board has less than three independent members, the board may appoint non-independent members to the committee, provided that the independent members shall constitute a majority of the members of the committee. The administration committee shall meet on at least a quarterly basis.

(2) The administration committee shall: advise the board of directors on financial matters, including, but not limited to, proposed budgets including the capital program, major expenditures of the corporation, and all financial policies; receive a bi-monthly report from the head of the Office of Equal Opportunity and Affirmative Action, or any successor office, which shall also be provided to the executive director, regarding the activities of that office, including a summary of the nature and number of the complaints involving discrimination or harassment received by that office and any actions taken by that office in response to those complaints; receive a bi-monthly report from the director of the Human Resources Office, or any successor office, which shall also be provided to the executive director, regarding the activities of that office, including a summary of job vacancies, job postings, new employees, reclassification of job titles, retirements, terminations, disciplinary actions, and any other personnel decisions; and meet at least annually with representatives of the labor organizations representing employees of the corporation. Reports shall not include any personally identifiable information or personnel information protected under state or federal law.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

g. [(1) The board of directors shall establish an operations and customer service committee, to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee. The operations and customer service committee shall meet at least on a quarterly basis.

(2) The operations and customer service committee shall: advise the board of directors on day to day operations and maintenance; review vital statistics including on time performance, cost of service, and service rationalization; review the corporation’s service plan and service standards; oversee fleet management plans, strategic planning, and the corporation’s business plan; and oversee the corporation’s customer service plan and statistics.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

h. [(1) The board of directors shall establish a capital planning and privatization committee, to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee. The capital planning and privatization committee shall meet on at least a quarterly basis.

(2) The capital planning and privatization committee shall: review and monitor the status of capital projects including the annual element of the corporation’s five year capital program; review the rationale for the capital program, its budgets and schedule, and address fast tracking key projects; oversee the development of fare policy and technology; and review real estate transactions and route and service issues that affect private carriers or other properties with which the corporation does business.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

i. [For the purposes of this section, an “independent member” is one who:

(1) is not, and in the past two years has not been, employed by the corporation or an affiliate in an executive capacity;

(2) is not, and in the past two years has not been, employed by an entity that received remuneration valued at more than $15,000 for goods and services provided to the corporation or received any other form of financial assistance valued at more than $15,000 from the corporation;

(3) is not a relative of an executive officer or employee in an executive position of the corporation or an affiliate; and

(4) is not, and in the past two years has not been, a lobbyist registered under a state or local law and paid by a client to influence the management decisions, contract awards, rate determinations, or any other similar actions of the corporation or an affiliate.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

j. [Notwithstanding the provisions of any other law to the contrary, the board shall not directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any officer, board member, or employee, or equivalent thereof, of the corporation.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

k. Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), any power of the board of directors of the corporation outlined in subsection a. of this section, which power is necessary to effectuate the responsibilities of the Transportation Authority of New Jersey as outlined in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be transferred to the Transportation Authority of New Jersey. Any powers outlined in subsection a. of this section that are not necessary to effectuate the responsibilities of the Transportation Authority of New Jersey shall be transferred to the leadership committee of the corporation, which committee is to be established by the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2018, c.162, s.2)

13. Section 5 of P.L.1979, c.150 (C.27:25-5) is amended to read as follows:

5. a. In addition to the powers and duties conferred upon it elsewhere in this act, the corporation may do all acts necessary and reasonably incident to carrying out the objectives of this act, including, but not [in limitation thereof] limited to, the following:

[a. Sue] (1) sue and be sued;

[b. Have] (2) have an official seal and alter the same at pleasure;

[c. Make] (3) make and alter bylaws for [its] the corporation’s organization and internal management and for the conduct of its affairs and business;

[d. Maintain] (4) maintain an office at such place or places within the State as it may determine;

[e. Adopt] (5) adopt, amend, and repeal such rules and regulations as [it] the corporation may deem necessary to effectuate the purposes of this act, which shall have the force and effect of law; it shall publish the same and file them in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) with the Director of the Office of Administrative Law;

[f. Call] (6) call to its assistance and avail itself of the service of such employees of any federal, State, county or municipal department or agency as [it] the corporation may require and as may be available to it for said purpose;

[g. Apply] (7) apply for, accept, and expend money from any federal, State, county, or municipal agency or instrumentality and from any private source as gifts, grants, or loans; comply with federal statutes, rules, and regulations, and qualify for and receive all forms of financial assistance available under federal law to assure the continuance of, or for the support or improvement of, public transportation and as may be necessary for that purpose to enter into agreements, including federally required labor protective agreements;

[h. Plan] (8) plan, design, construct, equip, operate, improve, maintain, and, through the [New Jersey] Transportation [Trust Fund] Authority of New Jersey, finance either directly or by contract with any public or private entity, public transportation services, capital equipment and facilities or any parts or functions thereof, and other transportation projects, or any parts or functions thereof, which may be funded under section 3 of the federal Urban Mass Transportation Act of 1964, Pub.L.88-365 (49 U.S.C. s.1602), or any successor or additional federal act having substantially the same or similar purposes or functions; the operation of the facilities of the corporation, by the corporation or any public or private entity, may include appropriate and reasonable limitations on competition in order that maximum service may be provided most efficiently to the public;

[i. Apply] (9) apply for and accept, from appropriate regulatory bodies, authority to operate public transportation services where necessary;

[j. Purchase] (10) purchase, lease as lessee, or otherwise acquire, own, hold, improve, use, and otherwise deal in and with real or personal property, or any interest therein, from any public or private entity, wherever situated;

[k. Lease] (11) lease as lessor, sell, or otherwise dispose of on terms which the corporation may prescribe, real and personal property, including tangible or intangible property and consumable goods, or any interest therein, to any public or private entity, in the exercise of its powers and the performance of its duties under this act. In order to provide or encourage adequate and efficient public transportation service, the corporation may lease or otherwise permit the use or occupancy of property without cost or at a nominal rental;

[l. Restrict] (12) restrict the rights of persons to enter upon or construct any works in or upon any property owned or leased by the corporation, except under such terms as the corporation may prescribe; perform or contract for the performance of all acts necessary for the management, maintenance, and repair of real or personal property leased or otherwise used or occupied pursuant to this act; and prohibit from using transportation services provided by the corporation any person who assaults an employee of motorbus service, including, but not limited to, an operator of a motorbus or the operator’s supervisor or any employee of a rail passenger service, including light rail service, while clearly identifiable as being engaged in the performance of the person’s duties or because of the status as an employee of a motorbus service or as an employee of a rail passenger service, for a term to be determined by the corporation not to exceed one calendar year, unless the person used a deadly weapon during the commission of the assault in which case the person may be prohibited from accessing transportation services for life, provided that the person has the right to appeal any determination made pursuant to this subsection in a manner and process established by the corporation;

[m. Establish] (13) establish one or more operating divisions as deemed necessary;

[n. Set] (14) set and collect fares and determine levels of service for service provided by the corporation either directly or by contract including, but not limited to, such reduced fare programs as deemed appropriate by the corporation; revenues derived from such service may be collected by the corporation and shall be available to the corporation for use in furtherance of any of the purposes of this act;

[o. Set] (15) set and collect rentals, fees, charges or other payments from the lease, use, occupancy, or disposition of properties owned or leased by the corporation; such revenues shall be available to the corporation for use in furtherance of any of the purposes of this act;

[p. Deposit] (16) deposit corporate revenues in interest bearing accounts or in the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L.1977, c.281 (C.52:18A-90.4);

[q. Delegate] (17) delegate to subordinate officers of the corporation such powers and duties as the corporation shall deem necessary and proper to carry out the purposes of this act;

[r. (1) Procure] (18) (a) procure and enter into contracts for any type of insurance and indemnify against loss or damage to property from any cause, including loss of use and occupancy, against death or injury of any person, against employees’ liability, against any act of any member, officer, employee or servant of the corporation, whether part-time, full-time, compensated or [noncompensated] non-compensated, in the performance of the duties of [his] such office or employment or any other insurable risk. In addition, the corporation may carry its own liability insurance and may also establish and utilize a wholly-owned insurance subsidiary or captive provided the subsidiary or captive is domiciled in the United States in a state which is accredited by the National Association of Insurance Commissioners and which licenses and regulates wholly-owned insurance subsidiaries or captives; and

[(2) Pursuant] (b) pursuant to [paragraph (1)] subparagraph (a) of this subsection, the corporation’s chief of procurement is authorized to reach an agreement to defend and indemnify a person against claims, causes of action, demands, costs, or judgments against that person arising as a direct result of that person’s contract with the corporation, upon the terms and limitations the chief deems reasonable and appropriate. An agreement to defend and indemnify pursuant to this subsection shall not bar, reduce, limit, or affect any remedies which the corporation may have to enforce the corporation’s agreement or to assert a claim for damages to which the corporation may be entitled arising out of the person’s failure to perform the agreement, or for the recovery of funds expended for the defense of a person if the defense was undertaken in response to a claim or cause of action brought against the person which is proven to have arisen from gross negligence, willful misconduct, fraud, intentional tort, bad faith, or criminal conduct. No one other than the person who is party to the agreement with the corporation may enforce any agreement for defense or indemnification between that person and the corporation;

[s. Promote] (19) promote the use of public transportation services, coordinate ticket sales and passenger information, and sell, lease, or otherwise contract for advertising in or on the equipment or facilities of the corporation;

[t. Adopt] (20) adopt and maintain employee benefit programs for employees of the corporation, including, but not limited to, pension, deferred compensation, medical disability, and death benefits, and which programs may utilize insurance contracts, trust funds, and any other appropriate means of providing the stipulated benefits, and may involve new plans or the continuation of plans previously established by entities acquired by the corporation;

[u. Own] (21) own, control, vote, and exercise any and all other rights incidental to the ownership of any equity, membership interest, or any shares of the capital stock of any incorporated entity acquired, formed, incorporated, or established by law by the corporation pursuant to the powers granted by this act. Any such corporate entity may be utilized in order to enable the corporation to participate with other private or public entities in any transaction, memorandum of understanding, undertaking, or arrangement that the corporation would have the power to conduct by itself, whether or not such participation involves sharing or delegation of control with or to other public or private entities regarding the ownership, operation, control, and management of services, equipment, or facilities. For purposes of this subsection, “corporate entity” means any business entity, including, but not limited to, any corporation, limited liability company, joint venture, limited partnership, general partnership, association of any kind, or collaborative arrangement that may be jointly owned by the corporation and any other public or private entities that provide public transportation services;

[v. Enter] (22) enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient, or desirable for the purposes of the corporation, or to carry out any power expressly or implicitly given in this act;

[w. Notwithstanding] (23) notwithstanding the provisions of section 17 of P.L.1979, c.150 (C.27:25-17) or any other law to the contrary, [(1)] issue operating grant anticipation notes which shall be secured and retired from operating assistance grants authorized under section 9 of the federal Urban Mass Transportation Act of 1964, Pub.L.88-365 (49 U.S.C. s.1602), or any successor or additional federal act having substantially the same or similar purposes or functions and [(2)] issue capital grant anticipation notes which shall be secured and retired from capital assistance grants authorized under section 3 or section 9 of the federal Urban Mass Transportation Act of 1964, Pub.L.88-365 (49 U.S.C. s.1602), or any successor or additional federal act having substantially the same or similar purposes or functions. As used in this [subsection] paragraph, “operating grant anticipation notes” or “capital grant anticipation notes” (hereinafter referred to as “notes”) means credit obligations issued in anticipation of these grants. All grant anticipation notes shall be authorized by a resolution or resolutions of the corporation, and may be issued in one or more series and shall bear the date, or dates, bear interest at the rate or rates of interest per annum, be in the denomination or denominations, be in the form, carry the conversion or registration privileges, have the rank or priority, and be executed in such manner as the resolution or resolutions require. The notes may be sold at public or private sale at the price or prices and in the manner that the corporation determines. The notes of the corporation, the sale or transfer thereof, and the income derived therefrom by the purchasers of the notes, shall, at all times, be free from taxation for State or local purposes, under any law of the State or any political subdivision thereof. Notes may be issued under the provisions of P.L.1979, c.150 (C.27:25-1 et seq.) without obtaining the consent of any department, division, commission, board, bureau or agency of the State, and without any other proceedings, conditions, or things which are specifically required by P.L.1979, c.150 (C.27:25-1 et seq.). The notes issued pursuant to P.L.1979, c.150 (C.27:25-1 et seq.) shall not in any way create or constitute any indebtedness, liability, or obligation of the State or of any political subdivision thereof or of the corporation, except as provided herein.

The grant anticipation notes shall be payable solely from [(1)] note proceeds, to the extent not disbursed to the corporation, [(2)] grant payments if, as, and when received from the federal government, and [(3)] investment earnings on note proceeds, to the extent not disbursed to the corporation. Each note shall contain on its face a statement to the effect that the corporation is obligated to pay the principal thereof or the interest thereon only from these grants to the corporation and from the proceeds of the notes and investment earnings on the proceeds of the notes, to the extent not disbursed to the corporation, and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof or of the corporation is pledged to the payment of the principal and interest on these notes. Neither the members of the corporation’s board nor any person executing the transactions are personally liable on those notes nor are they otherwise liable for their actions. Subject to any agreement with the debtholders, the corporation may invest moneys of the corporation not required for immediate use, including proceeds from the sale of any notes, in such obligations, securities, and other investments as the corporation shall deem prudent;

[x. Enter] (24) enter into agreements with a public or private entity or consortia thereof to provide for the development of demonstration projects through [the use of] public-private partnerships pursuant to sections 1 through 9 of P.L.1997, c.136 (C.27:1D-1 through C.27:1D-9);

[y. Enter] (25) enter into agreements with a public or private entity or consortia thereof to provide for the development of projects through [the use of] public-private partnerships. All building construction projects under a public-private partnership agreement entered into pursuant to this [subsection] paragraph shall contain a project labor agreement, unless the federal government or a court of competent jurisdiction determines that requiring such an agreement would violate federal law or regulation, or including such an agreement would preclude the corporation from receiving federal funding for the project. Project labor agreements shall be subject to the provisions of P.L.2002, c.44 (C.52:38-1 et seq.); and

[z. To] (26) to employ and retain legal counsel at the corporation’s discretion, including choosing representation by the Attorney General.

b. Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), any power of the board of directors of the corporation outlined in subsection a. of this section, which power is necessary to effectuate the responsibilities of the Transportation Authority of New Jersey as outlined in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be transferred to the Transportation Authority of New Jersey. Any powers outlined in subsection a. of this section that are not necessary to effectuate the responsibilities of the Transportation Authority of New Jersey shall be transferred to the leadership committee of the corporation, which committee is to be established by the Transportation Authority of New Jersey pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2021, c.352, s.2)

14. Section 1 of P.L.1967, c.71 (C.27:1A-5) is amended to read as follows:

5. a. The commissioner, as head of the department, shall have all of the functions, powers, and duties heretofore vested in the State Highway Commissioner and shall, in addition to the functions, powers, and duties vested in [him] the commissioner by this act or by any other law:

[(a) Develop] (1) develop and maintain a comprehensive master plan for all modes of transportation development, with special emphasis on public transportation. Such plan shall be revised and updated at least every five years;

[(b) Develop] (2) develop and promote programs to foster efficient and economical transportation services in the State;

[(c) Prepare] (3) prepare plans for the preservation, improvement, and expansion of the public transportation system, with special emphasis on the coordination of transit modes and the use of rail rights of way, highways, and public streets for public transportation purposes;

[(d) Enter] (4) enter into contracts with the Transportation Authority of New Jersey [Transit Corporation] for the provision and improvement of public transportation services;

[(e) Coordinate] (5) coordinate the transportation activities of the department with those of other public agencies and authorities;

[(f) Cooperate] (6) cooperate with interstate commissions and authorities, with State departments, councils, commissions, and other State agencies, with appropriate federal agencies, and with interested private individuals and organizations in the coordination of plans and policies for the development of air commerce and air facilities;

[(g) Make] (7) make an annual report to the Governor and the Legislature on the department’s operations [,] and render such other reports as the Governor shall from time to time request or as may be required by law;

[(h) Promulgate] (8) promulgate regulations providing for the charging of and setting the amount of fees for certain services performed by and permits issued by the department, including, but not limited to, the following:

[(1) Providing] (a) providing copies of documents prepared by or in the custody of the department;

[(2) Aeronautics] (b) aeronautics permits;

[(3) Right-of-way] (c) right-of-way permits; and

[(4) Traffic] (d) traffic signal control systems;

[(i) Develop] (9) develop and promote programs for the preservation, improvement, and expansion of freight railroads, with special emphasis on the use of rail [rights of way] rights-of-way for the purpose of providing rail freight service;

[(j) Develop] (10) develop and promote a program to ensure the safety and continued operation of aviation facilities in New Jersey;

[(k) Enter] (11) enter into agreements with a public or private entity or consortia thereof to [provide for the development of] develop demonstration projects through the use of public-private partnerships pursuant to sections 1 through 9 of P.L.1997, c.136 (C.27:1D-1 through C.27:1D-9);

[(l) Do any and] (12) do all things necessary, convenient, or desirable to effectuate the purposes of P.L.1966, c.301 (C.27:1A-1 et seq.) and to exercise the powers given and granted in that act;

[(m) Enter] (13) enter into agreements or contracts with a private entity and charge and collect fees or other payments for the placement of sponsorship acknowledgment and advertising on signs, equipment, materials, and vehicles used for a safety service patrol or emergency service patrol program operated by the department, or operated by a private entity under contract with the department, or through the use of a public-private partnership or demonstration project; and

[(n) Acquire] (14) acquire by eminent domain, pursuant to the eminent domain law and R.S.27:7-22, any property, property rights, or property interests, including easements, air rights, below-grade and subsurface rights, hereinafter referred to as “Property Interests,” including rights on property now or previously designated as parkland or dedicated to a public use, provided that such Property Interests are located in the State and, in the judgment of the commissioner, are necessary or appropriate for the construction, reconstruction, development, redevelopment, use, occupancy, operation, and maintenance of passenger rail transportation facilities and ancillary facilities between New Jersey and New York Penn Station, in a corridor beginning at or near Newark Penn Station and ending at the boundary of the State of New Jersey in the Hudson River. Property Interests may be acquired pursuant to this subsection notwithstanding any requirement in R.S.27:7-36 or any other provision of law, general, special, charter, or local, and regardless of whether the Property Interests are or were dedicated to public use. All of such Property Interests may be acquired by the commissioner pursuant to applicable provisions of the eminent domain law and R.S.27:7-22, provided that any acquisition of Property Interests pursuant to this subsection shall be contingent on the commissioner entering into an agreement addressing such acquisition with the Gateway Development Commission, approved in accordance with that entity’s authorizing statute, and the Gateway Development Commission shall agree to pay the costs incurred by the commissioner in acquiring such Property Interests pursuant to the eminent domain law. Notwithstanding any other provision of law, general, special, charter, or local, following acquisition, the commissioner may use such property together with property already owned or held, to: enter into contracts to sell, transfer, lease, or exchange with, or grant easements, licenses, permits, concessions, or other authorizations to, the Gateway Development Commission sufficient to permit the construction, reconstruction, development, redevelopment, use, occupancy, operation, and maintenance by the Gateway Development Commission or its permittees and successors, of the aforementioned passenger rail facilities and ancillary facilities. Authorization is hereby given to the commissioner to do all things necessary or appropriate to carry out the purposes of this [subsection] paragraph.

b. Upon the Transfer Date established pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):

(1) the department’s transportation planning efforts, and all powers, rights, personnel, and responsibilities associated with those efforts, shall be transferred to the Transportation Authority of New Jersey pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) any reference to the Department of Transportation or to the Commissioner of the Department of Transportation in any law, rule, or regulation concerning the department’s transportation planning efforts shall be deemed a reference to the Transportation Authority of New Jersey.

As used in this subsection, “transportation planning” means any effort undertaken by the department to design, update, or manage the State’s transportation system, including, but not limited to: developing strategic planning and finance documents such as the State’s Annual Transportation Capital Program, the Transportation Master Plan, the Statewide Capital Investment Strategy, the Transportation Trust Fund Authority Financial Plan, and the Five-Year Capital Plan; and administering local aid through municipal and county capital programs. “Transportation planning” shall not include routine road maintenance, disaster relief, or emergency preparedness efforts.

(cf: P.L.2019, c.195, s.27)

15. Section 22 of P.L.1984, c.73 (C.27:1B-22) is amended to read as follows:

22. The [commissioner] Transportation Authority of New Jersey shall prepare and submit the following reports to the Governor, the Legislature, and the Transportation Policy Review Board, established pursuant to section 6 of P.L.2006, c.3 (C.27:1B-22.2) under the terms set forth below: a Transportation Master Plan, a Statewide Capital Investment Strategy, an Annual Transportation Capital Program, a Transportation Trust Fund Authority Financial Plan, and a Five-Year Capital Plan.

a. To [the end] ensure that the transportation system of the State shall be planned in an orderly and efficient manner and that the Legislature shall be advised of the nature and extent of public highways, public transportation projects, and other transportation projects contemplated to be financed under this act, the [department] Transportation Authority of New Jersey shall submit a master plan, as provided in subsection (a) of section 5 of P.L.1966, c.301 (C.27:1A-5). Notwithstanding the provisions of that act, the plan shall be for a period of five years and shall be submitted to the Commission on Capital Budgeting and Planning, the Chairman of the Senate Transportation Committee and the Chairman of the Assembly Transportation and Independent Authorities Committee, or their successors, and the Legislative Budget and Finance Officer, and the metropolitan planning organizations, on or before March 1, 2001, and at five-year intervals thereafter. The master plan shall set the direction for the [department’s] authority’s overall Statewide Capital Investment Strategy and subsequent annual Transportation Capital Programs submitted to the Legislature for approval pursuant to this section. This master plan shall, to the extent practicable, conform to all federal requirements for Statewide transportation planning.

b. The [Department of Transportation] Transportation Authority of New Jersey, in conjunction with the [New Jersey Transit Corporation, the New Jersey Turnpike Authority, and the] South Jersey Transportation Authority, shall prepare a “Statewide Capital Investment Strategy” for at least a five-year period, which shall contain, at a minimum, a statement of the goals of the [department, the corporation, and the toll road authorities] authority and the South Jersey Transportation Authority in major selected policy areas and the means by which the goals are to be attained during that period, using quantitative measures where appropriate. The Statewide Capital Investment Strategy may be updated and submitted no later than March 1 of each year. The Statewide Capital Investment Strategy shall provide for a multi-modal, intermodal, seamless, [technologically advanced] technologically-advanced, and secure transportation system. It shall recommend investment for major program categories, set overall goals for investment in the State’s infrastructure, and develop program targets and performance measures. It may rely on infrastructure management systems [as] developed by the [department] Department of Transportation or Transportation Authority of New Jersey, as applicable, to assess bridge conditions, pavement conditions, bridge, traffic and pedestrian safety, traffic congestion and public transit facilities. With respect to pavement conditions, the department or authority, as applicable, shall set as a priority the utilization of efficient cost-effective materials and treatments as stated in section 9 of P.L.2000, c.73 (C.27:1B-21.22). [In the event that] If there exist appropriate circumstances for the use of micro-surfacing and cold-in-place recycling, the department or authority, as applicable, shall establish as a special priority the use of these materials and surface treatments. The goals of the Statewide Capital Investment Strategy shall include, but not be limited to, reduction of vehicular and pedestrian accidents, reduction in the backlog of projects, including one-half of the [structurally deficient] structurally-deficient bridge repair projects and pavement deficiencies, and an increase in lane miles of bicycle paths, with a goal of constructing an additional 1,000 lane miles of bicycle paths in five years to reduce traffic congestion and for recreational uses. The construction of bicycle and pedestrian lanes, paths, and facilities shall be subject to no stricter environmental requirements than are provided pursuant to federal law and regulations for such lanes, paths, and facilities, notwithstanding the provisions to the contrary of State law and regulations, including State Executive Order No. 215 of 1989. [With respect to the New Jersey Transit Corporation, the] The Statewide Capital Investment Strategy shall deal with the [corporation's] overall goal to keep the public transportation system in a state of good repair and, more specifically, in the area of bus transportation, present a strategy and a preliminary timetable for the replacement of the current diesel bus fleet with a fleet of buses [which] that have reduced emission of air pollutants. The [corporation] Transportation Authority of New Jersey shall consider the feasibility of buses with improved pollution controls and that reduce particulate emissions and buses powered by fuel other than conventional diesel fuel, such as compressed natural gas vehicles, hybrid vehicles, fuel cell vehicles, biodiesel vehicles, vehicles operated on [ultra low] ultra-low sulfur fuel, and vehicles operated on any other bus fuel approved by the United States Environmental Protection Agency. The [corporation] Transportation Authority of New Jersey may consider, as part of its strategy, cooperative efforts with bus manufacturers, and the solicitation of federal support, in developing a “clean bus” with air pollution controls superior to currently available technology. For the fiscal year beginning July 1, 2007 and each fiscal year thereafter, all buses purchased by the [New Jersey Transit Corporation] Transportation Authority of New Jersey shall be buses with improved pollution controls and that reduce particulate emissions, or buses powered by fuel other than conventional diesel fuel, such as compressed natural gas vehicles, hybrid vehicles, fuel cell vehicles, biodiesel vehicles, vehicles operated on [ultra low] ultra-low sulfur fuel, or vehicles operated on any other bus fuel approved by the United States Environmental Protection Agency. In the event that the [corporation] authority is not able to meet the bus purchase requirements set forth in this section with respect to any fiscal year, prior to the commencement of the fiscal year, the [board of the corporation] authority shall, by resolution, submit a report to the Legislature detailing its inability to meet the requirements and the reasons therefor and shall submit the report to the Senate and General Assembly when both houses are in session, including therein a request to be exempted from the bus purchase requirements of this section with regard to the fiscal year in question. The President of the Senate and the Speaker of the General Assembly shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly. If a joint resolution approving the exemption is passed by the Legislature and signed by the Governor prior to the commencement of the fiscal year in question, the [corporation] authority shall be exempt from the requirements for that fiscal year.

In the fiscal year beginning on July 1, 2007 and in each fiscal year thereafter, in the year prior to the year in which final engineering is anticipated to start on any project [which] that extends the reach of the [New Jersey Transit] the State’s rail or light rail system, the [New Jersey Transit Corporation]] Transportation Authority of New Jersey shall be required to identify and include in the annual Statewide Capital Investment Strategy the required State financial assistance to support operation of the incremental service for the first three years and the projected fare box recovery ratio at the commencement of the fourth year of operation of each project.

The Statewide Capital Investment Strategy shall also detail the planned investment of capital funds for public transportation projects of companies other than the [New Jersey Transit Corporation] Transportation Authority of New Jersey engaged in the business of providing motor bus transportation. The Statewide Capital Investment Strategy shall demonstrate that such investment adequately addresses the finding in section 2 of P.L.1979, c.150 (C.27:25-2) that in the provision of public transportation services it is desirable to encourage to the maximum extent feasible the participation of private enterprise.

c. On or before March 1 of each year, the [commissioner] Transportation Authority of New Jersey shall submit a report of general project categories and proposed projects thereunder to be financed in the ensuing fiscal year, including therewith a description of the projects, the county or counties and municipality or municipalities within which they are to be located, a distinction between State and local projects, an identification number for each project that can be used to cross reference any project in the State’s federal Statewide Transportation Improvement Program, [the project] each project’s phase of work, investment category, and project sponsor, the governmental entity with jurisdiction over [the] each project and the associated infrastructure, the amount estimated to be expended on each project in the year of appropriation, and an estimate of the total project cost. This report shall be known as the “Annual Transportation Capital Program” for the upcoming fiscal year. [It shall include proposed projects of both the Department of Transportation and the New Jersey Transit Corporation.] The program shall be consistent with, and reflective of, the goals and priorities of the Statewide Capital Investment Strategy and the program shall include an explanation [which] that demonstrates how it is consistent with, and reflective of, the goals and priorities.

d. On or before March 1 of each year, the [commissioner] Transportation Authority of New Jersey shall also submit a “Transportation Trust Fund Authority Financial Plan” designed to implement the financing of the proposed projects. The financial plan shall contain an enumeration of the bonds, notes, or other obligations of the authority [which] that the authority intends to issue, including the amounts thereof and the conditions therefor. The financial plan shall set forth a complete operating and financial statement covering the authority’s proposed operations during the ensuing fiscal year, including amounts of income from all sources, including, but not limited to, the proceeds of bonds, notes, or other obligations to be issued, as well as interest earned. In addition, the plan shall contain proposed amounts to be appropriated and expended, as well as amounts for which the [department] authority anticipates to obligate during the ensuing fiscal year for any future expenditures.

e. The Statewide Capital Investment Strategy, the Annual Transportation Capital Program, and the Transportation Trust Fund Authority Financial Plan shall be submitted to the Senate and General Assembly. Within 45 days of the receipt thereof, the Senate or the General Assembly may object in writing to the [commissioner] Transportation Authority of New Jersey in regard to any project or projects in the “Annual Transportation Capital Program” it disapproves or which it is of the opinion should be modified or added to or any additional or alternative projects considered or in regard to any element of the financial plan. The [commissioner] authority shall consider the objections and recommendations and resubmit the report within 10 days, containing therein any modifications based upon the [commissioner's] authority’s consideration of the objections or recommendations.

f. In order that the Legislature shall be advised of the nature and extent of public highways, public transportation projects, and other transportation projects contemplated to be financed under this act, the [commissioner] Transportation Authority of New Jersey shall submit annually, together with the Annual Transportation Capital Program, a Five-Year Capital Plan, which shall set forth projects and programs anticipated to be funded over the five-year period. The Five-Year Capital Plan shall, to the extent practicable, conform to all federal requirements for Statewide transportation capital programming.

(cf: P.L.2016, c.56, s.6)

16. The Transportation Authority of New Jersey may adopt, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.

17. The following sections are repealed:

Section 4 of P.L.1984, c.73 (C.27:1B-4)

Section 3 of P.L.1948, c.454 (C.27:23-3); and

Section 4 of P.L.1979, c.150 (C.27:25-4).

18. This act shall take effect immediately, and the Transportation Authority of New Jersey may take such anticipatory action in advance as shall be necessary for the implementation of this act.

STATEMENT

This bill establishes the Transportation Authority of New Jersey (authority) in, but not of, the Department of Transportation (department) and consolidates the New Jersey Turnpike Authority, the New Jersey Transit Corporation, and the New Jersey Transportation Trust Fund Authority (collectively, “transportation entities”) as subsidiaries within the authority. The bill transfers certain powers, duties, and oversight of the transportation entities and the department’s transportation planning powers and duties to the authority. The authority is to serve as the centralized transportation hub for the State in order to break down silos, improve efficiencies, and promote more holistic capital planning.

Under the bill, the authority will centralize and improve efficiency in transportation planning in New Jersey by: (1) centralizing certain administrative functions of the transportation entities outlined in the bill; (2) establishing a holistic capital program for the State by assuming responsibility for capital planning from the department and the transportation entities; (4) developing and approving the budgets for each transportation entity; and (5) directing the transfer of transportation entity funding, as necessary and with certain limitations outlined in the bill, from one transportation entity to another.

The bill requires the Chair of the Board of the Transportation Authority of New Jersey (board chair) to establish different committees to help the board fulfill these responsibilities. Moreover, the bill amends current law to remove the existing governing bodies of each transportation entity and, instead, requires the Board of the Transportation Authority of New Jersey (board) to establish leadership committees to oversee each transportation entity. The board chair is to serve as the committee chair for each leadership committee created under the bill. The bill also requires the board to effectuate the authority’s responsibilities in consultation with an independent consultant who is to be selected by the Department of the Treasury pursuant to a procedure described in the bill.

The board is to be comprised of 19 members appointed by the Governor for four-year, staggered terms and the board chair is to also serve as the chief executive officer of the authority. The bill also establishes certain public accessibility requirements for board meetings and meeting minutes.

On the Transfer Date specified in the bill, the authority is to assume the statutory responsibilities and powers of each transportation entity and the department to the extent necessary to effectuate the authority’s responsibilities outlined in the bill. In addition, any employees of a transportation entity or the department who primarily administer one of the responsibilities transferred to the authority under the bill are to be transferred to the authority and become employees of the authority and any union contracts for the transportation entities and the department are to continue in effect until new or revised contracts are entered. Nothing in the bill is to deprive any employee of a transportation entity or the department of their rights, privileges, obligations, or status regarding any pension or retirement system or to affect the civil service status, if any, of the employees.

Under the bill, any rules and regulations adopted by the transportation entities and the department are to continue in effect as rules and regulations adopted by the authority until the rules and regulations are amended, supplemented, or rescinded by the authority. The bill permits the authority to adopt rules and regulations modifying or repealing the rules and regulations of a transportation entity or the department pursuant to a procedure prescribed in the bill. The transportation entities are to retain their bonding powers and obligations under current law.

As soon as practicable after the Transfer Date, the authority is to notify the Governor and the presiding officers of each house of the Legislature that the transfer has occurred, of the date of the transfer, and of any other information concerning the transfer as the authority deems appropriate.