Establishes Transportation Authority of New Jersey and transfers certain powers, duties, and oversight of certain transportation entities and DOT to Transportation Authority of New Jersey.

S3695

SENATE, No. 3695

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Senator� VIN GOPAL

District 11 (Monmouth)

SYNOPSIS

���� Establishes Transportation Authority of New Jersey
and transfers certain powers, duties, and oversight of certain transportation
entities and DOT to Transportation Authority of New Jersey.

CURRENT VERSION OF TEXT

���� As introduced.

��

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

���� (c)�� two non-voting members.

���� (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.