S1764

An Act concerning the consolidation of the New Jersey Transit Corporation, Transportation Trust Fund Authority, New Jersey Turnpike Authority, South Jersey Transportation Authority, and Department of Transportation.

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

1. There is hereby created a task force to be known as the “New Jersey Transportation Consolidation Task Force.” The task force shall investigate and evaluate the consolidation of the New Jersey Transit Corporation, Transportation Trust Fund Authority, New Jersey Turnpike Authority, South Jersey Transportation Authority, and Department of Transportation. The task force shall consist of seven members to be appointed as follows: two members to be appointed by the Governor with professional background and expertise in the areas of transportation policy, one of whom shall be employed by the New Jersey Institute of Technology and one of whom shall be employed by Rutgers, the State University of New Jersey; one public member to be appointed by the Governor with professional background and expertise in public finance; one public member to be appointed by the Senate President; one public member to be appointed by the Speaker of the General Assembly; one public member to be appointed by the Minority Leader of the Senate; and one public member to be appointed by the Minority Leader of the General Assembly.

2. a. Members of the task force shall be appointed within 30 days after the effective date of P.L. , c. (pending before the Legislature as this resolution). The task force shall organize as soon as practicable, but not later than 30 days following the appointment of four members, and shall select a chairperson from among its members. The chairperson shall appoint a secretary, who need not be a member of the task force.

b. Members of the task force shall serve without compensation but shall be reimbursed for necessary expenses actually incurred in the performance of their duties as members of the task force.

3. a. The task force shall submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than 12 months following the organization of the task force concerning the consolidation of the New Jersey Transit Corporation, Transportation Trust Fund Authority, New Jersey Turnpike Authority, South Jersey Transportation Authority, and Department of Transportation. The report shall include the task force’s findings and recommendations concerning potential issues posed by the consolidation including, but not limited to: legal matters, including review of bond covenants and labor issues; operational matters; and financial matters, including savings, costs, and potential changes to the State’s credit rating. The task force shall submit a detailed accounting of cost savings that can be achieved by agencies prior to consolidation as well as additional savings that can be achieved following consolidation. The task force shall include with its recommendations a legislative proposal to establish the new independent transportation agency resulting from the consolidation of the New Jersey Transit Corporation, Transportation Trust Fund Authority, New Jersey Turnpike Authority, South Jersey Transportation Authority, and Department of Transportation.

b. The task force shall include in its report specific analysis describing current operations at existing State agencies, best practices from other states, potential merger strategies, opportunities for operational efficiencies, and cost savings in the areas of: purchasing, legal services, planning, engineering, other professional services including human resources, inter-agency sharing of major maintenance facilities and equipment, contracting for goods and professional services, restructuring debt, land acquisition, aviation, marine dredging, and employee benefits, salary structure, and work policies.

c. The task force shall provide a detailed plan of consolidation that creates a single new independent transportation agency as provided in subsection a. of this section. The report shall address the organizational structure of the new agency, how the agency will function within State government and interact with local government entities, where responsibility for transportation functions will lie within the new agency, and outline the governance structure for the new agency which includes a board of directors and a professional executive director.

4. The task force shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county, or municipal department, board, bureau, task force, or agency as it may require and as may be available to it for its purposes, and to employ stenographic and clerical assistance and incur traveling and other miscellaneous expenses necessary to perform its duties, within the limits of funds appropriated or otherwise made available to it for its purposes.

5. The task force may meet and hold hearings at the places it designates, at which it may request the appearance of officials of any State agency or political subdivision of the State and may solicit testimony of interested groups and the general public.

6. This act shall take effect immediately and shall expire upon the submission of the report required pursuant to section 3 of this act.

STATEMENT

This bill establishes a task force to investigate consolidation of the New Jersey Transit Corporation, Transportation Trust Fund Authority, New Jersey Turnpike Authority, South Jersey Transportation Authority, and Department of Transportation. The task force is to consist of seven members that are to be appointed as follows: two members appointed by the Governor with professional background and expertise in the areas of transportation policy, one of whom shall be from the New Jersey Institute of Technology and one of whom shall be from Rutgers, the State University of New Jersey; one public member appointed by the Governor with professional background and expertise in public finance; one public member appointed by the Senate President; one public member appointed by the Speaker of the General Assembly; one public member appointed by the Minority Leader of the Senate; and one public member appointed by the Minority Leader of the General Assembly.

The task force is to submit a detailed accounting of cost savings that can be achieved by agencies prior to consolidation as well as additional savings that can be achieved following consolidation. The task force is to include with its recommendations a legislative proposal to establish the new independent transportation agency resulting from the consolidation

The task force is to provide a professional evaluation of current operations at existing State agencies, best practices from other states, potential merger strategies, opportunities for operational efficiencies, and cost savings in the areas of: purchasing, legal services, planning, engineering, other professional services including human resources, major maintenance facilities and equipment consolidation and inter-agency sharing, contracting for goods and professional services, restructuring debt, land acquisition, aviation, marine dredging, and employee benefits, salary structure, and work policies. This analysis is to be taken into account when recommending a new, consolidated governance structure for the State’s transportation system.

The task force is required to submit its recommendations to the Governor and Legislature within 12 months following the organization of the task force.