ASSEMBLY, No. 515

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman CRECCO

An Act concerning tolls of the New Jersey Highway Authority and amending and supplementing P.L.1952, c.16.

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

    1. (New section) A resolution or other action of the New Jersey Highway Authority providing for an increase in tolls or new tolls for the use of any highway project of the authority, or any part or section thereof, which is approved on or after the effective date of this amendatory and supplementary act by the Governor in accordance with section 4 of P.L.1952, c.16 (C.27:12B-4), shall be transmitted, prior to taking effect, to the Legislature for its review and approval. The resolution or other action transmitted to the Legislature shall not take effect for 90 days following receipt by the President of the Senate and the Speaker of the General Assembly of a copy of the resolution or a written copy of the other action, along with supportive documentation therefor and a transcript of the public hearing or hearings thereon held in accordance with section 1 of P.L.1977, c.361 (C.27:12B-14.1).

    Within 90 days of receipt of a copy of the resolution or other action, the Senate and General Assembly may disapprove the toll increase or new toll by concurrent resolution adopted by recorded vote, which shall set forth the reasons for disapproving the resolution or other action and the recommendations of the Legislature thereon. If the Legislature fails to act within the prescribed period of time, the resolution or other action shall be deemed approved.

    The State covenants not to impair or otherwise interfere with any contract terms agreed to by the New Jersey Highway Authority and holders of debt instruments issued by the authority.

    2. Section 4 of P.L.1952, c.16 (C.27:12B-4) is amended to read as follows:

    4. There is hereby established in the State Department of Transportation a body corporate and politic, with corporate succession, to be known as the "New Jersey Highway Authority." The authority is hereby constituted an instrumentality exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by this act in the construction, operation and maintenance of projects shall be deemed and held to be an essential governmental function of the State.

    The New Jersey Highway Authority shall consist of seven members, each of whom shall be a resident of the State, who shall have been a qualified elector therein for a period of at least 1 year next preceding his appointment. Each member of the authority shall be appointed by the Governor, with the advice and consent of the Senate, for a term of 5 years and shall serve until his successor is appointed and has qualified. Of the two members first appointed pursuant to this amendatory act, one shall be for a term of 4 years and one for a term of 5 years. Each member of the authority may be removed from office by the Governor, for cause, after a public hearing. Each member of the authority before entering upon his duties shall take and subscribe an oath to perform the duties of his office faithfully, impartially and justly to the best of his ability. A record of such oaths shall be filed in the office of the Secretary of State.

    Any vacancies in the membership of the authority occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only.

    The Governor shall designate one of the members of the authority as chairman thereof and another member as vice-chairman thereof. The chairman and vice-chairman of the authority so designated shall serve as such at the pleasure of the Governor and until their respective successors have been designated.

    The authority shall elect a secretary and a treasurer who need not be members. At the option of the authority the same person may be elected to serve both as secretary and treasurer. Four members of the authority shall constitute a quorum and the vote of four members shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.

    Before the issuance of any bonds or notes under the provisions of this act, each member of the authority shall execute a surety bond in the penal sum of $25,000.00, and the treasurer shall execute a surety bond in the penal sum of $50,000.00, each such surety bond to be conditioned upon the faithful performance of the duties of the office of such member or treasurer, as the case may be, to be executed by a surety company authorized to transact business in the State of New Jersey as surety and to be approved by the Attorney General and filed in the office of the Secretary of State.

    No resolution or other action of the authority providing for the issuance of bonds, refunding bonds or other obligations or for the fixing, revising or adjusting of tolls for the use of any highway projects or parts or sections thereof shall be adopted or otherwise made effective by the authority without the prior approval in writing of the Governor and at least one of the following: the State Treasurer and the Comptroller of the Treasury. The powers conferred in this section upon the Governor, the State Treasurer and the Comptroller of the Treasury shall be exercised with due regard for the rights of the holders of bonds of the authority at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict or alter the obligation or powers of the authority or any representative or officer of the authority to carry out and perform in every detail each and every covenant, agreement or contract at any time made or entered into by or on behalf of the authority with respect to its bonds or for the benefit, protection or security of the holders thereof.

    A true copy of the minutes of every meeting of the authority shall be forthwith delivered by and under the certification of the secretary thereof, to the Governor. No action taken at such meeting by the authority shall have force or effect until 10 days (Saturdays, Sundays and holidays excepted) after such copy of the minutes shall have been delivered or the approval thereof by the Governor prior thereto; except that a resolution or other action of the authority providing for an increase in tolls or for new tolls for the use of any highway project, or part or section thereof, shall not take effect following approval by the Governor or at the end of the 10 day period unless approved by the Legislature in accordance with section 1 of this 1987 amendatory and supplementary act (now pending before the Legislature as this bill). If, in said 10-day period, the Governor returns such copy of the minutes with veto of any action, except action to negotiate or execute a collective negotiation agreement with a certified public employee organization representing employees of the authority, taken by the authority or any member thereof at such meeting, such action shall be null and of no effect.

    The members of the authority shall not receive compensation for their services as members of the authority. Each member shall be reimbursed by the authority for his actual expenses necessarily incurred in the performance of his duties.

    3. The act shall take effect immediately.

STATEMENT

    This bill requires the New Jersey Highway Authority to transmit proposed highway toll increases or new tolls to the Senate and General Assembly prior to their taking effect. The transmission is to be made after the holding of a public hearing or hearings, if required, and upon approval by the Governor of the toll increase. The Legislature, by concurrent resolution, may disapprove the toll increase or new toll within 90 days of receipt of the transmission. If the Legislature fails to act within the prescribed period of time, the proposed toll increase or new toll shall be deemed to be approved.

Requires the New Jersey Highway Authority to submit to the Legislature, for review and approval, proposals for highway toll increases or new tolls.