ASSEMBLY, No. 1343

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen DeCROCE and KAVANAUGH

An Act concerning the leasing of Department of Transportation property and amending P.L.1967, c.268 and repealing section 3 of P.L.1967, c.268.

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

    1. Section 1 of P.L.1967, c.288 (C.27:7-21.4) is amended to read as follows:

    1. a. [Any] The Commissioner of Transportation may lease, license or contract for the use, management or operation of areas on, above or below state right-of-way or any real or personal property heretofore or hereafter acquired by the Department of Transportation for a transportation or transportation related program [or] , project or purpose [may be leased by the Commissioner of Transportation] to any person or public body or agency [on a temporary basis] in such manner as to produce revenue for the support of the State.

    b. The revenues from a lease, license or contract entered into pursuant to the provisions of this section shall be deposited into a special account in the General Fund. All expenses incident to the lease, license, use or operation of any such property shall be paid from the special account and shall not be a charge against the State.

    c. In entering into a lease, license or contract authorized by this section, the commissioner may set a fee for the lease, license or contract which fee shall yield at least a fair rental value for the use of the property. Alternatively, the lease, license or contract may be awarded on the basis of competitive public bids or competitive proposals to the responsible bidder or proposer whose bid or proposal is determined to be in the best interest of the State, price and other factors considered.

    d. The commissioner shall adopt regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) providing the procedures and standards for the awarding of a lease, license or contract on the basis of competitive public bids or proposals. The regulations shall provide that a brief description of the property to be leased, licensed or contracted for and a summary of the terms and conditions of the proposed lease, license or contract shall be published in at least one newspaper in the municipality in which the property is located.

    e. The commissioner shall include a provision in [the] a lease, license or contract entered into pursuant to this section which would allow the termination of the lease, license or contract upon written notice thereof to the lessee, licensee or contractor prior to the conclusion of the term of the lease, license or contract in accordance with a minimum period of time for that notice, such provision having been the subject of negotiation between the commissioner and the prospective lessee, licensee or contractor so as to ensure that the occupancy of the property does not in any manner interfere with or delay the transportation program or project for which the property is needed. No person, public body or agency shall remain in possession of premises beyond the conclusion of the term of the lease, license or contract or, in the case of a notice of termination, the date fixed by the commissioner in the notice. If the lessee, licensee or contractor remains past conclusion of the term of the lease, license or contract or beyond the date fixed in the notice of termination, the department may institute a summary proceeding in the Superior Court, for an order to show cause as to why the department should not be granted immediate possession of the [leased] property and the property be vacated of its occupants.

(cf: P.L.1993, c.231, s.3)

    2. Section 3 of P.L.1967, c.268 (C.27:7-21.6) is repealed.

    3. This act shall take effect immediately.

STATEMENT

    This bill would authorize the Department of Transportation to lease, license or contract for the use of department property in such manner as to produce revenues for the support of the State.

    The bill would authorize the commissioner to set a fee for the lease, license or contract, provided that the fee yields at least a fair rental value for the use of the property. A lease, license or contract may also be awarded on the basis of competitive public bids or competitive proposals. A competitively bid or proposed lease, license or contract would be awarded to the bidder or proposer whose bid or proposal is determined to be in the best interest of the State, price and other factors considered.

    The bill requires the commissioner to adopt regulations providing procedures and standards for the awarding of a lease, license or contract on the basis of competitive public bids or competitive proposals. The regulations would be required to provide that a brief description of the property to be leased, licensed or contracted for and a summary of the terms and conditions of the proposed lease, license or contract be published in at least one newspaper in the municipality in which the property is located.

Authorizes lease of DOT property in such manner as to produce revenues for the support of the State.