A2572

ASSEMBLY, No. 2572

STATE OF NEW JERSEY

INTRODUCED DECEMBER 12, 1996

By Assemblymen MALONE and COTTRELL

An Act abolishing the New Jersey Transit Corporation and transferring its functions, powers and duties to the Department of Transportation, establishing the Public Transportation Administration in the Department of Transportation, supplementing Title 27 of the Revised Statutes and amending parts of the statutory law.

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

1. (New section) In order to permit the Department of Transportation, hereinafter the "department," to carry out the responsibilities conferred upon it by this amendatory and supplementary act, there is established within the department the Public Transportation Administration, hereinafter the "administration," which shall be headed by an administrator who shall be the Assistant Commissioner for Public Transportation. The Commissioner of Transportation shall assign to the administration those employees of the department as may be necessary for the efficient performance of the duties and responsibilities of the administration. Employees assigned to, or transferred to the administration, shall be in the State unclassified service, except that nothing in this amendatory and supplementary act shall be construed as affecting the civil service status, if any, of any employee so assigned or transferred.

The administration shall be responsible for the implementation of the activities of the department relating to the provision of public transportation services, as directed by the commissioner, and shall at a minimum:

a. Assist the commissioner in carrying out the commissioner's functions, powers and duties relating to the provision of public transportation services as provided in subsections (a), (b), (c), (d) and (e) of section 5 of P.L.1966, c.301 (C.27:1A-5).

b. Assist the commissioner in carrying out the functions, powers and duties transferred to the department pursuant to the provisions of the Reorganization Plan for the Board of Public Utilities and the department, filed October 5, 1978.

c. Assist the commissioner in carrying out the functions, powers and duties transferred to the department from the New Jersey Transit Corporation, hereinafter the "corporation," pursuant to the provisions of this amendatory and supplementary act. Notwithstanding the provisions of P.L.1979, c.150 (C.27:25-1 et seq.), the commissioner shall adopt rules and regulations pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) integrating the functions of the administration with the department and providing the manner in which the powers and duties of the corporation transferred to the department shall be exercised by the department and the commisssioner thereof. It is the intent of the Legislature that the department shall proceed to implement the provisions of this amendatory and supplementary act by relying upon the exercise of the ordinary statutory powers of the department, where feasible, in preference to any extraordinary statutory powers of the corporation transferred to the department which spring from its previous status as an independent corporation not subject to the usual statutory requirements of a State department or agency.

2. (New section) The corporation is abolished and its functions, powers and duties are transferred to the department to be exercised by the department and the commissioner thereof. The board of the corporation is abolished and terms of the members thereof in office shall cease and terminate. The functions, powers and duties of the board are transferred to the department to be exercised by the department and the commissioner thereof.

3. (New section) All appropriations, grants, and other moneys available to and to become available to the corporation attributable to and derived from the functions, powers and duties which have been transferred pursuant to this amendatory and supplementary act are transferred to the department and shall be available for the objects and purposes for which appropriated or othewise made available subject to any terms, restrictions, limitations, or other requirements imposed by the State or federal law.

All outstanding obligations and commitments lawfully undertaken or contracted for by the corporation shall be assumed and performed by the department, including but not limited to, any outstanding grant anticipation notes.

4. (New section) a. The officers and employees of the corporation are transferred to the administration in the department, and shall become employees of the department in the State unclassified service.

b. All transfers directed by this act shall be made in accordance with the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.). Nothing herein shall be construed to deprive officers and employees of their rights, privileges, obligations or status with respect to any pension or retirement system. The employees shall retain all of their rights and benefits under existing labor agreements or contracts until such time as new or revised agreements or contracts are agreed to or these agreements or contracts shall expire. All existing bargaining agents shall be retained to act on behalf of these employees until such time as the employees shall, pursuant to law, elect to change such agents.

c. Nothing in this act shall affect the civil service status, if any, of those officers or employees. Any collective bargaining agreements entered into by the corporation with any of its employees shall continue in effect for the term of the agreement, notwithstanding that the employees affected by the agreement shall be employees of the department, but the agreement shall be binding for both the employees and the department. The provisions of this section shall not apply to any officer or employee appointed or employed, or any collective bargaining agreement entered into, on or after the date of enactment of this amendatory and supplementary act.

All files, books, papers, records, equipment and other property of the corporation are transferred to the department.

5. (New section) The Commissioner of Personnel, in conjunction with the Commissioner of Transportation, is authorized and directed, within 90 days of the effective date of this amendatory and supplementary act, to develop a State classification plan and a State employee compensation plan for the administration pursuant to N.J.S.11A:3-1 and to N.J.S.11A:3-7, respectively. The compensation plan shall provide that the compensation of the officers and employees transferred pursuant to this amendatory and supplementary act shall be at least equivalent to compensation of officers or employees of the State in comparable titles and with comparable duties. Except for those officers or employees enrolled in or eligible for enrollment in the Police and Firemen's Retirement System or covered by an existing collective bargaining agreement, officers or employees transferred pursuant to this amendatory and supplementary act shall be enrolled in the Public Employees' Retirement System.

6. (New section) The compensation of an officer or employee of the department or of an officer or employee of the corporation transferred pursuant to the provisions of this amendatory and supplementary act shall not exceed the compensation of the Commissioner of Transportation. With respect to a person with a contract of employment with the corporation in effect on the effective date of this amendatory and supplementary act, the provisions of this section shall apply upon the expiration of that contract, except that the compensation of such a person may not be increased during the remaining term of that contract.

7. (New section) The position of executive director of the corporation is abolished and the person appointed and serving as executive director thereof on the operative date of this section shall be appointed as Assistant Commissioner for Public Transportation and shall serve as administrator of the administration until the expiration of the executive director's contract of employment with the corporation, except that the administrator may resign or otherwise cease to serve or be removed from office prior to the expiration of the contract, in accordance with the terms and conditions thereof. The compensation of the executive director shall not be diminished or increased during the term of that contract. If the person appointed and serving as executive director of the corporation on the operative date of this section has not entered into a contract of employment with the corporation in effect on that date, that person shall be appointed as Assistant Commissioner of Public Transportation and serve as administrator of the administration until the appointment and qualification of the administrator's successor. All functions, powers and duties of the executive director of the corporation shall be exercised by the commissioner.

8. Section 5 of P.L.1966, c.301, (C.27:1A-5) is amended to read as follows:

5. 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 by this act or by any other law:

(a) 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 and promote programs to foster efficient and economical transportation services in the State;

(c) 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 into contracts with [the New Jersey Transit Corporation] other public agencies and authorities, counties and municipalities and other public or private entities, for the provision and improvement of public transportation services, or provide such services directly;

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

(f) Cooperate with interstate commissions and authorities, 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 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 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 copies of documents prepared by or in the custody of the department;

(2) Aeronautics permits;

(3) Right-of-way permits;

(4) Traffic signal control systems;

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

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

(k) Do any and 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.

(cf: P.L.1986, c.56, s.1)

9. (New section) Any public or private entity under contract to the department operating regular route motorbus service may provide motorbus charter service provided that the carrier complies with applicable State and federal statutes, rules and regulations with regard to such operations.

10. Section 12 of P.L.1966, c.301 (C.27:1A-12) is amended to read as follows:

12. To assist the commissioner in the performance of his duties, the commissioner may appoint [a deputy commissioner who shall also serve as executive director] an Assistant Commissioner for Public Transportation and an Assistant Commissioner for Highway Operations. The [deputy commissioner] assistant commissioners shall serve at the pleasure of the commissioner and until [his successor has] their successors have been appointed and qualified and shall have such powers and duties as may be delegated to [him] them by the commissioner from time to time or as may be provided by law. The Assistant Commissioner for Public Transportation shall be the administrator of the Public Transportation Administration. [The deputy commissioner] Except as may otherwise be provided by this amendatory and supplementary act, the assistant commissioners shall receive such salary as may be established by the commissioner with the approval of the [President of the Civil Service Commission] Department of Personnel and the Director of the Division of Budget and Accounting.

(cf: P.L.1984. c.162, s.3)

11. Section 2 of P.L.1979, c.150 (C.27:25-2) is amended to read as follows:

2. The Legislature hereby finds and declares that:

a. The provision of efficient, coordinated, safe and responsive public transportation is an essential public purpose which promotes mobility, serves the needs of the transit dependent, fosters commerce, conserves limited energy resources, protects the environment and promotes sound land use and the revitalization of our urban centers.

b. As a matter of public policy, it is the responsibility of the State to establish and provide for the operation and improvement of a coherent public transportation system in the most efficient and effective manner.

c. In the development of public transportation policy and planning, participation by county and municipal governments, transit riders and concerned citizens should be encouraged.

d. In the provision of public transportation services, it is desirable to encourage to the maximum extent feasible the participation of private enterprise and to avoid destructive competition.

e. In furtherance of these findings and declarations, [a public corporation shall be created with] the Department of Transportation shall have the necessary powers to accomplish the purposes and goals set forth in this section, including the power to acquire and operate public transportation assets, including those powers transferred to it from the New Jersey Transit Corporation which is abolished pursuant to P.L.19 , c. (C. ) (now before the Legislature as this bill).

(cf: P.L.1979, c.150, s.2)

12. Section 3 of P.L.1979, c.150 (C.27:25-3) is amended to read as follows:

3. As used in this act:

a. "Corporation" means the New Jersey Transit Corporation or the Department of Transportation or the Public Transportation Administration in the Department of Transportation as successor entities to the New Jersey Transit Corporation abolished pursuant to P.L.19 , c. (C. ) (now before the Legislature as this bill).

b. "Motorbus regular route service" means and includes the operation of any motorbus or motorbuses on streets, public highways or other facilities, over a fixed route and between fixed termini on a regular schedule for the purpose of carrying passengers for hire or otherwise, in this State or between points in this State and points in other states.

c. "Capital equipment and facilities" means and includes, in connection with public transportation service, passenger stations, shelters and terminals, automobile parking facilities, ramps, track connections, signal systems, power systems, information and communication systems, roadbeds, transit lanes or rights of way, equipment storage and servicing facilities, bridges, grade crossings, rail cars, locomotives, motorbus and other motor vehicles, maintenance and garage facilities, revenue handling equipment and any other equipment, facility or property useful for or related to the provision of public transportation service.

d. "Paratransit services" means and includes and service, other than motorbus regular route service and charter services, including, but not limited to, dial-a-ride, nonregular route, jitney or community minibus, and shared-ride services such as vanpools, limousines or taxicabs which are regularly available to the public. Paratransit services shall not include limousine or taxicab service reserved for the private and exclusive use of individual passengers.

e. "Public transportation or public transportation service" means rail passenger service, motorbus regular route service, paratransit service, and motorbus charter service.

f. "Motorbus charter service" means and includes subscription, tour, other special motorbus services or school bus services or charter services as set forth in section 7.

g. "Rail passenger service" means and includes the operations of a railroad, subway, street, traction or electric railway for the purpose of carrying passengers in this State or between points in this State and points in other states.

h. "Department" means the Department of Transportation.

(cf: P.L.1979, c.150, s.3)

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

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

a. [Sue and be sued;](deleted by amendment, P.L. , c. ) (now before the Legislature as this bill)

b. [Have an official seal and alter the same at pleasure;](deleted by amendment, P.L. , c. ) (now before the Legislature as this bill)

c. [Make and alter bylaws for its organization and internal management and for the conduct of its affairs and business;](deleted by amendment, P.L. , c. ) (now before the Legislature as this bill)

d. Maintain an office at such place or places within the State as it may determine;

e. Adopt, amend and repeal such rules and regulations as it 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 to its assistance and avail itself of the service of such employees of any federal, State, county or municipal department or agency as it may require and as may be available to it for said purpose;

g. Apply for, accept and expend money from any federal, State, county or municipal agency or instrumentality and from any private source; 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, design, construct, equip, operate, improve and maintain, 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, P.L.88-365 (49 U.S.C.§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] department, by the [corporation] department 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 for and accept, from appropriate regulatory bodies, authority to operate public transportation services where necessary;

j. 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 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] department may lease or otherwise permit the use or occupancy of property without cost or at a nominal rental;

l. Restrict the rights of persons to enter upon or construct any works in or upon any property owned or leased by the [corporation] department, except under such terms as the [corporation] department 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;

m. Establish one or more operating divisions as deemed necessary. Upon the establishment of an operating division, there shall be established a geographically coincident advisory committee to be appointed by the Governor with the advice and consent of the Senate. The committee shall consist of county and municipal government representatives and concerned citizens, in the number and for such terms as may be fixed by the corporation, and shall advise the [corporation] department as to the public transportation service provided in the operating division. At least two members of each advisory committee shall be public transportation riders, including but not limited to urban transit users and suburban commuters as appropriate. [One public member from the board of corporation shall serve as a liaison to each advisory committee];

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

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

p. 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.28 (C.52:18A-90.4);

q. [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;](deleted by amendment, P.L. , c. ) (now before the Legislature as this bill)

r. 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] department, whether part-time, full-time, compensated or noncompensated, in the performance of the duties of his office or employment or any other insurable risk. In addition, the [corporation] department may carry its own liability insurance;

s. 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 and maintain employee benefit programs for employees of the corporation covered by existing collective bargaining agreements 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, vote, and exercise all other rights incidental to the ownership of shares of the capital stock of any incorporated entity acquired by the corporation pursuant to the powers granted by this act;

v. 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; and,

w. [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, P.L.88-365 (49 U.S.C. §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, P.L.88-365 (49 U.S.C. §1602), or any successor or additional federal act having substantially the same or similar purposes or functions. As used in this subsection, "operating grant anticipation notes" or "capital grant anticipation notes" (hereafter referred to as "notes") means credit obligations issued in anticipation of these grants. The 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, 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 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.] (Deleted by amendment, P.L. , c. ) (now before the Legislature as this bill)

(cf: P.L.1989, c.130, s.1)

14. Section 1 of P.L.1986, c.93 (C.27:25-5.1) is amended to read:

1. a. Notwithstanding any law, rule or regulation to the contrary, the [governing board of the] corporation shall allow a retired railroad employee, as defined in subsection b. of this section, to pass and repass, free of charge during offpeak times as defined in section 2 of P.L.1973, c.126 (C.27:1A-65), in regular coach service operated by the corporation within the borders of this State.

b. As used in this act, "retired railroad employee" means a citizen and resident of this State who retired prior to January 1, 1983 after service of at least 15 years with either Conrail, the Penn Central Railroad, the Central Railroad of New Jersey, the Erie-Lackawanna Railroad or the Pennsylvania Reading Seashore Line serving New Jersey.

(cf: P.L.1986, c.93, s.1)

15. Section 2 of P.L.1986, c.93 (C.27:25-5.2) is amended to read as follows:

2. The [governing board of the] corporation shall issue a certificate in card form to those retired railroad employees determined to be eligible pursuant to section 1 of this act. The corporation shall promulgate rules concerning the distribution and use of the certificate.

(cf: P.L.1986, c.93, s.2)

16. Section 5 of P.L.1986, c.93 (C.27:25-5.5) is amended to read as follows:

5. The [governing board of the] corporation, through its agents, may take possession of any certificate presented by any person other than the retired railroad employee to whom it was issued.

(cf: P.L.1986, c.93, s.5)

17. Section 7 of P.L.1979, c.150 (C.27:25-7) is amended to read as follows:

7. a. The corporation [or any public or private entity under contract to the corporation operating regular route motorbus service] may provide motorbus charter service provided that [the carrier] it complies with applicable State and Federal statutes, rules and regulations with regard to any such operations. Where the corporation acquires a public or private entity engaged in the provision of motorbus regular route service and that entity, at the time of acquisition, provides school bus services or is authorized to provide motorbus charter services, the corporation or any subsidiary thereof may continue to provide the services only to the extent that the acquired entity is providing or is authorized to provide the services.

b. The [corporation] department shall promulgate rules and regulations regarding procedures for hearings before the [board] department of claims of destructive competition arising from actions of the corporation. Such claims may be brought by private entities providing motorbus regular route service.

(cf: P.L.1979, c.150, s.7)

18. Section 15 of P.L.1979, c.150 (C.27:25-15) is amended to read as follows:

15. The corporation may appoint [an executive director,]directors of operating divisions and other such additional officers, all of whom need not be members of the corporation, and may employ consulting architects, engineers, auditors, accountants, construction, management, real estate, operations and financial experts, supervisors, managers and such other professional consultants and officers and employees, and may fix their compensation[, as the corporation deems advisable] as provided by law [; and may promote and discharge such officers and employees, all without regard to the provisions of Title 11 of the Revised Statutes. In developing an employee compensation schedule, the corporation shall consult with appropriate authorities of the State and file such schedule with them upon completion]. The corporation shall by October 31 of each year submit to the Governor and the presiding officers and the Transportation and Communications Committees of both Houses of the Legislature a list of all full and part-time officers and employees of the corporation and the salaries, wages and compensation received by said officers and employees during the preceding fiscal year.

[The corporation may elect or appoint from among the members of its board or from its employees some or all of the members of the board of directors of any incorporated entity of which it owns part or all of the capital stock.

Employees of the corporation, or any of its subsidiary entities, shall be covered by whatever retirement plan or plans the corporation or subsidiary entity determines from time to time to maintain for those employees. However, if an individual is a member of the Public Employees' Retirement System or any other State-administered retirement system immediately prior to his initial employment by the corporation, he shall continue as or become, as the case may be, a member of the Public Employees' Retirement System for the duration of his employment by the corporation.]

(cf: P.L.1979, c.150, s.15)

19. Section 20 of P.L.1979, c.150 (C.27:25-20) is amended to read as follows:

20. a. The corporation shall, by September 15 of each year, file with the Commissioner of Transportation a report in such format and detail as the Commissioner may require setting forth the actual, operational, capital and financial results of the previous fiscal year, the operational, capital and financial plan for the current fiscal year and a proposed operational, capital and financial plan for the next ensuing fiscal year.

b. On or before October 31 of each year, the corporation shall make an annual report of its activities for the preceding fiscal year to the Governor and to the presiding officers and the Transportation and Communications Committees of both Houses of the Legislature. Each such report shall set forth a complete operating and financial statement covering its operations and capital projects during the year.

c. All records of minutes, accounts, bills, vouchers, contracts or other papers connected with or used or filed with the corporation or with any officer or employee acting for or in its behalf are hereby declared to be public records and shall be open to public inspection in accordance with P.L.1963, c. 73 (C.47:1A-1 et seq.) and regulations prescribed by the corporation.

d. [The corporation shall cause an audit of its books and accounts to be made at least once each year by certified public accountants and the cost thereof may be treated as a cost of operation. The audit shall be filed within 4 months after the close of the fiscal year of the corporation and a certified duplicate copy thereof shall be filed with the Division of Budget and Accounting in the Department of Treasury.](Deleted by amendment, P.L.19 , c. ) (now before the Legislature as this bill)

e. [Notwithstanding the provisions of any law to the contrary, the State Auditor or his legally authorized representative may examine the accounts and books of the corporation.](Deleted by amendment, P.L.19 , c. ) (now before the Legislature as this bill)

(cf: P.L.1979, c.150, s.20)

20. R.S.39:3-19 is amended to read as follows:

39:3-19. For each vehicle used as an omnibus for the transportation of passengers for hire the applicant for the registration thereof shall pay an annual fee as follows:

$30.00 for each vehicle having a seating capacity of 18 passengers or less;

$48.00 for each vehicle having a seating capacity of not less than 19 nor more than 30 passengers;

$48.00 for vehicles having a seating capacity of more than 30 passengers and an additional fee of $3.00 for each passenger measured by the seating capacity in excess of 30 passengers.

Whenever the number of regular route passengers carried by an applicant in the previous calendar year represents 75% or more of the combined number of passengers carried on regular route, casino, special and charter bus operations during that year, then such applicant shall pay $10.00 per annum for the registration of each vehicle used as an omnibus for the transportation of passengers for hire in lieu of the annual fees hereinbefore prescribed. In addition, any applicant who is operating regular route bus service under a contract with the [New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.),]Department of Transportation shall pay $10.00 per annum for the registration of each vehicle used as an omnibus for the transportation of passengers for hire in lieu of the annual fees hereinbefore prescribed and without regard to the aforementioned 75% requirement.

Applicants seeking to register a vehicle for the reduced fee shall first obtain a letter from the Department of Transportation certifying that the number of regular route passengers carried by the applicant in the previous calendar year represents 75% or more of the combined number of passengers carried on regular route, casino, special and charter bus operations during that year, or in the case of applicants operating under contract with the [New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.)]Department of Transportation shall obtain a letter from the [corporation] department certifying that they are under such a contract. Applicants shall present the appropriate letters of certification with their applications for omnibus registration to the Director of the Division of Motor Vehicles.

The director shall provide identification marks of the general style and kind provided for motor vehicle registrations, assigning a number to each identification mark, and before each number the letter "O" shall be placed.

Every applicant for omnibus registration shall make application, setting forth the fact that he is in the business of transporting passengers for hire; and the director, if satisfied of the correctness of the statements made in such application, may issue a registration certificate for omnibus license.

Nothing in this section shall prohibit the use by an omnibus operator of any automobile duly licensed by him as owner.

(cf: P.L.1987, c.445, s.4)

21. R.S.48:4-20 is amended to read as follows:

48:4-20. A person owning or operating an autobus which is operated over any highway in this State for the purpose of carrying passengers from a point outside the State to another point outside the State, or from a point outside the State to a point within the State, or from a point within the State to a point outside the State shall pay to the Director of the Division of Motor Vehicles, as an excise for the use of such highway, one-half cent for each mile or fraction thereof such autobus shall have been operated over the highways of this State, except that a person owning or operating an autobus providing regular route service under authority conferred pursuant to R.S.48:4-3, and a person owning or operating an autobus providing regular route commuter bus service from a point within the State to a point outside the State, or from a point outside the State to a point within the State, shall be exempt from payment of the excise tax on the mileage traversed in providing that service. This exemption shall also apply to any person owning or operating an autobus under contract with the [New Jersey Transit Corporation] Department of Transportation for providing bus service or under a contract with a county for special or rural transportation bus service subject to the jurisdiction of the [New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.)] the Department of Transportation. "Commuter bus service" means regularly scheduled passenger service utilized by passengers using reduced fare, multiple ride or commutation tickets and shall not include charter bus operations or special bus operations as defined in R.S.48:4-1 or buses operated for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1.

(cf: P.L.1985, c.207, s.1)

22. Section 1 of P.L.1995, c.347 (C.54:39A-2) is amended to read as follows:

1. For the purpose of this act, unless inconsistent with the context:

(a) "User" means every person who operates or causes to be operated any qualified motor vehicle on any highway in this State. The term shall include a rental company in the case of a rental vehicle.

(b) "Qualified motor vehicle" means a motor vehicle that is not an exempt vehicle and that is used, designed or maintained for transportation of persons or property; and

(1) having two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds;

(2) having three or more axles, regardless of weight; or

(3) that is used in combination, when the weight of such combination is in excess of 26,000 pounds gross vehicle weight or registered gross vehicle weight.

Notwithstanding this definition of qualified motor vehicle, if the director enters into the agreement authorized pursuant to subsection b. of section 24 of P.L.1963, c.44 (C.54:39A-24), the director shall, as may be required by the agreement, issue a card and markers pursuant to this act to the user of an exempt vehicle other than a recreational vehicle that is a New Jersey base jurisdiction vehicle and that would be a qualified motor vehicle but for being an exempt vehicle and the director shall administer the reporting and collection of tax imposed by other member jurisdictions with respect to such vehicle.

(1) Any vehicle owned or operated by an agency of this State or any political subdivision thereof, or any quasi-governmental authority of which this State is a participating member, or any agency of the federal government or the District of Columbia, or of any state or province or political subdivision thereof.

(2) School bus as defined in R.S.39:1-1.

(3) Vehicles operated under authority of dealer, manufacturer, converter and transporter general registration plates such as prescribed in R.S.39:3-18 and similar laws of other states.

(4) Special mobile equipment not designed or used primarily for the transportation of persons or property.

(5) Vehicles operated not for profit by any religious or charitable organization.

(6) Vehicles operated by a public utility as defined in R.S.48:2-13, or under a contract with the [New Jersey Transit Corporation] Department of Transportation or under a contract with a county for special or rural transportation bus service subject to the jurisdiction of the [New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.)] Department of Transportation whose operations are limited to the State of New Jersey, or vehicles providing commuter bus service which receive or discharge passengers in New Jersey.

(7) Vehicles operated, not for hire, by a farmer as defined in R.S.39:3-25.

(8) Vehicles used to transport farm labor.

(9) Recreational vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. A recreational vehicle is a vehicle that is not used in connection with any business endeavor.

(d) "Operations" means operations of all qualified motor vehicles, whether loaded or empty, whether for compensation or not for compensation, and whether owned by, contracted for use by, or leased by the user who operates or causes them to be operated, except operations of an omnibus in a regular route bus operation as defined in R.S.48:4-1 and under operating authority conferred pursuant to R.S.48:4-3.

(e) The term "motor fuels" means any combustible liquid or gaseous substance used, or suitable, for the generation of power to propel motor vehicles.

(f) "Motor fuel tax " means a tax imposed at a rate equal to the sum of:

(1) the tax rate per gallon on motor fuels imposed under R.S.54:39-1 et seq.; and

(2) the tax rate per gallon on motor fuels imposed pursuant to section 3 of P.L.1990, c.42 (C.54:15B-3).

(g) "Director" shall mean the Director of the Division of Motor Vehicles in the Department of Transportation.

(h) "Purchaser" means the person, firm or corporation who or which purchased the fuel, and paid the motor fuel tax thereon, used in the qualified motor vehicles of the user.

(i) (Deleted by amendment, P.L.1995, c.347).

(j) (Deleted by amendment, P.L.1995, c.347).

(k) "Rental vehicle" means a vehicle owned by a rental company and rented to the general public on an hourly, daily, trip, or other short-term basis.

(l) "Rental company" means a person engaged in the business of renting vehicles to the general public, including motor carriers, on an hourly, daily, trip, or other short-term basis.

(m) "Commuter bus service" means regularly scheduled passenger service provided by qualified motor vehicles within or across the geographical boundaries of New Jersey and utilized by passengers using reduced fare, multiple ride or commutation tickets and shall not include charter bus operations or special bus operations as defined in R.S.48:4-1 or buses operated for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1.

(cf: P.L.1995,c.347,s.1)

23. R.S.54:39-66 is amended to read as follows:

54:39-66. Any person:

(1) Who shall use any fuels as herein defined for any of the following purposes:

(a) (Deleted by amendment.)

(b) Autobuses while being operated over the highways of this State in those municipalities to which the operator has paid a monthly franchise tax for the use of the streets therein under the provisions of R.S.48:16-25 and autobuses while being operated over the highways of this State in a regular route bus operation as defined in R.S.48:4-1 and under operating authority conferred pursuant to R.S.48:4-3, or while providing bus service under a contract with the [New Jersey Transit Corporation] Department of Transportation or under a contract with a county for special or rural transportation bus service subject to the jurisdiction of the [New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.)] Department of Transportation, and autobuses providing commuter bus service which receive or discharge passengers in New Jersey. For the purpose of this paragraph "commuter bus service" means regularly scheduled passenger service provided by motor vehicles whether within or across the geographical boundaries of New Jersey and utilized by passengers using reduced fare, multiple ride or commutation tickets and shall not include charter bus operations or special bus operations as defined in R.S.48:4-1 or buses operated for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1,

(d) Farm machinery,

(e) Aircraft,

(f) Ambulances,

(g) Rural free delivery carriers in the dispatch of their official business,

(h) Such vehicles as run only on rails or tracks, and such vehicles as run in substitution therefor,

(i) Such highway motor vehicles as are operated exclusively on private property,

(j) Motor boats or motor vessels used exclusively for or in the propagation, planting, preservation and gathering of oysters and clams in the tidal waters of this State,

(k) Motor boats or motor vessels used exclusively for commercial fishing,

(l) Motor boats or motor vessels, while being used for hire for fishing parties or being used for sightseeing or excursion parties,

(m) Cleaning,

(n) Fire engines and fire-fighting apparatus,

(o) Stationary machinery and vehicles or implements not designed for the use of transporting persons or property on the public highways, (p) Heating and lighting devices,

(q) Fuels previously taxed under this chapter and later exported from the State of New Jersey to any other state or country; provided, proof satisfactory to the director of such exportation is submitted,

(r) Motor boats or motor vessels used exclusively for Sea Scout training by a duly chartered unit of the Boy Scouts of America,

(s) Emergency vehicles used exclusively by volunteer first-aid or rescue squads, and

(t) Diesel fuel, the increase in the tax thereof as imposed by P.L.1984, c.73, as used by passenger automobiles and motor vehicles of less than 5,000 pounds gross weight; and

(2) Who shall have paid the tax for such fuels, hereby required to be paid, shall be reimbursed and repaid the amount of tax so paid upon presenting to the director an application for such reimbursement or repayment, in form prescribed by the director, which application shall be verified by a declaration of the applicant that the statements contained therein are true. Such application for reimbursement or repayment shall be supported by an invoice, or invoices, showing the name and address of the person from whom purchased, the name of the purchaser, the date of purchase, the number of gallons purchased, the price paid per gallon, and an acknowledgment by the seller that payment of the cost of the fuel, including the tax thereon, has been made. Such invoice, or invoices, shall be legibly written and shall be void if any corrections or erasures shall appear on the face thereof.

The director may, in his discretion, permit a distributor entitled to a refund under the provisions of this section to take credit therefor, in lieu of such refund, in such manner as the director may require, on a report filed pursuant to R.S.54:39-27.

Any refund granted to a person under subsection (1)(e), for fuel used in aircraft, shall be paid from the moneys deposited in the Airport Safety Fund established by section 4 of the "New Jersey Airport Safety Act of 1983," P.L.1983, c.264 (C.6:1-92). Such refunds shall be granted on an annual basis.

(cf: P.L.1992,c.23,s.45)

24. The following is repealed:

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

25. This act shall take effect immediately but, except for sections 5 and 6 which shall be operative immediately, shall be inoperative until the 90th day following enactment, except that the department may take such anticipatory administrative actions in advance of the operative date thereof as shall be necessary for the implementation of the act.

STATEMENT

This bill abolishes the New Jersey Transit Corporation as an independent corporation and transfers its functions, powers and duties to the Department of Transportation. The officers and employees of the corporation are also transferred to a newly created Public Transportation Administration in the department and are to be departmental employees in the unclassified service. The bill provides that the compensation of departmental employees and NJ Transit officers and employees transferred to the department shall not exceed the DOT Commissioner's compensation and creates comparable compensation for the transferred employees. With regard to those officers of the corporation with an employment contract with the corporation, this provision is to apply upon the expiration of the contract. However, during the interim period all such compensation is frozen at the level in effect on the date of enactment of the bill into law. The bill also provides that, except for those enrolled in or eligible for enrollment in the Police and Fireman's Retirement System or covered by existing collective bargaining agreements, the employees are to be enrolled in the Public Employees' Retirement System. It is anticipated that an operational audit of the corporation's performance will be undertaken in order to take whatever other remedial steps are needed in the future.

The New Jersey Department of Transportation was created in 1966 to establish the means whereby the full resources of the State could be used and applied in a coordinated and integrated fashion to solve or assist in the solution of the problems of transportation. The creation of the New Jersey Transit Corporation in 1979 was a departure from this unified approach and, although it may have been appropriate at the time, has caused serious problems in the areas of accountability, coherence and efficiency. This bill, by creating a Public Transportation Administration within the DOT, headed by an Assistant Commissioner for Public Transportation, to carry out the functions now carried out by New Jersey Transit, will permit a reduction in costs, less bureaucracy and greater efficiency in carrying out the State's public transportation's program.

Abolishes New Jersey Transit and transfers functions to DOT.