SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 1168

STATE OF NEW JERSEY

DATED: JUNE 17, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No.1168.

      Senate Bill No.1168 amends current law to permit the New Jersey Transit Corporation (the corporation) to negotiate or award any contract or agreement for the purchase or overhaul of motorbuses, light rail vehicles, rail cars, locomotives, signal systems or fare collection systems without advertising. The corporation is currently required to use a competitive sealed bid process, after public advertisement of such bids, for the purchase or overhaul of such equipment.

      Current law authorizes a purchase, contract or agreement to be negotiated or awarded by the corporation without advertising under the following circumstances: if the aggregate amount of the purchase or contract does not exceed the State threshold amount for public bidding (currently $11,200); for the acquisition of public or private entities engaged in the provision of public transportation service, used public transportation equipment or existing public transportation facilities or rights of way; for the acquisition of professional or technical services; for the purchase or award a contract under emergency circumstances; and for the contracting for the operation of rail passenger or motorbus services. Corporation regulations require that all purchases, whether by formal advertising or otherwise, be made on a competitive basis to the maximum extent possible.

      As reported, this bill is identical to Assembly, No.1937 of 1996 (DeCroce/Bucco).

FISCAL IMPACT

      This bill has not been certified as requiring a fiscal note.