ASSEMBLY, No. 4069

 

STATE OF NEW JERSEY

212th LEGISLATURE

 

INTRODUCED MARCH 8, 2007

 

 

 

Sponsored by:

Assemblyman JOHN J. BURZICHELLI

District 3 (Salem, Cumberland and Gloucester)

 

 

 

 

SYNOPSIS

     Abolishes New Jersey Turnpike Authority and South Jersey Transportation Authority and transfers their functions to DOT and EDA.

 

CURRENT VERSION OF TEXT

     As introduced.

 

 

An Act providing for the abolishment of the New Jersey Turnpike Authority and the South Jersey Transportation Authority, transferring their functions, powers, and duties to the Department of Transportation and the New Jersey Economic Development Authority, supplementing Title 27 of the Revised Statutes and amending P.L.1984, c.73.

 

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

 

     1.  (New section)  As used in this act:

     "Authorities" means the New Jersey Turnpike Authority and the South Jersey Transportation Authority.

     "Commissioner" means the Commissioner of Transportation of the State of New Jersey.

     "Economic Development Authority" means the New Jersey Economic Development Authority created pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

     "Highway project" means a highway project or expressway project authorized by P.L.1948, c.454 (C.27:23-1 et seq.) or P.L.1991, c.252 (C.27:25A-1 et seq.).

     "New Jersey Turnpike Authority" means the public body established under section 3 of P.L.1948, c.454 (C.27:23-3).

     "South Jersey Transportation Authority" means the public body established under section 4 of P.L.1991, c.252 (C.27:25A-4).

     "Transfer Date" means, with respect to the assumption by the department of the powers, duties, assets, and responsibilities of the authorities, the date on which: (i) the chairs of the authorities and the commissioner certify to the Governor that all the bonds issued by the authorities cease to be outstanding within the meaning of the resolutions pursuant to which the bonds were issued; and (ii) the department assumes all debts and statutory responsibilities of the authorities, except that for bonding powers, and the Economic Development Authority assumes all statutory responsibilities of the authorities relating to the issuance and repayment or defeasance of bonds, refunding bonds, notes and other indebtedness.

     "Transportation project" means a transportation project authorized by P.L.1948, c.454 (C.27:23-1 et seq.) or P.L.1991, c.252 (C.27:25A-1 et seq.).

 

     2.  (New section)  Until all bonds or notes issued before the effective date of this act by the authorities to finance any projects, and the interest thereon are paid in full, or a sufficient amount for the payment of all such bonds, and the interest thereon, to the maturity thereof, is set aside in trust for the benefit of the bondholders, no resolution or other action of the authorities providing for the issuance of bonds, refunding bonds, or other obligations shall be adopted or otherwise made effective by the authorities except as shall be specifically authorized by law.

 

     3.  (New section)  a.  Until the Transfer Date, the department and the Economic Development Authority shall not exercise any powers, rights, or duties conferred by this act or by any other law in any way which will interfere with the powers, rights, and duties of the authorities.  The department and the Economic Development Authority shall not before the Transfer Date exercise any powers of the authorities.  The department, the Economic Development Authority, and the authorities are directed to cooperate with each other so that the Transfer Date shall occur as soon as practicable after the date of enactment of this act, and the authorities shall make available information concerning their property and assets, outstanding bonds and other debts, obligations, liabilities and contracts, operations, and finances as the department and the Economic Development Authority may require to provide for the retirement of any outstanding bonds, notes, or other obligations of either authority, and the efficient exercise by the department and the Economic Development Authority of all powers, rights, and duties conferred upon them by this act.

     b.    On the Transfer Date:  (1) The department shall assume all of the powers, rights, assets, and duties of the authorities to the extent provided by this act, and such powers shall then and thereafter be vested in and shall be exercised by the department and the commissioner thereof.

     (2)   The terms of office of the members of the authorities shall terminate, the officers having custody of the funds of the authorities shall deliver those funds into the custody of the commissioner, the property and assets of the authorities shall, without further act or deed, become the property and assets of the department, and the authorities shall cease to exist.

     (3)   The officers and employees of the authorities are transferred to the department and shall become employees of the department until determined otherwise by the department.

     Nothing in this act shall be construed to deprive any officers or employees of the authorities 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 collective negotiation agreements or contracts until such time as new or revised agreements or contracts are agreed to.  All existing employee representatives shall be retained to act on behalf of those employees until such time as the employees shall, pursuant to law, elect to change those representatives.  Nothing in this act shall affect the civil service status, if any, of those officers or employees.

     (4)   All debts, liabilities, obligations and contracts of the authorities, except to the extent specifically provided or established to the contrary in this act, are imposed upon the department, and all creditors of the authorities and persons having claims against or contracts with the authorities of any kind or character may enforce those debts, claims, and contracts against the department as successor to the authorities in the same manner as they might have against the authorities, and the rights and remedies of those holders, creditors, and persons having claims against or contracts with the authorities shall not be limited or restricted in any manner by this act.

     (5)   In continuing the functions, contracts, obligations and duties of the authorities, the department is authorized to act in its own name or in the name of the authorities as may be convenient or advisable under the circumstances from time to time.

     (6)   Any references to the authorities in any other law or regulation shall be deemed to refer and apply to the department.

     (7)   All rules and regulations of the authorities shall continue in effect as the rules and regulations of the department until amended, supplemented or rescinded by the department in accordance with law.  Notwithstanding any requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the department may adopt regulations, after notice and an opportunity for public comment, amending, supplementing, modifying, or repealing the regulations of both authorities or either of them.  Such regulations shall be effective immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months from the Transfer Date and they may, thereafter, be amended, adopted or readopted in accordance with the "Administrative Procedure Act."  Regulations of the authorities inconsistent with the provisions of this act or of regulations of the department shall be deemed void if so judged by the department acting pursuant to the provisions of this paragraph.

     (8)   All operations of the authorities shall continue as operations of the department until altered by the department as may be permitted pursuant to this act.

     (9)   The powers vested in the department by this act shall be construed as being in addition to and not in diminution of the powers heretofore vested by law in the department to the extent not otherwise altered or provided for in this act.

     c.  In the event that the Transfer Date shall not be the same for the New Jersey Turnpike Authority and the South Jersey Transportation Authority, the provisions of this section shall apply to the New Jersey Turnpike Authority or the South Jersey Transportation Authority as the case may be.

     d.    As soon as practicable after the Transfer Date, the commissioner shall notify the Governor and the presiding officers of each house of the Legislature that the transfer has occurred, the date of the transfer, and any other information concerning the transfer the commissioner deems appropriate.

 

     4.  (New section)  Upon the abolishment of the authorities as provided in section 3 of this act, all highway projects shall become part of the State highway system and shall be maintained by the department as toll roads.

 

     5.  (New section) a.  Prior to the Transfer Date, the Economic Development Authority is authorized to issue bonds, refunding bonds, notes, or other indebtedness to facilitate the timely occurrence of the Transfer Date, including but not limited to, the issuance of bonds, refunding bonds, notes, or other indebtedness to provide that all bonds or notes issued by the authorities to finance any projects, and the interest thereon, have been paid or a sufficient amount for the payment of all those bonds or notes, and the interest thereon, has been set aside in trust for the benefit of the bondholders.

     b.  On the Transfer Date, the power of the authorities to issue bonds, refunding bonds, notes, or other indebtedness is continued but transferred to the Economic Development Authority and shall thereafter be exercised and administered by that authority.

     c. The authorities, the department, and the Economic Development Authority are authorized to enter into such agreements as are necessary to facilitate the transfers contemplated by this section and the department may, in furtherance of this end, agree to the transfer of such toll and other revenues derived from the operation of highway projects and transportation projects transferred pursuant to this act as may be necessary or advisable to fulfill the obligations undertaken prior to or on the Transfer Date by the Economic Development Authority to pay the principal and interest when due of such bonds, notes or other indebtedness.  Pursuant to such agreement, the department shall transfer such monies as necessary or advisable to the Economic Development Authority for the payment of such obligations.

 

     6.  (New section)  Upon the abolishment of the authorities, the provisions of P.L.1948, c.454 (C.27:25A-1 et seq.) and P.L.1991, c.252 (C.27:25A-1 et seq.), insofar as they are not inconsistent  with the provisions of this act, shall continue in effect and any reference therein or in any other law to the authorities, to the chairman or any member thereof shall be deemed to mean and refer to the commissioner or the department, or to the Economic Development Authority, as the case may be.

 

     7.  (New section)  This act shall be subject to the provisions of the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.), except as may otherwise be provided under this act.

     8.  (New section)  The commissioner shall annually transfer to the "Transportation Trust Fund Account," established by section 20 of P.L.1984, c.73 (C.27:1B-20), tolls and other revenues received from the transportation projects and highway projects transferred pursuant to this act which are not needed for the operation and maintenance of those projects or transferred to the Economic Development Authority pursuant to section 5 of this act.  These revenues shall be known as "surplus funds" of the former toll road authorities operations.

 

     9.  Section 20 of P.L.1984, c.73 (C.27:1B-20) is amended to read as follows:

     20.  There is hereby established in the General Fund an account entitled "Transportation Trust Fund Account." During the fiscal year beginning July 1, 1984 and during each succeeding fiscal year in which the authority has bonds, notes or other obligations outstanding, the treasurer shall credit to this account:

     a.     An amount equivalent to the revenue derived from $0.105 per gallon from the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes, as provided in Article VIII, Section II, paragraph 4 of the State Constitution, provided, however, such amount during any fiscal year shall not be less than $483,000,000;

     b.    (Deleted by amendment, P.L.2000, c.73).

     c.     An amount equivalent to moneys received by the State in accordance with contracts entered into with toll road authorities or other State agencies, provided that effective with the fiscal year beginning July 1, 1988 the amount so credited shall not be less than $24,500,000.00 in any fiscal year.

     The treasurer shall also credit to this account, in accordance with a contract between the treasurer and the authority, an amount equivalent to the sum of the revenues due from the increase of fees for motor vehicle registrations collected pursuant to the amendment to R.S.39:3-20 made by this act and from the increase in the tax on diesel fuels imposed pursuant to the amendment to R.S.54:39-27 made by this act and by P.L.1987, c.460, provided that the total amount credited during the fiscal year beginning July 1, 1984 shall not be less than $20,000,000.00 and that the total amount credited during the fiscal year beginning July 1, 1985 and during every fiscal year thereafter shall not be less than $30,000,000.00.

     In addition to the amounts credited to the account by this section, commencing with the fiscal year beginning July 1, 1995 and every fiscal year thereafter, there shall be appropriated from the General Fund such additional amounts as are necessary to carry out the provisions of this act and beginning July 1, 2000 the fees collected pursuant to subsection a. of section 68 of P.L.1990, c.8 (C.17:33B-63) shall be credited to the account for the purposes of this act, provided, however, the amount credited from such fees during any fiscal year shall not be less than $60,000,000.

     d.    In addition to the amount credited in subsection a. of this section, beginning January 1 following approval by the voters an amount equivalent to the revenue derived from the tax imposed on the sale of petroleum products pursuant to P.L.1990, c.42 (C.54:15B-1 et seq.), provided, however, such amount shall not be less than $100,000,000 in the period January 1 through June 30 following approval by the voters and shall not be less than $200,000,000 in any fiscal year thereafter and for the fiscal year commencing July 1, 2001 and for each fiscal year thereafter an amount equivalent to the revenue derived from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) on the sale of new motor vehicles, provided, however, that such amount shall not be less than $200,000,000 for the fiscal year commencing July 1, 2003 and for each fiscal year thereafter, as provided in Article VIII, Section II, paragraph 4 of the State Constitution.

     e.  Amounts transferred to this account by the Commissioner of Transportation from the surplus funds of the former toll road authorities operations pursuant to section 8 of P.L.  , c.  (C.   ) (pending before the Legislature as this bill).

     No later than the fifth business day of the month following the month in which a credit has been made, the treasurer shall pay to the authority, for its purposes as provided herein, the amounts then credited to the Transportation Trust Fund Account, provided that the payments to the authority shall be subject to and dependent upon appropriations being made from time to time by the Legislature of the amounts thereof for the purposes of the act.

(cf:  P.L.2006, c.3, s.3)

 

     10.  Section 16 of P.L.1948, c.454 (C.27:23-16) is repealed.

 

     11.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill provides for the abolishment of the New Jersey Turnpike Authority and the South Jersey Transportation Authority and the transferral of their functions, powers and duties to the Department of Transportation, except for the power to issue bonds and other forms of indebtedness, which is transferred to the New Jersey Economic Development Authority (EDA).  All former expressway and highway projects would become part of the State highway system and would thereafter be maintained by the Department of Transportation as toll roads.  The Department of Transportation and the EDA are authorized to enter into an agreement whereby the Department of Transportation would transfer revenues from the transferred projects to the EDA for the EDA to meet its new bonding obligations.  The Commissioner of Transportation would annually transfer to the Transportation Trust Fund Account surplus funds from the operations of the two former toll road authorities which are not needed for the maintenance and operation of their highway and transportation projects or for the new bonding obligations of the EDA.  The bill repeals section 16 of P.L.1948, c.454 (C.27:23-16) which requires the projects of the Turnpike Authority to become part of the State highway system when all highway project bonds have been paid off and the projects to be operated by the authority.