New Jersey-2018-A1784-Introduced

An Act concerning New Jersey Transit Corporation motor bus and rail passenger fares and amending and supplementing P.L.1979, c.150.

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

1. 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] the corporation elsewhere in [this act] P.L.1979, c.150 (C.27:25-1 et seq.), the corporation may do all acts necessary and reasonably incident to carrying out the objectives of [this act] P.L.1979, c.150 (C.27:25-1 et seq.), including, but not in limitation thereof, the following:

a. Sue and be sued;

b. Have an official seal and alter the [same] seal at pleasure;

c. Make and alter bylaws for its organization and internal management and for the conduct of its affairs and business;

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

e. Adopt, amend, and repeal [such] rules and regulations as [it] the corporation may deem necessary to effectuate the purposes of [this act] P.L.1979, c.150 (C.27:25-1 et seq.), which shall have the force and effect of law; [it] the corporation shall publish the [same] rules and regulations 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] the corporation may require and as may be available to it for [said] that 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, Pub.L.88-365 (49 U.S.C. s.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, by the corporation, 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] P.L.1979, c.150 (C.27:25-1 et seq.). In order to provide or encourage adequate and efficient public transportation service, the corporation 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, except under [such] terms as the corporation 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] P.L.1979, c.150 (C.27:25-1 et seq.);

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 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 the 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 either directly or by contract including, but not limited to, [such] reduced fare programs as deemed appropriate by the corporation; revenues derived from [such] that service may be collected by the corporation and shall be available to the corporation for use in furtherance of any of the purposes of [this act] P.L.1979, c.150 (C.27:25-1 et seq.);

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; [such] those revenues shall be available to the corporation for use in furtherance of any of the purposes of [this act] P.L.1979, c.150 (C.27:25-1 et seq.);

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.281 (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] P.L.1979, c.150 (C.27:25-1 et seq.);

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, whether part-time, full-time, compensated or [noncompensated] non-compensated, in the performance of the duties of [his] the employee's office or employment or any other insurable risk. In addition, the corporation may carry its own liability insurance and may also establish and utilize a wholly-owned insurance subsidiary or captive provided the subsidiary or captive is domiciled in the United States in a state which is accredited by the National Association of Insurance Commissioners and which licenses and regulates wholly-owned insurance subsidiaries or captives;

s. Promote the use of public transportation services, coordinate ticket sales to the public and any person, including but not limited to, a State-wide nonprofit organization pursuant to subsection y. of this section and for the purposes of the provisions of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and [passenger] provide information on ticket sales to passengers, 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 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] P.L.1979, c.150 (C.27:25-1 et seq.);

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] P.L.1979, c.150 (C.27:25-1 et seq.);

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, Pub.L.88-365 (49 U.S.C. s.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, Pub.L.88-365 (49 U.S.C. s.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" (hereinafter 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; [and]

x. Enter into agreements with a public or private entity or consortia thereof to provide for the development of demonstration projects through the use of public-private partnerships pursuant to sections 1 through 9 of P.L.1997, c.136 (C.27:1D-1 through C.27:1D-9); and

y. Enter into an agreement with a State-wide nonprofit organization for the purposes of the provisions of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2004, c.1, s.1)

2. (New section) a. The New Jersey Transit Corporation shall enter into an agreement with a State-wide nonprofit organization concerning the sale of rail passenger and motor bus fare tickets. The agreement shall provide that the nonprofit organization may purchase from the corporation, at full fare price, rail passenger and motor bus fare tickets of a number determined by the nonprofit organization. The nonprofit organization shall then re-sell the tickets to qualified persons, who provide proof to the nonprofit organization that they meet the conditions required for an individual to be a qualified person, to purchase tickets at a discounted price in a manner determined by the nonprofit organization. A qualified person shall not re-sell a discounted ticket. The State-wide nonprofit organization may seek and accept charitable donations from public or private entities for the purpose of selling tickets at a discounted price. The agreement shall provide that the corporation shall assist the nonprofit organization in seeking charitable donations for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) in a manner allowed by law including, but not limited to, providing notice on its Internet website the name and contact information of the State-wide nonprofit organization re-selling the tickets to qualified persons and any other relevant information deemed appropriate by the corporation.

b. For the purposes of this section:

"Qualified person" means an individual, or the individual's dependent, who is currently enrolled as a participant in:

(1) the federal food stamp program authorized by Title XIII of the "Food and Agriculture Act of 1977," Pub.L.95-113 (7 U.S.C. s.2011 et seq.);

(2) the special supplemental nutrition program for women, infants and children, established pursuant to the federal "Child Nutrition Act of 1966," Pub.L.89-642 (42 U.S.C. s.1771 et seq.);

(3) the supplemental nutrition assistance program, established pursuant to the federal "Food and Nutrition Act of 2008," Pub.L.88-525 (7 U.S.C.s.2011 et seq.);

(4) the State level food stamp program, established pursuant to P.L.1998, c.32 (C.44:10-79 et seq.), which applies to non-citizens who were rendered ineligible for federal food stamp program assistance by section 402 of the federal "Personal Responsibility and Work Opportunity Reconciliation Act of 1996," Pub.L.104-193 (8 U.S.C. s.1612); or

(5) the Work First New Jersey temporary public assistance program, established pursuant to P.L.1997, c.38 (C.44:10-55 et seq.) in accordance with authorization received under Title IV of the federal "Personal Responsibility and Work Opportunity Reconciliation Act of 1996," Pub.L.104-193 (8 U.S.C. s.1601 et seq.).

"State-wide nonprofit organization" or "nonprofit organization" means a charitable organization serving qualified State residents and having operations throughout the State, that is a corporation organized in the State operated exclusively for charitable purposes under the "New Jersey Nonprofit Corporation Act," Title 15A of the New Jersey Statutes, and is exempt from federal income tax under section 501(c)(3) of the United States Internal Revenue Code (26 U.S.C.s.501(c)(3)).

3. This act shall take effect immediately, but shall remain inoperative for 90 days following the date of enactment.

STATEMENT

This bill requires the New Jersey Transit Corporation (NJ Transit) to enter into an agreement with a State-wide nonprofit organization (organization), as defined in the bill, concerning the sale of rail passenger and motor bus fare tickets. The agreement would provide that the organization would be allowed to purchase from NJ Transit at full fare price rail passenger and motor bus fare tickets. The organization is to re-sell those tickets to qualified persons, as defined in the bill, who provide proof of their eligibility as qualified persons, to purchase tickets at a discounted price in a manner determined by the organization. A qualified person is not to re-sell a discounted ticket. The Statewide nonprofit organization may seek and accept charitable donations from public or private entities for this purpose. NJ Transit is to assist the organization in seeking charitable donations in a manner allowed by law including, but not limited to, providing notice on its Internet website the name and contact information of the organization and any other relevant information deemed appropriate by the corporation.