Bill Text: NJ A2587 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires Division of Rate Counsel to evaluate NJT fare increases and determine whether increases are necessary and fair to NJT customers.
Spectrum: Strong Partisan Bill (Democrat 11-1)
Status: (Engrossed - Dead) 2015-12-10 - Referred to Senate Budget and Appropriations Committee [A2587 Detail]
Download: New_Jersey-2014-A2587-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Requires Division of Rate Counsel to evaluate NJT fare increases and determine whether increases are necessary and fair to NJT customers.
CURRENT VERSION OF TEXT
As introduced.
An Act expanding the powers of the Division of Rate Counsel to evaluate New Jersey Transit Corporation fare increases and amending P.L.2005, c.155 and P.L1979, c.150.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 48 of P.L.2005, c.155 (C.52:27EE-48) is amended to read as follows:
48. Division of Rate Counsel; jurisdiction.
The Division of the Rate Counsel in, but not of, the Department of the Treasury shall have the authority to conduct investigations, initiate studies, conduct research, present comments and testimony before governmental bodies, issue reports, and produce and disseminate consumer guides on any matters that fall within the Rate Counsel's jurisdiction. The Rate Counsel shall also have the authority to represent the public interest as set forth below.
a. Utilities. The Division of Rate Counsel may represent and protect the public interest as defined in section 12 of P.L.2005, c.155 (C.52:27EE-12) in proceedings before and appeals from any State department, commission, authority, council, agency, or board charged with the regulation or control of any business, industry, or utility regarding a requirement that the business, industry, or utility provide a service or regarding the fixing of a rate, toll, fare, or charge for a product or service. The Division of Rate Counsel may initiate any such proceedings when the director determines that a discontinuance or change in a required service or a rate, toll, fare, or charge for a product or service is in the public interest.
b. Insurance; limited jurisdiction. The Division of Rate Counsel shall represent and protect the public interest with respect to insurance matters in significant proceedings that pertain solely to prior approval rate increases for personal lines property casualty coverages or Medicare supplemental coverages. The Division of Rate Counsel shall have no jurisdiction or authority to participate or intervene in (1) expedited prior approval rate filings made by an insurer or affiliated group of insurers pursuant to section 34 of P.L.1997, c.151 (C.17:29A-46.6) or section 3 of P.L.2001, c.409 (C.17:36-5.35), or (2) prior approval rate filings of seven percent or less, or (3) rule or form filings for any other form of insurance.
In determining, in his discretion, whether a proceeding is significant, the Director of the Division of Rate Counsel shall consider the following factors:
(1) the overall dollar
impact of the requested increase, considering the filer's market share and the
magnitude of the
requested rate change;
(2) whether the increase, if granted, will increase the filer's rates significantly above market norms;
(3) whether the filer is advancing a significantly different alternate ratemaking methodology to the standard methodology established pursuant to section 8 of P.L.1988, c.119 (C.17:29A-36.2);
(4) whether the insurer is experiencing financial difficulties at its present rate level, as evidenced by the filing of rehabilitation proceedings, recent downgrading by insurance rating services, or significant losses reported on the filer's public financial statement.
The Director of the Division of Rate Counsel shall, in addition to the powers set forth in [this act] sections 48 through 55 of P.L.2005, c.155 (C.52:27EE-48 through C.52:27EE-55), have the express authority to intervene in public hearings pursuant to section 66 of P.L.1998, c.21 (C.17:29A-46.8).
c. Within 90 days after receiving notice from the New Jersey Transit Corporation, pursuant to section 8 of P.L.1979, c.150 (C.27:25-8) and section 50 of P.L.2005, c.155 (C.52:27EE-50), of the corporation's proposal to implement a fare increase for any motorbus regular route or rail passenger service, the Division of the Rate Counsel shall evaluate the proposed fare increase and determine whether the increase is necessary and fair to New Jersey Transit Corporation customers.
(cf: P.L.2010, c.34, s.33)
2. Section 50 of P.L.2005, c.155 (C.52:27EE-50) is amended to read as follows:
50. Division of Rate Counsel; required notices to the division.
a. The Division of Rate Counsel shall receive a copy from the filer of any prior approval rate filing seeking consumer insurance rate increases, including any amendments or supplements thereto. A copy of such rate filing shall be received by the Division of Rate Counsel concurrent with any rate filing with the Commissioner of Banking and Insurance; except, however, the filer is not required to provide a copy of such rate filing with the Division of Rate Counsel if: (a) the filing is an expedited prior approval rate filing made pursuant to either section 34 of P.L.1997, c.151 (C.17:29A-46.6) or section 3 of P.L.2001, c.409 (C.17:36-5.35); or (b) the filing is made pursuant to any statutory change in coverage provided under a policy of private passenger automobile insurance; or (c) the filing is a prior approval rate filing of seven percent or less.
b. The Division of Rate Counsel shall receive a copy from the New Jersey Transit Corporation of any notice of the corporation's intent to implement a fare increase for any motorbus regular route or rail passenger services, including any amendments or supplements thereto. A copy of such notice shall be received by the Division of Rate Counsel pursuant to section 8 of P.L.1979, c.150 (C.27:25-8).
(cf: P.L.2005, c.155, s.50)
3. Section 8 of P.L.1979, c.150 (C.27:25-8) is amended to read as follows:
8. a. The corporation or any subsidiary thereof shall not be considered a public utility as defined in R.S.48:2-13, and except with regard to subsection c. of this section, subsection b. of R.S.48:3-38, section 2 of P.L.1989, c.291 (C.27:25-15.1), and R.S.48:12-152, the provisions of Title 48 of the Revised Statutes shall not apply to the corporation or any subsidiary thereof.
b. The authority hereby given to the corporation pursuant to section 6 of [this act] P.L.1979, c.150 (C.27:25-6) with respect to fares and service, shall be exercised without regard or reference to the jurisdiction formerly vested in the Department of Transportation regarding rates and rate schedules under R.S.48:2-21; discontinuance, curtailment, or abandonment of service under R.S.48:2-24; and the issuance of a certificate of public convenience and necessity under R.S.48:4-3, and transferred to the New Jersey Motor Vehicle Commission by P.L.2003, c.13 (C.39:2A-1 et al.). The New Jersey Motor Vehicle Commission shall resume jurisdiction over service and fares upon the termination and discontinuance of a contractual relationship between the corporation and a private or public entity relating to the provision of public transportation services operated under the authority of certificates of public convenience and necessity previously issued by the New Jersey Motor Vehicle Commission or its predecessors; provided, however, that [no] a private entity shall not be required to restore any service discontinued or any fare changed during the existence of a contractual relationship with the corporation, unless the New Jersey Motor Vehicle Commission shall determine, after notice and hearing, that the service or fare is required by public convenience and necessity.
c. Notwithstanding any other provisions of [this act] P.L.1979, c.150 (C.27:25-1 et seq.), all vehicles used by any public or private entity pursuant to contract authorized by [this act] P.L.1979, c.150 (C.27:25-1 et seq.), and all vehicles operated by the corporation directly, shall be subject to the jurisdiction of the department with respect to maintenance, specifications, and safety to the same extent [such] that jurisdiction is conferred upon the department by Title 48 of the Revised Statutes.
d. Before implementing any fare increase for any motorbus regular route or rail passenger services, or the substantial curtailment or abandonment of [any such] those services, the corporation shall hold a public hearing in the area affected during evening hours. Notice of [such] the hearing shall be given by the corporation at least 15 days prior to [such] the hearing to the governing body of each county whose residents will be affected and to the clerk of each municipality in the county or counties whose residents will be affected; [such] the notice shall also be posted at least 15 days prior to [such] the hearing in prominent places on the railroad cars and buses serving the routes to be affected.
e. Notice of its intent to discontinue, substantially curtail or abandon any motorbus regular route service or rail passenger service shall be given by the corporation to the governing body of each county whose residents will be affected and to the clerk of each municipality in the county or counties whose residents will be affected at least 45 days prior to implementation of [such] the change in service.
f. Not less than 90 days before implementing a fare increase for any motorbus regular route or rail passenger service, the corporation shall provide notice of the fare increase proposal to the Division of Rate Counsel in the Department of the Treasury pursuant to section 50 of P.L.2005, c.155 (C.52:27EE-50). The corporation shall provide any information that the division shall request in the course of preparing the division's evaluation and determination. Before implementing any fare increase proposal, the corporation shall consider the division's evaluation and determination and shall respond to any objection the division may have to the fare increase proposal.
(cf: P.L.2009, c.259, s.1)
4. This act shall take effect immediately.
STATEMENT
This bill expands the powers of the Division of Rate Counsel (division) in the Department of the Treasury by requiring the division, within 90 days after receiving notice from the New Jersey Transit Corporation (corporation), of any corporation proposal to implement a fare increase for any corporation motorbus regular route or rail passenger service, to evaluate the proposed fare increase and determine whether the increase is necessary and fair to corporation customers. The corporation is to provide any information that the division requests in the course of preparing the division's evaluation and determination. Before implementing any fare increase proposal, the corporation is to consider the division's evaluation and determination and is to respond to any objection the division may have to the fare increase proposal.
