N.J. Stat. tit. 27, ch. 1D

in effect

N.J. Stat. § 27:1D-1 Findings, declarations relative to transportation projects

1. The Legislature finds and declares that: a. A safe and efficient transportation system is essential to the economic and social well-being of the State and its people, and is a sound economic investment opportunity for both private and public resources. b. The use of public-private transportation initiatives would enhance the ability of the State to provide a safe and efficient transportation system through use of alternate funding sources and private sector efficiencies; supplement the State's transportation resources in order to allow the State to use its limited resources for other needed projects; and encourage and promote business and employment opportunities for the citizens of New Jersey. L.1997,c.136,s.1.

N.J. Stat. § 27:1D-2 Definitions relative to transportation projects

2. As used in this act: "Commissioner" means the Commissioner of Transportation. "Corporation" means the New Jersey Transit Corporation. "Department" means the Department of Transportation. "Demonstration project" means a transportation project selected by the commissioner pursuant to section 3 of this act. "Developer" means a public or private entity or consortia thereof selected by the public partner from among proposers to develop a demonstration project. "Intelligent transportation systems" mean the equipment, facilities, property, information management and communications resources which are necessary or desirable for the advancement, management, or operation of a multi-modal transportation network. "Project agreement" or "demonstration project agreement" means a contract or agreement entered into by the commissioner with a developer providing the terms and conditions under which the developer shall undertake a demonstration project. "Public highways" means public roads, streets, expressways, freeways, parkways, motorways and boulevards, including bridges, tunnels, overpasses, underpasses, interchanges, rest areas, express bus roadways, bus pullouts and turnarounds, park-ride facilities, traffic circles, grade separations, intelligent transportation systems, traffic control devices, the elimination or improvement of crossings of railroads and highways, whether at grade or not at grade, and any facilities, equipment, property, rights of way, easements and interests therein needed for the construction, improvement and maintenance of highways or intelligent transportation systems. "Public partner" means the Department of Transportation or the New Jersey Transit Corporation, as the case may be. "Public transportation project" means, 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, motorbuses 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. "Transportation project" means, in addition to public highways and public transportation projects, any equipment, facility or property useful or related to the provision of any ground, waterborne or air transportation for the movement of people and goods. L.1997,c.136,s.2.

N.J. Stat. § 27:1D-3 Selection of demonstration projects

3. a. Commencing with the fiscal year beginning after the effective date of this act and for the next four succeeding fiscal years, the commissioner is authorized to select up to seven transportation projects from the list of transportation projects for which monies have been appropriated in the annual appropriations acts for those five fiscal years to serve as demonstration projects. No more than seven demonstration projects shall be selected by the commissioner pursuant to this act. b. Selection by the commissioner of demonstration projects pursuant to subsection a. of this section which are public transportation projects shall be made with the approval of the board of the corporation. c. If a transportation project is not listed in the annual appropriations acts, the commissioner may submit that project as a demonstration project to the Legislature for approval. The commissioner shall make the submission to the Legislature to the President of the Senate and the Speaker of the General Assembly on a day when both houses are meeting. The President and the Speaker shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly, respectively. Unless the project as described in the submission is disapproved by adoption of a concurrent resolution to this effect by the affirmative vote of a majority of the authorized membership of both houses within the time period prescribed in this subsection, the project shall be deemed approved and the public partner shall be authorized to undertake the project. The time period shall commence on the day of submission and expire on the forty-fifth day after submission or for a house not meeting on the forty-fifth day, on the next meeting day of that house. d. Notwithstanding the provisions of this section to the contrary, demonstration projects shall be subject to the approval of the Joint Budget Oversight Committee or its successor. L.1997,c.136,s.3.

N.J. Stat. § 27:1D-4 Solicitation of proposals by public partner

4. a. A public partner is authorized to solicit proposals in the five fiscal years after the effective date of this act, as provided in subsection a. of section 3 of this act, from developers to plan, design, construct, equip, operate, finance, improve and maintain, or any combination thereof, demonstration projects selected by the commissioner pursuant to section 3 of this act. b. A public partner shall select proposals for negotiation of demonstration project agreements based on the overall benefit to the State, the qualifications and financial strength of the proposer, the proposer's responsiveness to the public partner's requirements, the total project cost to be incurred by the public partner, the nature of project financing, the revenues to be generated by the project on behalf of and in support of the State, the impact of any direct or indirect user fees and any other evaluation criteria the public partner deems appropriate. The public partner shall negotiate with one or more proposers to reach a project agreement in the best interests of the State, except that in the event that a private developer, private entity or private consortia benefits from the use of public monies for the construction of a demonstration project pursuant to this act, the project agreement with the developer shall provide that any construction contract entered into by the developer, a private entity or private consortia, to effectuate the agreement shall conform to those requirements concerning advertisement, pre-qualification, bid and award provided for by law for construction contracts entered into by the department or corporation, as the case may be. c. Any power possessed by a public partner pursuant to this act or any other act or any function performed by the department or the corporation, as the case may be, with respect to transportation projects may be used by that public partner to facilitate the planning, designing, construction, equipment, financing, improvement, maintenance and operation, or any combination thereof, of demonstration projects selected pursuant to this act. Project agreements entered into pursuant to this act may provide for full reimbursement to the State for services rendered by the public partner or other State entities or agencies or for the provision of revenues generated to the State. The public partner is authorized to enter into financing, funding, and credit agreements on such terms as the commissioner deems favorable to the State to promote the purposes of this act. All credit agreements entered into by the public partner pursuant to this act shall be subject to concurrence by the State Treasurer. d. A project agreement entered into pursuant to this act shall provide for a public involvement and information process to apply to each demonstration project. The purpose of the public involvement and information process shall be to disseminate and provide information about the demonstration project to the public, prospective project users, and the residents of communities affected by the project, and to establish a formal means by which interested persons may comment upon the project and make suggestions. e. Upon entering into a project agreement pursuant to this act, the public partner shall publish a notice in a newspaper circulating in the county in which the demonstration project will be located describing the project and the responsibilities of the developer and the public partner with respect to the project. If a demonstration project will be located in more than one county or have a regional impact, the notice shall also be published in a publication circulating in the region in which the demonstration project will be located. L.1997,c.136,s.4.

N.J. Stat. § 27:1D-5 Financial conditions; arrangements of projects

5. a. The department's financial participation in any demonstration project undertaken pursuant to this act shall be subject to legislative appropriation. The corporation's financial participation in any demonstration project undertaken pursuant to this act shall be subject to the availability of funds. Participation by a public partner may take the form of loans or such other financial credit arrangements as may be appropriate to advance an approved project. Agreements entered into pursuant to this act to facilitate such participation shall provide that such loans or other credit arrangements made by the public partner shall yield a reasonable return and be amortized over the term of such agreement, or such lesser period as may be agreed to by the parties. b. A project agreement entered into pursuant to this act shall provide for the allocation of ownership, leasehold, and other property interests in demonstration projects. c. The project agreement may authorize the developer to set and impose rents, fares or user fees for use of a facility constructed by it and may require that over the term of the agreement, the rent, fare or fee revenues received by the developer be applied to repayment of the developer's capital outlay costs, interest expense, costs associated with operations, fare or user fee collection, facility management, reimbursement of the State's project review and oversight costs, repayment of loans, revenues to the State, technical and law enforcement services, and a reasonable return on investment to the developer. d. The project agreement shall specify the manner in which rents, fares or user fees are to be established or revised, the procedures for receiving public comment on the establishment or revision of fares or user fees, including the holding of a public hearing thereon, and the procedures by which the public partner shall oversee the establishment or revision of fares or user fees provided, however, that no fares or user fees shall be subject to oversight unless the developer receives public monies for 10 percent or greater of its operating expenses. L.1997,c.136,s.5.

N.J. Stat. § 27:1D-6 Laws applicable to demonstration projects

6. Traffic and other laws applicable on the State transportation system shall be enforceable, as appropriate, on demonstration projects constructed by and leased by a developer pursuant to this act. L.1997,c.136,s.6.

N.J. Stat. § 27:1D-7 Demonstration projects subject to State, federal laws

7. a. Demonstration projects selected pursuant to this act shall be designed, constructed, operated and maintained in accordance with all applicable environmental requirements and all other applicable State and federal laws and regulations necessary to the protection of the public health, safety and welfare. b. Unless determined otherwise by the corporation, in its sole discretion, the plans and specifications for each demonstration project shall comply with the corporation's standards for public transportation projects. c. Unless determined otherwise by the commissioner, in his sole discretion, the plans and specifications for each transportation project other than public transportation projects shall comply with the department's standards for transportation projects. L.1997,c.136,s.7.

N.J. Stat. § 27:1D-8 Immunities, defenses applicable to demonstration projects

8. All absolute and qualified immunities and defenses provided to public entities and public employees by the "New Jersey Tort Claims Act," N.J.S.59:1-1 et seq., the "New Jersey Contractual Liability Act," N.J.S.59:13-1 et seq., and any other law shall apply to all interests held and activities performed by the department, the corporation and other State agencies in connection with the demonstration projects selected pursuant to this act. L.1997,c.136,s.8.

N.J. Stat. § 27:1D-9 Public partner may defend, indemnify

9. a. The public partner may agree to defend and indemnify any person, who, pursuant to a written agreement with the public partner entered into in accordance with this act, designs, constructs, operates, maintains, leases or otherwise holds an interest in a demonstration project, against claims, causes of action, demands, costs or judgments against that person arising as a direct result of the design, construction, interest, operation, or maintenance of that demonstration project. The public partner is authorized to reach agreements to defend and indemnify a person upon the terms and limitations the public partner deems reasonable and appropriate. b. A determination by the public partner to defend and indemnify pursuant to this section does not bar, reduce, limit or affect any remedies which the public partner may have to enforce the agreement between the public partner and the developer to assert a claim for damages to which the public partner may be entitled arising out of the developer's failure to perform the agreement, or for the recovery of funds expended for the defense of the developer if the defense was undertaken in response to a claim or cause of action brought against the developer which is proven to have arisen from gross negligence, willful misconduct, fraud, intentional tort, bad faith or criminal conduct. c. No one other than the person operating, maintaining, leasing or otherwise holding an interest in the demonstration project pursuant to an agreement with the public partner has the right to enforce any agreement for defense or indemnification between that person and the public partner. L.1997,c.136,s.9.

N.J. Stat. § 27:1D-10 Definitions.

1. As used in P.L.2023, c.184 (C.27:1D-10 et seq.): "Commissioner" means the Commissioner of Transportation. "Department" means the Department of Transportation. "Local government unit" means a county, municipality, or joint meeting, including any commission, authority, board, agency, or any other similar entity thereof. "Program" means the Mobility and Transportation Innovation Pilot Program established pursuant to section 2 of P.L.2023, c.184 (C.27:1D-11). "Public transportation project" means the same as that term is defined in section 3 of P.L.1984, c.73 (C.27:1B-3). "Transit agency" means any organization or entity, including for-profit businesses, non-profit organizations and independent authorities, that provides public transportation service. L.2023, c.184, s.1.

N.J. Stat. § 27:1D-11 Mobility and Transportation Innovation Pilot Program; report, Governor, Legislature.

2. a. There is established in the department the Mobility and Transportation Innovation Pilot Program to award grants to local government units and transit agencies to fund public transportation projects within Mercer County that utilize innovative technologies and strategies to enhance passenger mobility, increase access to public transportation among disadvantaged communities, and reduce greenhouse gas emissions. b. A local government unit or transit agency may use a program grant to support the provision of new transportation services, the expansion of existing transportation services, or the matching requirements for an otherwise eligible project that receives federal funding. To qualify for a program grant, the transportation project undertaken by the local government unit or transit agency shall: (1) enable low-income persons, including persons without access to smartphone technology, to access any transportation services made available through the project; (2) include accessibility features to accommodate the mobility needs of persons with disabilities; (3) utilize innovative technologies or strategies that have already demonstrated success in similar transportation projects; and (4) meet any other eligibility criteria established by the department. c. Any local government unit or transit agency may submit an application to the commissioner for a program grant, provided that the application shall be submitted in a form and manner prescribed by the commissioner. In addition to any other information that the commissioner may deem appropriate, the application shall require the applicant to submit information: (1) describing the transportation project, including the total anticipated costs of the project, all other sources of project funding, and the requested grant amount; and (2) demonstrating that the transportation project meets the eligibility criteria for the program. d. The commissioner shall approve applications for the program on a competitive basis, subject to the availability of funds. The commissioner may award grants to approved applicants in such amounts as the commissioner deems appropriate. e. Within one year of the effective date of P.L.2023, c.184 (C.27:1D-10 et seq.), the department shall submit a written report to the Governor and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the operations of the program. At a minimum, the report shall describe each project for which a program grant was awarded, specify the amount of each grant award, and assess the performance of the program. L.2023, c.184, s.2.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026