Bill Text: NJ S3355 | 2018-2019 | Regular Session | Amended
Bill Title: Clarifies role of non-voting members of NJT board, members that constitute quorum, and certain requirements concerning temporary service changes; allows certain reports to be received by subcommittee of NJT administration committee.*
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2019-02-25 - Received in the Assembly without Reference, 2nd Reading [S3355 Detail]
Download: New_Jersey-2018-S3355-Amended.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator THOMAS H. KEAN, JR.
District 21 (Morris, Somerset and Union)
SYNOPSIS
Clarifies role of non-voting members of NJT board, members that constitute quorum, and certain requirements concerning temporary service changes; allows certain reports to be received by subcommittee of NJT administration committee.
CURRENT VERSION OF TEXT
As reported by the Senate Transportation Committee on February 7, 2019, with amendments.
An Act concerning the New Jersey Transit Corporation and amending P.L.1979, c.150 and P.L.2018, c.162.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.1979, c.150 (C.27:25-4) is amended to read as follows:
4. a. There is hereby established in the Executive Branch of the State Government the New Jersey Transit Corporation, a body corporate and politic with corporate succession. For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the corporation is hereby allocated within the Department of Transportation, but, notwithstanding that allocation, the corporation shall be independent of any supervision or control by the department or by any body or officer thereof. The corporation is hereby constituted as an instrumentality of the State exercising public and essential governmental functions, and the exercise by the corporation of the powers conferred by this act shall be deemed and held to be an essential governmental function of the State.
b. The corporation shall be governed by a board which shall consist of 13 members.
11 of the members shall be voting members and shall consist of: the Commissioner of Transportation and the State Treasurer, who shall be members ex officio, another member of the Executive Branch to be selected by the Governor who shall also serve ex officio, and eight public members who shall be appointed by the Governor as follows:
two members, with the advice and consent of the Senate, who shall each have experience as either a regular corporation motorbus regular route service rider or regular corporation rail passenger service or light rail service rider or have a professional background in passenger rail service, freight rail management, transportation capital planning, transportation and public transportation capital construction, federal transportation policy, State transportation policy, real estate investment or development, human resources management, or transportation capital finance, one upon the recommendation of the New Jersey members of the Delaware Valley Regional Planning Commission and one upon the recommendation of the North Jersey Transportation Planning Authority;
two members, with the advice
and consent of the Senate, one who shall have experience as a regular
corporation motorbus
regular route service rider and one who shall have experience as a regular
corporation rail passenger service or light rail service rider; and
four members, who shall each have a professional background in passenger rail service, freight rail management, transportation capital planning, transportation and public transportation capital construction, federal transportation policy, State transportation policy, real estate investment or development, human resources management, communication, or transportation capital finance, one appointed by the Governor upon the recommendation of the President of the Senate, one appointed by the Governor upon the recommendation of the Speaker of the General Assembly, and two appointed by the Governor, with the advice and consent of the Senate.
All public members, except for those appointed upon the recommendation of the President of the Senate and the Speaker of the General Assembly, shall be appointed by the Governor with the advice and consent of the Senate, and all public members shall serve for four year staggered terms and until their successors are appointed and qualified. No more than three of the six public members appointed by the Governor with the advice and consent of the Senate shall be members of the same political party. Each public member may be removed from office by the Governor for cause. A vacancy in the membership of the board occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only. The board shall annually designate a vice chairperson and secretary. The secretary need not be a member.
There shall be two non-voting members of the board, who shall not be considered in determining a quorum. The non-voting members shall be appointed as follows: one appointed by the Governor upon the recommendation of the labor organization representing the plurality of the employees of the corporation involved in rail operations and one appointed by the Governor upon the recommendation of the labor organization representing the plurality of the employees of the corporation involved in motorbus operations. Each non-voting member appointed upon recommendation of a labor organization shall be appointed for a term of four years, provided, however, that if at any time during the term of appointment the non-voting member ceases to be affiliated with the labor organization representing the plurality of the relevant segment of employees of the corporation, then such labor organization may, thereupon or at any time thereafter during such term, recommend a new member to the Governor for appointment to serve the remainder of the term. If the local bargaining unit decertifies its existing union affiliation and certifies a new union, the union which represents the plurality of the relevant segment of employees may recommend a new member to the Governor for appointment to serve the remainder of the term. The [chairman] chairperson of the board may, at the [chairman's] chairperson's discretion, exclude [such] a non-voting member from attending any portion of a board meeting or any other meeting held for the purpose of discussing negotiations with labor organizations, pending litigation involving the labor organization, the investigation, evaluation, or discipline of an employee of the corporation, or matters concerning private entities engaged in the provision of motorbus regular route service, paratransit service, or motorbus charter service that would otherwise not be considered public information. Notwithstanding that the non-voting members may be excluded from portions of board meetings or other meetings pursuant to this section, each non-voting member appointed upon recommendation of a labor organization shall be considered a full member of the board with all powers, duties, and responsibilities of a board member, except for the power to vote. Each non-voting member appointed upon recommendation of a labor organization may be removed by the Governor for cause.
For the purposes of this subsection:
"experience as a regular corporation motorbus regular route service rider" includes any rider who is a regular corporation motorbus regular route service rider at the time of the member's appointment or reappointment and any rider who has been a regular corporation motorbus regular route service rider in three of the five years preceding the member's appointment or reappointment.
"experience as a regular corporation rail passenger service or light rail service rider" includes any rider who is a regular corporation rail passenger service or light rail service rider at the time of the member's appointment or reappointment and any rider who has been a regular corporation rail passenger service or light rail service rider in three of the five years preceding the member's appointment or reappointment.
c. Board members other than those serving ex officio shall serve without compensation, but members shall be reimbursed for actual expenses necessarily incurred in the performance of their duties.
d. The Commissioner of Transportation shall serve as chairperson of the board, shall chair board meetings, and shall have responsibility for the scheduling and convening of all meetings of the board. In the absence of the chairperson, the vice chairperson shall chair the board meeting. Each ex officio member of the board may designate two employees of the ex officio member's department or agency, one of whom may represent the ex officio member at meetings of the board. A designee may lawfully vote and otherwise act on behalf of the member for whom the person constitutes the designee. Any such designation shall be in writing delivered to the board and shall continue in effect until revoked or amended by writing delivered to the board.
e. The powers of the corporation shall be vested in the voting members of the board thereof and a majority of the appointed members of the board who are authorized to vote 1, including ex officio members,1 shall constitute a quorum at any meeting thereof. Actions may be taken and motions and resolutions adopted by the board at any meeting thereof by the affirmative vote of a majority of the appointed members who are authorized to vote. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.
f. A true copy of the minutes of every meeting of the board shall be delivered forthwith, by and under the certification of the secretary thereof, to the Governor. No action taken at such meeting by the board shall have force or effect until approved by the Governor or until 10 days after such copy of the minutes shall have been delivered. If, in said 10-day period, the Governor returns such copy of the minutes with veto of any action taken by the board or any member thereof at such meeting, such action shall be null and of no effect. The Governor may approve all or part of the action taken at such meeting prior to the expiration of the said 10-day period.
g. (1) The board meetings shall be subject to the provisions of the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.), except that any agenda related to a meeting of the corporation's board of directors shall be provided to the public at least five calendar days prior to the meeting and except that one-half of the total number of meetings of the board shall be held in the evening after 6:00 p.m. Agendas may be revised up to 48 hours prior to the meeting in the case of emergencies requiring immediate action. Each notice of a board meeting and each agenda for a board meeting shall be published on the corporation's website. Board meetings shall be viewable on the corporation's website in real time and shall be archived and made available to the public for subsequent viewing on the corporation's website. Meeting minutes shall be archived and published on the corporation's website.
(2) The board shall hold a minimum of 10 public board meetings per year. Public hearings held pursuant to subsection d. of section 8 of P.L.1979, c.150 (C.27:25-8) shall not be considered public board meetings for the purposes of this subsection.
(cf: P.L.2018, c.162, s.1)
2. Section 2 of P.L.2018, c.162 (C.27:25-4.1) is amended to read as follows:
2. a. The board of directors of the corporation shall:
(1) Execute oversight of the corporation's executive director and other management in the effective and ethical management of the corporation, including review and approval of any fare changes and the elimination or substantial curtailment of motorbus regular route service, rail passenger service, or light rail service;
(2) Understand, review, and monitor the implementation of fundamental financial and management controls and operational decisions of the corporation, including review and approval of any fare changes and the elimination or substantial curtailment of motorbus regular route service, rail passenger service, or light rail service;
(3) Establish policies regarding the payment of salary, compensation, and reimbursements to, and establish rules for the time and attendance of, the executive director and management, provided that nothing in P.L.2018, c.162 (C.27:25-4.1 et al.) shall be construed to apply civil service rules and regulations to the corporation;
(4) Adopt a code of ethics, in consultation with the chief ethics officer, applicable to each board member, officer, and employee that, at a minimum, includes the applicable standards established by State law;
(5) Require that the corporation establish written policies and procedures on personnel including policies protecting employees from retaliation for disclosing information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate behavior by an employee of the corporation;
(6) Adopt a policy that provides guidelines for when it is appropriate for the chief ethics officer to forward the results and findings of a preliminary investigation conducted by the chief ethics officer to the State Ethics Commission, Office of the Attorney General, county prosecutor's office, or any other appropriate agency for further investigation or action;
(7) Adopt a defense and indemnification policy and disclose such policy to any and all prospective board members; and
(8) Adopt corporate bylaws, which shall be reviewed and updated at least once every five years.
b. (1) The members of the board shall perform each of their duties as board members, including but not limited to those imposed by this section, in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in like position would use under similar circumstances, and may take into consideration the views and policies of any elected official or body, or other person and ultimately apply independent judgment in the best interest of the corporation, its mission, and the public.
(2) At the time that a board member takes and subscribes the board member's oath of office, or within 60 days after the effective date of P.L.2018, c.162 (C.27:25-4.1 et al.) if the board member has already taken and subscribed the board member's oath of office, the board member shall execute an acknowledgement, in a form developed by the corporation, in which the board member shall, at a minimum:
(a) acknowledge that the board member understands that a board member has an obligation to perform duties and responsibilities to the best of the board member's abilities, in good faith and with proper diligence and care, consistent with the enabling compact, mission, and by-laws of the corporation and the applicable laws of this State; and that the duty to the corporation is derived from and governed by its mission;
(b) acknowledge that the board member understands the board member's duty of loyalty and care to the corporation and commitment to the corporation's mission and the public interest; and the board member's obligation to act in the best interests of the corporation and the people whom the corporation serves;
(c) agree that a board member has an obligation to become knowledgeable about the mission, purpose, functions, responsibilities, and statutory duties of the corporation and, when necessary, to make reasonable inquiry of management and others with knowledge and expertise so as to inform the board member's decisions;
(d) agree to exercise independent judgment on all matters before the board;
(e) agree not to divulge confidential discussions and confidential matters that come before the board for consideration or action;
(f) agree to disclose to the board and the chief ethics officer any conflicts, or the appearance of a conflict, of a personal, financial, ethical, or professional nature that could inhibit the board member from performing the board member's duties in good faith and with due diligence and care; and
(g) certify that the board member does not have any interest in, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of the board member's duties in the public interest.
c. Individuals appointed to the board of directors shall participate in training regarding their legal, financial, and ethical responsibilities as directors of the corporation within six months of appointment to the board. Board members shall participate in continuing training as may be required to remain informed of best practices and regulatory, legal, financial, and ethical responsibilities and standards.
d. No board member, including the chairperson, shall serve as the corporation's executive director, chief financial officer, or hold any senior management position while serving as a member of the board.
e. (1) The board of directors shall establish an audit committee, to be comprised of not less than three members, who shall possess the necessary skills to understand the duties and functions of the committee, including having sufficient knowledge in the areas of finance and accounting. The audit committee shall meet on at least a quarterly basis.
(2) The audit committee shall review and monitor: the reliability of financial statements and the adequacy of financial controls; the results of any audit; and compliance with legal, regulatory, and ethical requirements. The audit committee shall have responsibility for supervising and reviewing the work of the internal audit department, which has responsibility for investigating fraud, waste and abuse within and affecting the agency.
f. (1) The board of directors shall establish an administration committee to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee; provided, however, that in the event that a board has less than three independent members, the board may appoint non-independent members to the committee, provided that the independent members shall constitute a majority of the members of the committee. The administration committee shall meet on at least a quarterly basis.
(2) The administration committee shall: advise the board of directors on financial matters, including, but not limited to, proposed budgets including the capital program, major expenditures of the corporation, and all financial policies; receive, either directly or through a subcommittee, a bi-monthly report from the head of the Office of Equal Opportunity and Affirmative Action, or any successor office, which shall also be provided to the executive director, regarding the activities of that office, including a summary of the nature and number of the complaints involving discrimination or harassment received by that office and any actions taken by that office in response to those complaints; receive, either directly or through a subcommittee, a bi-monthly report from the director of the Human Resources Office, or any successor office, which shall also be provided to the executive director, regarding the activities of that office, including a summary of job vacancies, job postings, new employees, reclassification of job titles, retirements, terminations, disciplinary actions, and any other personnel decisions; and meet at least annually with representatives of the labor organizations representing employees of the corporation. Reports shall not include any personally identifiable information or personnel information protected under state or federal law.
g. (1) The board of directors shall establish an operations and customer service committee, to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee. The operations and customer service committee shall meet at least on a quarterly basis.
(2) The operations and customer service committee shall: advise the board of directors on day to day operations and maintenance; review vital statistics including on time performance, cost of service, and service rationalization; review the corporation's service plan and service standards; oversee fleet management plans, strategic planning, and the corporation's business plan; and oversee the corporation's customer service plan and statistics.
h. (1) The board of directors shall establish a capital planning and privatization committee, to be comprised of not less than three independent members, who shall possess the necessary skills to understand the duties and functions of the committee. The capital planning and privatization committee shall meet on at least a quarterly basis.
(2) The capital planning and privatization committee shall: review and monitor the status of capital projects including the annual element of the corporation's five year capital program; review the rationale for the capital program, its budgets and schedule, and address fast tracking key projects; oversee the development of fare policy and technology; and review real estate transactions and route and service issues that affect private carriers or other properties with which the corporation does business.
i. For the purposes of this section, an "independent member" is one who:
(1) is not, and in the past two years has not been, employed by the corporation or an affiliate in an executive capacity;
(2) is not, and in the past two years has not been, employed by an entity that received remuneration valued at more than $15,000 for goods and services provided to the corporation or received any other form of financial assistance valued at more than $15,000 from the corporation;
(3) is not a relative of an executive officer or employee in an executive position of the corporation or an affiliate; and
(4) is not, and in the past two years has not been, a lobbyist registered under a state or local law and paid by a client to influence the management decisions, contract awards, rate determinations, or any other similar actions of the corporation or an affiliate.
j. Notwithstanding the provisions of any other law to the contrary, the board shall not directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any officer, board member, or employee, or equivalent thereof, of the corporation.
(cf: P.L.2018, c.162, s.2)
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 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 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 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 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 that jurisdiction is conferred upon the department by Title 48 of the Revised Statutes.
d. (1) Before implementing the substantial curtailment or abandonment of rail passenger services, the corporation shall hold at least two public hearings in the area affected, as close as possible to the highest trafficked stop on the route. At least one of the two hearings shall take place on a State working day. One hearing shall take place for at least two hours between the hours of 9:00 a.m. and 5:00 p.m., and the other hearing shall take place for at least two hours between the hours of 6:00 p.m. and 10:00 p.m. Before implementing the substantial curtailment or abandonment of motorbus regular route services, the corporation shall hold at least one public hearing in the area affected, as close as possible to the highest trafficked station on the route. Each public hearing required pursuant to this paragraph shall be attended by at least two members of the corporation's board of directors.
(2) Before implementing any fare increase for any motorbus regular route or rail passenger services, at least 10 public hearings shall be held and shall be distributed geographically throughout the State. Not more than one hearing required pursuant to this paragraph shall take place in each county, and each hearing shall be located as close as possible to both a rail passenger service line and a motorbus regular route. At least half of the hearings required pursuant to this paragraph shall take place on State working days. Five of the hearings shall take place for at least two hours between the hours of 9:00 a.m. and 5:00 p.m., and the other five hearings shall take place for at least two hours between the hours of 6:00 p.m. and 10:00 p.m. Each public hearing required pursuant to this paragraph shall be attended by at least two members of the corporation's board of directors.
For the hearings required under paragraphs (1) and (2) of this subsection, notice of the hearing shall be given by the corporation at least 15 days prior to 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; the notice shall also be posted at least 15 days prior to the hearing in prominent places on the railroad cars and buses serving the routes to be affected. In addition to the public hearing, the corporation shall post, in prominent places on the railroad cars and buses serving the routes to be affected, a postal mailing address and electronic mailing address where members of the public may provide written comments to the corporation regarding the proposed fare increase or substantial curtailment or abandonment of service. The corporation shall prepare and publish a written response concerning any issue or concern raised by a member of the public at any public hearing or in any written comment provided pursuant to this subsection.
e. Public hearings shall be concluded at least seven days prior to final action by the board.
f. For the purposes of this section, "substantial curtailment" and "substantially curtail" shall mean a change in service that: (1) discontinues or abandons all service on an entire bus route, rail line, or light rail line; (2) discontinues or abandons all service on a portion of a bus route, rail line, or light rail line that represents more than 25 percent of the route or line's miles; provided however that "substantial curtailment" or "substantially curtail" shall not mean the discontinuance or abandonment of a portion of a route or line's service if alternate service is available by existing duplicative service that is provided by the corporation or another transit provider or by transfer to another route with a comparable level of service; (3) discontinues all service on a particular day or days of the week for an entire bus route, rail line, or light rail line, or on a portion of a bus route, rail line, or light rail line that represents more than 25 percent of the route or line's miles; (4) reduces service on a regular bus route or light rail line in a way that the headway on the peak service increases by more than 50 percent, or that more than doubles the non-peak headway; (5) reduces service on a rail line in a way that reduces the amount of total service on the line by more than 25 percent or reduces service on a rail line during peak hours in a way that reduces the total number of daily trips provided during peak hours; (6) completely closes an existing bus terminal, rail station, or light rail station; or (7) reduces service that would change the span of service on a rail line, regular bus route or light rail line by two hours or more during non-peak hours or reduces the span of service during peak hours by more than 20 minutes.
For the purposes of this section, a temporary change in service lasting two weeks or less, and where service returns to the regularly scheduled service [within two weeks of the start of the] following that temporary change, shall not constitute "substantial curtailment," but [shall require public notice for all temporary changes] the corporation shall provide reasonable, timely notice of the change to affected customers as soon as practicable and, for temporary changes where the impact to riders is significant, alternate provision of service 1, as much as is practicable1.
g. Nothing contained herein shall prevent the corporation from taking any action necessary to address emergency or exigent circumstances, provided that if such action constitutes a substantial curtailment under this section, the corporation shall hold public hearings as soon as practicable. The corporation shall explain to the public the reasons for the emergency at the hearing, and shall take public input concerning the impacts of the emergency on riders. The corporation shall take the public testimony into account when determining alternate service measures to mitigate the impact of the substantial curtailment.
(cf: P.L.2018, c.162, s.5)
4. This act shall take effect immediately.
