New Jersey Assembly Bill A1573

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires DOT to compensate local government entities for contractual delay damages resulting from shutdown of transportation projects funded by Transportation Trust Fund; authorizes local government entities to use certain funds for transportation projects.

Impact

The bill also grants local government entities the authority to use their own funds to continue or complete transportation projects that have been halted due to the executive order. This flexibility allows municipalities to manage ongoing projects without waiting for state resources, thereby facilitating progress on essential infrastructure projects. Furthermore, the bill ensures that the DOT and other executive branch agencies cannot withhold or revoke aid to a local government entity if it decides to utilize its funds to complete these transportation projects. This measure enhances the autonomy of local governments in managing their transportation infrastructure.

Summary

Bill A1573 is a legislative proposal in New Jersey that requires the Department of Transportation (DOT) to compensate local government entities for contractual delay damages that arise from the shutdown of transportation projects funded by the Transportation Trust Fund. Specifically, if these delays result from Executive Order No. 210 of 2016, the DOT must reimburse local municipalities, counties, or entities for the financial impacts incurred due to such disruptions. This provision aims to provide financial relief to local governments facing economic consequences of delays that are beyond their control.

Contention

Debate around A1573 may revolve around the balance of state versus local authority. Supporters argue that the bill provides necessary support to local governments that have been hampered by state directives, while critics may raise concerns over the implications for the state budget and the management of the Transportation Trust Fund. Additionally, questions may arise about the adequacy of the current funding mechanisms and whether local entities are equipped to handle these financial responsibilities without additional state oversight or support. As discussions progress, stakeholders will need to grapple with these concerns to ensure that the bill's provisions effectively address the needs of local governments while maintaining fiscal responsibility.