New Jersey Assembly Bill A5550

New Jersey 2022-2023 Regular Session

• Introduced: 6/5/23
• Refer: 6/5/23

Caption

Establishes Commuter and Transit Bus Relief Program in EDA to provide financial assistance to certain private bus carriers and local government units; appropriates $60 million.

Impact

The bill creates a grant program consisting of two main components: non-competitive grants for private carrier bus operators facing revenue losses and discretionary grants for local government units needing to maintain or restore commuter bus services. Eligible private bus operators must demonstrate their service provision before the emergency declaration and document their revenue losses compared to prior periods. The funding is intended to offset operational losses and ensure continued service availability during challenging times.

Summary

Assembly Bill A5550 aims to establish a Commuter and Transit Bus Relief Program in New Jersey, administered by the New Jersey Economic Development Authority (EDA). The primary objective of the bill is to provide financial assistance to specific private bus carriers and local government units that offer commuter bus services. By appropriating $60 million from the General Fund, the bill seeks to mitigate revenue losses experienced by these entities, primarily due to a declared state of emergency impacting service operations, including crises such as the COVID-19 pandemic.

Contention

Potential points of contention surrounding A5550 include the conditions placed on grant recipients, which mandate that private bus operators cannot reduce or eliminate their services during the grant period. If non-compliance occurs, grants can be converted into loans that must be repaid with interest. Another contentious element is the prioritization process for discretionary grants to local governments, which may lead to disputes about resource allocations, especially among municipalities experiencing varying levels of transit service reductions.