S2776 —

S2776 STR Statement 2/27/17 SENATE TRANSPORTATION COMMITTEE   STATEMENT TO   SENATE, No.

2776  STATE OF NEW JERSEY 217th LEGISLATURE   INTRODUCEDDATED: NOVEMBER 10, 2016     Sponsored by:

Senator FEBRUARY NILSA27, CRUZ-PEREZ2017 District  5      (CamdenThe andSenate Gloucester)Transportation Senator Committee PATRICKreports J.favorably Senate Bill No.

DIEGNAN,2776. JR.

District      18As (Middlesex)reported,  this  bill  requires  the SYNOPSISDepartment     of RequiresTransportation DOT(DOT) to compensate municipalities, counties, or other local government entities for contractualdelay damages on transportation projects supported through the local aid program, if those delay damages resultingresulted from the shutdown of transportationTransportation Trust Fund projects fundedpursuant byto TransportationExecutive TrustOrder Fund;No.

authorizes210 of 2016 (executive order).        The bill also permits a local government entitiesentity to use its own funds to continue or complete a transportation project that was halted as a result of the executive order.  The bill prohibits DOT or any other executive branch agency from withholding, revoking, or otherwise canceling certain local aid due to the local government entity’s decision to use its funds forto continue or complete the transportation projects.project.

       CURRENTAs VERSIONreported, OFSenate TEXTBill     No. As introduced.

  2776 Anis Actidentical concerningto localAssembly transportationBill aid,No. delay damages for construction contracts, and continuance or completion of certain transportation projects.

 4114     (1R), Bewhich Itwas Enactedalso reported by the Senatecommittee andon Generalthis Assemblydate. of the State of New Jersey:

       1.    The Department of Transportation shall make payment on behalf of a local government entity, or provide full reimbursement to a local government entity, for any delay damages resulting from the issuance of Executive Order No.

210 of 2016 on any construction contract between a local government entity and a contractor funded, in whole or in part, from aid provided by the department, through grants or otherwise, pursuant to the aid programs established in section 25 of P.L.1984, c.73 (C.27:1B-25).         2.  Notwithstanding the provisions of any law, rule, regulation, or executive order to the contrary, a local government entity may use its own funds in order to continue or complete a transportation project halted as a result of the issuance of Executive Order No.

210 of 2016.  The Department of Transportation, and any other executive branch agency, shall not withhold, revoke, or otherwise cancel local aid provided by the department pursuant to the aid programs established in section of P.L.1984, c.73 (C.27B:1-25), authorized as of the effective date of this act or authorized at some future date, due to the local government entity’s decision to use its funds according to the provisions of this act.

       3.    This act shall take effect immediately.

    STATEMENT        This bill requires the Department of Transportation (DOT) to compensate municipalities, counties, or other local government entities for delay damages on transportation projects supported through the local aid program, if those delay damages resulted from the shutdown of Transportation Trust Fund projects pursuant to Executive Order No.

of 2016 (executive order).

     The bill also permits a local government entity to use its own funds to continue or complete a transportation project that was halted as a result of the executive order.

The bill prohibits DOT or any other executive branch agency from withholding, revoking, or otherwise canceling certain local aid due to the local government entity’s decision to use its funds to continue or complete the transportation project.