Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                                SENATE, No. 3389
                             STATE OF NEW JERSEY
                               221st LEGISLATURE
                                         DATED: NOVEMBER 15, 2024
                                                  SUMMARY
    Synopsis:                   Provides certain requirements concerning railroad safety.
    Type of Impact:             Annual State expenditure increases; potential annual State revenue
                                increases.
    Agencies Affected:          Department of Transportation; Board of Public Utilities.
                                       Office of Legislative Services Estimate
    Fiscal Impact                                                          Annual
    State Expenditure Increase                                          Indeterminate
    Potential State Revenue Increase                                    Indeterminate
    The Office of Legislative Services (OLS) determines that this bill will result in annual
     expenditure increases for both the New Jersey Department of Transportation and the Board of
     Public Utilities associated with the oversight of the railroad wayside detector systems. The
     OLS is unable to quantify the magnitude of the expenditure increase because it will depend on
     administrative decisions made by the department and the board that cannot be anticipated.
    The OLS finds that the bill may result in annual revenue increases attributed to the collection
     of fines for violations against certain safety requirements outlined in the bill. The OLS cannot
     estimate the magnitude of the annual revenue increases because it is unable to predict the
     number of violations and the potential penalties assessed as a result of the nature of the
     violation.
                                            BILL DESCRIPTION
   This bill provides certain requirements concerning railroad safety. The bill prohibits a railroad
company, including a short line, from operating any train that exceeds 8,500 feet in length on any
main line or branch line within the State. Any person or railroad company that violates this
maximum length is liable for a civil penalty of at least $500 but not more than $1,000 per foot
exceeding the maximum train length allowed under the bill. The maximum penalty allowed is
      Office of Legislative Services                                    Legislative Budget and Finance Office
           State House Annex                                                    Phone (609) 847-3105
              P.O. Box 068                                                       Fax (609) 777-2442
      Trenton, New Jersey 08625                                                  www.njleg.state.nj.us
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$250,000 in instances of gross negligence or a pattern of repeated violations that cause an imminent
hazard of death or injury or that have caused death or injury, regardless of train length.
    The bill also requires the Board of Public Utilities and the Department of Transportation to
work with each railroad company that operates in the State to ensure that wayside detector systems
are installed and are operating along railroad tracks on which the railroad company operates and
to ensure that such systems meet certain standards. If a railroad company refuses to work or
otherwise cooperate with the board and department in good faith concerning wayside detector
systems, the board and department are required to investigate the railroad company’s safety
practices and standards. In certain circumstances, the bill requires the board and department to
make a report to the Federal Railroad Administration detailing results of their investigation and
recommend that the administration take enforcement action. The bill requires the board and
department to send a copy of the report to the Governor and Legislature.
    Additionally, the bill requires the department to work with certain non-profit labor
organizations and local emergency services providers to apply for federal grants.
    With the exception of the maximum train length provisions of the bill, this bill does not apply
to certain Class III carriers as defined by the Surface Transportation Board.
    The bill also requires the owner or operator of a dangerous hazardous train to clearly display
the name of the railroad company that owns the dangerous hazardous train and to require a
minimum of two crew members on all such trains with certain exceptions. Additionally, the bill
requires owners and operators of privately owned railroads to submit copies of the most recent
bridge inspection reports to the Governor and Legislature.
                                    FISCAL ANALYSIS
EXECUTIVE BRANCH
   None received.
OFFICE OF LEGISLATIVE SERVICES
    The OLS determines that this bill will result in annual expenditure increases for both the New
Jersey Department of Transportation and the Board of Public Utilities associated with the oversight
of the railroad wayside detector systems. The OLS is unable to quantify the magnitude of the
expenditure increase because it will depend on administrative decisions made by the department
and the board that cannot be anticipated. Additionally, the OLS finds that the bill may result in
indeterminate annual revenue increases attributed to the collection of fines for violations against
certain safety requirements outlined in the bill.
    The bill requires the Board of Public Utilities and the Department of Transportation to work
with railroad train operators in the State to oversee the railroad wayside detector system. Oversight
responsibilities include, but are not limited to, ensuring that railroad train operators maintain
wayside detector systems that are properly installed, maintained, repaired, and operational in
accordance with federal guidelines. Additionally, the bill requires the board and department to
investigate and report on the safety practices and standards of railroad companies in certain
situations. The OLS anticipates that the board and the department will have to hire an unknown
number of additional staff with the necessary subject area expertise to perform the oversight and
reporting duties outlined in the bill. The department may also need to hire additional staff to
perform the required outreach and assistance to non-profit labor organizations and local emergency
services providers applying for federal safety grants.
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    The bill prohibits railroad companies, including short line railroad operators, from operating
any train that exceeds 8,500 feet in length on any main line or branch line within the State. The
bill establishes penalties of at least $500 but not more than $1,000 per foot for exceeding the
maximum train length allowed under the bill. The maximum penalty allowed under the bill is
$250,000 for grossly negligent violations or patterns of repeated violations that cause an imminent
hazard of death or injury or have caused death or injury. The OLS cannot estimate the magnitude
of annual revenue increases because it is unable to predict the number of violations and the
potential penalties assessed as a result of the nature of the violation.
  Section:     Authorities, Utilities, Transportation and Communications
  Analyst:     Michael D. Walker
               Assistant Fiscal Analyst
  Approved:    Thomas Koenig
               Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).