Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman MITCHELLE DRULIS
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Requires surety to take certain actions after assuming responsibility for completion of transportation project.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the completion of certain transportation projects and supplementing Title 2A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Contract" means any agreement entered into between a surety and a contractor for the completion of a transportation project.
"Transportation project" means the same as that term is defined in section 3 of P.L.1984, c.73 (C.27:1B-3).
2. Except as provided in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), when a surety becomes responsible for the completion of a transportation project, the surety shall enter into a contract within 60 calendar days, and the surety shall require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract.
3. The requirements of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall apply to any surety that is responsible for the completion of a transportation project on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), except that:
a. if the surety has not entered into a contract on or before the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the surety shall enter into such contract within 60 calendar days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and the surety shall require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract;
b. if the surety has entered into a contract, but the contractor has not begun, or otherwise resumed, construction of the transportation project on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the surety shall require the contractor to begin, or otherwise resume, construction of the transportation project within 60 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and
c. the requirements of
section 2 of P.L. , c. (C. ) (pending before the Legislature as
this bill) shall not apply if the surety has entered into a contract, and the
contractor has begun, or otherwise resumed, construction of the transportation
project on or before the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
4. Notwithstanding any law, rule, or regulation to the contrary, a surety that violates the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to a penalty of not less than $10,000, to be collected in a civil action in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court and the municipal court shall have jurisdiction to enforce the provisions of the "Penalty Enforcement Law of 1999" in connection with this section. Each day that a violation continues shall constitute an additional, separate, and distinct offense.
5. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be severable, and if any of its provisions shall be held to be unconstitutional, the decision of the court shall not affect the validity of the remaining provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
6. This act shall take effect immediately.
STATEMENT
This bill requires a surety to take certain actions after assuming responsibility for the completion of a transportation project.
Specifically, the bill provides that when a surety assumes responsibility for the completion of a transportation project, the surety would be required to: (1) enter into a contract with a contractor for the completion of the transportation project within 60 calendar days; and (2) require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract.
The bill would also apply to any surety that is responsible for the completion of a transportation project on the date of enactment of the bill, except that:
(1) if the surety has not entered into a contract with a contractor for the completion of the transportation project on or before the date of enactment, the surety would be required to enter into such contract within 60 calendar days of the bill's enactment and require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract;
(2) if the surety has entered into a contract with a contractor for the completion of the transportation project, but the contractor has not begun, or otherwise resumed, construction of the transportation project on the date of enactment, the surety would be required to require the contractor to begin, or otherwise resume, construction of the transportation project within 60 days of the bill's enactment; and
(3) the requirements of the bill would not apply if the surety has entered into a contract, and the contractor has begun, or otherwise resumed, construction of the transportation project on or before the bill's enactment.
A surety that violates the bill's provisions is subject to a penalty of not less than $10,000 for each day a surety is not in compliance.