Bill Text: NJ ACR17 | 2010-2011 | Regular Session | Introduced
Bill Title: Urges Motor Vehicle Commission to suspend and modify provisions of Parsons' contract.
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly State Government Committee [ACR17 Detail]
Download: New_Jersey-2010-ACR17-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 17
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman ALISON LITTELL MCHOSE
District 24 (Sussex, Hunterdon and Morris)
Assemblyman GARY R. CHIUSANO
District 24 (Sussex, Hunterdon and Morris)
SYNOPSIS
Urges Motor Vehicle Commission to suspend and modify provisions of Parsons' contract.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
A Concurrent Resolution urging the New Jersey Motor Vehicle Commission to immediately suspend and modify certain terms of its contract with Parsons Commercial Technology Group.
Whereas, In March 2008, the New Jersey Motor Commission entered into a contract with Parsons Commercial Technology Group to manage the State's Central Inspection Facilities (CIFs) and Private Inspection Facilities (PIFs) which are operated by local motor vehicle repair shops; and
Whereas, As part of this new contract, the PIFs are required to replace certain of their existing inspection equipment with new equipment in order to continue to conduct and provide private motor vehicle inspections; and
Whereas, This new equipment will enable PIFs to utilize the on board diagnostic systems incorporated within newer motor vehicles, replacing the dynamometers that were once used to conduct motor vehicle emissions testing; and
Whereas, While it is being purported that this modernization will enable PIFs to serve their customers more efficiently and effectively, certain terms of the contract relating to the acquisition, financing and delivery of this new equipment impose unfair, unreasonable, and burdensome terms and obligations on the owners and operators of the State's PIFs; and
Whereas, Some of the more onerous terms of the contract require the owners and operators of our State's PIFs not only to enter into an agreement to incorporate the new equipment in their facilities, but also to fully pay for the equipment by June 30, 2009, in spite of the fact that this new equipment is not to be delivered until October 2009; and
Whereas, The unreasonableness of this unduly compressed time-frame is compounded by the fact that it is impossible for the owners and operators of the State's PIFs to obtain affordable financing through traditional credit sources; and
Whereas, While the owners and operators of the State's PIFs have attempted to work out a more realistic method of financing the acquisition of this new equipment, the Motor Vehicle Commission, Parsons and SGS, the equipment manufacturer, have rejected these proposals, offering only a financing program available through a foreign leasing company that would charge the PIFs an usurious interest rate of 30 percent; and
Whereas, These terms of the contract are so onerous and so unreasonable that it is altogether fitting and proper, and within the public interest, to urge the New Jersey Motor Vehicle Commission to immediately suspend and modify the terms of its contract with Parsons Commercial Technology Group to provide reasonable time for the owners and operators of New Jersey's PIFs to consider whether or not they wish to continue participating in the State's private inspection program and if so, to seek alternative funding sources in our domestic credit markets; now, therefore
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The New Jersey Motor Vehicle Commission is hereby urged to immediately suspend and modify the terms of its contract with Parsons Commercial Technology Group to provide the owners and operators of New Jersey's Private Inspection Facilities with reasonable time and opportunity to consider their continued participation in the State's motor vehicle inspection program and, for those who do wish to continue, provide those owners with an appropriate opportunity to seek alternative funding sources in our nation's credit markets to finance that continued participation.
2. A duly authenticated copy of this resolution, signed by the Senate President and the Speaker of the General Assembly, and attested by the Secretary of the Senate and the Clerk of the General Assembly, shall be transmitted to the Acting Chief Administrator of the New Jersey Motor Vehicle Commission, the Chief Executive Officer of the Parsons Commercial Technology Group and the Honorable Jon Corzine, Governor of the State of New Jersey.
STATEMENT
In this concurrent resolution, the Legislature urges the Motor Vehicle Commission to immediately suspend and modify certain provisions of its contract with the Parsons Commercial Technology Group concerning certain equipment requirements that are being imposed upon the owners and operators of the private inspection facilities (PIFs) that perform State motor vehicle inspections.
Under the terms of its current contract with Parsons, the Motor Vehicle Commission is requiring the owners and operators of the State's PIFs to acquire new equipment as a condition for continuing to perform motor vehicle inspections. Requiring this new equipment is not the primary issue. The problem is that the terms of the contract are forcing the owners and operators of the State's PIFs not only to make a commitment to acquire the new equipment by June 30th, but also to pay in full for the equipment at that time even though the equipment is not scheduled to be delivered until October 2009.
In this compressed time frame, the owners and operators are having trouble getting financing through normal credit channels. They have approached the Motor Vehicle Commission with a series of reasonable proposals to address this major concern.
The Motor Vehicle Commission has rejected each one, offering instead a financial arrangement through a foreign leasing company that would charge the PIF owners and operators a usurious interest rate of 30 percent.
The PIFs are an important and integral part of the State's motor vehicle inspection system. The onerous and unfair terms of the current contract with Parsons threaten the continued existence of the PIFs and constitutes a major disruption in the State's motor vehicle inspection program. They, therefore, should be immediately suspended and modified.
