N.J. Stat. Ann. § 40:62-46.4

Any contract or renewal thereof to acquire, lease or operate any municipal transportation system or part thereof shall be authorized by municipal ordinance and shall be subject to approval by the Board of Public Utility Commissioners. In determining whether the board shall approve any such contract submitted to it, the board shall look to the reasonableness of the contract, the integration of the municipal transportation system with other existing transportation systems in that area and all other factors relating to public necessity and convenience. A copy of all such contracts shall be filed with the Division of Local Government in the State Department of Treasury. Any lease or contract or renewal thereof to operate a municipal transit system shall not exceed the term of 10 years.