Bill > S2179

Introduced Session

This bill regulates transportation network companies and may be cited as the "Transportation Network Company Safety and Regulatory Act." A transportation network company (TNC) is defined as a corporation, partnership, sole proprietorship, or other entity operating in New Jersey that uses a digital network to connect a TNC rider (rider) to a TNC driver (driver) to provide a prearranged ride. The bill establishes safety and insurance requirements for TNCs that conduct business in New Jersey. Under the bill, a TNC is required to obtain a permit from the New Jersey Motor Vehicle Commission (MVC) upon payment of an annual $5,000 fee, and to appoint and maintain an agent for service of process in New Jersey. Prearranged rides provided by a driver are not to be considered transportation provided by an autocab, taxi, limousine, autobus, jitney, motor bus, or other for-hire vehicle, and is not to be considered ridesharing. A TNC or a driver is not to provide taxi, limousine, or other for-hire vehicle service. A driver is not to be required to register his or her personal vehicle used to provide prearranged rides as a commercial or for-hire vehicle and is not to solicit or accept any ride that is not prearranged through a transportation network company's digital network. The bill provides that TNCs are to be regulated by the State, and that a county or municipality is not to require a TNC or driver to obtain a license or permit to provide prearranged rides in that county or municipality, or require a driver to obtain a license or permit to use a personal vehicle to provide prearranged rides in that county or municipality. A county or municipality and the State, with certain limited exceptions, are not to impose a tax or fee that only applies to a TNC or driver; provided that, the TNC or driver is subject to a tax or fee that applies generally to all businesses or residents of the jurisdiction. Information to Riders The bill requires a TNC to provide riders, on its website or digital network, the fare or method by which the TNC calculates fares, the applicable rates being charged, and the option to receive an estimated fare prior to entering the driver's vehicle. A TNC is also required to provide a rider with the picture of the driver that is to provide the prearranged ride and the license plate number of the driver's vehicle used to provide the prearranged ride prior to the rider entering the driver's personal vehicle. Within 48 hours following the completion of the prearranged ride, the TNC is to provide the rider with an electronic receipt detailing the points of origin and destination of the prearranged ride, the total time and distance of the prearranged ride, and an itemization of the total fare paid. Insurance Requirements Under the bill, a TNC, driver, or combination of the two, is required to maintain primary automobile liability insurance in an amount of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage while the driver is logged on to the TNC's digital network as a driver and is available to receive requests for a prearranged ride, but is not providing a prearranged ride. In this situation, the TNC, driver, or a combination of the two, is also required to maintain primary personal injury protection benefits. A TNC, driver, or combination of the two, is to maintain primary automobile liability insurance in an amount of at least $1,500,000 for death, bodily injury, and property damage while the driver is providing a prearranged ride. In this situation, a TNC, driver, or combination of the two is also required to maintain primary automobile insurance for medical payments benefits to provide coverage only for the benefit of the driver in an amount of at least $10,000 per person per incident. While accessing the TNC's digital network but not providing a prearranged ride, and while providing a prearranged ride, the TNC, driver, or a combination of the two, is required to maintain uninsured and underinsured motorist coverage. The bill provides that if the insurance coverage maintained by a driver has lapsed or does not provide the required coverage, insurance maintained by the TNC is required to provide the necessary coverage and the TNC has a duty to defend the claim. In addition, the bill requires a driver to carry paper or electronic proof of the required insurance at all times while using a personal vehicle in connection with a TNC's digital network. In the event of an accident, a driver is required, upon request, to provide insurance coverage information to the directly interested parties, automobile insurers, and investigating law enforcement officers. A driver is also required, upon request, to disclose to the directly interested parties, automobile insurers, and investigating law enforcement officers whether the driver was logged on to a digital network as a driver or whether the driver was providing a prearranged ride at the time of the accident. The bill also provides that a TNC is not to permit a driver to accept a request for prearranged ride on the TNC's digital network until the TNC discloses in writing to the driver: (1) the insurance coverage, including the types and limits of coverage, that the TNC provides; and (2) that the driver's own private passenger automobile insurance policy may or may not provide any coverage while the driver is logged on to the digital network as a driver and is available to receive a request for a prearranged ride or while the driver is providing a prearranged ride. Under the bill, an insurance company may exclude any and all coverage afforded under a private passenger automobile insurance policy issued to an owner or operator of a personal vehicle for loss or injury that occurs while the personal vehicle is being used by a driver and the driver is logged on to the TNC's digital network as a driver or is providing a prearranged ride. TNC Maintenance of Certain Systems The bill requires a TNC to maintain a system that permits a driver to: (1) opt out of any communication with the TNC; (2) establish an independent business while engaging with the TNC's digital network; and (3) operate in any municipality in the State, without providing notice to the TNC. A TNC is not to restrict a driver from utilizing another TNC's digital network. Zero Tolerance Alcohol and Drug Policy Under the bill, a TNC is to implement a zero tolerance drug and alcohol policy while a driver is logged on to the TNC's digital network as a driver or is providing a prearranged ride through the TNC's digital network. The TNC is to provide riders, on its website, digital network, or electronic receipt, notice of the zero tolerance policy and procedures to report a complaint about a driver's suspected violation of the policy. The TNC is to investigate the complaint and, if results of the investigation corroborate the rider's complaint, revoke the driver's access to the TNC's digital network as soon as possible. The TNC is to maintain records concerning the enforcement of the zero tolerance policy Non-Discrimination and Accessibility Policy Under the bill, a TNC is required to implement a non-discrimination policy against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity. Drivers are required to comply with all applicable laws regarding non-discrimination as well as laws relating to the accommodation of service animals. A TNC is prohibited from charging an additional fee for accommodation of a person with a physical disability. Driver Application Materials and Criminal History Checks A TNC is to require each person who applies to a TNC to be a driver to submit an application with the applicant's address, age, and social security number, and a copy of the applicant's driver's license, motor vehicle registration, and automobile liability insurance. The TNC, through a certified background screener, is required to conduct a private criminal background check before allowing an applicant to log on to the TNC's digital network as a driver or to provide a prearranged ride as a driver. The check is to include a search of a multi-state and multi-jurisdictional criminal records locator or similar commercial nationwide database with validation and the United States Department of Justice's Dru Sjodin National Sex Offender Public Website. An applicant is disqualified from being a driver if the applicant was convicted for any of the disqualifying crimes provided in the bill unless the applicant can provide a valid certificate of rehabilitation. An applicant is also disqualified if the applicant is a match on the United States Department of Justice's Dru Sjodin National Sex Offender Public Website, is not a holder of a valid basic driver's license, does not possess proof of a valid vehicle registration, or proof of valid personal automobile liability insurance, or is less than 19 years old. A TNC may permit an applicant to utilize the transportation network company's digital network as a driver if: the applicant completes an application and is not disqualified from being a transportation network company driver based upon the application materials submitted to the TNC, the private background check conducted through a certified background screener, and the driving record check conducted by the TNC or third party. In addition to conducting a private criminal background check, a TNC is required to request, within seven days of starting to perform the private criminal background check, the State Bureau of Identification to conduct a criminal history name search identification check, in accordance with regulations adopted under the New Jersey Administrative Code. If the results of the criminal history name search identification check reveal that a driver or applicant was convicted of a disqualifying crime provided in the bill, the TNC is required to, within 48 hours of receipt of the results, prohibit the driver or applicant from logging on to the TNC's digital network as a driver or providing prearranged rides as a driver. The TNC is to provide a driver or applicant with adequate notice and the opportunity to confirm or deny the accuracy of the information contained in the criminal history name search identification check. A TNC has 30 days after the effective date of the bill to request a criminal history name search identification check for a driver who was subject to a private criminal background check prior to the effective date of the bill and was found not to have been convicted of a disqualifying offense. Any records or information provided to the State Bureau of Identification to conduct a check and the results of a check are not to be used for any other purpose and are not considered public records. An applicant's, driver's, or TNC's signature needed to perform a criminal history name search identification check may be obtained and transferred electronically and the results of the check are to be transferred electronically through a file transfer protocol server until the State Bureau of Identification implements a system to enable: (1) a TNC to securely transfer information and signatures electronically to the State Bureau of Identification, and (2) the State Bureau of Identification to securely transfer results of the check electronically to the TNC. A TNC is required to pay a fee not to exceed $100,000 annually to the State Bureau of Identification to process the criminal history name search identification checks. No other fee is to be assessed against a TNC, driver, or applicant to conduct a criminal history name search identification check. Social Security Trace Before allowing an applicant to log on to the TNC's digital network as a driver or to provide prearranged rides as a driver, a TNC or a third party is to conduct a social security trace that identifies the applicant's address for the past seven years. The applicant is to provide four of the following documents for purposes of conducting the social security trace: (1) the applicant's driver's license; (2) the applicant's motor vehicle registration; (3) the applicant's automobile liability insurance policy; (4) a utility or credit card statement containing the applicant's name and address issued within the past 90 days; (5) a high school or college transcript containing the applicant's name and address issued within the past two years; (6) a current lease or rental agreement containing the applicant's name as the lessee or renter, or a property tax bill containing the applicant's name as the property owner or co-owner issued within the past year; (7) a letter or correspondence addressed to the applicant and received from the Internal Revenue Service or New Jersey Division of Taxation within the past year; (8) first-class mail addressed to the applicant and received from a federal, state, or local government agency within the past six months; (9) a valid active duty United States military photo identification card; (10) a valid United States passport; or (11) a valid United States permanent resident card. Driving Record Check The TNC or a third party is required to conduct a driving record check before allowing an applicant to log on to the TNC's digital network as a driver or to provide prearranged rides as a driver. An applicant is disqualified from being a driver if the applicant has received more than three moving violations in the past three years, or a violation for driving under the influence; resisting arrest, eluding an officer; reckless driving; or driving with a suspended or revoked license within the past three years. Restricted Access to TNC Digital Network The TNC is to restrict access to its digital network and prohibit unauthorized drivers from logging on to the digital network as a driver by assigning a unique network access key, which is to include a username and password, that is not to be shared with a third party. A TNC is to respond to complaints from riders that the picture provided of the driver does not match the driver of the prearranged ride. Vehicle Inspection Prior to allowing an applicant to log on to the TNC's digital network as a driver or to provide a prearranged ride as a driver, a TNC is to require that the applicant's personal vehicle to be used to provide prearranged rides meets the State's inspection requirements for passenger automobiles. The TNC is to require a driver to maintain a valid decal or inspection certificate of approval for the personal vehicle. Law Enforcement Request for Documents A driver providing a prearranged ride is to produce in paper or electronic form upon the request of a law enforcement officer, a valid driver's license, valid motor vehicle registration card, proof of valid insurance, and proof that the driver is authorized to provide prearranged rides through the TNC's digital network. Maintenance and Inspection of TNC Records A TNC is to maintain records of individual prearranged ride records for at least six years after the date of the prearranged ride and individual records of each driver for at least six years after the driver terminates status as a driver. The bill authorizes the MVC and the Division of Consumer Affairs in the Department of Law and Public Safety (division) to inspect TNC records to investigate and resolve a specific complaint against a driver. The MVC or division may require TNC records maintained in-State or out-of-State to be available to the MVC or division within 14 business days of the MVC's or division's request to inspect the records. A TNC may request an extension of the 14 business day deadline for out-of-State TNC records if the deadline imposes an undue burden upon the TNC. In the event of exigent circumstances, the MVC or division may require a TNC to make its records available before 14 business days from the time of the MVC's or division's request if receipt of the records before 14 business days is reasonably necessary under the circumstances for the investigation or resolution of a complaint. The bill also authorizes the MVC or division to visually inspect certain TNC records to verify the TNC's compliance with provisions of the bill or to assure the integrity and performance of a TNC or driver. The inspection is to take place in a mutually agreed upon location in New Jersey. Records provided to or inspected by the MVC or division may exclude information tending to identify a specific driver or rider and are not considered public records. A TNC that repeatedly fails to comply with the maintenance and inspection provisions of the bill or to permit the MVC or division on the TNC's premises during regular business hours to conduct investigations or reviews is subject to suspension or revocation of its permit to operate in the State. The TNC is also subject to any other fine, penalty, or enforcement action determined by the MVC or division. An investigation or review conducted by the MVC or division may include, but is not limited to, discussions with customers and drivers, examination of motor vehicle records, questioning of employees, and the use of other investigatory techniques that may be necessary for the enforcement of the maintenance and inspection provisions of the bill or regulations adopted by the MVC or division. The commission and division are required to enter into a memorandum of understanding to effectuate the authority granted to them by the record maintenance and inspection provisions of the bill.

AI Summary

Committee Categories

Joseph Kyrillos (R)*,  Paul Sarlo (D)*,  Jennifer Beck (R),  Steven Oroho (R),  Nick Scutari (D), 

Substituted by A3695 (AS/1R) (on 12/19/2016)