SENATE TRANSPORTATION COMMITTEE

STATEMENT TO

SENATE, No. 1797

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 5, 2024

      The Senate Transportation Committee reports favorably and with committee amendments Senate Bill No. 1797.

      As amended and reported, this bill prohibits a transportation network company from engaging in surge pricing for a prearranged ride for a period of 72 hours immediately following the declaration of a state of emergency in the area where the state of emergency has been declared.  Under the bill, if the declared state of emergency remains in effect after 72 hours, the Governor is authorized to extend, at the Governor’s discretion, the prohibition on surge pricing for consecutive 72 hour intervals.  Surge pricing is defined to mean charging a transportation network company rider a higher fare rate than the usual fare rate charged for the prearranged ride during times of high demand for prearranged rides, including by using a rate multiplier.  The bill specifies that any increase in the fare rate that is in excess of two times the usual fare rate constitutes surge pricing.

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As amended and reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) provide that a transportation network company is prohibited from engaging in surge pricing immediately following the declaration of a state of emergency and continuing for 72 hours after the declaration, rather than prohibiting a transportation network company from engaging in surge pricing during a state of emergency; and

      (2) authorize the Governor to extend the prohibition on surge pricing for consecutive 72 hour intervals during the declared state of emergency if the state of emergency remains in effect after the first 72 hour period.