SENATE TRANSPORTATION COMMITTEE

STATEMENT TO

SENATE, No. 3450

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 4, 2025

      The Senate Transportation Committee reports favorably and with committee amendments Senate Bill No. 3450.

      As amended and reported, this bill requires the Commissioner of Transportation (commissioner) to establish and issue requirements for the operation of on-demand micro transit programs, as outlined in the bill.

     The bill also establishes the Micro Transit Oversight Committee (committee), which is required to review each on-demand micro transit plan established by the corporation, a county transit agency, or other entity and to certify that the plan meets the requirements established under the bill.  The committee is to be comprised of three members, as provided in the bill, who are to serve a one-year term.

     The bill provides that a majority of the membership of the committee constitutes a quorum for the transaction of committee business, and action may be taken at any meeting by the affirmative vote of a majority of the membership of the committee.  An entity is prohibited from providing on-demand micro transit service until the entity receives the certification required by the bill.

     Under the bill, “on-demand micro transit” is defined as publicly available, technology-enabled, shared transportation provided by means of a motor vehicle to individuals selecting a pick-up and drop-off location by telephone or through a mobile application, and which transportation is provided at a time selected by the individual or as soon as possible after the individual selects pick-up and drop-off locations for such transportation.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

(1) revise the definitions section;

(2) require the commissioner to establish and issue additional requirements for the operation of on-demand micro transit programs, which requirements are to provide that: 

a. in addition to the entity’s existing employees, the existing transportation contractors, if applicable, and the corporation are not to be adversely affected by the establishment and operation of the on-demand micro transit program;

b. on-demand micro transit services are to be available to persons without access to smart phone technology, Internet service, or a credit card;

c. on-demand micro transit services are to include certain accessibility features to accommodate individuals with disabilities;

d. an entity that uses public funding to fund the on-demand micro transit program, in whole or in part, is to report certain data on the entity’s on-demand micro transit program to the corporation by the first day of each month;

e. the corporation is to publish the on-demand micro transit program data reported by the entities; and

f. the commissioner, in consultation with the corporation, is to be permitted to establish any other rules, guidelines, or protocols that the commissioner, in consultation with the corporation, deems necessary.  As introduced, the bill permitted the corporation, in consultation with the commissioner, to establish such rules, guidelines, or protocols.

(3) for an entity that does not employ public transportation drivers and uses public funding to fund an on-demand micro transit program to provide on-demand micro transit services through a third-party contractor, a contract or agreement between the entity and a third-party contractor is required to include a precondition that the contractor, and any subcontractors, execute an agreement with one or more labor organizations that represent or seek to represent the contractor’s employees, which agreement requires any participating labor organization and its members to agree to refrain from work stoppages, boycotts, or other economic interference against the contractor during the contract period;

(4) provide that the Department of Transportation is to be the lead agency responsible for overseeing, implementing, and enforcing the provisions of the bill;

(5) authorize the commissioner to adopt rules and regulations as necessary to implement the provisions of the bill;

(6) update the synopsis; and

(7) make technical corrections.