ASSEMBLY TRANSPORTATION AND INDEPENDENT AUTHORITIES COMMITTEE
STATEMENT TO
ASSEMBLY, No. 3315
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 1, 2026
The Assembly Transportation and Independent Authorities Committee reports favorably and with committee amendments Assembly Bill No. 3315.
As amended and reported, this bill establishes certain requirements for any on-demand micro transit program in the State. Under the bill, “on-demand micro transit” means shared public transportation services provided by means of a motor vehicle to individuals selecting a pick-up and drop-off location by telephone or through a software 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.
Specifically, the bill permits the New Jersey Transit Corporation (corporation), and any other entity operating an on-demand micro transit program, to provide on-demand micro transit services through a third-party contractor. However, under the bill, the third-party contractor or subcontractor is required to directly employ all on-demand micro transit drivers and meet all federal and State wage and hour requirements, and the on-demand micro transit drivers are to receive a federal W-2 form.
In addition, the bill requires any contract or agreement between an entity, other than the corporation, and a third-party contractor to include a precondition that requires the contractor and all subcontractors of the contractor to enter into a labor harmony agreement with one or more labor organizations that represent or seek to represent the contractor’s employees. The bill also provides that the existing employees of an entity that provides on-demand micro transit service, including, if applicable, the entity’s existing transportation contractors, and the corporation are not adversely affected by the establishment and operation of an on-demand micro transit program under the bill. Finally, each on-demand micro transit program established under the bill is to create new transit service within transit deserts; be available to persons without access to smartphones, Internet service, or credit cards; and contain certain accessibility features outlined in the bill.
This bill was prefiled for introduction in the 2026-2027 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
(1) remove the defined term “commissioner”;
(2) revise the definition of “on-demand micro transit” and “transit desert”;
(3) change the defined term “software services” to “software application”;
(4) remove a section of the bill that would have required the Commissioner of Transportation to establish and issue certain requirements for the operation of any on-demand micro transit program within the State;
(5) remove a provision establishing a Micro Transit Oversight Committee in, but not of, the corporation;
(6) permit the corporation or any other entity to provide on-demand micro transit services through a third-party contractor provided that the third-party contractor, and any subcontractors, directly employ all on-demand micro transit drivers and meet certain federal and State wage and hour requirements, and provided that the on-demand micro transit drivers receive a federal W-2 form;
(7) require any entity, other than the corporation, that provides on-demand micro transit service through a third-party contractor to enter into a contract that requires the contractor, and any of its subcontractors, to enter into a labor harmony agreement that contains certain provisions outlined in the bill with one or more labor organizations that represent or seek to represent the contractor’s employees;
(8) prohibit the establishment and operation of an on-demand micro transit program from adversely affecting existing employees of an entity, including its existing transportation contractors if applicable, and the corporation;
(9) require an on-demand micro transit program to: make reasonable attempts to create service to transit deserts instead of replacing existing transit services; be available to persons without access to smartphones, Internet service, or credit cards; and contain certain accessibility features;
(10) clarify that the bill’s provisions do not apply to complementary paratransit service; and
(11) require the bill to take effect 180 days after its enactment but exempt certain on-demand micro transit programs from the bill’s provisions for a certain period of time outlined in the bill. As introduced, the bill’s provisions were to become effective immediately.