S3398

An Act concerning transportation network companies and amending and supplementing P.L.2017, c.26.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2017, c.26 (C.39:5H-2) is amended to read as follows:

2. As used in P.L.2017, c.26 (C.39:5H-1 et seq.):

"Applicant" means a person who applies to a transportation network company to be a transportation network company driver.

"Chief Administrator" means the Chief Administrator of the New Jersey Motor Vehicle Commission.

"Commission" means the New Jersey Motor Vehicle Commission.

"Digital network" means any online-enabled technology application, service, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides between transportation network company riders and transportation network company drivers.

"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.

"Machine-readable code or image" means an optical label that can be scanned using a special scanner or a personal mobile device with a built-in camera.

"Personal vehicle" means a motor vehicle that is used by a transportation network company driver to provide prearranged rides and is owned, leased, or otherwise authorized for use by the transportation network company driver. A personal vehicle shall not be considered an autocab or taxi as defined in R.S.48:16-1, a limousine as defined in R.S.48:16-13 or section 2 of P.L.1997, c.356 (C.48:16-13.1), an autobus or jitney as defined in R.S.48:16-23, a motor bus as defined in section 1 of P.L.1991, c.154 (C.17:28-1.5), or any other for-hire vehicle. A personal vehicle shall not be considered an automobile as defined in subsection a. of section 2 of P.L.1972, c.70 (C.39:6A-2) while a transportation network company driver is providing a prearranged ride.

"Prearranged ride" means the provision of transportation by a transportation network company driver to a transportation network company rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride shall not include transportation provided using an autocab, taxi, limousine, autobus, jitney, motor bus, or other for-hire vehicle. A prearranged ride shall not include ridesharing, as defined in R.S.39:1-1.

“Surge pricing” means 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, but not limited to, by using a rate multiplier.

"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is registered as a business in the State or operates in this State, and uses a digital network to connect a transportation network company rider to a transportation network company driver to provide a prearranged ride. A transportation network company shall not include an individual, corporation, partnership, sole proprietorship, or other entity arranging non-emergency medical transportation for individuals qualifying for Medicaid under P.L.1968, c.413 (C.30:4D-1 et seq.) or Medicare under Pub.L.89-97 (42 U.S.C. s.1395 et seq.) pursuant to a contract with the State or a managed care organization, whereby Medicaid or Medicare funding is used to pay for the non-emergency medical transportation services.

"Transportation network company driver" or "driver" means a person who receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company, and uses a personal vehicle to offer or provide a prearranged ride to a rider upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.

"Transportation network company rider" or "rider" means a person who uses a transportation network company's digital network to connect with a transportation network company driver to receive a prearranged ride from the driver using the driver's personal vehicle.

(cf: P.L.2019, c.128, s.1)

2. (New section) a. A transportation network company shall offer each category of prearranged ride that it provides to riders at the same fare rate such that each transportation network company rider may procure a prearranged ride from a driver at the same fare rate as another rider seeking the same category of prearranged ride through the transportation network company.

b. Pursuant to subsection a. of this section, the circumstances in which a rider solicits a prearranged ride from a driver through a transportation network company shall not impact the fare rate for a prearranged ride in any given category, which circumstances shall include, but not be limited to, the battery life of the rider’s phone used to schedule the prearranged ride or the payment method selected by the rider to pay for the prearranged ride.

c. Nothing in this section shall be construed to prevent a transportation network company from:

(1) providing different categories of prearranged rides at different fare rates to riders, provided that the transportation network company offers all prearranged rides within the same category at the same fare rate; and

(2) engaging in surge pricing, provided that the fare rate after the effects of surge pricing remains the same across all prearranged rides for a given category.

3. This act shall take effect immediately.

STATEMENT

This bill requires a transportation network company (TNC) to offer each category of prearranged ride at the same fare rate to ensure that all riders can procure a prearranged ride through a TNC at the same fare rate for a given category of prearranged ride. In particular, the bill provides that the battery life of a rider’s phone and the payment method selected by a rider for a prearranged ride are not to impact a TNC’s fare rate for any category of prearranged ride. However, the bill clarifies that the bill’s provisions do not prohibit a TNC from: (1) charging a different fare rate for different categories of prearranged rides so long as the TNC charges the same fare rate for all prearranged rides within a given category; and (2) engaging in surge pricing, provided that the fare rate after the effects of surge pricing remains the same across all prearranged rides within a given category.