Concerns requirements for operation of on-demand micro transit programs.

A1832

ASSEMBLY, No. 1832

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Concerns requirements for operation of on-demand
micro transit programs.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning requirements for on-demand micro
transit programs operating in the State and supplementing Title 27 of the
Revised Statutes.

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

���� 1.��� As used in
P.L. , c.
(C. ) (pending before the
Legislature as this bill):

���� �Committee� means the Micro
Transit Oversight Committee established pursuant to section 3 of
P.L. , c.
(C. ) (pending before the
Legislature as this bill).

���� �Corporation� means the New
Jersey Transit Corporation.

���� �On-demand micro transit�
means 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.

���� �On-demand micro transit
program,� �micro transit program,� or �program� means any on-demand micro
transit program operated in the State by the New Jersey Transit Corporation, a
county transit agency, or any other entity.

���� �Software services� means
technology to enable the New Jersey Transit Corporation, a county transit
agency, or any other entity to provide an on-demand micro transit program with
transportation services provided by employees of the New Jersey Transit Corporation
under the conditions, and in compliance with, the requirements described in
P.L. , c.
(C. ) (pending before the
Legislature as this bill).� �Software services� shall not include a digital
network as that term is defined in section 2 of P.L.2017, c.26 (C.39:5H-2).

���� �Transit desert� means a
municipality, or physically contiguous area in the State, in which, as of the
effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill), residents have limited access to public
transportation services, including motorbus regular route service, rail
passenger service, and light-rail passenger service.

���� 2.��� The Commissioner of
Transportation shall establish and issue requirements for the operation of any
on-demand micro transit program within the State.� These requirements shall
provide that:

���� a.���� employees of the New
Jersey Transit Corporation, a county transit agency, or any other entity are
responsible for directly operating transportation services provided by an
on-demand micro transit program, except that:

���� (1)�� the entity may outsource
software services to one or more third parties as necessary for the operation
of the program; and

���� (2)�� an entity that does not
employ public transportation drivers may provide on-demand micro transit
services through a third-party contractor provided that:

���� (a)�� existing employees of
any third‑party contractor providing transit services are offered
employment in the on-demand micro transit program at no less than their
existing wages, hours, working conditions, and benefits;

���� (b)�� third-party contractors
that provide on-demand micro transit services shall directly employ all
on-demand micro transit drivers; and

���� (c)�� any contract or
agreement between an entity and a third-party contractor, wherein the entity is
using public funding to fund the on-demand micro transit program in whole or in
part, includes a precondition that the contractor and all subcontractors of the
contractor enter into an agreement with one or more labor organizations which
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 for the duration of the agreement;

���� b.��� on-demand micro transit
drivers hold a valid commercial driver license;

���� c.���� on-demand micro transit
drivers are compensated at no less than the same wages, hours, working
conditions, and benefits as other drivers directly employed by the entity
providing on-demand micro transit service;

���� d.��� existing employees of
the entity and, if applicable, its existing transportation contractors, and the
corporation are not adversely affected by the establishment and operation of
the on-demand micro transit program;

���� e.���� each on-demand micro
transit program creates additional transit service to transit deserts, rather
than replacing existing transit services; and

���� f.���� the corporation, in
consultation with the Commissioner of Transportation, may establish any other
rules, guidelines, or protocols that the corporation, in consultation with the
commissioner, deem necessary.

���� 3.��� a.� There shall be
established in, but not of, the New Jersey Transit Corporation, a Micro Transit
Oversight Committee, which shall review each micro transit plan established by
the New Jersey Transit Corporation, a county transit agency, or any other entity
and certify that the plan meets all the requirements of section 2 of
P.L. , c.
(C. ) (pending before the
Legislature as this bill).�

���� b.��� The committee shall be comprised
of three members as follows:

���� (1)�� a representative from
the New Jersey Transit Corporation appointed by the Governor upon
recommendation of the Executive Director of the corporation;

���� (2)�� a member of the New
Jersey General Assembly appointed by the Speaker of the General Assembly; and

���� (3)�� a member appointed by
the President of the Senate upon recommendation of the labor organization
representing the plurality of the employees of the corporation involved in
motorbus operations; provided that if at any time during the term of
appointment, the member ceases to be affiliated with the labor organization
representing a plurality of the relevant segment of employees of the
corporation, the labor organization may, thereupon or at any time thereafter
during such term, recommend a new member to the President of the Senate for
appointment to serve the remainder of the term.

���� Each member shall serve for a
term of one year and until the appointment and qualification of a successor.� A
majority of the membership of the committee shall constitute 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.

���� c.���� The New Jersey Transit
Corporation, a county transit agency, or any other entity shall not provide
on-demand micro transit service until the entity receives the certification
required by this section.�

���� 4.��� This act shall take
effect immediately.

STATEMENT

���� This
bill requires the Commissioner of Transportation (commissioner) to establish
and issue requirements for the operation of any on-demand micro transit program
within the State.� These requirements are to provide that: (1) employees of an
entity providing on-demand micro transit service are responsible for directly
operating these services, with certain exceptions described in the bill; (2)
on-demand micro transit drivers hold a valid commercial driver license; (3)
on-demand micro transit drivers are compensated at no less than the same wages,
hours, working conditions, and benefits as other drivers directly employed by
the entity providing on-demand micro transit service; (4) existing employees of
an entity that provides on-demand micro transit service and, if applicable, its
existing transportation contractors, and the corporation are not adversely
affected by the establishment and operation of the on-demand micro transit
program; (5) each on-demand micro transit program creates additional transit
service to transit deserts; and (6) the New Jersey Transit Corporation
(corporation), in consultation with the commissioner, may establish any other
rules, guidelines, or protocols.

���� 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 any other entity and to certify that the plan meets all of the
requirements established under the bill.� The committee is to be comprised of
three members: a representative from the corporation appointed by the Governor
upon recommendation of the executive director of the corporation, a member of
the New Jersey General Assembly appointed by the Speaker of the General
Assembly, and a member appointed by the President of the Senate upon
recommendation of the labor organization representing the plurality of
employees of the corporation involved in motorbus operations.� Each member is
to serve a term of one year.

���� 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.