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A3315 1R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 3315
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 25, 2026
SUMMARY
Synopsis:
Establishes requirements for on-demand micro transit
programs operating in NJ.
Type of Impact:
Increase in annual State and local expenditures.�
Agencies Affected:
New Jersey Transit Corporation; county transit agencies;
counties and municipalities operating or funding on-demand micro transit
programs.�
Office of
Legislative Services Estimate
Fiscal Impact
Annual
State Expenditure Increase
Indeterminate
Local Expenditure Increase
Indeterminate
�
The Office of Legislative Services (OLS) finds that this bill may
result in an indeterminate annual increase in State expenditures to the New
Jersey Transit Corporation to operate, expand, or modify on-demand micro
transit programs to comply with the bill�s requirements.
�
Additionally, the OLS finds that the bill may result in an
indeterminate annual cost increase for local transit agencies that operate or
fund on-demand micro transit programs.
�
The OLS is unable to quantify the magnitude of these expenditures
because it remains unknown how the corporation or a local entity will implement
the provisions of this bill.� Notably, the magnitude of the costs will depend
on the future use of on-demand micro transit services, the scale of the
programs, existing contractual arrangements, and the extent to which current
practices already comply with the bill�s requirements.�
BILL DESCRIPTION
����� 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 pickup 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 pickup and drop-off locations for such transportation.�
����� Specifically, the bill establishes certain
requirements for on-demand micro transit programs, including labor, wage,
accessibility, service availability, and contracting standards.� Notably, the
bill requires any on-demand micro transit program in the State to make
reasonable attempts to create new transit service in transit deserts rather
than replace transit services that currently exist.
����� The bill takes effect 180 days after enactment, with
exemptions for certain existing programs and contracts.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.�
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that this bill may result in an
indeterminate increase in annual State expenditures to the New Jersey Transit Corporation
to operate, expand, or modify on-demand micro transit programs to comply with
the bill�s requirements.�
Additionally, the OLS finds
that the bill may result in an indeterminate annual expenditure increase for
local transit agencies that operate or fund on-demand micro transit programs to
implement the requirements outlined in the bill.
����� The corporation may experience increased labor costs
due to the provision that drivers are required to be treated as employees
receiving W-2 wages and benefits, rather than receiving compensation as
independent contractors.� Additionally, administrative costs may be experienced
by the corporation for contract oversight, compliance monitoring, and service
adjustments to help ensure that on-demand micro transit programs supplement
existing transit services rather than replace them.� Lastly, the corporation may
experience additional capital or operating costs associated with ensuring
accessibility for persons with disabilities, including wheelchair accessible
vehicles and accessible software applications.
�����
The OLS is unable to quantify
the magnitude of these expenditures because it remains unknown how the
corporation will implement the bill�s provisions.� Notably, the magnitude of
the costs will depend on the corporation�s future use of on-demand micro transit
services, the scale of the programs, existing contractual arrangements, and the
extent to which current practices already comply with the bill�s requirements.
�
����� County transit agencies or other local entities that
operate or fund on-demand micro transit programs may experience increased
operating and administrative costs similar to those described above for the
corporation.� These costs would vary by jurisdiction and would depend on
whether local programs currently utilize independent contractors, the level of
driver compensation and benefits, accessibility features, and service delivery
models currently in place.�
Section:
Authorities, Utilities, Transportation and
Communications
Analyst:
Michael D. Walker Jr.
Associate Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).