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S3398
SENATE, No. 3398
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 9, 2026
Sponsored by:
Senator� DOUGLAS J. STEINHARDT
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
���� Prohibits price discrimination for transportation
network company services.
CURRENT VERSION OF TEXT
���� As introduced.
��
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.