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S3749
SENATE, No. 3749
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 5, 2026
Sponsored by:
Senator� ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
���� Prohibits transportation network companies from
engaging in surge pricing during state of emergency.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning certain fares charged by transportation
network companies and amending 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.
����
�State of emergency� means
a natural disaster or emergency for which a state of emergency has been
declared by the President of the United States or the Governor.
����
�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.� Section 7 of P.L.2017,
c.26 (C.39:5H-7) is amended to read as follows:
���� 7.���
a.
� A
transportation network company may, on behalf of a transportation network
company driver, collect a fare for a prearranged ride provided to a
transportation network company rider; provided that, if a fare is collected
from a rider, the transportation network company shall disclose to the rider on
its website or digital network the fare or method by which the transportation
network company calculates fares.� The transportation network company shall
provide riders with the applicable rates being charged by a transportation
network company driver and the option to receive an estimated fare prior to the
rider entering the driver's personal vehicle.
����
b.��� (1)� Immediately following
the declaration of a state of emergency and continuing 72 hours thereafter, a
transportation network company shall not engage in surge pricing for a
prearranged ride in the area in which the state of emergency has been declared.�
If the declared state of emergency remains in effect after 72 hours, the
Governor may extend, at the Governor�s discretion, the prohibition on surge
pricing pursuant to this subsection in consecutive 72 hour intervals during the
declared state of emergency.
�
Any increase in the fare rate that is in
excess of two times the usual fare rate shall constitute surge pricing.
����
(2)�� A transportation
network company that violates the provisions of this subsection shall be
subject to a penalty of not more than $10,000 for the first offense and not
more than $20,000 for the second and each subsequent offense to be collected in
a civil action by a summary proceeding under the "Penalty Enforcement Law
of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
(cf: �P.L.2017, c.26, s.7)
���� 3.��� This act shall take
effect immediately.
STATEMENT
����� This bill prohibits a transportation network company
from engaging in surge pricing for a prearranged ride for a period of 72 hours
immediately following the declaration of a state of emergency in the area where
the state of emergency has been declared.� Under the bill, if the declared
state of emergency remains in effect after 72 hours, the Governor is authorized
to extend, at the Governor�s discretion, the prohibition on surge pricing for
consecutive 72 hour intervals.� Surge pricing is defined to mean 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 by using a rate multiplier.� The bill specifies
that any increase in the fare rate that is in excess of two times the usual
fare rate constitutes surge pricing.