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Trenton, N.J. —The bill that Assemblymen Joseph Lagana, Troy Singleton, and John Wisniewski sponsored to protect customers of Uber, Lyft, and other ride-hailing services was signed into law on Friday by N.J. Governor Chris Christie.“New Jersey has no safety and insurance standards whatsoever to govern an industry that has the potential to affect all motorists—regardless of whether or not they have a direct affiliation with a transportation network company. I admire the modernization these companies bring to transportation, but that does not excuse them from an obligation to conduct business safely,” said Lagana (D-Bergen/Passaic). “Residents of our state who take advantage of ride-hailing services must be able to do so without compromising their own well-being or that of other drivers on the road.”
LANJ President Jason Sharenow
The new law (A-3695), the “Transportation Network Company Safety and Regulatory Act,” establishes statewide standards for TNCs, including requirements regarding driver eligibility, insurance coverage, and records retention. The sponsors noted that the uniformity inherent in the legislation would stabilize the market for TNCs in New Jersey, effectively dispelling discrepancies in standards across different municipalities.“Ride-hailing companies provide a valuable service for individuals who may not otherwise have access to transportation, and clearly their business model is effective,” said Singleton (D-Burlington). “This law is aimed at striking a balance that makes public safety the first priority while also allowing transportation network companies to continue innovating.”
“Fundamentally, this is about creating statewide standards to eliminate confusion about how much insurance coverage is appropriate, who has jurisdiction over transportation network companies' operations, and what happens if there's a dispute between a passenger and a driver,” said Wisniewski (D-Middlesex). “We have to create an environment in which these companies can meet the obvious demand while keeping all participants in the market safe.”
The rules and regulations outlined in the bill include:
GENERAL TNC OPERATIONS
Assemblyman Joseph Lagana
- All TNCs would be required to secure a permit from the Motor Vehicle Commission (MVC). The permit application would require submission of proof of insurance, proof that the TNC is licensed to conduct business in New Jersey, and a $25,000 permit fee, to be paid upon initial application and annually thereafter. The permit may be revoked if the TNC fails to comply with the bill's provisions.- Failure to obtain a permit is subject to a penalty of $500 per day.
- TNCs must adopt a policy of non-discrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to riders and potential riders.
- All passengers must be provided with the fare or method by which the TNC calculates the fare.
- All passengers must have the option to receive a fare estimate prior to entering the driver's vehicle.
- Each TNC driver must maintain information on his/her smartphone while using its digital network that would allow a police officer to confirm the following information: the driver's identity and color photo, the vehicle's make and model, the license plate number, and an electronic record of a prearranged ride underway, if any.
Assemblyman Troy Singleton
DRIVERS- Drivers must be at least 21 years of age.
- Driver applications must include, at minimum, an applicant's address, age, and Social Security number as well as a copy of driver’s license, registration, and insurance.
- All applicants must undergo a driving record check and criminal background check prior to using the app as a driver. The following are among disqualifying crimes that would prohibit the applicant from driving with a TNC: homicide, sexual assault, driving under the influence, reckless driving, and possession or sale of a controlled dangerous substance.
- A driver's picture and license plate number must appear on the app prior to the passenger entering the vehicle.
- Drivers may only solicit rides that are prearranged through the transportation network company.
- Drivers must adhere to a zero-tolerance policy regarding the use of drugs and alcohol.
VEHICLES
- A driver's personal vehicle used to provide rides must meet New Jersey vehicle inspection requirements.
- A driver's personal vehicle must display an identifying marker when the driver logs on to the app as a driver or provides a prearranged ride.
INSURANCE
Assemblyman John Wisniewski
- The TNC, the driver, or any combination of the two must maintain a primary auto insurance policy obtained from an insurance company duly licensed to transact business in New Jersey that recognizes the driver as a TNC driver and covers the driver both while he or she is logged on to the app but without a passenger and while he/she is providing a ride.- If the driver's insurance coverage does not meet the coverage requirements outlined in the bill, insurance maintained by the TNC shall provide the appropriate coverage, beginning with the first dollar of a claim, and the TNC shall have the duty to defend the claim.
- The uninsured and underinsured motorist coverage required when a driver is providing a prearranged ride would increase from the statutory minimums to at least $1,500,000.
- The limitation on lawsuit option set forth in current law will not to be assertable by a transportation network company or driver in any action for damages arising from a prearranged ride, or asserted against any party not receiving personal injury protection benefits in any action for damages arising from a prearranged ride.
COMPANY RECORDS
- Each TNC must maintain a six-year history of rides as well as individual records of each driver for at least five years after the driver stops providing rides with the company.
- In the event of a complaint filed against a driver, the MVC or the Division of Consumer Affairs may inspect the company's records to investigate and resolve the complaint.
- TNC's must enter into a memorandum of understanding with DOT for data collection.
Additionally, that same February 10 session saw the passage of A-3696, an assembly bill that eliminates the 7-percent sales tax on chauffeured ground transportation. As the new law will go into effect May 1, 2017, April 30 is the last day for New Jersey operators to collect sales tax on their services. To learn more about the changes, visit lanj.org/legislation for additional details on the laws that LANJ has been involved in.
The next LANJ meeting is March 29.
Visit lanj.org for more information.
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Members of the GCLA board with CD’s Industry & Brand Ambassador Philip Jagiela (center left)
Sacramento — On February 8, Greater California Livery Association (GCLA) continued its annual tradition of heading to the state capital for a Day on the Hill to discuss with elected officials its most urgent issues and biggest concerns. The event was preceded by a February 7 meeting where board members discussed the legislative day’s focus, as well as an array of association matters. CD’s Industry & Brand Ambassador Philip Jagiela attended both days of GCLA activities.
Chief among the meeting’s topics were: airport updates, especially the four-month backlog of obtaining operational permits from San Diego International; the state’s consideration of revoking livery industry oversight from the Public Utility Commission, a move supported by GCLA for want of enforcement; and how the following day’s legislative endeavor would support the association’s prevailing theme of public safety.
GCLA President David Kinney of API Global
With 21 attendees participating in this year’s Day on the Hill, GCLA was able to send association representatives to more than 30 meetings with elected officials between 9 a.m. to 4 p.m. Armed with talking points and association-supplied information, the GCLA’s team spoke with assemblymembers, consultants, senators, and committees about three primary areas of public safety, illustrating how chauffeured ground transportation’s standards go above and beyond TNCs’ considerably more lax requirements.
L to R: GCLA Director Mo Garkani of Continental Limousine, GCLA Treasurer Rick Buell of Diva Limousine, Carlos Garcia of Carlos Transportation Service, and GCLA Director Raphael Sousa of SF Limo Express
To emphasize its commitment to safety measures, the day’s discussions zeroed in on the GCLA’s support of SB-20 (“The Bus Safety Bill”), which would require passengers riding in a motorcoach or bus to wear their seatbelts while the vehicle is in motion. Duty of Care discrepancies between this industry and TNCs were also highlighted, as was the legislation that the GCLA will be putting forth to allow transportation providers utilization of Department of Justice background checks in an effort to ensure that all chauffeurs are thoroughly screened.
The GCLA made a video about its Day on the Hill, which can be seen at goo.gl/ZD8sWD.
The association’s next general membership meeting will be March 13 in Las Vegas.
Visit gcla.org for more information.
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Williamsburg, Va. — An audience of more than 30 looked on as President Paul Walsh of Superior Executive Transportation presided over the general membership meeting of the Virginia Limousine Association (VLA). Maurizio’s Italian Restaurant was host site in the quaint colonial town. Among the attendees was Chauffeur Driven’s Industry & Brand Ambassador Philip Jagiela, who also serves as the VLA’s executive director.
Meeting Sponsor Claude Cristea of Williamsburg Chauffeur Service in front of Host Restaurant Maurizio’s After an initial networking opportunity, Walsh called the meeting to order by welcoming attendees and introducing the event’s guest speakers and sponsor, which included Jill Pongonis from the Greater Williamsburg Chamber & Tourism Alliance and Tom Penny of the Virginia DMV. Meeting sponsor Claude Cristea of Williamsburg Chauffeur Service spoke about his diverse modern fleet and the benefits of serving the Williamsburg area for the past eight years.
Guest speaker Jill Pongonis, director of tourism and events for the Alliance spoke about the Williamsburg market and included the highlights of their research showing that now women do a vast majority of vacation planning and Williamsburg is considered a drivable destination. Of particular interest to the livery industry is the fact that local business has increased by 2.9 percent in calendar year 2016, with breweries gaining in locations and popularity. Also according to Pongonis, “the wedding market is on fire,” and of course area wineries remain a constant tour opportunity for local operators.
“Jill is a fountain of knowledge and was very informative-from the deep historical aspects of the region, the emerging sports and art scenes, and shopping that make the area an in-demand place to visit-we learned a lot,” stated Walsh. “Her knowledge of the bus business also added to the overall picture for our industry.”
Williamsburg Chamber and Tourism Alliance’s Jill Pongonis and CD’s Philip Jagiela Pongonis’ presentation was followed by Tom Penny of the Virginia Department of Motor Vehicles (DMV). He updated the membership on TNCs and active sting activities for illegal operators. The department employs 15 enforcement officers for this purpose. “Our close relationship continues to be a huge benefit to VLA members,” claimed Walsh. “The field agents know us and we know them.” Penny stated that the DMV appreciates their long-standing professional relationship with the VLA—a representative from the agency is present at each meeting of the association.
First Vice President Andrea Saathoff of Albermarle Limousine reported on upcoming webinars along with a possible FMSCA compliance training day, offered by Reston limousine at their facility to a small group. A survey is currently being crafted seeking additional education topics for 2017.
VLA Secretary Glenn Stafford of Love Limousine provided the group with a legislative report that touched on the TNC identification marker bill and a drafted letter for association members to send to prompt their respective legislators’ involvement. In addition, a committee will be created to review the assessment of livery vehicles.
Virginia DMV Commercial Carrier & Tax Enforcement Unit agents (l to r) SAC Barbara Arkwright, ASAC Greg Wray, SSA George Wilson, and Director Tom Penny Stafford also offered an update on charity efforts, spearheading a cumulative report that will assist operators in their philanthropic endeavors once uploaded to the VLA site. After comment from VLA member Barry Gross of Reston Limousine, it was also agreed that members would support the NLA Limo Patriot Ride 2017 with donations pledged at the meeting and e-promotion to follow.
Gross also contributed the news that VLA membership increased by 100 percent in 2016, and he will be contacting lapsed members for renewals.
The next VLA meeting will be held April 3.
Visit vla-limo.org for more information.
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