New Jersey may soon join the growing list of states that have crafted legislation to specifically address the business model adopted by companies like Uber and Lyft.
Photo courtesy of Dan Gold (Unsplash.com)
The Assembly Transportation and Independent Authorities Committee recently advanced a bill that would impose a number of new legal requirements on ride-sharing providers, including minimum insurance requirements.
So-called transportation network companies (TNCs) use a cell phone application to connect drivers using their personal vehicles with passengers who need a ride. While the service has proven to be wildly popular with the public, it has drawn the ire of the both the taxi cab industry and regulators.
In New York City, Uber, Lyft and other e-hail apps are authorized under a one-year pilot program, which was approved by the New York City Taxi and Limousine Commission (TLC) in 2013. However, other municipalities have taken a more hard line approach by prohibiting ride-sharing services through cease-and-desist letters and threatening to suspend the licenses of participating drivers.
The comprehensive bill currently under consideration by New Jersey lawmakers (Assembly Bill No. 3765) combines seven separate bills. Below are some of the key provisions:
TNCs must provide coverage in the amount of at least $250,000 per incident for liability, property damage and uninsured and underinsured motorist coverage, and medical payments coverage in an amount of at least $10,000 per person per incident involving a TNC vehicle.
Insurance coverage must be available from the time the third party transportation provider logs on or is otherwise available for hire, until the provider logs out and is no longer available for hire or drops off the last passenger, whichever occurs last.
TNCs must register with the New Jersey Motor Vehicle Commission. To secure a permit, TNCs would be required to conduct criminal history record background checks, verify operators’ driving records, and periodically inspect vehicles.
TNCs that violate the law would be subject to a civil penalty of $2,000 for the first offense, per driver, and up to $5,000 for each subsequent offense, per driver.
Debate over the proposed legislation is expected to continue. We encourage our readers to check back for updates.
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
