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.
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
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!
