Summary of Bill S 2931 (NJ Session 222)
Title: Establishes requirements for on-demand micro transit programs operating in New Jersey
Jurisdiction: New Jersey
Sponsor: Sen. Troy Singleton; Co-sponsors: Angela McKnight, Raj Mukherji
Status: Introduced January 13, 2026; referred to Senate Transportation Committee
Effective date: Immediate
Purpose and intent
- Establish a formal framework for on-demand micro transit programs operating in New Jersey.
- Ensure service is publicly accessible, technology-enabled, and non-replacing while expanding access to transit deserts.
- Create oversight, accountability, and minimum labor, safety, accessibility, and reporting standards for micro transit providers.
Key definitions
- On-demand micro transit: Publicly available, technology-enabled, shared transportation provided by a motor vehicle, where riders select a pick-up/drop-off location by phone or mobile app, for a time chosen by the rider or as soon as possible after selection.
- On-demand micro transit program: Any such program operated in NJ by NJ Transit Corporation (NJ Transit), a county transit agency, or another entity.
- Software services: Technology enabling the program’s operation, which may be outsourced; does not include a digital network as defined in a separate statute.
- Transit desert: A municipality or contiguous area with limited access to traditional public transportation (bus, rail, light rail) as of the act’s effective date.
Major provisions
1) Commissioner-established requirements for operation (Section 2)
- Direct operation by employees: The program’s transportation services must be directly operated by employees of the entity (NJ Transit, a county transit agency, or other entity). Outsourcing of software services is allowed.
- Third-party contractors: If an entity uses third-party contractors for software or drivers, certain conditions apply:
- Existing employees of third-party contractors must be offered employment in the on-demand program at no less favorable wages, hours, working conditions, or benefits.
- Third-party contractors providing the on-demand drivers must directly employ all drivers.
- Any funding contract with a public agency must require the contractor and subcontractors to enter into labor agreements with a labor organization representing the contractor’s employees, with a no-strike/no-work-interference commitment for the duration of the agreement.
- Driver qualifications and labor standards:
- Drivers must hold a valid commercial driver’s license (CDL).
- Drivers must be compensated at least as well as other directly employed drivers for the entity.
- The establishment of the micro transit program must not adversely affect existing employees or contracts.
- Service expansion and accessibility:
- Programs must add new transit service in transit deserts, not merely substitute for existing services.
- Services must be available to people without smartphones, internet, or credit cards.
- Accessibility features must be included (wheelchair-accessible vehicles and accessible mobile apps) to meet the needs of people with disabilities at the same levels as the general population.
- Data reporting and transparency:
- Programs funded with public money must report monthly data to the New Jersey Transit Corporation, including:
- Cost per ride
- Passengers per trip
- Passenger wait times
- Miles driven without a passenger
- The Corporation must publish these data on its website on a quarterly basis.
- Further rules: The Commissioner, in consultation with the Corporation, may establish additional rules, guidelines, or protocols as needed.
2) Micro Transit Oversight Committee (Section 3)
- Establishment: A Micro Transit Oversight Committee, within NJ Transit (not a separate agency), to review and certify micro transit plans.
- Membership (3 members):
- NJ Transit representative appointed by the Governor (upon recommendation from the executive director).
- A General Assembly member appointed by the Speaker.
- A member appointed by the Senate President, recommended by the labor organization representing the plurality of relevant NJ Transit motorbus employees; if the affiliate loses plurality, the labor org may propose a replacement.
- Terms: Each member serves a 1-year term.
- Quorum and action: Majority of the committee constitutes a quorum; actions require a majority vote.
- Certification prerequisite: An entity may not provide on-demand micro transit service until certified by the Oversight Committee.
3) Oversight and implemention (Section 4)
- Lead agency: New Jersey Department of Transportation (DOT) is the lead for oversight, implementation, and enforcement.
- Rulemaking: The DOT Commissioner shall adopt rules under the Administrative Procedure Act to effectuate the bill’s purposes.
4) Effective date (Section 5)
- Immediate effect
Potential impact and considerations
- Labor and employment: Strong emphasis on preserving existing wages/benefits for workers and requiring labor organization involvement for publicly funded programs.
- Service expansion: Focus on expanding access to transit deserts while maintaining or improving service levels for people with disabilities and those without digital access.
- Oversight: introduces a formal certification process via a dedicated Micro Transit Oversight Committee, creating a gatekeeping mechanism before any program can operate.
- Transparency: mandatory monthly data reporting to the NJ Transit Corporation and quarterly public data publication.
- Compliance burden: Agencies and contractors must align with new wage, labor, and accessibility requirements, which may influence contracting strategies and pricing.
This bill would fundamentally reframe how on-demand micro transit is delivered and supervised in New Jersey, emphasizing direct employment for drivers, labor engagement, accessibility, and public reporting.