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A 4361

Establishes requirements for on-demand micro transit programs operating within State.

2024-2025 Regular Session Introduced by Kevin Egan and 2 co-sponsors

Establishes rules to operate on-demand micro transit with labor protections, ensuring added service to transit deserts and required certification before rollout.

Withdrawn from Consideration
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Bill Summary · A 4361

Summary of Assembly Bill A 4361 (withdrawn)

Overview

  • Bill Number: A 4361
  • Title: Establishes requirements for on-demand micro transit programs operating within State
  • Status: Withdrawn from consideration (2025-02-27)
  • Introduced: February 4, 2025
  • Prime Sponsor: Charles Fall
  • Committee/Referral: Referred to Labor (initial actions listed)
  • Related bills: A 9328 (prior-session), S 3450 (companion)

Purpose: To regulate and standardize the operation of on-demand micro transit programs in New Jersey, ensuring labor protections, service safeguards, and formal oversight, while directing that these programs augment rather than replace existing transit services—especially in designated transit deserts.

Key Definitions

  • On-demand micro transit: Publicly available, technology-enabled, shared transportation using a motor vehicle, with pickup/drop-off locations chosen by the rider via telephone or mobile app, scheduled at the rider’s chosen time or as soon as possible.
  • On-demand micro transit program / micro transit program / program: Any such service operated in the State by the New Jersey Transit Corporation (NJ Transit), a county transit agency, or another entity.
  • Software services: Technology to enable operation of an on-demand micro transit program, provided by NJ Transit, a county transit agency, or another entity; excludes a digital network as defined elsewhere.
  • Transit desert: A municipality or physically contiguous area with limited access to public transportation (bus, rail, light rail).

Core Provisions

Operational Requirements (Section 2)

The Commissioner of Transportation must establish requirements for on-demand micro transit programs, including:
- Direct Operation by Employees: Employees of the controlling entity must directly operate the transportation services, with two exceptions:
1) Certain software services may be outsourced to third parties as needed.
2) An entity that does not employ public transportation drivers may use a third-party contractor for the transit service, provided:
- Existing employees of the third-party contractor are offered employment in the micro transit program at no less favorable wages, hours, working conditions, and benefits; and
- The third-party contractor directly employs all on-demand micro transit drivers.
- Driver Credentials: On-demand micro transit drivers must hold a valid commercial driver license (CDL).
- Wage and Benefit Parity: Drivers must be compensated at least the same wages, hours, working conditions, and benefits as other directly employed drivers of the entity providing the service.
- Workforce Protections: Existing employees must not be adversely affected by the establishment and operation of the micro transit program.
- Service Impact: Each program must create additional transit service to transit deserts, rather than replacing existing transit.
- Additional Rules: The NJT Corporation, in consultation with the Transportation Commissioner, may establish other necessary rules, guidelines, or protocols.

Oversight and Certification

Micro Transit Oversight Committee (Section 3)

  • Establishment: A Micro Transit Oversight Committee within (but not of) NJ Transit Corporation to review and certify each micro transit plan.
  • Composition (3 members): 1) NJT representative appointed by the Governor on the recommendation of NJT’s executive director. 2) A New Jersey General Assembly member appointed by the Speaker. 3) A member appointed by the Senate President on recommendation of the labor organization representing the plurality of motorbus operation employees; replacement possible if affiliation changes.
  • Terms: Each member serves a 1-year term.
  • Quorum: A majority constitutes a quorum; actions require a majority vote.
  • Certification Condition: Entities (NJT Corporation, county transit agencies, or others) may not provide on-demand micro transit service until certification is granted.

Implementation Timeline

  • Effective date: Immediate (upon enactment).
  • Process: The Oversight Committee must certify each plan before rollout; the Commissioner and NJT must implement the defined requirements.

Impact and Implications

  • Labor Protections: Strong emphasis on employee status, wages, benefits, and preventing adverse effects on existing workers.
  • Service Expansion vs Replacement: Explicit goal to add transit capacity to transit deserts.
  • Oversight: Formal certification mechanism to review plans and ensure compliance.
  • Administrative Path: Requires coordinated rulemaking by the Commissioner of Transportation and NJT, plus legislative oversight via a tripartite committee.
  • Status Note: Withdrawn from consideration as of February 27, 2025; potential for future reintroduction or revision.

Compiled from official sources — confirm details with the bill’s official record.

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