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A06661 Summary:

BILL NOA06661
 
SAME ASNo Same As
 
SPONSORCahill
 
COSPNSRMorelle, Ryan, Fahy, McDonald, Lupardo, Pretlow, Hunter, Jean-Pierre, Jenne, Lifton, Magnarelli, Solages, Stirpe, Thiele, Wallace, Peoples-Stokes, Rivera, Niou, Jaffee, Woerner
 
MLTSPNSRD'Urso, Steck
 
Add Art 44-B §§1691 - 1700, amd §§370, 600 & 601, V & T L; add §§3435-b & 3455, amd §§5102, 5106, 2305, & 3425, Ins L; amd §§160-cc, 160-ff & 160-jj, Exec L; amd §181, Gen Muni L; amd §§1101, 1131, 1132, 1133 & 1136, Tax L
 
Relates to the regulation of transportation network company services; establishes the New York State TNC Accessibility Task Force; and establishes the local transit assistance fund.
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A06661 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6661
 
SPONSOR: Cahill (MS)
  TITLE OF BILL: An act to amend the vehicle and traffic law, the insurance law, the executive law, the tax law, the state finance law and the general municipal law, in relation to the regulation of transporta- tion network company services; to establish the New York State TNC Accessibility Task Force; and to establish the local transit assistance fund   PURPOSE: To authorize and regulate Transportation Network Companies to operate within the state of New York outside of New York City by establishing minimum insurance requirements, authorizing localities to regulate TNC vehicles, add TNC drivers to the New York Black Car Operators' Injury Compensation Fund, Inc. and apply sales tax.   SUMMARY OF PROVISIONS: Section 1 sets forth the legislative intent to enhance transportation options within New York State. Section 2 of the bill would add a new Article 44-B to the vehicle and traffic law to allow for Transportation Network Companies (TNC) to oper- ate in New York State outside of the City of New York. It establishes minimum insurance requirements, $75,000 for death and bodily injury per person, $150,000 for death and bodily injury per incident, and $25,000 for property as well as a $200,000 excess liability insurance policy while the driver is logged in and has not agreed to provide a ride. Once the driver has offered to provide a ride or has a passenger in the vehi- cle a $1.5 million liability insurance policy would provide coverage. This section also sets forth licensing requirements, provides standards for decals to be affixed to TNC vehicles, provides for criminal back- ground checks of TNC drivers, requires TNCs to adopt a policy of non- discrimination, and requires TNCs to implement and maintain a policy of providing accessibility to passengers with a disability and the accommo- dation of service animals. This section would also authorize the New York state department of motor vehicles to impose a civil penalty of up to $20,000 on TNCs which are engaging in repeated illegal acts. Section 3 of the bill would amend section 370 of the vehicle and traffic law to provide that TNC drivers regulated pursuant to Article 44-B of the vehicle and traffic law shall not be deemed to be engaging in the business of transporting passengers for hire if the individual does so solely as a TNC driver. Section 4 of the bill would amend section 600 of the vehicle and traffic law to require TNC drivers, at the time an incident involving property damage or personal injury occurred, to produce proof of insurance and disclose whether he or she was logged on to a digital network and avail- able to transport passengers or was engaging in a prearranged trip. Section 4-a of the bill of the bill would amend section 601 of the vehi- cle and traffic law to require TNC drivers, at the time an incident involving injury to an animal occurred, to produce proof of insurance and disclose whether he or she was logged on to a digital network and available to transport passengers or was engaging in a prearranged trip. Section 5 of the bill would add section 3435-b to the insurance law to prohibit private auto insurers to cancel or nod-renew auto insurance policies solely based on TNC activity. Section 6 of the bill would add sections 3455 and 3456 to the insurance law to authorize insurers to issue group insurance coverage to TNCs. Section 6-a of the bill would amend section 5102 of the insurance law to include any insurance company or self-insurer who provides the financial security required under Article 44-B of the vehicle and traffic law in the definition of insurer. Section 7 of the bill would amend section 5106 of the insurance law to provide that the first insurer to which notice of claim is filed shall be responsible for the payment of no fault benefits. Section 8 of the bill would amend section 2305 the insurance law to require insurance coverage of TNCs regulated pursuant to Article 44-B of the vehicle and traffic law to be subject to prior approval. Section 9 of the bill would amend section 3425 of the insurance law to provide that the operation of a TNC vehicle shall not be included by auto insurers in determining whether such vehicle is being used for predominately non-business purposes. Section 10, 11 and 12 of the bill would amend section 160-cc, section 160-ff and 160-jj of the executive law to add TNC drivers to the New York Black Car Operators' Injury Compensation Fund, Inc. Section 13 of the bill would amend section 181 of the general municipal law to authorize localities to regulate TNC vehicles and drivers in the same manner as they are currently authorized to regulate taxicabs and liveries. Section 14, 14-a, 14-b, 14-c, and 14-d of the bill would amend section 1101, 1131, 1132, 1133, and 1136 of the tax law to impose a sales tax on TNCs provided transportation and also imposes sales tax collection obli- gations on TNCs. Section 15 of the bill would create a taskforce to analyze and advise on how to maximize effective and integrated transportation services throughout the entire state for persons with disabilities in the TNC market. Section 16 sets forth a severability clause. Section 17 sets forth the effective date.   JUSTIFICATION: On April 24, 2014, transportation network company (TNC) Lyft launched operations in this state in the cities of Buffalo and Rochester. Less than three months later the department of financial services (DFS) issued a letter, dated July 8, 2014, that ordered Lyft to-cease and desist operations in New York mainly on the grounds that Lyft was violating New York insurance and financial services laws. This bill seeks to address the concerns raised by DFS and to allow TNCs to operate in upstate New York by authorizing insurers to issue group insurance coverage to TNCs thereby allowing such companies to purchase and provide adequate insurance coverage for the vehicles enrolled in a company's network. This bill also establishes a regulatory framework, to ensure that consumers and TNC drivers are adequately protected when engaged in TNC activity. This bill also preserves the worldwide tradition, existing for over 150 years, of governing personal commercial transportation at the local level. Communities are best suited to determine levels of regulation for driver qualification, access for people with disabilities, local customs, taxation, if any, and many other factors that can vary from one community to another in our very diverse state.   LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: Ninety days after enactment; provided that sections 14, 14-a, 14-b, 14-c, and 14-d of this act shall take effect on September 1, 2017.
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