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.
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.
