Add SS3441, 3455 & 5103, Ins L; amd SS121-e, 148-a, 401 & 498, add Title X-A Art 46-A SS2200 - 2211, V & T L;
amd S181, Gen Muni L; amd S151, Transp L
Relates to transportation network companies that use a digital network to connect transportation network drivers to transportation network riders for the purpose of providing transportation; provides for insurance for such companies and implements registration, regulation and operational requirements.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6090A
SPONSOR: Cahill TITLE OF BILL: An act to amend the insurance law, the vehicle and
traffic law, the general municipal law and the transportation law, in
relation to transportation network companies
PURPOSE:
To establish, regulate and provide proper insurance for transportation
network companies and drivers.
SUMMARY OF PROVISIONS:
Sections 1 and 2 of the bill amend the insurance law by adding two new
sections to authorize the issuance of automobile insurance policies to
transportation network companies and transportation network company
drivers on a group basis and to regulate the interaction of private
passenger automobile insurance policies with insurance policies covering
transportation network services.
Sections 3 through 9 of the bill amend certain existing sections of the
vehicle and traffic law, the general municipal law, the transportation
law, and the insurance law in order to permit the establishment and
operation of transportation network companies.
Section 10 of the bill amends the vehicle and traffic law by adding a
new Title X-A and article 46-A, which empowers the commissioner of motor
vehicles to issue permits to transportation network companies and to
regulate transportation network companies and transportation network
company drivers through establishment of registration, operational, and
insurance requirements. It also authorizes the commissioner of motor
vehicles to take action against a transportation network company for any
violations of the new article 46-A of the vehicle and traffic law.
Section 11 is the effective date.
JUSTIFICATION:
Transportation Network Companies (TNCs) provide a digital platform that
matches consumers with a community of vetted local drivers offering
rides using their personal vehicles. Existing transportation options
alone can no longer fully accommodate growing populations, yet 80% of
the seats in personal vehicles remain empty. TNC platforms are already
filling those empty seats across the country by providing additional
transportation options to communities that need them most and reducing
the economic burden of car ownership.
The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic congestion,
curbs air pollution and provides last mile solutions to commuters seek-
ing to utilize existing transit options. TNCs are continuing to evolve
to maximize these benefits with innovative options in the largest
markets where they have been able to grow within the framework of
reasonable regulation.
TNCs have proactively addressed safety issues by developing practices
and policies that provide unprecedented transparency for both passengers
and drivers. They have worked with insurers to develop policies that
provide a significantly higher level of coverage than is required or
typical for-hire-vehicles in New York. These policies can help set a
baseline for consumer protection while competition will continue to push
standards even higher. This bill would balance the need to ensure that
necessary safety standards are met by existing and emerging TNCs while
enabling growth and innovation to fully realize the benefits that
consumers are demanding.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately
