TRENTON — Gov. Chris Christie has signed into law a measure that will license the regulate the popular ride-sharing industry, bringing to a close a tumultuous, three-year effort marked by threats from Uber executives they would pull out of New Jersey.
N.J. is now the 36th state to regulate Uber, Lyft and other ride-sharing businesses.
The “Transportation Network Company Safety and Regulatory Act,” mandates drivers and the companies that employ them meet insurance coverage standards and undergo a driving and criminal background check, according to the law (A3695).
The companies must pay a $25,000 to register with the state, according to the law.
Drivers would be banned from employment by a ride sharing company if they had been convicted of homicide, sexual assault, driving under the influence of drugs or alcohol, reckless driving and possession or sale of a controlled dangerous substance.
Passengers injured in an accident while being transported by a ride-sharing company would have medical coverage through either the driver, the company, or both that covers $1.5 million in medical bills, according to the bill.
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Sen. Paul Sarlo (D-Bergen), the bill’s prime sponsor, said the law signed by Christie on Friday, strikes a balance between protecting the public and promoting a growing new industry.
“This law will address concerns about safety regulations and confusion about who is responsible for setting and enforcing standards to protect consumers and safeguard customers in their use of ride-sharing companies such as Uber and Lyft that have experienced rapid growth,” Sarlo said. “This law will ensure continued economic opportunities for drivers, safe affordable rides for passengers as well as safeguards and protections for consumers.”
Uber spokesman Craig Ewer thanked Christie and the bill’s sponsors for reaching an agreement.
The legislation “allows us to continue operating across the state and will improve the lives of New Jerseyans through access to safe, affordable transportation for riders and flexible economic opportunities for drivers,” according to Ewer’s statement. “We look forward to working constructively with the administration as we implement the new law.”
Uber employs 13,000 drivers in New Jersey, according to the company’s estimate in December.
Lyft spokesman Adrian Durbin also expressed gratitude, noting it will allow the company to continue to “improve transportation around the Garden State” and “empower New Jerseyans to improve their lives through economic opportunity.”
The burgeoning ride-sharing industry and state lawmakers began negotiating the terms of the bill in 2014. Uber threatened to leave the state if the legislators called for regulations they had deemed too onerous.
The taxi and limousine industry, meanwhile, urged lawmakers to require ride share companies to meet the same regulations imposed on them, such as the requirement that taxi and limo drivers must be fingerprinted and pass a drug test.
To ease these concerns, the Legislature in December passed another bill (A3696) that would eliminate the seven percent sales tax paid by limousine companies as part of an effort to allow them to better compete with Uber and Lyft.
Under the new ride-sharing law, drivers must be at least 21, submit proof of their license, registration and insurance coverage, according to the newly-enacted law. Ride-sharing companies must maintain records of each driver’s travel history for five years, and term them over at the request of the Motor Vehicle Commission or the Division of Consumer Affairs if a complaint is filed.
“I admire the modernization these companies bring to transportation, but that does not excuse them from an obligation to conduct business safely,” Assemblyman Joseph Lagana (D-Bergen), one of the sponsors, said in a statement. “Residents of our state who take advantage of ride-hailing services must be able to do so without compromising their own well-being or that of other drivers on the road.”
Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.
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