Relates to transportation network companies

8 Co-sponsors

• Phil Boyle
• Rich Funke
• Joseph A. Griffo
• Timothy M. Kennedy
• Kathleen A. Marchione
• Terrence P. Murphy
• Susan Serino
• David J. Valesky

Title of bill

An act to amend the insurance law, in relation to transportation network companies

Purpose

To clarify insurance provisions and requirements relative to transportation network companies.

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 amends the insurance law by adding as a permissible exclusion from certain required coverages injuries that occur while operating a personal vehicle as a transportation network company driver.

Section 4 provides authority to local municipalities to implement rules and regulations pertaining to transportation network companies, including background check requirements.

Section 5 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 seeking 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.

This bill would establish requirements and protections similar to those which have been adopted in other states relative to TNCs so as to ensure adequate coverage for TNC activities and prevent the subsidization of commercial TNC activities by personal auto insurance policyholders. In New York, TNCs are currently operating only in New York City pursuant to Taxi and Limousine Commission regulations. This bill would address the INC insurance issues which are hindering TNCs from operating upstate and would help to allow this innovative new transportation option to be made available upstate. To support innovation and allow these new TNC businesses to grow while at the same time protecting consumers, it is vitally important that the vehicles used in TNC services are properly insured and the public is protected. This bill would establish clear guidelines relative to TNC related insurance issues so that everyone knows where they stand regarding insurance coverage for transportation network services. 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 on the one hundred twentieth day after it shall have become law.