Prohibits surcharge on transportation network company riders for certain paratransit service.
Senate Bill 4335 would exempt certain paratransit trips from New Jersey’s transportation network company (TNC) surcharge. Under current law, most prearranged rides provided by TNCs are subject to a $0.50 surcharge, or $0.25 for shared rides, when the trip both begins and ends in the state. This bill would prohibit that surcharge from being imposed on riders using TNCs for paratransit service.
The bill defines paratransit service broadly to include transportation provided by NJ Transit to comply with the Americans with Disabilities Act, county transportation assistance programs for senior citizens and disabled residents, certain Department of Labor and Workforce Development transportation services, and Medicaid non-emergency medical transportation. It also adds a new provision stating that a TNC arranging prearranged rides for paratransit service would not be personally liable for paratransit service rides.
If enacted, the bill would amend N.J.S.A. 39:5H-4.1 to carve out paratransit rides from the existing TNC surcharge and would create a new statutory protection limiting TNC liability for paratransit service rides. The change would affect TNCs, riders who rely on disability, senior, and Medicaid transportation services, and the state’s surcharge collection and administration framework overseen by the Division of Taxation. It would reduce costs for eligible riders and remove surcharge collection obligations for those trips.
The bill appears generally supportive of accessibility and affordability for riders who depend on paratransit, especially people with disabilities, seniors, and Medicaid beneficiaries. The available record does not include committee testimony or recorded votes, so there is no documented opposition or amendment debate in the materials provided. Based on the bill text and sponsor statement, the measure is framed as a targeted consumer relief and accessibility bill rather than a broader transportation tax change.
The main policy issue is whether paratransit users should be exempt from the TNC surcharge that funds state transportation-related purposes. Supporters would likely emphasize that these riders are using essential, often medically necessary or disability-related transportation and should not bear an added fee. Any potential concern would likely come from fiscal or administrative perspectives, since exempting these rides could slightly reduce surcharge revenue and require TNCs and the state to distinguish paratransit trips from other prearranged rides. The bill also narrows TNC liability for paratransit rides, which could be viewed as a technical clarification or, alternatively, as a reduction in accountability depending on the stakeholder.