BILL NUMBER: S9067
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to financial
responsibility requirements for transportation network companies
 
PURPOSE:
To align the uninsured motorist insurance requirements for Transporta-
tion Network Companies (TNCs) with the existing requirements for other
for-hire vehicles (FHVs) and taxicabs.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Vehicle and Traffic Law § 1693(3)(a). It
removes the requirement for TNCs to provide supplementary
uninsured/underinsured motorist (SUM) insurance in the amount of
$1,250,000 while a driver is engaged in a prearranged trip. It replaces
this provision with a requirement to provide uninsured motorist coverage
in the minimal amount and form provided for in subsection (f) of section
3420of the insurance law.
Section 2 provides that the act shall take effect immediately.
 
JUSTIFICATION:
Currently, Transportation Network Companies are required to maintain
supplementary uninsured/underinsured motorist (SUM) coverage of $1.25
million when a driver is engaged in a prearranged trip. This requirement
significantly exceeds the insurance mandates placed on comparable trans-
portation providers, such as taxicabs and other for-hire vehicles
(FHVs), creating a regulatory disparity in the personal transportation
sector.
By amending the statute to require uninsured motorist coverage in the
minimal amount rather than the elevated supplementary amount, this bill
creates parity between TNCs and other for-hire transportation services.
This ensures that TNCs are subject to financial responsibility standards
that are consistent with the broader industry, while still maintaining
necessary protections for drivers and passengers as mandated by the
insurance law.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.