Committee Statement - Assembly No. 5870, On-Demand Micro Transit Programs (New Jersey Assembly, 2026)

Summary

A committee statement to the New Jersey Assembly, No. 5870, from the Assembly Commerce, Economic Development and Agriculture Committee, dated January 5, 2026, reporting Assembly Bill No. 5870 favorably and with committee amendments. As amended, the bill establishes requirements for on-demand micro transit programs, including that third-party contractors or subcontractors directly employ all drivers, meet federal and State wage and hour requirements, and give drivers a federal W-2 form. Other requirements cover a labor harmony agreement precondition, service for persons without a smartphone, and accessibility features. The bill would take effect 180 days after enactment, and the amendments remove provisions on data reporting and a Micro Transit Oversight Committee.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

                     ASSEMBLY, No. 5870

       STATE OF NEW JERSEY
                           DATED: JANUARY 5, 2026

          The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably and with committee
      amendments Assembly Bill No. 5870.
          As amended, this bill establishes certain requirements for any on-
      demand micro transit program in the State. The bill defines “on-
      demand micro transit” to mean shared public transportation services
      provided by means of a motor vehicle to individuals selecting a pick-
      up and drop-off location by telephone or through a software
      application, and which transportation is provided at a time selected by
      the individual or as soon as possible after the individual selects pick-
      up and drop-off locations for such transportation.
          Under the bill, the requirements for on-demand micro transit
      programs include:
          (1) the New Jersey Transit Corporation (corporation) may provide
      micro transit services through a third-party contractor so long as third-
      party contractors or subcontractors that provide the on-demand micro
      transit services directly employ all on-demand micro transit drivers,
      meet all federal and State wage and hour requirements, and drivers
      receive a federal W-2 form;
          (2) any other entity operating an on-demand micro transit program
      may provide services through a third-party contractor so long as the
      third-party contractors or subcontractors that provide on-demand
      micro transit services directly employ all on-demand micro transit
      drivers, meet all federal and State wage and hour requirements, and
      drivers receive a federal W-2 form;
          (3) any contract or agreement between an entity and third-party
      contractor is required to include a precondition to require the
      contractor and all subcontractors of the contractor to enter into a labor
      harmony agreement with one or more labor organizations which
      represent or seek to represent the contractor’s employees;
          (4) existing employees of an entity that provides on-demand micro
      transit service, and, if applicable, the entity’s existing transportation
      contractors, and the corporation are not adversely affected by the
      establishment and operation of the on-demand micro transit program;
          (5) each on-demand micro transit program makes reasonable
      attempts to create service to transit deserts;
                                   2

    (6) on-demand micro transit services are available to persons
without access to a smartphone, Internet service, or a credit card; and
    (7) on-demand micro transit services include accessibility features
to accommodate the mobility needs of persons with disabilities at the
same service levels as the general population.
    The bill would take effect 180 days after the date of enactment,
except that certain micro transit programs already operating as of the
effective date of the bill, or that have entered into a contract or have
received federal grants, would be exempt from the provisions of the
bill for the life of the contract or federal grant, or an additional 60
days, whichever is greater.

COMMITTEE AMENDMENTS:
    The committee amended the bill to:
    (1) clarify the definitions of “on-demand micro transit,” “on-
demand micro transit program,” and “transit desert”;
    (2) allow the New Jersey Transit Corporation to provide micro
transit services through a third-party contractor or subcontractor so
long as the third-party contractor or subcontractor directly employs all
on-demand micro transit drivers, meets all federal and State wage and
hour requirements, and drivers have W-2 forms;
    (3) allow any other entity operating an on-demand micro transit
program to provide services through a third-party contractor or
subcontractor so long as the third-party contractor or subcontractor
directly employs all on-demand micro transit drivers meets all federal
and State wage and hour requirements, and drivers have W-2 forms.
As introduced, the bill allowed a public entity that did not previously
employ public employees as transportation drivers to provide on-
demand micro transit services through a third-party contractor so long
as certain requirements applied as outlined in the bill as introduced;
    (4) remove from the bill provisions that allow an entity to
outsource software services to one or more third parties and provide
that failure to comply with the requirements of the bill are regarded as
a failure to meet the wage and payment requirements of current law;
    (5) remove from the bill provisions concerning data reporting,
establishing a Micro Transit Oversight Committee, and requiring on-
demand micro transit drivers to hold a commercial drivers license; and
    (6) revise the effective date to be 180 days after the date of
enactment and to exempt, or delay from application, micro transit
programs already operating or under contract, or in receipt of a federal
grant, to provide micro transit services.


File and source

File

2026-01-05_ACE_A5870_S1.pdf

Size

133,025 bytes

SHA-256

a88e46d43a3fda1638fb7bc7972a7bd8b1d6ced264cc466b098eab901aa325b5

Our copy

2026-01-05_ACE_A5870_S1.pdf

Original

No public link identified.