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A08195 Summary:

BILL NOA08195B
 
SAME ASNo Same As
 
SPONSORCahill
 
COSPNSRMorelle, McDonald, Fahy, Santabarbara, Lupardo, Ceretto, McDonough, Lavine, Hunter, Rivera, Cook, Pretlow
 
MLTSPNSRLawrence, Lupinacci, Markey
 
Add §§3441 & 3455, Ins L; amd §§160-cc, 160-hh & 160-jj, Exec L; amd §181, Gen Muni L
 
Relates to transportation network companies; establishes certain insurance requirements and defines terms.
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A08195 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8195B
 
SPONSOR: Cahill
  TITLE OF BILL: An act to amend the insurance law, the executive law and the general municipal law, in relation to transportation network companies   PURPOSE: To clarify insurance provisions and requirements relative to transporta- tion network companies.   SUMMARY OF PROVISIONS: Section 1 of the bill would amend the insurance law by adding a new section 3441 which would provide the minimum insurance limits that transportation network companies (TNCs) must carry in their group poli- cies and other requirements that TNCs must follow in order to operate in the state. During the period when a TNC driver is logged onto a TNC's network and is available to receive transportation requests, a TNC must carry liability insurance of $100,000 for death and bodily injury per person, $300,000 for death and bodily injury per incident and $25,000 for property damage. During the period when a TNC driver is engaged in a prearranged ride, a TNC must carry liability insurance of $1,500,000 for bodily injury, death and property damage. This section would also prohibit any TNC from operating in New York City. Section 2 of the bill would amend the insurance law by adding a new section 3455 which would authorize the issuance of automobile insurance policies to transportation network companies on a group basis. Each group policy would be required to provide liability coverage, first party benefits coverage and uninsured motorist coverage in satisfaction of the financial responsibility requirements set forth in New York law. This section would also provide how the coverages of a group policy will work if a driver is using multiple apps at the same time during periods 1, 2 and 3. Additionally, this section would provide that a TNC's group policy coverage will remain in effect when a TNC driver is transporting a passenger from one municipality to another. Sections 3, 4 and 5 of the bill would amend the executive law to add transportation network company drivers to the New York Black Car Opera- tors' Injury Compensation Fund, Inc. Section 6 of the bill would amend the general municipal law to give municipalities the authority to regulate the registration and licensing of TNCs. Section 7 of the bill would establish the effective date.   JUSTIFICATION: On April 24, 2014, transportation network company (TNC) Lyft launched operations in this state in the cities of Buffalo and Rochester. Less than three months later the department of financial services (DFS) issued a letter, dated July 8, 2014, that ordered Lyft to cease and desist operations in New York mainly on the grounds that Lyft was violating New York insurance and financial services laws. This bill seeks to address the concerns raised by DFS and to allow TNCs to operate in upstate New York by authorizing insurers to issue group insurance coverage to TNCs thereby allowing such companies to purchase and provide adequate insurance coverage for the vehicles enrolled in a company's network. This bill also establishes the necessary insurance coverage and other insurance-related requirements to ensure that consum- ers and TNC drivers are adequately protected when engaged in TNC activ- ity.   LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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