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Committee holds wide-ranging discussion on microtransit; stakeholders split on regulation
Summary
Senate Bill S3450 — discussion only — prompted testimony from microtransit operators, labor unions, chambers and nonprofits; major themes included labor protections, service flexibility and the commission concept.
Senate Bill S3450, which would establish requirements for on‑demand microtransit programs operating in the state, was pulled for discussion only so committee members could hear a range of stakeholder views.
Speakers included operators, local microtransit providers and labor representatives. Ben Haygood, director of policy at Isles and a leader of the GoTrenton microtransit model, told the committee that strict requirements in S3450 could impede locally tailored services that supplement fixed-route transit. He said GoTrenton provided more than 40,000 rides in 2024 and argued for flexibility in operator models.
Representatives of labor and advocacy groups urged regulation to protect workers and public funds. Eric Richard, legislative director for the AFL-CIO, warned about the industry’s record of misclassification of drivers as independent contractors and urged labor standards and oversight. Orlando Riley of the Amalgamated Transit Union described high per-ride costs seen in some microtransit pilots and urged requirements for W-2 employment, data reporting, and protections against service substitution for fixed-route transit.
Via, a major microtransit technology and operations provider, opposed S3450 as written. Aparna Paladougou, Via’s director of public policy and government affairs, said the bill’s requirements — in particular exclusivity for public operators and the commercial-driver-license provision — would likely end many existing or planned microtransit services and reduce flexibility for localities. Via urged the committee to work on targeted funding and pilot programs and to differentiate app-based gig models from the microtransit operations Via and others run.
Other testifiers including the South Jersey Chamber of Commerce and the Camden Loop and Middlesex County pilots described microtransit’s role filling first-mile/last-mile and transit-desert gaps; Environment New Jersey described local successes and recommended forming a commission first to study the field and produce recommendations.
Committee members said the discussion was intended to gather information and signaled interest in amendments to address CDL requirements, the definition of transit deserts and labor issues. Because the item was for discussion only, no vote was taken.
