Establishes requirements for on-demand micro transit programs operating in NJ.

The entire original Section 2 (Commissioner of Transportation establishing operational requirements) and Section 3 (Micro Transit Oversight Committee) were deleted. The committee had previously been the enforcement mechanism requiring certification before any program could operate.

New Section 2a(1) and 2a(2)(a) require that third-party contractors directly employ all on-demand micro transit drivers as W-2 employees and comply with specific federal and state wage and hour laws, including the Temporary Disability Benefits Law, New Jersey State Wage and Hour Law, and P.L.2023 c.10.

New Section 2a(2)(b) requires that any contract between an entity and a third-party contractor include a labor harmony agreement precondition, requiring the contractor to enter into an agreement with one or more labor organizations to refrain from work stoppages, boycotts, or other economic interference for the duration of the agreement.

The requirement regarding transit deserts was softened from 'creates additional transit service to transit deserts' to 'makes reasonable attempts to create service to transit deserts, rather than replacing existing transit services.'

The accessibility requirement was modified to allow 'same or similar service levels as the general population as is reasonable under the circumstances' and specifically includes wheelchair-accessible vehicles and an accessible mobile application.

New Section 2b exempts complementary paratransit service from the act's provisions.

Assemblywoman Brennan was added as a co-sponsor, indicating expanded legislative support for the bill.

The definition of 'on-demand micro transit program' now requires that the entity be using public funding to fund the program in whole or in part, narrowing the bill's applicability to publicly funded programs only.

The definition of 'transit desert' was narrowed by adding a five square mile size requirement for contiguous areas, broadened by changing 'limited access' to 'limited or no access,' and further specified by requiring that the lack of service relates to routes providing efficient access to education, commerce, employment, and social services resources.

The definition of 'on-demand micro transit' removed 'publicly available, technology-enabled' from the description, changed 'shared transportation' to 'shared public transportation services,' and broadened 'mobile application' to 'software application.'

The effective date changed from immediate to 180 days after enactment. Programs already operating or that have entered into a contract or received a federal grant before the effective date are exempt for the life of that contract or grant (excluding options or extensions as of the effective date) or an additional 60 days, whichever is greater.