NY State Senate Bill 2015-S7117

Senate Bill S7117

2015-2016 Legislative Session

Relates to allowing municipalities to enact dynamic pricing for transportation of passengers by motor vehicle

download bill text pdf

Archive: Last Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 30, 2016	referred to transportation

2015-S7117 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Transportation Law
Laws Affected:: Amd §157, Transp L; amd §181, Gen Muni L; amd §396-r, Gen Bus L; amd §2304, NYC Chart

2015-S7117 (ACTIVE) - Summary

Permits municipalities to enact regulations allowing dynamic pricing based upon consumer demand for transportation of passengers by motor vehicle.

2015-S7117 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7117

 TITLE OF BILL :

An act to amend the transportation law, the general municipal law, the
general business law and the New York city charter, in relation to
allowing dynamic pricing of taxicabs and limousines

 PURPOSE OR GENERAL IDEA OF BILL :

To allow, at the option of the regulating authority, members of the
passenger transportation by motor vehicle market to use dynamic
pricing when consumer demand increases.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of this bill amends section 157 of the Transportation Law
to add a new subdivision 8. This new subdivision provides that
notwithstanding any other provision of law, the Commissioner of the
Department of Transportation may, at his or her option and after
consultation with any county, dynamic pricing for passenger
transportation services by motor vehicle in such county.

Section two of this bill amends section 181 of the General Municipal
Law by adding a new subdivision 3 to allow the regulating entity to
opt to allow dynamic pricing based on consumer demand.

Section three of this bill amends General Business Law section 396-r
to provide that when a municipality has elected to allow dynamic
pricing based on consumer demand, such pricing shall not be prohibited
an unlawful price gouging.

Section four of this bill amends the new York City Charter to allow
the taxi and Limousine Commission to elect to allow dynamic pricing
based on consumer demand.

Section five of this bill provides that this act shall take effect on
the thirtieth day after it shall have become a law.

 JUSTIFICATION :

Over the past few years, the advent of apps for cell phones has caused
changes in the passenger transportation by motor vehicle industry.
The companies that use these apps dispatch private motor vehicles to
transport passengers. In this sense, they are similar to taxi
dispatchers. Unlike the taxi industry, these companies have the
unfettered ability to change their fares in response to increased
market demand. This dynamic pricing policy, which is also known as
surge pricing, has disrupted the level playing field in this industry.

This bill would provide Counties and New York City with the option of
allowing the passenger transportation by motor vehicle industry
conducing in their County or in New York City to use a dynamic pricing
policy based upon market demand.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the thirtieth day after it shall have
become a law.

2015-S7117 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7117

                            I N  S E N A T E

                             March 30, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN ACT to amend the transportation law, the general municipal  law,  the
  general  business  law  and  the New York city charter, in relation to
  allowing dynamic pricing of taxicabs and limousines

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 157 of the transportation law is amended by adding
a new subdivision 8 to read as follows:
   8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  JUST
AND REASONABLE CHARGES MAY INCLUDE, AT THE OPTION OF THE COMMISSIONER IN
CONSULTATION  WITH  A COUNTY, DYNAMIC PRICING BASED UPON CONSUMER DEMAND
FOR SUCH COUNTY, PROVIDED, HOWEVER, DYNAMIC PRICING  BASED  ON  CONSUMER
DEMAND  FOR  SERVICE PROVIDED IN A CITY WITH A POPULATION OF ONE MILLION
OR MORE SHALL BE ALLOWED.
  S 2. Section 181 of the general municipal law is amended by  adding  a
new subdivision 3 to read as follows:
  3.  DYNAMIC  PRICING  BASED  UPON CONSUMER DEMAND. ANY SUCH REGULATION
SHALL BE AT THE OPTION OF THE REGULATING ENTITY, PROVIDED  HOWEVER,  THE
REGULATING  ENTITY  FOR  A CITY WITH A POPULATION OF ONE MILLION OR MORE
SHALL ALLOW DYNAMIC PRICING BASED ON CONSUMER DEMAND. FOR  THE  PURPOSES
OF THIS SUBDIVISION, REGULATING ENTITIES SHALL ALSO INCLUDE THE COUNTIES
AUTHORIZED  TO REGULATE REGISTRATION AND LICENSING UNDER SUBDIVISION ONE
OF THIS SECTION.
  S 3. Subdivision 2 of section 396-r of the general  business  law,  as
amended  by  chapter  510  of  the  laws  of 1998, is amended to read as
follows:
  2. During any abnormal disruption of the market for consumer goods and
services vital and necessary for  the  health,  safety  and  welfare  of
consumers,  no  party  within the chain of distribution of such consumer
goods or services or both shall sell or offer to sell any such goods  or
services or both for an amount which represents an unconscionably exces-
sive   price.  For  purposes  of  this  section,  the  phrase  "abnormal
disruption of the market" shall mean any change in the  market,  whether

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD14519-02-6

S. 7117                             2

actual  or  imminently  threatened,  resulting  from  stress of weather,
convulsion of nature, failure or shortage of  electric  power  or  other
source of energy, strike, civil disorder, war, military action, national
or  local  emergency,  or  other  cause of an abnormal disruption of the
market which results in the declaration of a state of emergency  by  the
governor.  For the purposes of this section, the term consumer goods and
services  shall  mean  those  used,  bought  or  rendered  primarily for
personal, family or household purposes. This prohibition shall apply  to
all  parties within the chain of distribution, including any manufactur-
er, supplier, wholesaler, distributor or retail seller of consumer goods
or  services or both sold by one party to another when the product  sold
was located in the state prior to the sale.  Consumer goods and services
shall  also  include  any  repairs made by any party within the chain of
distribution of consumer goods on an emergency basis as a result of such
abnormal disruption of the market.  NOTWITHSTANDING THE FOREGOING,  THIS
SECTION  SHALL NOT PROHIBIT, IN A MUNICIPALITY THAT HAS ELECTED TO ALLOW
DYNAMIC PRICING FOR TRANSPORTATION OF PASSENGERS BY MOTOR VEHICLE OR  IN
A  CITY WITH A POPULATION OF ONE MILLION OR MORE, INCREASED FARES DUE TO
INCREASED MARKET DEMAND FOR TRANSPORTATION OF PASSENGERS BY MOTOR  VEHI-
CLES IN THE ABSENCE OF AN ABNORMAL DISRUPTION OF THE MARKET.
  S  4.  Subdivision  b of section 2304 of the New York city charter, as
added by local law number 12 of the city of New York for the year  1971,
is amended to read as follows:
  b.  Hereafter,  and notwithstanding the rates set forth in paragraph a
of this section, the commission shall prescribe,  revise  and  otherwise
regulate reasonable rates of fare which may be charged and collected for
each  type of service rendered, PROVIDED THAT THE COMMISSION SHALL ALLOW
DYNAMIC PRICING DUE TO INCREASED MARKET DEMAND.
  S 5. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

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