TRENTON, N.J. — A New Jersey Assembly committee has advanced legislation aimed at increasing penalties for unlicensed limousine operators, citing concerns over passenger safety and unfair competition in the for-hire transportation industry.
The Assembly Transportation Committee on Monday approved a bill sponsored by Assemblyman Michael Inganamort that would strengthen enforcement against illegal limousine operations.
Lawmakers said the measure targets operators who provide rides without proper licensing, insurance or compliance with state regulations, which officials say can expose passengers and drivers to potential risks.
“Legitimate limo drivers must pass criminal background checks and purchase a $1.5 million insurance policy, but illegal operators are skirting these safety regulations while also bypassing wage and tax laws. They are increasingly undermining professional limo services and putting unwitting passengers and their drivers in harm’s way,” Inganamort (R-Morris) said. “Currently, penalties are low compared to the potential profits these illegal operations can rake in, so raising the fines and consequences for violations should help deter some of these bad actors.”
The bill would increase penalties for a third or subsequent violation involving offenses such as operating a limousine without a municipal license, driving without proper credentials, failing to maintain required insurance, exceeding passenger limits, lacking proper registration plates or failing to inspect vehicles.
Under the proposal, violators could face a $7,500 fine, a six-month driver’s license suspension and vehicle impoundment.
According to the Chauffeured Transportation Association of New Jersey, unlicensed operators have been advertising services online and providing rides without meeting state requirements. Officials said some drivers mistakenly believe they are properly insured by increasing personal auto coverage, though most personal policies exclude for-hire use.
Supporters of the bill say the issue is especially prevalent near high-traffic locations such as airports, entertainment venues and sports facilities.
“Unlicensed limo operators tend to target entertainment and sports venues, and airports, which means many areas in New Jersey are prime targets. To protect the public, drivers, and legal chauffeur businesses, New Jersey’s limo laws need to be updated, and that is what this bill does,” Inganamort said.
