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TO: Senate Commerce Committee FROM: Tracy Schoenberg, Executive Vice President Commerce and Industry Association of New Jersey (CIANJ) DATE: March 14, 2022 SUBJECT: Delivery Auto Insurance Bill (S-486) ________________________________________________________________________ Good afternoon, Chairwoman Pou and Members of the Committee. My name is Tracy Schoenberg, Executive Vice President of the Commerce and Industry Association of New Jersey (CIANJ). CIANJ is a statewide business advocacy group, with offices in Rochelle Park and Trenton, representing the interests of more than 900 members from virtually every business sector. Today, I am here to testify on S-486, the Delivery Auto Insurance Bill. First, I respectfully request that this committee wait to advance legislation until a national model for delivery insurance is finalized, which is anticipated later this year. The National Conference of Insurance Legislators (NCOIL) is developing a model bill that would regulate auto insurance requirements for delivery drivers and platforms for states to adopt. It is our hope that New Jersey would adopt the NCOIL model for delivery when it is available. Second, we would hope that any special auto insurance requirements for delivery drivers reflect the differences between delivery and rideshare. We feel it is not accurate to equate delivery drivers and platforms to rideshare drivers and platforms. Unlike a rideshare service, a delivery service does not transport passengers. Instead, a driver is often transporting food and beverages from restaurants, grocery items or other retail and convenience products. Many of the risks associated with rideshare services – specifically passengers who hired the driver for transportation sustaining injuries – are simply not a factor in delivery service. We understand that liability coverage is still needed for delivery workers, but the amount should be adjusted to reflect the absence of third-party passengers. To be clear – the delivery driver carrying a Shamrock Shake this week to a customer should not be held to the same standard or insurance requirements as a rideshare driver transporting passengers to a destination. Finally, we understand the desire of this committee and the intent of the bill but respectfully request that you consider the points I have raised today and reexamine the desire to push this piece of legislation forward. I greatly appreciate the opportunity to comment on this bill on behalf of CIANJ and our members.