The General Assembly approved new penalties on May 18 to address the issue of unlicensed limousine operators in New Jersey. The legislation (A1552), sponsored by Assemblyman Michael Inganamort, aims to target illegal chauffeur services that use online bookings and operate at busy locations such as airports and entertainment venues.
The topic is important because unlicensed limo operators are not required to meet safety regulations, including criminal background checks and high insurance coverage, which can put passengers and drivers at risk. According to Inganamort, “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 endangering unwitting passengers and their drivers.” He said current penalties under state law are low compared to the profits made by illegal operations: “Currently, limousine law 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.”
Under the bill, increased penalties would apply for third or subsequent violations such as operating without a municipal license, allowing unlicensed drivers behind the wheel, carrying insufficient insurance policies, exceeding seating capacity limits, failing to obtain special registration plates or proper vehicle inspections. Penalties could include a $7,500 fine, a six-month driver’s license suspension, and vehicle impoundment.
The Chauffeured Transportation Association of New Jersey has documented several cases where unlicensed operators advertised on online platforms while providing transportation services in the state. The association found that many drivers believed they were properly insured by increasing personal policy limits; however most personal auto policies exclude coverage for commercial use. As a result passengers may be exposed to uninsured operators while drivers face significant risks with no safety net.
Inganamort said: “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.”
