NOTE: State Rep. Ken Gordon represents Precinct 3 in Wilmington, as well as all of Bedford and Burlington.
BOSTON, MA — Representative Ken Gordon (D-Bedford) joined his colleagues in the Massachusetts House of Representatives this week to pass legislation that creates statewide regulations for the ‘ride to hire’ industry. The bill, which takes steps to improve public safety and protect consumers, will enable transportation network companies (TNCs) to continue to provide an innovative and valuable method of transportation for customers in the Commonwealth.
This legislation creates a “Ride for Hire Division,” overseen by the Department of Public
Utilities (DPU), that will be responsible for regulating these companies, such as Uber and Lyft. The bill creates a fair structure for TNC operations and protects the sector from overly onerous or haphazard regulations. TNCs applying for licensure must meet insurance, background check, pricing, and nondiscrimination standards.
“I am proud that the House took the initiative to tackle this tough issue, effectively safeguarding the innovative nature of transportation network companies while enhancing consumer protection and public safety,” said House Speaker Robert A. DeLeo. “This is a balanced bill and I thank Chairmen Michlewitz and Dempsey for bringing all sides to the table.”
“We were presented with a challenge to allow for the expansion and growth of an industry while ensuring consumer protection and public safety. And we have accomplished that with this legislation,” said Representative Michlewitz, Chair of the Joint Committee on Financial Services. “There were many sides to this issue with many strong opinions being presented. I believe one clear winner has emerged and that is the consumers of the Commonwealth.”
“We were able to find compromises that allowed an industry to continue to grow while keeping the playing field even for an industry that already exists,” said Representative Gordon. “Obviously, personal safety was the highest priority, and we were able to ensure that to the best of our ability in this legislation.”
To enhance public safety, this legislation requires a two-tiered background check system to be conducted by both the TNC and the Commonwealth on drivers. To receive a license, applicants’ records cannot contain any crimes related to:
- Violence or sexual abuse;
- Driving under the influence or driving with a suspended or revoked license;
- Attempting to evade the police;
- Felony robbery or fraud within seven years.
The bill also creates criminal penalties for any misrepresentation of a driver’s identity.
This legislation adopts the Ride for Hire “National Compromise” insurance policy, which will help to level the play field for TNCs and other ride-for-hire vehicles. This framework requires TNCs to guarantee at least $1 million worth of coverage from the time a vehicle is en route to pick up a passenger until that passenger exits the vehicle. Insurance carriers also must be notified if vehicles are being used as TNCs. Additionally, TNCs must also undergo two annual safety inspections: a standard passenger car inspection and a more comprehensive safety inspection.
Other provisions include:
- A requirement for drivers to display decals on the front and back of a vehicle identifying
it as a TNC vehicle when in use; - A prohibition on surge pricing during weather-related emergencies;
- A continuation of the current policy of preventing TNC drivers from picking up customers at taxicab stands, street hails, and Logan Airport. The bill also extends that exclusivity to the Boston Convention and Exhibition Center.
The bill now goes to the Senate.
(NOTE: The above press release is from Representative Ken Gordon’s Office. Hat tip to the Bedford Citizen.)
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