Baker proposes legislation for ride-for-hire firms
Gov. Charlie Baker today proposed legislation regulating ride-for-hire companies such as Uber and Lyft.
In a statement released Friday morning, the governor unveiled a five-point plan focusing chiefly on safety and insurance for what his office calls "transportation network companies." Key components of the legislation include:
Regulations: The state Department of Public Utilities (DPU) will have the authority to develop and enforce a modern regulatory framework for the carriers, allowing them to collaborate with the state and municipal governments to support innovation and offer services to Massachusetts residents and visitors under clear and safe guidelines.
Public safety: In order to operate and carry passengers for hire, drivers would be required to have a full state Criminal Offender Record Information (CORI) background check, with DPU developing disqualifying offenses in coordination with the Executive Office of Public Safety and Security. The carriers will also be responsible for vetting drivers through commercial, nationwide databases, keeping driver rosters updated and displaying clear external indicators on vehicles when they operate as a carrier. The legislation also authorizes local law enforcement to run full CORI checks for livery drivers.
Closing insurance gaps: The legislation seeks to clarify confusion around potential gaps in insurance for members of the public when they travel in one of the carrier's vehicles. Massachusetts would be the first state to adopt standards negotiated between insurers and carriers, guaranteeing that vehicles will have $1 million in minimum coverage as soon as a ride request is accepted.
Municipal advisors: The legislation would establish a municipal advisory group that includes the cities of Boston, Cambridge and Somerville to represent the interests of cities and towns in DPU’s work to establish public safety regulations.
Phase-in period: The legislation allows for a six-month phase-in of the law to ensure current operations are not disrupted as the framework and regulations are developed.
Baker's legislation was commended by mayors Martin Walsh of Boston and Joseph Curtatone of Somerville. It was also applauded by a top executive with Uber.
“Governor Baker’s legislation will allow Uber to continue offering Massachusetts safe, reliable transportation options and opportunities to earn a living with greater flexibility,” said Meghan Joyce, Uber's East Coast general manager, in a statement distributed by the governor's office. “This bill would set into law for the entire industry many of the safety standards that have attracted riders and drivers to ride-sharing, including $1 million of insurance on every ride and rigorous, mandatory background checks for all drivers.”
At the end of his term, former Gov. Deval Patrick's administration wrote regulations that would place the ride companies under the jurisdiction of the state DPU, a move that would require a new law.
In February, Baker instructed the DPU to allow the companies, which include the popular ride-for-hire operators like Uber, Lyft and Sidecar, to continue operating in the state while his administration worked on legislation.
The operators have clashed with the established taxi industry in Boston and other major U.S. cities. Advocates of Uber and Lyft say they serve as an alternative to taxis, while critics say the operators started as an illegal business model that does not adequately protect passengers.
Key components of the legislation include:
Regulations: The DPU will have the authority to develop and enforce a modern regulatory framework for the carriers, allowing them to collaborate with the state and municipal governments to support innovation and offer services to Massachusetts residents and visitors under clear and safe guidelines.
Public safety: In order to operate and carry passengers for hire, drivers would be required to have a full state Criminal Offender Record Information (CORI) background check, with DPU developing disqualifying offenses in coordination with the Executive Office of Public Safety and Security. The carriers will also be responsible for vetting drivers through commercial, nationwide databases, keeping driver rosters updated and displaying clear external indicators on vehicles when they operate as a carrier. The legislation also authorizes local law enforcement to run full CORI checks for livery drivers.
Closing insurance gaps: The legislation seeks to clarify confusion around potential gaps in insurance for members of the public when they travel in one of the carrier's vehicles. Massachusetts would be the first state to adopt standards negotiated between insurers and carriers, guaranteeing that vehicles will have $1 million in minimum coverage as soon as a ride request is accepted.
Municipal advisors: The legislation would establish a municipal advisory group that includes the cities of Boston, Cambridge and Somerville to represent the interests of cities and towns in DPU’s work to establish public safety regulations.
Phase-in period: The legislation allows for a six-month phase-in of the law to ensure current operations are not disrupted as the framework and regulations are developed.
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